Section 125 of the Internal Revenue Code (Code) and the regulations thereunder permit the City of Rocklin (City) to implement a Cafeteria Plan (Plan) for the benefit of its employees. While the City currently has an existing Cafeteria Plan under this Code, the Department of Administrative Services is seeking City Council approval of an amended and restated Plan to include additional benefit options for employees on a pre-tax basis. The recommended Plan Document (Exhibit A) also contains housekeeping items such as grammar corrections and clarification of outdated language.
Staff also recommends the City Council authorize the City Manager to enter into agreements for the provision of administrative, recordkeeping, and other ministerial services and benefits for the City’s Cafeteria Plan, in accordance with the purchasing authority set forth in the Rocklin Municipal Code, and with the approval of the City Attorney.