Number
030312
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution increasing the Flexible Spending Medical Account limit from $2,000 to $3,000.
Analysis
This resolution increases the Flexible Spending Medical Account limit from $2,000 to $3,000.
Body
Whereas, The City of Milwaukee has been allowing active employees to utilize the Section 125 program under the Internal Revenue Service Code, referred to commonly as Flexible Benefits Medical; and
Whereas, Over 600 active City employees are currently enrolled in the program; and
Whereas, The IRS has set no limit on the amount an employee can put in a medical account; and
Whereas, The City currently limits the Medical Account to $2,000; and
Whereas, Employees have asked the City to increase the limit on the program; and
Whereas, The City does not pay FICA taxes on the Section 125 dollars, thus saving approximately $60,000 per year; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Flexible Spending Medical Account limit is increased from $2,000 to $3,000; and
Further Resolved, That the Department of Employee Relations is authorized to inform active employees and make arrangements with the flexible benefits vendor for 2004 that the limit on the Flexible Spending Medical Account is $3,000.
Requestor
Drafter
LRB03262-1
TWM/cac
6/12/20032