HomeMy WebLinkAboutItem 4.6 Dependent Care Assistance Program CITY O F D U B L I N
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 26, 1990
SUBJECT: Dependent Care Assistance Program (Report prepared by:
NO- Paul Rankin and Lou Ann Riera-Texeira)
EXHIBITS: R olution Adopting Dependent Care Plan
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RECOMMENDATIO : Adopt Resolution
FINANCIAL City staff proposes to self-administer the dependent
STATEMENT: care assistance program. Thus, the only program cost
would be associated with programming the City's
computer system. The estimated computer programming
cost is $200.
DISCUSSION: In September of 1.988, the California legislature enacted
Senate Bill 722, which provides for child care tax credits. The bill authorizes
two methods to assist taxpayers in defraying child care costs. One method
provides for child care tax credits; the other applies to dependent care
assistance programs. Both methods are governed by the Internal Revenue Service
rules and current federal and state tax laws.
Briefly, child care tax credits are available if the taxpayer pays someone to
care for the taxpayer's dependent child (under age 13), a disabled dependent or
disabled spouse. One method of tax credit is based on the taxpayer's adjusted
gross income and is applied directly against taxes due on their annual 1040 tax
form.
The other method, the dependent care assistance program, allows the taxpayer to
fund eligible dependent care expenses using pre-tax dollars. Such a program
permits the employee ("participant") to authorize their employer to reduce their
taxable salary in exchange for the employer's contribution of an equal amount to
a reimbursable account. The account would be solely funded by each
participant. The participant is reimbursed for child care expenses incurred
during the calendar year. The dependent care assistance program provides
participants with a tax-effective way to pay for dependent care. If an employee
uses this program they are not permitted under the IRS rules to take the
Dependent Care Deduction on their tax return.
The City of Dublin provides a number of benefits to assist employees in planning
for their future (i.e. , retirement, deferred compensation and life insurance
benefits) . A dependent care assistance program would help employees with some
of their more immediate financial needs. The benefit can also be implemented at
a minimal cost to the City. Thus, City staff has worked with a tax attorney in
drafting a Dependent Care Assistance Plan for the City of Dublin (attached).
Highlights of the draft plan are presented below:
How Does the Dependent Care Assistance Program Work?
The program allows non-highly compensated employees to fund eligible dependent
care expenses using pre-tax dollars. The program permits the employee
("participant") to authorize their employer. to take a "pre-tax" payroll
deduction. The employer places the designated amount into a reimbursable
account. The account is then used to reimburse the participant for eligible
expenses incurred during the calendar year.
Who Is Eligible?
City employees who are scheduled to work more than 20 hours per week; who are
covered under PERS; who are not defined as "highly compensated employees" in
accordance with Section 414(g) of the IRS Code; and who meet the applicable
Internal Revenue Codes as related to dependent care assistance programs.
In general terms, highly compensated employees would be those earning more than
$50,000 per year. The attorney who prepared the City's plan explained that
without this restriction the program would be extremely difficult for our agency
to implement.
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How Much May Participants Contribute?
Participants may contribute a maximum of $5,000 (pre-tax dollars) each calendar
year.
What Are Eligible Dependent Care Expenses?
Day Care expenses required for:
o Children (under age 13) whom you claim as dependents for federal income tax
purposes, because you and, if you are married, your spouse are gainfully
employed. Or, if you are employed and your spouse is a full-time student at an
educational institution.
• A Spouse, child or other dependent who is mentally or physically unable to
care for himself or herself.
Participants are required to report the name, address and taxpayer
identification number (i.e. , social security number or employer identification
number) of the dependent care provider.
What Are Ineligible Dependent Care Expenses?
o The cost of food, clothing or education, unless such expenses are incidental
to your dependent's care.
• Educational expenses for a child in kindergarten or above, including after-
school programs.
• Transportation.
• Any amount paid to a person you claim as a dependent on your tax return, or
to one of your children under age 19.
o Day care expenses for a child if you are divorced or legally separated, and
the child is in your custody less than one half of the year.
