Agenda

Return

C. 53

To:	Board of Supervisors
From:	Dianne Dinsmore, Human Resources Director
Date:	November 19, 2019

Contra

Costa

County

Subject:

Section 125 Benefits Plan revision- Enrollment of Health Plan Participants in the Premium Conversion Program

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/19/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Dianne Dinsmore 925-335-1776

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: November 19, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE the Contra Costa County Section 125 Benefits Plan as amended and restated, effective January 1, 2020, and AUTHORIZE the Plan Administrator to take all necessary actions to implement the revised plan.

FISCAL IMPACT:

There is no additional fiscal impact to County in implementing the revised plan.

BACKGROUND:

The Contra Costa County Section 125 Benefits Plan (“Plan”) provides eligible employees with options among certain taxable and nontaxable benefits, including medical, dental and vision plans, Health Care Spending Accounts (HCSA), the Dependent Care Assistance Program (DCAP), and Health Savings Accounts (HSA) offered through the County or Public Employees' Medical & Hospital Care Act (PEMHCA). The Plan is intended to qualify as a cafeteria plan under Section 125 of the Internal Revenue Code of 1986 and is to be interpreted in a manner consistent with the requirements of the Code.

BACKGROUND: (CONT'D)

The Plan is amended to implement the automatic enrollment of health plan participants in the Premium Conversion Program (“PCP”), which uses pre-tax earnings to pay for a participant’s share of their healthcare plan premiums. The amended Plan states that healthcare premium deductions will automatically be taken on a pre-tax basis under the PCP, rather than as an election, to ensure health plan participants benefit from the use of pre-tax monies.

The Plan was last amended and restated on January 1, 2017.

CONSEQUENCE OF NEGATIVE ACTION:

Without the approval of the amended Plan, which allows for automatic enrollment in the Premium Conversion Program (“PCP”), some employees may not receive the benefit of using pre-tax deductions to pay for their share of healthcare deductions under the Section 125 Plan.