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File #: CM 21-019   
Type: Committee Memo Status: Approved for Consent
File created: 1/7/2021 In control: Committee of the Whole - Planning and Public Works
On agenda: 1/12/2021 Final action:
Title: Flexible Spending Account (FSA) Plan Change Recommendations in Response to the Consolidated Appropriations Act
Attachments: 1. Agenda Memo, 2. Attachment A: Recommended Changes to the FSA Plan

TO: Committee of the Whole - Planning and Public Works

FROM: Mayor Angela Birney

DEPARTMENT DIRECTOR CONTACT(S):

Human Resources

Cathryn Laird

425-556-2125

 

DEPARTMENT STAFF:

Human Resources

Nicole Bruce

Sr. Human Resources Analyst/ Benefits Plan Administrator

 

 

TITLE:

title

Flexible Spending Account (FSA) Plan Change Recommendations in Response to the Consolidated Appropriations Act

OVERVIEW STATEMENT:

recommendation

Human Resources is recommending changes in Attachment A to the Flexible Spending Account Plan that are made allowable under the Consolidated Appropriations Act (CAA); and authorize and direct the Mayor to implement these changes including the execution of any contracts and agreements to do so.

body

  Additional Background Information/Description of Proposal Attached

 

 

REQUESTED ACTION:

 

  Receive Information                                            Provide Direction                                            Approve

 

 

REQUEST RATIONALE:

 

                     Relevant Plans/Policies:

The FSA Plan Document will need to be amended.

                     Required:

The City of Redmond Personnel Manual, Section 1.40, requires Council approval of changes in the medical plan that increase benefits to employees.

                     Council Request:

N/A

                     Other Key Facts:

The third-party administrator (Navia) is requiring notification of our decision on what provisions we wish to implement by January 20, 2021.

 

 

OUTCOMES:

The President signed the Consolidated Appropriations Act (CAA) on December 27, 2020, which contains several FSA-related relief provisions for participants.  The provisions are intended to help employees access unused FSA balances to health care and/or day care FSA from 2020 and 2021, and who were unable to utilize eligible services or care during the COVID outbreak. While the relief provisions listed on Attachment A are optional, Navia is recommending that employers adopt these provisions to provide maximum relief to FSA plan participants.  Human Resources agrees with Navia’s recommendations.

 

 

COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:

 

                     Timeline (previous or planned):

The Employee Benefits Advisory Committee (EBAC) was emailed on 1/6/2021 and feedback was requested.

                     Outreach Methods and Results:

EBAC meetings are typically held on a monthly basis, but email was used as this timeline has been compressed due to the passing of the law (12/27/2020) and when decisions are required by Navia (1/20/2021).

                     Feedback Summary:

Feedback from this outreach will occur though an online vote on recommendations.  This vote is requested by January 13, 2021 and the resulting recommendations will be included on Attachment A.

 

 

BUDGET IMPACT:

 

Total Cost:

N/A

 

Approved in current biennial budget:                                            Yes                                            No                                            N/A

 

Budget Offer Number:

N/A

 

Budget Priority:

Responsible Government

 

Other budget impacts or additional costs:                       Yes                                            No                                            N/A

If yes, explain:

The plan changes are anticipated to be cost-neutral as they are employee only contributions.

 

Funding source(s):

Medical Self-Insurance Fund (511)

 

Budget/Funding Constraints:

N/A

 

  Additional budget details attached

 

 

COUNCIL REVIEW:

 

Previous Contact(s)

Date

Meeting

Requested Action

N/A

Item has not been presented to Council

N/A

 

Proposed Upcoming Contact(s)

Date

Meeting

Requested Action

1/19/2021

Business Meeting

Approve

 

Time Constraints:

In order for Plan Changes to be implemented we must make our plan selections by January 20, 2021 so that Navia can properly calculate and display FSA carryover balances to participants by January 25, 2021.

 

 

ANTICIPATED RESULT IF NOT APPROVED:

We would not be able to provide FSA-related relief for employees as allowable under the Consolidated Appropriations Act.  

 

 

ATTACHMENTS:

Attachment A: Recommended Changes to the FSA Plan