"Use it or Lose it" Forfeiture Rule
There are important limits on the reimbursement account required by federal law,
including a "use it or lose it" forfeiture rule. This rule requires that all
funds be used for dependent care during the specified year or be forfeited.
Thus, if an employee contributes to the Dependent Care Reimbursement Account,
but does not incur sufficient expenses to claim full reimbursement of the amount
in their account during the calendar year for which they are enrolled, the
employee must forfeit the remaining amount. This information will be clearly
explained to all participants.
The draft plan also outlines administrative procedures for enrolling in the
dependent care assistance program, filing a claim, and making changes to or
revoking the reimbursement account.
Staff recommends that Council review and approve the Dependent Care Assistance
Plan, adopt the resolution and direct staff to implement the program.
RESOLUTION NO. - 90
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ESTABLISHING A DEPENDENT CARE PLAN
WHEREAS, the City of Dublin desires, effective March 1, 1990, to
adopt a cafeteria plan as defined in Section 125 (c) of the Internal
Revenue Code of 1986, as amended, to allow its employees to choose
between cash and reimbursement for dependent care assistance (the
"PLAN") ; and
WHEREAS, the City Council desires to have a detailed description
of the Plan; and
WHEREAS, current laws provide an advantage to some employees who
elect to have Dependent Care Benefits paid for with pre-tax money; and
WHEREAS, the support of Dependent Care Assistance is an important
employee benefit which improves the City's ability to recruit and
retain employees of a high caliber.
NOW, THEREFORE, BE IT RESOLVED that the City of Dublin Dependent
Care Assistance Plan, in the form attached hereto as Exhibit A, be and
hereby is, approved and adopted.
PASSED, APPROVED AND ADOPTED this 26th day of February, 1990.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
EXHIBIT A
CITY OF DUBLIN
DEPENDENT CARE
CAFETERIA PLAN
(Effective March 1, 1990)
Article I
Preamble
The purpose of this Plan is to permit regular City
Employees receiving other City Benefits to choose Dependent
Care benefits which would be reimbursed by the City of
Dublin. This Plan is intended to be a cafeteria plan as
defined in section 125 (c) of the Internal Revenue Code.
Article II
Definitions
Each word and phrase defined in this Article II
shall have the following meaning whenever such word or
phrase is capitalized and used herein unless a different
meaning is clearly required by the context of the Plan.
2 . 01 Account: The individual account established on
the books of the City under Section 12 . 01 in the name of
each Participant for the purpose of accounting for contribu-
tions allocated to and benefits paid for a Participant.
2 . 02 City: City of Dublin, a California Municipal
Corporation.
2 . 03 City Manager: Shall be the City Manager of the
City of Dublin.
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2 . 04 Plan Administrator: The City Manager shall
appoint a Plan Administrator, who shall be responsible for
administering the Plan.
2 . 05 Code: The Internal Revenue Code of 1986, as
amended from time to time.
2 . 06 Compensation: A Participant's basic pay for
personal services rendered in the course of employment with
the City and any contributions under Section 4 . 01 on a
Participant'S behalf.
2 . 07 Employee: Any person employed by the City and
regularly scheduled to work at least 20 hours per week, who
is covered under the Public Employee's Retirement System and
who is not classified as a temporary Employee.
2 . 08 Participant: Any Employee who has elected to
participate in the Plan in accordance with Section 3 . 01 and
who has not ceased to be an Employee.
2 . 09 Period of Coverage: The Plan Year, except that
it may be a fraction of a Plan Year as provided in Section
5. 04 . Notwithstanding the foregoing, a Participant's Period
of Coverage shall terminate when he or she ceases to be an
Employee or, if earlier, when he or she ceases to be
eligible under Section 3 . 01.
2 . 10 Plan: The City of Dublin Dependent Care
Cafeteria Plan, as set forth herein.
2 . 11 Plan Year: The calendar year, provided, however,
that the first Plan Year shall begin on March 1, 1990 and
end December 31, 1990.
