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Committee forwards cafeteria-plan contract that preserves pretax deductions for employees
Summary
The committee forwarded Resolution 368-25, authorizing a multiyear agreement to implement a Section 125 cafeteria plan that allows pretax payroll deductions for insurance premiums and flexible spending accounts; committee recorded 8 ayes with one absence.
The Hawaii County Council Committee on Finance voted to forward Resolution 368-25, which authorizes the mayor to enter a one-year, six-month agreement (with options to extend) to implement a Section 125 cafeteria plan for county employees. The resolution cites an approximate annual cost of $12,000.
Summer Tokihiro, director of human resources, explained that the cafeteria plan allows employees to elect pretax payroll deductions for insurance premiums and to set aside pretax dollars for dependent care and medical-reimbursement accounts, subject to IRS limits. "The cafeteria plan allows our employees to elect to have their insurance premiums deducted on a pretax basis," Tokihiro said.
Councilmember Villegas spoke in support, describing personal experience using a cafeteria plan to afford childcare and noting the program's potential savings for employees. Councilmember Kagawara asked about current uptake rates for the flexible spending accounts; Tokihiro said she did not have exact percentages available at the meeting but would provide the numbers to the committee later. She also outlined that open enrollment typically occurs in April and May and that information is distributed via new-hire orientation and the county website.
The motion to approve and forward Resolution 368-25 to council with a favorable recommendation was made by Councilmember Connolly Lee Kleinfelder; the clerk recorded eight votes in favor with Councilmember Kurkowitz absent.
The resolution proceeds to the full council for final consideration.
