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RESOLUTION 89-19549 RESOLUTION NO. 89-19549 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDED AND RESTATED CAFETERIA PLAN WHICH EXTENDS THE CAFETERIA PLAN COVERAGE TO FIRE FIGHTERS HEALTH INSURANCE COSTS. WHEREAS, the City of Miami Beach has in effect for its employees a Cafeteria Plan, as provided for in Section 125 of the Internal Revenue Code of 1986, as amended; and WHEREAS, the City is desirous of extending the full benefits of that Plan to its fire fighters so long as the health insurance costs of the fire fighters may be paid directly by the City by payroll deductions; and WHEREAS, the First Amended and Restated Cafeteria Plan in the form attached satisfies the requirements of Section 125 of the Internal Revenue Code of 1986, as amended, and the objectives of the City; and WHEREAS, the City Commission of the City of Miami Beach is familiar with the provisions of said First Amended Cafeteria Plan; NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, THAT the First Amended and Restated Cafeteria Plan be and the same is hereby adopted by the City Commission; that the Mayor and City Clerk be and they are hereby authorized and directed to execute said First Amended and Restated Cafeteria Plan in the name of and on behalf of the City. PASSED AND ADOPTED this 1st day of March , 1989 . Ad 12:::___ 4:4111( ayor ATTEST: (1 All )3V 1111 FARM APPROVED City Clerk LEGAL DEPT. B � v Date -16-1.1-7242/22-1-- FIRST AMENDED AND RESTATED CITY OF MIAMI BEACH CAFETERIA PLAN approved by Resolution No. 89-19549 adopted March 1, 1989 CITY OF MIAMI BEACH CAFETERIA PLAN TABLE OF CONTENTS Page ARTICLE • I. INTRODUCTION 1 1. 1. Purpose of Plan 1 1. 2 . Cafeteria Plan Status 1 II. DEFINITIONS 1 2 . 1. "Administrator" 1 2 . 2 . "Cash Compensation" 1 2 . 3 . "City" 1 2 . 4 . "Code" 1 2 . 5. "Compensation Reduction" 2 2 . 6. "Effective Date" 2 2 . 7 . "Employee" 2 2 . 8 . "Key Employee" 2 2 . 9 . "Life Insurance Plans" 2 2 . 10. "Health Care Plan" 2 . 2 . 11. "Participant" 2 2 . 12 . "Plan" 2 2 . 13 . "Plan Year" 2 III. PARTICIPATION 3 3 . 1. Commencement of Participation 3 3 . 2 . Cessation of Participation 3 3 . 3 . Reinstatement of Former Participant 3 IST. OPTIONAL 'PE EFITS 3 4 . 1. Benefit Options 3 4 . 2 . Description of benefits other than cash 4 4 . 3 . Election of optional benefits in lieu of cash 4 4 . 4 . Election procedure 5 4 . 5. New Participants . 5 4 . 6. Failure to elect 6 4 . 7 . Changes by Administrator 6 4 . 8 . Irrevocability of election by the Participant during the Plan Year 7 4 . 9 . Automatic termination of election 7 4 . 10. Maximum employer contributions 8 V. ADMINISTRATION OF PLAN 8 5. 1. Plan Administrator 8 5 . 2 . Examination of records 9 5 . 3 . Reliance on tables, etc. 10 5 . 4 . Nondiscriminatory exercise of authority 10 5 . 5. Indemnification of Administrator 10 VI. AMENDMENT AND TERMINATION OF PLAN 10 • VII. MISCELLANEOUS PROVISIONS 11 7 . 1. Information to be furnished ii 7 . 2 . Limitation of rights it 7 . 3 . Governing law 11 ARTICLE I - INTRODUCTION 1. 1. Purpose of Plan. The purpose of this Plan is to provide employees of the City of Miami Beach a choice between cash and benefits under the life insurance and medical care plans maintained by the City of Miami Beach. • 1. 2 . Cafeteria plan status. This Plan is intended to qualify as a "cafeteria plan" under section 125 of the Internal Revenue Code of 1986, as amended, and is to be interpreted in a manner consistent with the requirements of section 125 . ARTICLE II - DEFINITIONS 2 . 1. "Administrator" means the City or such other person or committee as may be appointed from time to time by the City to supervise the administration of the Plan. 2 . 2 . "Cash Compensation" means the total amount of wages or salary, bonuses and overtime that would be payable by the City to an employee in the absence of an election and agreement for Compensation Reduction. 2 . 3 . "City" means the City of Miami Beach, a municipal corporation organized under the laws of Florida. 2 . 4 . "Code" meanstheInternal Revenue Code of 1986 , as �n�e�.la� amended from time to time. Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces such section or subsection. 2 . 5 . "Compensation Reduction" means the amount which the Participant and the City initially agree to reduce the Participant's Cash Compensation in accordance with Section 3 . 1. 2 . 6 . "Effective Date" means October 1, 1988 . -2 . 7. "Employee" means any individual employed by the City as -further defined in Section 3 . 1. 2 . 