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INTERNAL SERVICE FUNDS <br />PERSONNEL SERVICESPROGRAM <br />Section 125 Benefits08109052 <br />Statement of Purpose <br />To market and administer the City's Flexible Spending Account plans for the benefit of the City employees. <br />This program provides an opportunity for City employees to direct part of their salaries, on a pre-tax basis, into a Health Care <br />Flexible Spending Account, Dependent Care Flexible Spending Account and pay for qualified group insurance premiums <br />with pre-tax dollars under a Premium Only Plan Flexible Spending Account. Employees are automatically enrolledin the <br />Premium Only Plan and may opt-out if requested. Enrollment in the Health and Dependent Care FSA is voluntary. Money <br />that goes into a Health Care, DependentCare and Premium Only Plan spending account is deducted from pay before federal <br />and state income taxes are withheld, thus reducing the employees taxable income. Additionally, monies withheld for these <br />accounts are exempt from employer FICA payroll-related taxes. <br />Accomplishments in FY 2015-2016 <br />*Automated Premium Only Plan through payroll and eliminated manual processing of enrollments and reimbursements. <br />*Maintained enrollment level above 99% of eligible employees. <br />*Implemented a Cafeteria Plan for Executive Managers. <br />*Updated all Section 125 Plan Documents. <br />Action Plan for FY 2016-2017 <br />* Contracted with a new third party administrator to manage the Health and Dependent Care FSA accounts. <br />*Promoted advantages of program through staff meetings informational pamphlets. <br />*Review and update all Section 125 plan documents as needed. <br />ActualActualEstimatedObjective <br />PERFORMANCE MEASURES <br />FY 13-14FY 14-15FY 15-16FY 16-17 <br />Service Level <br /># of Health FSA enrollments <br />135150110 <br />152 <br /># of Dependent Care FSA enrollments <br />223020 <br />30 <br />Annual $ amount of Health FSA enrollments <br />$133,000 <br />$158,206$165,434$175,000 <br />Annual $ amount of Dependent Care enrollments <br />$75,000 <br />$94,644$84,595$100,000 <br />Annual $ amount of Premium FSA enrollments (1) <br />900,000 <br />$1,330,444$1,260,724$1,300,000 <br />(1) Implemented Premium Only Plan through the payroll system. <br />Employees are automatically enrolled in Premium Only Plan FSA unless they opt-out. <br />Employee contributions are automatically deducted pre-tax through payroll system. <br />City no longer processes claims for Premium Only Plan FSA manually. <br />(2) Third Party Administrator processes all FSA Claims. <br /> <br /> <br />3-36 <br /> <br />