HomeMy WebLinkAbout11-001Resolution
RESOLUTION ESTABLISHING AUTHORITY FOR PRE-FUNDING
THE COUNTY'S 1Z5 CAFETERIA PLAN
WHEREAS, the County of Butte has offered a 125 Cafeteria Plan, including a Flexible
Spending Account (FSA) for both medical and dependent care expenses, to eligible employees
for numerous years; and
WHEREAS, the administrative cost of the benefit is paid by the County; and
WHEREAS, the funding to reimburse FSA and dependent care claims comes from
participant contributions made through automatic salary deductions; and
WHEREAS, the current third party administrator (TPA) of the F5A would not agree to a
written contract with the County; and
WHEREAS, the County has chosen to contract with Discovery Benefits, a TPA, who has
agreed to a written contract and will provide enhanced services (debit card options and
administration and payment of all claims) at a reduced cost to the County; and
WHEREAS, Discovery Benefits has established a Custodial Account that will hold the
funds for payment of claims; and
WHEREAS, the County is required per the contract to keep a level of funding for the FSA
in the Custodial Account at a level of at least two months of the projected Plan benefit claims
(not to exceed $50,000);
WHEREAS, the County is required per the contract to remit the amount of dependent
care claims on a regular basis before employees will be paid for their claimed costs; and
WHEREAS, per the contract with Discovery Benefits, all contributions remitted from the
County "shall consist solely of general assets of the County;" and
WHEREAS, per the contract with Discovery Benefits , "participant contributions, if any,
made by employees to the Plan through salary reduction nr otherwise, shall be used to
reimburse County for contributions advanced by the County to pay benefits under the Plan.
NOW, THEREFORE, BE IT RESOLVED by the Butte County Board of Supervisors as
follows:
1. The Auditor-Controller is hereby authorized and directed to draw a warrant or make
an electronic payment in the sum of Thirty-five Thousand Dollars ($35,000) to State
Bank and Trust, Fargo, North Dakota for deposit into the Custodial Account
established by Discovery Benefits.
2. The Auditor-Controller is authorized to replenish the Custodial Account to a lave! not
to exceed $50,000 at the request of the Human Resources Director.
3. The Human Resources Director or designee shall reconcile the amount held in the
Custodial Account and will request replenishment based on the contractual
requirement to keep an amount aqua! to or greater than at least two months of the
projected Plan benefit claims .
PASSED AND ADOPTED this 11t~' day of January 2011 by the Butte County Board of Supervisors
by the following vote:
AYES' Supervisors Connelly; Wahl., Kirk, Yamaguchi, and Chair Lambert
NOES: None
NOT VOTING: None
ABSENT: None
Chair
Butte County Board of Supervisors
ATTEST:
Paul Hahn
Chief Adminis ative Officer a
Clerj~tho~'Supervi7