8 . "Key Employee" means any person who is a key employee as defined in section 416 (i) (1) of the Code. 2 . 9 . "Life Insurance Plans" means the City of Miami Beach Basic Life Insurance Plan and the City of Miami Beach Supplemental Life Insurance Plan, Plan Nos. 1 and 2 , as amended from time to time. 2 . 10. "Health Care Plan" means the City of Miami Beach Health Care Plan, Plan No. 3 , and the Florida Fire Fighters Health Insurance Trust Fund, each as amended from time to time. 2 . 11. "Participant" means any individual who - participates in the Plan in accordance with Article III. 2 . 12 . "Plan" means the City of Miami Beach Cafeteria Plan as set forth herein, together with any and all amendments and supplements hereto. 2 . 13 . "Plan Year" means the period beginning on the Effective Date and ending on September 30, 1989 , and the 12- month period ending on each September 30 thereafter. A pronoun or adjective in the masculine gender includes the feminine gender, and the singular includes the plural, unless the context clearly indicates otherwise. -2- ARTICLE III - PARTICIPATION 3 . 1. Commencement of Participation. Each Employee: (1) whose customary employment, excluding overtime work, is at least 30 hours per week and (2) who has completed at least 90 days ,of service with the City as a probationary classified Employee, or upon employment as an unclassified Employee, or the date of re-employment of a regular Employee will be eligible to participate in the Plan. p. � 1 o--a.re-- leer-a--a f._ Ite _F1 n r i particlipailet_ard.ythia__Li.f.a_ Lnca-42-3 An Employee will become a Participant on the later of (a) the Effective Date or (b) the first day of the pay period in which he becomes eligible to participate under the preceding sentence. 3 . 2 . Cessation of participation. A Participant will cease to be a Participant as of the earlier of (a) the date on which the Plan terminates or (b) the date on which he ceases to be an Employee eligible to participate under Section 3 . 1. 3 . 3 . Reinstatement of former Participant. A former Participant will become a Participant again if and when he meets the eligibility requirements of Section 3 . 1. ARTICLE IV - OPTIONAL BENEFITS 4 . 1. Benefit options. A Participant may choose under this Plan to receive his full compensation for any Plan Year in cash or to have a portion of it applied by the City toward the cost of one or more of the following optional benefits: _3_ (a) Benefits available to the Participant under the Life Insurance Plans; and (b) Benefits available to the Participant under the Health Care Plan. .4 . 2 . Description of benefits other than cash. While the -election to receive one or more of the optional benefits described in Section 4 . 1 may be made under this Plan, the benefits will be provided not by this Plan but by the Life Insurance Plans and the Health Care Plan. The types and amounts of benefits available under each option described in Section 4 . 1, the requirements for participating in such option, and the other terms and conditions of coverage and benefits under such option are as set forth from time to time in the Life Insurance Plan and Medical Plans, and in the group insurance contracts and prepaid health plan contracts that constitute (or are incorporated by reference in) such Plans. The benefit descriptions in such Plans and contracts, as in effect from time to time, are hereby incorporated by reference into this Plan. 4 . 3 . Election of optional benefits in lieu of cash. A Participant may elect under this Plan to receive one or more of the optional benefits described in Section 4. 1 in accordance with the procedure described in Section 4 . 4 . - If a Participant elects any such optional benefit under this Plan, the Participant's Cash Compensation will be reduced, and an amount equal to the reduc- tion will be contributed by the City to the appropriate Life Insurance or Health Care Plans to cover the Participant's share -4- of the cost of such benefit as determined by the City. The balance of the cost of each such benefit shall be paid by the City under this Plan with nonelective City contributions. 4 . 4 . Election procedure. Approximately 30 days prior to the commencement of each Plan Year, the Administrator shall provide a ~written election form (which shall include a Compensation Reduction Agreement) to each Participant and to each other Employee who is expected to become a Participant at the beginning of the Plan Year. The election form shall be effective as of the first day of the Plan Year. Each Participant who desires one or more optional benefit coverages described in Section 4 . 