Agenda - 06-17-1987 - Laserfiche WebLink

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5444•1444414 gbatteroi.aid T0: BOARD OF COUNTY COMMISSIONE FROM: COUNTY MANAGER 4156 `4I VI A: PERSONNEL DIRECTOR DATE: JUNE 23, 1987 I 1 SUBJECT: CAFETERIA BENEFITS PLAN T o� voU l Q o a #1.1;/ yn ' 0"t r The Manager's Recommended Budget for Fiscal Year 1987-88 provides for pri an innovative plan that increases employees' benefits, offers choices in benefits, reduces the employee's income tax withholdings and reduces employer payroll taxes. There are two major components of the 1 Orange County Cafeteria Plan: Flex Comp and Choices. Flex Comp qualifies as a "cafeteria benefits plan" under Internal i-itg Revenue Code Section 125, through which an employee can use pre tax salary dollars to pay certain benefit expenses. These expenses in- n11041‘ clude: 1. Any 'cal y medr dental, hospital indemnity, or cancer insurance premium paid for individual and/or dependent family coverage; 2. Unreimbursed medical expenses such as medical and dental insurance deductibles and out-of-pocket expenses not covered by the medical insurance plan, (braces, crutches and many others) ; and 3. Day care expenses for eligible children and/or other depen- dents. Flex Comp offers a permanent retirement plan owned and controlled by the employee. This benefit more than replaces any lost Social Securi- ty retirement benefit due to reduced SSI contributions. The second component, Choices, provides the employee an opportunity to select a health care insurance provider that best meets their needs or to take the cash value of that benefit and apply it to other optional benefits, and to choose how he/she wants to receive the longevity bonus. For the first time, employees with 30 days of vacation leave will have an alternative made available to them and also available to all employees is a new form of saving - a 401(k) plan. For all of these benefits, the employee will make the choice that best meets their needs. Enrollment sessions, to be conducted by profes- sional enrollers and the Personnel Department, and a benefits booklet have been designed to give employees the information needed to make their own decisions. During the enrollment period an employee may choose to change their benefits or leave them as they are. This program has been developed to offer employees an opportunity to maximize their benefit dollars. Participation is completely volun- tary.