RESOLUTION 2005 – 27

 

(Amending the Skamania County’s American Fidelity Flexible Benefits

 (Section 125) Plan)

 

WHEREAS, the United States Internal Revenue Service recently released IR Notice 2004-42 relating to the period of use for flexible spending accounts under a cafeteria plan; and

 

WHEREAS, this notice allows Skamania County to add up to an additional 70-day grace period after the end of the plan year during which a participant can incur claims and be reimbursed from any forfeitures from the immediately preceding play years; and

 

WHEREAS, this would give participants in Skamania County’s flexible spending account plan up to nearly 14 ˝ months to use the medical expense contributions made into the flexible  spending accounts; and

 

WHEREAS, the Skamania County Commissioners believe that this benefit would be in the best interest of Skamania County employees and elected officials;

 

NOW, THEREFORE, BE IT RESOLVED, by the Skamania County Board of Commissioners that the Chairman is hereby authorized to sign an amendment amending Section 8.03(c) of and adding Section 8.05 GRACE PERIOD to Skamania County Plan 503 Flexible Benefit Plan through American Fidelity Assurance Company as described in Attachment A, “Amendment to the Skamania County Plan 503 Flexible Spending Plan”.

 

PASSED IN REGULAR SESSION THIS 18th DAY OF JULY 2005.

 

 

 

July 18, 2005

 

 

TO:                  ELECTED OFFICIALS AND COUNTY EMPLOYEES

FROM:            SKAMANIA COUNTY BOARD OF COMMISSIONERS

SUBJECT:       AMENDMENTS TO THE COUNTY’S FLEXIBLE BENEFIT PLAN

                        (Section 125 Plan)

 

The IRS recently gave notice that an employer can add a 70 day grace after the end of the plan year to use any unused medical expense reimbursement funds remaining after the end of the plan year.  

 

The Skamania County Board of Commissioners adopted Resolution 2005-27 that extends the period of time funds allocated to your medical expense reimbursement account in the County’s Flexible Benefit Plan (Section 125 Plan) by 70 days.   Please note that you must submit claims incurred during grace period for reimbursement no later than 20 days after the end of the grace period. 

 

Attached is a letter from American Fidelity Insurance Company further explaining the change.