1 for the Plan Year shall so specify on the election form and shall agree to a reduction in his Cash Compensation. The amount of the reduction in the Participant's Cash Compensation for the Plan Year shall equal the Participant's share of the cost of each optional benefit elected by the Participant, and shall be adjusted automatically in the event of a change in any such cost. Each election form must be completed and returned to the Administrator on or before such date as the Administrator shall specify, which date shall be no later than the beginning of the first pay period for which the Participant's compensation reduction agreement will apply. 4 .5. New Participants. As soon as practicable before an Employee becomes a Participant under Section 3 . 1 or 3 . 3 , the Administrator shall provide the written election form described in Section 4 . 4 to the Employee. If the Employee desires one or -5- more optional benefit coverages described in Section 4 . 1 for the balance of the Plan Year, he shall so specify on the election form and shall agree to a reduction in his compensation as provided in Section 4. 4 . The election form must be completed and returned to the Administrator on or before such date as the Administrator shall specify, which date shall be no later than the beginning of the first pay period for which the Participant's compensation reduction agreement will apply. 4 . 6. Failure to elect. A Participant failing to return a completed election form to the Administrator on or before the specified due date for the initial Plan Year of the Plan, or for the Plan Year in which he became a Participant, shall be deemed to have elected to receive his full compensation in cash. A Participant failing to return a completed election form to the Administrator on or before the specified due date for any subsequent Plan Year shall be deemed to have made the same election as was in effect just prior to the end of therecedin p g Plan Year. The Participant shall also be deemed to have agreed to reduction in his compensation for the subsequent Plan Year equal to the Participant's share of the cost from time to time during such Plan Year of each optional benefit he is deemed to have elected for such Plan Year. 4 . 7. Changes by Administrator. If the Administrator determines, before or during any Plan Year, that the Plan may fail to satisfy for such Plan Year any nondiscrimination requirement imposed by the Code or any limitation on benefits -6- w provided to Key Employees, the Administrator shall take such action as the Administrator deems appropriate, under rules uniformly applicable to similarly situated participants, to assure compliance with such requirement or limitation. Such action may include, without limitation, a modification of -elections by highly compensated Employees or Key Employees with or without the consent of such Employees. 4 . 8 . Irrevocability of election by the Participant during the Plan Year. Elections made under the Plan (or deemed to be made under Section 4 . 6) shall be irrevocable by the Participant during the Plan Year, subject to a change in family status. A Participant may revoke a benefit election for the balance of a Plan Year and file a new election only if both the revocation and the new election are on account of and consistent with a change in family status. A change in family status for this purpose includes marriage, divorce, death of a spouse or child, birth or adoption of a child, termination of employment of a spouse, and such other events that the Administrator determines will permit a change or revocation of an election during a Plan Year under regulations and rulings of the Internal Revenue Service. Any new election under this Section 4 . 8 shall be effective at such time as the Administrator shall prescribe, but not earlier than the first pay period beginning after the election form is completed and returned to the Administrator. 4 . 9 . Automatic termination of election. Elections made under this Plan (or deemed to be made under Section 4 . 6) shall automatically terminate on the date on which the Participant ceases to be a Participant in the Plan, although coverage or benefits under the Life Insurance Plans and Health Care Plan may continue if and to the extent provided by such Plans. 4 . 10. Maximum employer contributions. The maximum amount of employer contributions under the Plan for any Participant shall be the sum of the costs from time to time of the most expensive benefits available to the Participant under the Life Insurance and Medical Plans (including the portion of such costs payable with nonelective City contributions) . ARTICLE V - ADMINISTRATION OF PLAN 5 . 