Fiscal Note
The proposed resolution restates the City of Madison post-retirement sick leave conversion plan as required by the IRS. The City has maintained this plan since 2006. Budget for the plan is including annually within the operating budget under Direct Appropriations. No additional appropriation is required with this resolution.
Title
Affirming the City of Madison Post-Retirement Sick Leave Conversion Medical Reimbursement Plans and Trusts and a 401(a) Plan and Trust, authorizing execution of other documents
Body
The City of Madison (“Employer”), hereby consent to the following:
WHEREAS, the Employer has maintained the City of Madison 401(a) Special Pay Plan (“Plan”) since 10-1-2006 for the benefit of eligible employees;
WHEREAS, the Employer is restating the above-referenced Plan to comply with the requirements of the 2017 IRS Cumulative List (IRS Notice 2017-37), the American Taxpayer Relief Act of 2012, the Tax Cuts and Jobs Act of 2017 and other applicable guidance (collectively referred to herein as the Cycle 3 restatement); and
WHEREAS, the Employer wishes to affirm the appointment of Pelion Benefits, Inc. Christine L Chnupa 888.532.7526 www.pelionbenefitsinc.com <http://www.pelionbenefitsinc.com/> as Trustee(s) of the Plan.
NOW, THEREFORE, BE IT RESOLVED that the Employer hereby adopts the City of Madison 401(a) Special Pay Plan as the complete Cycle 3 restatement of the prior Plan, to be effective on 1-1-2022;
RESOLVED FURTHER that the undersigned members of the Common Council authorize the execution of the restated Plan document and authorize the performance of any other actions necessary to implement the adoption of the Cycle 3 Plan restatement. The City of Madison authorizes the City of Madison Human Resources Director (or other authorized person) to execute the restated Plan document and perform the necessary actions to adopt the restated Plan. The Employer will maintain a copy of the restated Plan, as approved by the members of the Common Council, along with a copy of the prior Plan, in its files;
RESOLVED FURTHER that the Employer will act as administrator of the Plan and will be responsible for performing all actions necessary to carry out the administration of the Plan. The Employer may designate any other person or persons to perform the actions necessary to administer the Plan; and
RESOLVED FURTHER that Plan participants shall be provided with a summary of the Plan provisions within a reasonable period of time following the adoption of the restated Plan.