Summary
To: Town Commission
From: Gay Lancaster, Town Manager
Date: 3/18/2025
______________________________________________________________________
Subject:
Title
Resolution 2025-10 Adopting an amended and restated Cafeteria Plan; Ratification of Health Insurance Opt-out Compensation Program.
Summary:
The Town has maintained a Cafeteria Plan under Internal Revenue Code Section 125 to facilitate pre-tax contributions by Town employees toward benefits made available to them by the Town. The Town has prepared, with the assistance of counsel, an amended and restated Cafeteria Plan for periods from and after January 1, 2025.
The Town is aware that certain members of the workforce may have alternative access to healthcare coverage and wishes to provide a monetary benefit to eligible employees who opt-out of the Town’s healthcare insurance coverage by certifying they have the minimum coverage required by the federal Affordable Care Act. Employees receiving opt-out compensation program benefits will be required to pay tax on the income and certify eligibility annually.
The Town has established the current plan year benefit. Under the Opt-out Compensation Program it will be $4,000 annually, payable in increments coordinating with the employee’s payroll period.
End
Body
Recommendation: Staff recommends approval.
Proposed Motion: I move approval of the amended and restated Cafeteria Plan and Ratification of Health Insurance Opt-out Compensation Program.