Title
a. Approve the temporary amendment to the Monterey County Section 125 Flexible Benefit Plan to allow employees to make a one-time mid-year change to their Flexible Spending Account and/or Dependent Care Assistance Program for plan year 2020 only; and
b. Approve the permanent amendment to the Monterey County Section 125 Flexible Benefit Plan to increase the Flexible Spending Account carryover limit from $500 to $550 as indexed for inflation for plan year 2020 and subsequent years; and
c. Authorize and Direct the Human Resources Department and the Auditor-Controller's Office to implement the amendments to the Monterey County Section 125 Flexible Benefit Plan.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve the temporary amendment to the Monterey County Section 125 Flexible Benefit Plan to allow employees to make a one-time mid-year change to their Flexible Spending Account and/or Dependent Care Assistance Program for plan year 2020 only; and
b. Approve the permanent amendment to the Monterey County Section 125 Flexible Benefit Plan to increase the Flexible Spending Account carryover limit from $500 to $550 as indexed for inflation for plan year 2020 and subsequent years; and
c. Authorize and Direct the Human Resources Department and the Auditor-Controller's Office to implement the amendments to the Monterey County Section 125 Flexible Benefit Plan.
SUMMARY:
On May 26, 2020 the Board of Supervisors approved the relief afforded by the Internal Revenue Service (IRS) issued notices 2020-29 and 2020-33 in response to the national COVID-19 pandemic emergency. These notices allow employers to offer certain mid-year benefit changes to employees, allow employers to increase the Flexible Spending Account rollover amount from $500 to $550 and require modifications to the County of Monterey Section 125 Flexible Benefit Plan no later than December 31, 2020. The County's Section 125 Flexible Benefit Plan is the written plan docume...
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