HomeMy WebLinkAboutR-2021-148 BENCOR, Inc. Agreement for Plan Administrator for Special Pay Plan and FICA Alternative PlanRESOLUTION NO.2021-148
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO
EXECUTE AND ACCEPT THE AGREEMENT WITH BENCOR, INC. TO
IMPLEMENT BOTH A SPECIAL PAY PLAN GOVERNED BY THE
INTERNAL REVENUE CODE SECTION 401(A) AND A FICA
ALTERNATIVE PLAN GOVERNED BY THE INTERNAL REVENUE
SERVICE AS AN APPROVED QUALIFIED RETIREMENT PLAN,
EFFECTIVE UPON APPROVAL FOR ACTIVELY WORKING NON -UNION
EMPLOYEES, AND EFFECTIVE PENDING COLLECTIVE BARGAINING
FOR UNION -COVERED EMPLOYEES; PROVIDING FOR CONFLICTS;
FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City offers a comprehensive benefits program and the City
Administration continues to enhance the City's benefits offerings to employees and continues to
recruit, develop, and retain a high performing workforce; and
WHEREAS, the Internal Revenue Code Section 401(a) allows government employers to
establish benefit plans referred to as the "Special Pay Plan" and "FICA Alternative Plan"; and
WHEREAS, the Special Pay Plan permits government employers to pay special forms of
compensation, such as employee sick pay and annual leave, in a tax -advantaged manner that allows
employees to defer Federal Income Tax and permanently save FICA and Medicare tax (up to
7.65%) and allows the City to save its share of FICA and Medicare match on payments made to
the plan; and
WHEREAS, the FICA Alternative Plan permits government employers to enroll eligible
part-time, seasonal and temporary employees in an I.R.S. approved qualified retirement plan with
a minimum contribution of 7.5% of gross pay, on a pre-tax basis in lieu of the Social Security tax
(6.2%), that allows employees to defer Federal Income Tax and permanently save Social Security
tax and allows the City to save its share of FICA match on payments made to the plan; and
WHEREAS, BENCOR, Inc.'s only business is to provide all third -party administration
and plan support for these specific plan types and receives its compensation from the investment
providers offered within the plans; and
WHEREAS, the City Administration deems the plans to be in the best interest of the City
and its employees and therefore, recommends establishment of the plans and selection of
BENCOR, Inc. as administrator;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the above "Whereas" clauses are ratified and confirmed as being true
and correct, and they are made a part of and incorporated into this Resolution by this reference.
Section 2. That the City Commission authorizes the proper City officials to execute
the agreement with BENCOR, Inc. to implement both the Special Pay Plan and FICA Alternative
Plan pending implementation for non -union employees, and pending negotiations, as required by
law for union -covered employees.
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 4. That this Resolution shall be in force and take effect upon implementation.
PASSED AND ADOPTED on October 12, 2021.
ATTEST:
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THOMAS SCHNEIDER, CMC T kMAJANJ�
CITY CLERK �' ,yo® MAYOR
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APPROVED AST FO AND CORRECTNESS:
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THOMM J. A B O
CITY ATTORN Y
2 RESOLUTION #2021-148