REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
July 14, 2020
FROM
DIANE RUNDLES, Director, Human Resources Department
SUBJECT
Title
Tax Savings Plan Documents
End
RECOMMENDATION(S)
Recommendation
1. Approve amended plan document for the Section 125 Premium Conversion Plan.
2. Approve amended plan document for the Medical Expense Reimbursement Plan.
3. Approve amended plan document for the Dependent Care Assistance Plan.
(Presenter: Diane Rundles, Director, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The requested actions are administrative in nature with minimal financial impact. Sufficient appropriation is included in the Human Resources 2020-21 budget for minimal administrative costs related to the amendment of these plans.
BACKGROUND INFORMATION
The proposed amendments to the plan documents implement new provisions that are permitted under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Internal Revenue Service (IRS) regulations and guidance, and changes to memoranda of understandings.
The IRS Notice 2020-29, issued on May 12, 2020, provides tax relief through increased flexibility for taxpayers in a Section 125 Cafeteria Plan, Health Flexible Spending Account (FSA) and Dependent Care Assistance Programs. Based on this recent IRS Notice, the Section 125 Premium Conversion plan document, Medical Expense Reimbursement plan document, and the Dependent Care Assistance Program plan document are amended to add a new "National Emergency" section and allow for the following prospective mid-year election changes due to COVID-19:
Section 125 Premium Conversion Plan
* Make a new health coverage election if health covera...
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