TO: Members of the City Council
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
Approval of the Flexible Spending Account (FSA) Plan Change Recommendation in Response to the American Rescue Plan Act Signed into Law on March 10, 2021
OVERVIEW STATEMENT:
recommendation
Human Resources is recommending an increase to the maximum amount employees can contribute to their Dependent Care FSA from $5,000 to $10,500 for the 2021 plan year.
Human Resources is also recommending that moving forward our FSA Plan Design mirrors the maximum benefits allowable under current law(s)/regulation(s) and any subsequent changes and that Council authorize and direct the Mayor to implement any 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 that increase benefits to employees.
* Council Request:
N/A
* Other Key Facts:
N/A
OUTCOMES:
The Flexible Spending Account (FSA) is an IRS-regulated reimbursement account, also called Section 125 Flexible Spending Accounts (FSAs), that allow employees to save by setting pre-tax money aside for use in paying approved expenses. The City makes two kinds of plans available to employees; 1) a Health Care FSA that reimburses out-of-pocket health care expenses for employees and their dependents and 2) a Day Care FSA that reimburses day care expenses incurred for their dependent child or elder care expenses.
The President signed the American Rescue Plan Act (ARPA) on March 10, 2021, which contains several b...
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