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2 . 12 Reimbursement Benefits: The Dependent Care Reim-
bursement Benefits in Section 6. 02 .
2 . 13 Reimbursement Contributions: Contributions made
under Section 4 . 01 for Reimbursement Benefits.
Article III
Eligibility Requirement
3 . 01 Eligibility: Any Employee shall be eligible to
become a Participant as of the later of March 1, 1990, or
the date of the Employee's employment; provided, however,
that an Employee who is or is treated as a "highly-
compensated employee" within the meaning of Section 414 (g)
of the Code and regulations thereunder shall not be eligible
to participate in the Plan.
3 . 02 Enrollment and Membership: The Plan Admini-
strator shall notify in writing each eligible Employee and
shall explain the rights, privileges and duties of a
Participant of the Plan. Subject to Section 5. 04, each
Employee may elect to participate as of the date on which he
or she becomes eligible in accordance with Section 3 . 01 by
completing and delivering to the Plan Administrator a salary
reduction agreement and an election of benefits form
provided therefor by the Plan Administrator. Except as
provided in Section 5. 05, an eligible Employee who does not
elect to participate during the Plan Year in which he or she
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becomes eligible may elect to participate only as of the
first day of any following Plan Year.
Article IV
Contributions
4 . 01 Dependent Care Reimbursement Contributions: For
each Plan Year, each Participant shall elect to have con-
tributed to his or her Account a specified amount of
Reimbursement Contributions for such Plan Year to pay for
Reimbursement Benefits, up to a maximum of $5, 000. 00.
4 . 02 Pay Reduction and Payroll Withholding: A Partic-
ipant's Compensation for a Plan Year shall be reduced by the
amount of the Reimbursement Contributions which he or she
elects for such Plan Year under Section 4 . 01. Such
reductions shall be made only by way of payroll withholding
which shall be made during a Participant'S applicable Period
of Coverage. An Employee who has not elected to become a
Participant shall receive his or her full pay or salary for
the Plan Year.
Article V
Elections
5. 01 In General: Elections of contributions and
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benefits shall be made at the time, in the manner and
subject to the conditions specified by the Plan Admini-
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strator, which shall prescribe uniform and nondiscriminatory
rules for such elections.
5. 02 Period of Coverage: Except as provided in
Sections 5. 03 and 5. 05, any Participant electing contribu-
tions and benefits and any Employee electing not to
participate must make an irrevocable election for an entire
Period of Coverage or Plan Year.
5. 03 Fractional Periods: Employees who become
eligible to participate during a Plan Year and terminated
Employees who are rehired as eligible Employees may elect to
participate for a period lasting until the end of the
current Plan Year. In such cases, the interval commencing
on the day after their elections are effective and ending on
the last day of the current Plan Year shall be deemed to be
their Period of Coverage. Such Employees must elect to
participate no later than 30 days after becoming eligible to
do so or within such other time limit as the Plan
Administrator may prescribe.
5. 04 Timing of Elections: Elections of contributions
and benefits for a Period of Coverage shall be made prior to
the beginning of such Period of Coverage, including a Par-
ticipant's Period of Coverage that commences or recommences
during a Plan Year.
5. 05 Changes of Elections: Elections of contributions
and/or benefits for a period of coverage, or an election not
to participate for a Plan Year may be changed during that
Period of Coverage or Plan Year only on account of and
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consistent with a change in family status because of
marriage, divorce, death of a spouse or dependent or other
decrease in the number of a Participant'S dependents, birth
or adoption of a child or other increase in the number of a
Participant'S dependents, change in the employment status of
a spouse or change in the employment status or location of a
Participant or such other changes as may be permitted by
regulations under Section 125 of the Code. Changes in
elections shall only be effective as to contributions and
benefits following the effective date of such changes.
Article VI
Benefits
6. 01 Benefits Available: A Participant may receive
Reimbursement Benefits for a period of Coverage equal to the
Reimbursement Contributions made to his or her Account for
such period. An Employee who has elected not to participate
for a Plan Year shall receive his or her unreduced pay or
salary for that Year.