1. Plan Administrator. The administration of the Plan shall be under the supervision of the Administrator. It shall be a principal duty of the Administrator to see that the Plan is carried out, in accordance with its terms, for the exclusive benefit of persons entitled to participate in the Plan without discrimination among them. The Administrator will have full power to administer the Plan in all of its details, subject to applicable requirements of law. For this purpose, the Administrator's powers will include, but will not be limited to, the following authority, in addition to all other powersP rovided by this Plan: _ (a) To make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan, including the -8- establishment of any claims procedures that may be required by applicable provisions of law; (b) To interpret the Plan, its interpretation thereof in good faith to be final and conclusive on all E persons claiming benefits under the Plan; • (c) To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan; (d) To appoint such agents, counsel, accountants, consultants and other persons as may be required to assist in administering the Plan; and (e) To allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities under the Plan, any such allocation, delegation or designation to be in writing. Notwithstanding the foregoing, any claim which arises under the Life Insurance Plans or Health Care Plan shall not be subject to review under this Plan, and the Administrator's authorityunder . this Section 5. 1 shall not extend to anymatter to as which an administrator under any such otherlan is empowered to p p make determinations under such plan. 5. 2 . Examination of records. The Administrator will make available to each Participant such of his records ds under the Plan as pertain to him, for examination at reasonable times during normal business hours. -.9- 5. 3 . Reliance on tables, etc. In administering the Plan, the Administrator will be entitled to the extent permitted by law to rely conclusively on all tables, valuations, certificates, opinions and reports which are furnished by, or in accordance with -the instructions of, the administrators of the Life •Insurance and Medical Plans, or by accountants, counsel or other experts employed or engaged by the Administrator. 5. 4 . Nondiscriminatory exercise of authority. Whenever, in the administration of the Plan, any discretionary action by the Administrator is required, the Administrator shall exercise its authority in a nondiscriminatory manner so that all persons similarly situated will receive substantially the same treatment. 5. 5. Indemnification of Administrator. The City agrees to indemnify and to defend to the fullest extent permitted by law any Employee serving as the Administrator or as a member of a committee designated as Administrator (including any Employee or former Employee who formerly served as Administrator or as a member of such committee) against all liabilities, damages, costs and expenses (including attorneys' fees and amounts paid in settlement of any claims approved by the City) occasioned by any act or omission to act in connection with the Plan, if such act or omission is in good faith. - ARTICLE VI - AMENDMENT AND TERMINATION OF PLAN The Plan may at any time be amended or terminated by a duly authorized written instrument of the City. -10- ARTICLE VII - MISCELLANEOUS PROVISIONS 7 . 1. Information to be furnished. Participants shall provide the City and Administrator with such information and evidence, and shall sign such documents, as may reasonably be requested from time to time for the purpose of administration of the Plan. 7 . 2 . Limitation of rights. Neither the establishment of the Plan nor any amendment thereof, nor the payment of any benefits, will be construed as giving to any Participant or other person any legal or equitable right against the City or Administrator, except as provided herein. 7 . 3 . Governing law. This Plan shall be construed, administered and enforced according to the laws of Florida. IN WITNESS WHEREOF, the City has caused this Plan to be executed in its name and behalf this 2nd day of March , 1989 by its officer thereunto duly authorized. THE CITY 0 MI. . H BY: Ade 1/( /I( ,ryor Attest 5,3 City Clerk -11- ORIGINAL RESOLUTION NO.89-19549 Authorizing and directing the Mayor and City Clerk to execute a first amended and restated Cafeteria Plan which ex- tends the Cafeteria Plan coverage to fire fighters health insurance costs.