R88-10CITY OF KENNEDALE
RESOLUTION # 58 -10
A RESOLUTION AUTHORIZING THE PARTICIPATION OF THE CITY
OF KENNEDALE IN A CAFETERIA PLAN FOR CITY EMPLOYEES AS
AUTHORIZED IN THE IRS CODE SECTION 125,
BE IT RESOLVED, that the City of Kennedale establish a Cafeteria
Plan, qualified under Section 125 of the Internal Revenue Code, to
be known as the City of Kennedale Section 125 Plan, and that the
provisions of the Plan shall read, and they hereby are adopted to
read, as set forth in the Plan which is for the benefit of all city
employees.
FURTHER RESOLVED, that the City Administrator and the Director of
Finance of the City of Kennedale hereby are authorized and directed
to execute, in the name of and on behalf of the City of Kennedale,
the Plan in the form set forth.
FURTHER RESOLVED, that the City Administrator and the Director of
Finance are authorized and directed to execute and deliver all such
contracts, agreements, certificates, documents and other
instructions, and to do such other acts or things as may be
necessary or advisable, to give effect to the foregoing resolutions
and the matters provided for therein.
PRESENTED AND PASSED on this the 13th ___ day of _ac bber 1990,
by'a vote of __ ayes and __ _ nays at a regular meeting of the
City Council of the City of Kennedale, Texas.
P t c � _ �ee p
ayor, City of Kennedale
ATTEST:
City Secretary(( //
APPROVED AS TO FORM:
City Attorney
CITY OF KENNEDALE
SECTION 125 PLAN
ARTI I
1.01 The purpose of this Plan is to provide eligible
employees of the City of Kennedale certain
tax -free welfare benefits provided by the City
of Kennedale in lieu of taxable compensation.
This Plan is intended to qualify as a
"cafeteria plan" within the meaning of Section
125 of the Internal Revenue Code of 1954, as
amended. The Plan is to be read in a manner
consistent with the terms of Code Section 125.
ARTICLE II
DEFINITIONS
2.01 "Administrator" means the City of Kennedale or
such other person or committee as may be
appointed from time to time by the City of
Kennedale to supervise the administration of
the Plan.
2.02 "Anniversary Date" means the first day of each
Plan Year.
2.03 "Code" means the Internal Revenue Code of
1954, as amended from time to time. Reference
to any section or subsection includes
reference to any comparable or succeeding
provisions of any legislation which
amendments, supplements, or replaces such
section or subsection.
2.04 "Compensation" means the total wages and
salary, including overtime payments and bonus
payments, which are paid by the employer to a
Participant during the Plan Year.
2.05 "Effective Date" means the date that an
employee becomes eligible for benefits provided
by the City of Kennedale, usually after the
completion of the 90 day probation period.
2.06 "Employee" means any person employed by the
City of Kennedale.
2.07 "Employer" means the City of Kennedale.
2.08 "Key Employee" means any person who is a key
employee as defined in Section 416(i)(1) of
the code.
2.09 "Participant" means any Employee who
participates in the Plan in accordance with
Article III.
2.10 "Plan" means the cafeteria plan as set forth
herein, together with any amendments and
supplements thereto.
2.11 "Plan Year" means the twelve consecutive month
period commencing on each Plan Anniversary
Date, except that the first Plan Year shall be
the period commencing on the Plan Effective
Date and ending on the day preceding the first
Plan Anniversary Date.
ARTICLE III
PARTICIPANTS
3.01 ELIGIBILITY AND DATE OF PARTICIPATION.
Each employee of the City of Kennedale shall
become eligible to became a participant
hereunder on the date the employee becomes a
participant under one or more of the City of
Kennedale employee benefit plans providing the
benefits described in Article IV.
3.02 TERMINATION OF PARTICIPATION.
Participation will automatically terminate on
the earlier to occur of the following dates:
(a) the date the Plan is terminated or
(b) the date the participant is no longer a
participant in one of the City of Kennedale's
employee benefit plans providing benefits
described in Article IV.
ARTICLE IV
PLAN BENEFITS
4,01 Available Plan Benefits.
Plan benefits apply only to:
(a) Dependent Health Plans
(b) Dependent Dental Plans
4.02 Limitations on Benefits.
If the administrator determines at any time
that the Plan may fail to satisfy any
nondiscrimination requirement imposed by the
Code or any limitation on benefits provided to
highly compensated participants or key
employees, the administrator shall take such
action as the administrator deems appropriate,
under the rules uniformly applicable to
similarly situated participants, to assure
compliance with such requirement or
limitation.
ARTICLE V
ADMINISTRATION
5.01 The Plan shall be administered by the
Administrator in accordance with its terms,
for the exclusive benefit of persons entitled
to participate in the Plan without
discriminating 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 not
limited to, the following powers, in addition
to all other powers provided by law and this
Plan:
(a) To make and enforce such rules
and regulations as is deemed
necessary or proper for the
efficient administration of the
Plan;
(b) To interpret the Plan, its
interpretation thereof in good faith
to be final and conclusive on all
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
person as may be required to assist
in administering the Plan; and
(e) To allocate and delegate
responsibilities under the Plan and
to designate other persons to carry
out responsibilities under the
Plan, any such allocation,
delegation or designation to be in
writing.
5.02 The administrator will make available to each
participant such Plan records, as pertain to
the participant, for examination at reasonable
times during normal business hours.
5.03 Whenever, in the administration of the Plan,
the Administrator shall exercise authority in
a nondiscriminatory manner so that all persons
similarly situated will receive substantially
the same treatment.
5.04 The City of Kennedale 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 o£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 of Kennedale) occasioned
by any act or omission to act in connection
with the Plan, if such act or omission is in
good faith.
A RTICLE VI
AMENDMENTS AND TERMINATION OF THE PLAN
6.01 Amendments.
The City of Kennedale may amend the Plan from
time to time. Any Plan amendment shall be
filed with the Plan documents.
6.02 Termination.
The City of Kennedale intends the Plan to be
permanent, but reserves the right to terminate
the Plan at any time. In the event of a Plan
termination, Compensation reductions will
cease. Thereafter neither the City of
Kennedale nor any of its Employees shall have
any further financial obligations hereunder
except such as have accrued up to the date of
termination and have not been satisfied.
ARTICLE VI
MISCELLANEOUS
7.01 No Guaranty of Employment.
The adoption and maintenance of the Plan shall
not be deemed to be a contract of employment
between the City of Kennedale and any
employee. Nothing contained herein shall give
any employee the right to be retained in the
employ of the City of Kennedale or to
interfere with the right of the City of
Kennedale to discharge any employee at any
time nor shall it give the City of Kennedale
the right to require any employee to terminate
his /her employment at any time.
7.02 Non- Alienation.
To the extent permitted by law, no benefit
payable at any time under this Plan shall be
subject to any manner to alienation, sale,
transfer, assignment, pledge, attachment, or
encumbrance of any kind.
7.03 Applicable Law.
The Plan and all rights hereunder shall be
governed by and construed according to the
laws of. the State of Texas, except to the
extent such laws are preempted by the laws of
the United States of America.
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