HomeMy WebLinkAboutRes1999-116
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CITY OF SEWARD, ALASKA
RESOLUTION 99-116
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ESTABLISHING A "CAFETERIA PLAN" WITHIN THE
MEANING OF SECTION 125 OF THE INTERNAL REVENUE CODE, AS
AMENDED FROM TIME TO TIME, TO PROVIDE CERTAIN BENEFITS
TO THE EMPLOYEES OF THE CITY OF SEWARD
WHEREAS, the City of Seward has offered to its employees optional life and accident
insurance through Colonial Life & Accident Insurance Company (hereafter referred to as Colonial)
for many years; and
WHEREAS, Colonial offers employees various health related benefits, life insurance and
accident insurance and the coverages are optional and are paid by the employee through payroll
deductions; and
WHEREAS, the City of Seward implemented a Section 1 25/Cafeteria/Flexible Benefit plan
as allowed by the Internal Revenue Code with Colonial through a wholly owned subsidiary company
called Benefit America on July 1,1996; and
WHEREAS, on February 1, 1997, Colonial announced that it was no longer supporting "in-
house" administration of Section 125 Cafeteria plans and entered into a service agreement with
Benefit America and The Barrington Group; and
WHEREAS, as a result ofthe changes in plan administrators, it is necessary to approve new
Section 125 plan documents to stay in compliance with the IRS regulations; and
WHEREAS, it is desirable to establish a "cafeteria plan" within the meaning of Section 12
of the Internal Revenue Code, as amended from time to time, to provide certain benefits to the
Employees of the City of Seward.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City of Seward Premium Only Plan is hereby established and adopted
effective to read substantially in the form presented.
Section 2. The City Manger is hereby authorized and directed to execute such plan
documents.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 99-116
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council ofthe city of Seward, Alaska, this 23 day
of August, 1999.
THE CITY OF SEWARD, ALASKA
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Lowell Satm, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Callahan, Gage, King, Orr, Satin
None
Shafer
None
ATTEST:
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Patrick Reilly
City Clerk
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