6. 02 Dependent Care Reimbursement Benefits: The CITY
has adopted a Dependent Care Reimbursement Program set forth
in Article VIII designed to qualify as a nontaxable employee
benefit under Code section 129 (a) . Participants' receipt of
benefits under such Program shall be subject to all of the
requirements and restrictions contained in that Program and
in Article VII.
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Article VII
Limitations on Benefits
7. 01 coverage: Reimbursement Benefits may only be
paid for expenses incurred during the Period of Coverage for
which such Benefit was elected and only from Reimbursement
Contributions made for such Benefit during such Period of
Coverage. Expenses shall be considered incurred when the
dependent care is provided and not when the Participant is
formally billed, charged for or pays the expenses.
7 . 02 Amount of Benefits: The maximum amount of
Reimbursement Benefits payable for a Plan Year shall be
$5, 000. 00. In addition, amounts payable for a particular
claim may not exceed the balance of the Participant's
Account less amounts necessary to pay such Participant's
accrued claims for Reimbursement Benefits. If claims for
amounts in excess of such balance are made at any time, such
claims may be paid when and if further Reimbursement
Contributions are made during the applicable Period of
Coverage.
7 . 03 Forfeitures: Amounts remaining in a Reimburse-
ment Benefit Account shall be forfeited after payment of all
timely presented claims for expenses incurred during the
applicable Period of Coverage.
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Article VIII
Dependent Care Reimbursement Program
8. 01 In General: Participants covered by this Program
may submit claims for the reimbursement of a Participant's
covered Dependent Care Expenses from contributions allocated
to the Participant's Account for Dependent Care Reimburse-
ment Benefits.
8. 02 Definitions: For purposes of this Article, the
following special definitions shall apply unless a different
definition is required under the Code.
(a) "Benefits" means Reimbursement Benefits for
Expenses under this Program.
(b) "Dependent" means:
(1) a dependent (as defined in Code Section
152) of an Employee: (A) who is under the age of 13 and
with respect to whom the Employee is entitled to a
deduction under Code section 151 (c) , or (B) who is
physically or mentally incapable of caring for himself
or herself; or
(2) the spouse of an Employee, if such
spouse is physically or mentally incapable of caring
for himself or herself.
(c) "Earned Income" means earned income as
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defined in section 32 (c) (2) of the Code, excluding any
amount paid or incurred by the City for dependent care
assistance to a Participant.
(d) "Expenses" means amounts paid or incurred by
or on behalf of a Participant for household services or for
the care of a Dependent, either inside or outside of the
Participant's home, subject to the limitations in Section
8 . 07, in order to enable the Participant to be gainfully
employed for any period for which he or she has a Dependent.
(e) "Program" means the dependent care reimburse-
ment program set forth in this Article VIII.
8 . 03 Eligibility, Enrollment and Termination: All
Employees who are eligible to participate under Section 3 . 01
of the Plan shall be eligible to receive benefits under this
Program. Enrollment and termination of participation under
the Plan shall constitute enrollment and termination of
participation under this Program.
8 . 04 Limitations: The amount of Benefits for a
Participant during any year shall not exceed:
(a) In the case of a Participant who is not
married at the close of such year, the Earned Income of such
Participant for such year; or
(b) In the case of a Participant who is married
at the close of such year, the lesser of:
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(1) the Earned Income of such Participant
for such year; or
(2) the Earned Income of the spouse of such
Participant for such year.
For purposes of paragraph (b) (2) , if the Participant's
spouse is a full-time student at an educational institution
or physically or mentally incapable of caring for himself or
herself, such spouse shall be deemed to be gainfully
employed and to have Earned Income of $200 per month, if the
Participant has only one Dependent, and $400 per month if
the Participant has two or more Dependents. In the case of
any husband and wife, the preceding sentence shall apply
with respect to only one spouse for any one month.
8 . 05 Information on Dependent Care Provider: Benefits
are not payable to a Participant unless the Participant has
indicated in writing in such a manner specified by the Plan
Administrator the name and Social Security number or tax
identification number of the person or entity performing the
services for which the Benefits are claimed. Notwithstand-
ing the foregoing, where the entity providing the services
for which the Benefits are claimed is an organization
described, in section 501 (c) (3) of the Code and is exempt
from tax under section 501 (a) of the Code, Benefits are only
payable to a Participant with respect to such services if
the Participant has indicated in writing the name of the
entity performing the services.
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8 . 06 Prohibition of Certain Payments: No Benefits
shall be paid to a Participant during any taxable year of
such Participant for Expenses paid to an individual:
(a) With respect to whom, for such taxable year,
a deduction is allowable under Code section 151 (c) (relating
to personal exemptions for dependents) to such Participant
or his or her spouse; or
(b) Who is a child of such Participant (within
the meaning of Code section 151(c) (3) ) under the age of 19
at the close of such taxable year.
8 . 07 services Outside the Household:
(a) Dependent Care Centers. Benefits shall not
be paid for services provided outside a Participant's house-
hold by a facility that provides care for more than six
individuals other than individuals who reside at the
facility, and receives a fee, payment or grant for providing
services for any of the individuals, unless:
(1) such facility complies with all appli-
cable laws and regulations of a state or unit of
local government, and
(2) the requirements of Section 8 . 08 (b) are
met.
(b) Certain Dependents. Benefits shall not be
paid for services outside a Participant's household unless
the services are provided for the care of: (1) a Dependent
within the meaning of Section 8 . 02 (b) (1) (A) ; or (2) any
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other Dependent who regularly spends at least eight hours
each day in the Participant's household.
8. 08 Information Supplied By Employee: The Plan
Administrator may reasonably rely on a Participant's
representations with respect to whether services for which
reimbursement is claimed satisfy the requirements of
Sections 8 . 02 , 8 . 06 and 8. 07.
8 . 09 Annual Report to Participants: The Plan Admini-
strator shall furnish to each Participant on whose behalf
Benefits are paid, on or before January 31 of each year, a
written statement showing the amounts paid by the City in
providing Benefits on behalf of such Participant during the
previous calendar year.
8 . 10 Other Provisions: Other matters concerning con-
tributions, elections, benefits, claims, and the like shall
be governed by the general provisions of the Cafeteria Plan
and shall be incorporated in this Program by reference.
Article IX
Claims for Benefits
9 . 01 Claims for Reimbursement Benefits: Claims for
Reimbursement Benefits totaling at least $100. 00 may be made
at any time. Claims for Reimbursement Benefits totaling
less than $100. 00 may be made at the end of each calendar
quarter, or at any other time in the event of a final claim
following termination of participation. The Plan Admini-
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strator may, in his/her discretion, waive or alter these
requirements.
9 . 02 Claim Substantiation: The Plan Administrator
shall require a Participant to substantiate claims for Reim-
bursement Benefits under the Plan. Claims for dependent
care expenses shall be substantiated by a Participant's
certification that such expenses have been properly incurred
and shall include the name and Social Security number of tax
identification number of the person or entity performing the
services for which the claim is made (or the name of the
entity performing the services where the entity is an
organization described in Section 501 (c) (3) of the Code and
is exempt from tax under Section 501 (a) of the Code) . Where
necessary and appropriate, the Plan Administrator may in
his/her discretion waive such requirements but in so doing
shall always act in a uniform and nondiscriminatory manner.
9. 03 Time Limit on Claiming Benefits: Claims for
Reimbursement Benefits shall only be paid if presented
within time limits which shall be prescribed by the Plan
Administrator and clearly noted on the Claim Form used by
the Plan Administrator. The Plan Administrator shall notify
all Participants in writing of any changes to the time
limit.
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Article X
Post-Termination Participation
10. 01 Termination: A Participant who terminates
employment or otherwise ceases to be eligible under Section
3 . 01 may no longer have contributions made to the Plan on
his or her behalf but may continue to receive benefits under
the Plan for claims made for the Period of Coverage ending
with such termination or cessation of eligibility. The Plan
Administrator shall prescribe the time limitation within
which claims must be submitted.
Article XI
Nondiscrimination
11. 01 Prohibition of Discrimination: Any discretionary
acts to be taken under the terms and provisions of this Plan
by the Plan Administrator of by the City shall be uniform in
their nature and application to all those similarly situat-
ed, and no discretionary acts shall be taken that would be
discriminatory under the provisions of the Code relating to
cafeteria plans or dependent care assistance plans as such
provisions now exist or may from time to time be amended.
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Article XII
Accounts
12 . 01 Accounts: A separate Account shall be
maintained for each Participant to reflect the amount of
contributions on his or her behalf under Article 4 and the
cost of all benefits paid to the Participant or on the
Participant's behalf under the Plan.
12 . 02 Contributions Made: Contributions on behalf of
a Participant shall be charged to the Account and of such
Participant.
12 . 03 Benefits Provided: The cost of benefits
provided to a Participant shall be charged to the Account of
such Participant.
12 . 04 Assignment of Benefits: Any interest in a
Participant's Account may not be assigned, transferred or
alienated in any manner whatsoever by any Participant or
beneficiary.
Article XIII
Administration of the Plan
13 . 01 The Plan Administrator: The administration of
the Plan, as provided herein, including the payment of all
benefits to Participants or their beneficiaries, shall be
the responsibility of the Plan Administrator, which shall be
the administrator of the Plan. Reimbursement Benefit pay-
ments and Reimbursement Contributions from a Participant's
Compensation shall be handled in a matter consistent with
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City Finance Department procuedures and the explicit
requirements of the Plan.
13 . 02 Records and Reports of the Plan Administrator:
The Plan Administrator shall assure that such written
records as he/she shall deem necessary or proper are main-
tained, which records shall be open to inspection by the
City. The Plan Administrator shall have prepared and submit
to the City Manager an annual report which shall include
such information as the Plan Administrator deems necessary
or advisable.
13 . 03 Administrative Powers and Duties: The Plan
Administrator shall have the power to take all actions
required to carry out the provisions of the Plan and shall
further have the following powers and duties, which shall be
exercised in a manner consistent with the provisions of the
Plan:
(a) To construe and interpret the provisions of
the Plan, and make rules and regulations under the Plan to
the extent deemed advisable;
(b) To decide all questions as to eligibility to
become a Participant in the Plan and as to the rights of
Participants under the Plan;
(c) To file or cause to be filed all such annual
reports, returns, schedules, descriptions, financial state-
ments and other statements as may be required by any federal
or state statute, agency, or authority;
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(d) To obtain from the Employee such information
as shall be necessary to the proper administration of the
Plan;
(e) To determine the amount, manner, and time of
payment of benefits hereunder;
(f) With any required authorizations, to
contract with such insurance carriers or other suppliers as
may be necessary to provide for benefits;
(g) To communicate to any insurer or other
contract supplier of benefits under this Plan in writing
all information required to carry out the provisions of the
Plan;
(h) To notify the Participants of the Plan in
writing of any amendment or termination of the Plan, or of a
change in any benefits available under the Plan;
(i) To prescribe such forms as may be required
for Employees to make elections under this Plan; and
(j) To do such other acts as he/she deems reas-
onably required to administer the Plan in accordance with
its provisions, or as may be provided for or required by
law.
13 . 04 Allocation or Delegation of Duties and
Responsibilities: In furtherance of the duties and
responsibilities under the Plan, the Plan Administrator
may.
(a) Employ agents to carry out his or her
responsibilities under the Plan;
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(b) Consult with counsel; and
(c) Provide for the allocation of responsi-
bilities among other City Officials and/or Employees.
13 . 05 Claims Procedure: The Plan Administrator shall
establish a reasonable claims procedure under which his or
her decisions with respect to claims for benefits under the
Plan may be appealed to the City Manager. The City
Manager's findings shall be final and binding on all persons
and shall be given the maximum possible deference allowed by
law.
Article XIV
Amendment and Termination
14 . 01 Amendment of Plan: The City may amend any or
all provisions of this Plan at any time by adoption of
Resolution of the City Council identified as an amendment of
the Plan effective as of a specified date.
14 . 02 Termination of Plan: This Plan may be
terminated in whole or in part at any time by the City.
14 . 03 Preservation of Rights: Termination or amend-
ment of the Plan shall not affect the rights of any
Participant in his or her Account or the right to claim
reimbursement for expenses incurred prior to such termina-
tion or amendment as the case may be to the extent such
amount is payable under the terms of the Plan prior to the
effective date of such termination or amendment.
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Article XV
Miscellaneous
15. 01 Limitation of Rights; Employment Relationship:
Neither the establishment of the Plan, nor the creation of
any fund or Account, nor the payment of any benefits, shall
be construed as giving to any Participant or other person
any legal or equitable right against the City except as
provided herein. In no event shall the terms of employment
of any Employee or Participant, express or implied, be
modified or in any way affected hereby.
15. 02 Facility of Payment: If the Plan Administrator
deems any person entitled to receive any amount under the
provisions of this Plan incapable of receiving or disbursing
the same by reason of minority, illness or infirmity, mental
incompetency, or incapacity of any kind, the Plan Admini-
strator may, in his/her discretion, take any one or more of
the following actions:
(a) Apply such amount directly for the comfort,
support and maintenance of such person;
(b) Reimburse any person for any such support
theretofore supplied to the person entitled to receive any
such payment;
(c) Pay such amount to a legal representative
or guardian or any other person selected by the Plan
Administrator to disburse it for such comfort, support and
maintenance, including without limitation, any relative who
had undertaken, wholly or partially, the expense of such
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person's comfort, care and maintenance, or any institution
in whose care or custody the person entitled to the amount
may be. The Plan Administrator may, in his/her, discretion,
deposit any amount due to a minor to his or her credit in
any savings or commercial bank of the Plan Administrator's
choice.
15. 03 Lost Payee: Any amount due and payable to a
Participant shall be forfeited if the Plan Administrator
after reasonable effort is unable to locate the Participant
to whom payment is due.
15. 04 No Trust Established: Reimbursement Benefits
shall be paid from the general assets of the City and shall
not be funded through contributions to a trust except to the
extent required by law. Nothing contained int he Plan shall
give a Participant any right, title or interest in any
property of the City.
15. 05 Indemnification: To the extent permitted by
law, the City shall indemnify and hold harmless the Plan
Administrator and any Employee against any and all claims,
losses, damages, expenses, and liabilities arising from any
act or failure to act that constitutes or is alleged to
constitute a breach of such person's responsibilities in
connection with the Plan, unless the same is determined to
be due to gross negligence, willful misconduct, or willful
failure to act.
15. 06 Expenses: The cost of the Plan shall be borne
by the City.
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15. 07 Titles and Headings: The titles and headings
of the Articles and Sections of this instrument are placed
herein for convenience of reference only, and in the case of
any conflicts, the text of this instrument, rather than the
titles or headings, shall control.
15. 08 Number: Wherever used herein, the singular
shall include the plural and the plural shall include the
singular, except where the context requires otherwise.
15. 09 Applicable Law: The provisions of this Plan
shall be construed according to the laws of the State of
California, to the extent not superseded by federal law, and
in accordance with the Code. The Plan is intended to be a
cafeteria plan under section 125 (c) of the Code containing
dependent care assistance program under section 129 of the
Code, and shall be construed accordingly.
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IN WITNESS WHEREOF, the City Council of the City of
Dublin has caused this instrument to be executed by a duly
authorized officer of the City this day of
19 , effective March 1, 1990.
CITY OF DUBLIN
By
Mayor, Paul C. Moffatt
Attest:
Richard C. Ambrose, City Clerk
22