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Gardner council adopts amended welfare benefit plan, moves FSA waiting period to first month after 30 days
Summary
The Gardner City Council adopted Resolution 2162 to amend the city's welfare benefit plan, changing flex spending account new-hire eligibility to the first of the month following 30 days of employment, effective Jan. 1, 2025, staff said.
The Gardner City Council on Wednesday adopted Resolution 2162 authorizing an amended and restated welfare benefit plan that changes the waiting period for flex spending account (FSA) enrollment for new hires.
Shannon Templeton, the city's human resources manager, told the council staff completed two open-enrollment periods under federal rules for reimbursement arrangements and that the city must change its waiting period. "The new hire eligibility will be adjusted to the first of the month following 30 days of employment as of 01/01/2025," Templeton said.
The change was requested by Flex Made Easy, the city's FSA service provider, which required a governing-body resolution to amend the plan waiting period, Templeton said. Council members had one clarification question about how the change differed from the previous rule; staff said the prior eligibility date was the first of the month after hire and the amendment shifts some enrollments one month later under the federal compliance schedule.
A motion to adopt the resolution was made and seconded during the meeting. Council members answered in the affirmative when polled: Council Member Baldwin, Council Member Deaton, Councilmember Weid, Councilmember Schuh and Councilmember Reindeer all recorded "yes." The presiding official announced, "Resolution 2,162 passes." The motion and second were not recorded by name in the transcript.
Why it matters: the change affects the earliest date new city employees may enroll in FSAs and therefore when payroll deductions and pre-tax elections begin. Templeton said the amendment is required to comply with the federal requirements for the type of reimbursement arrangement the city uses.
The council did not debate benefit amounts or other plan provisions at length in this meeting; the action recorded in the minutes and on the agenda was limited to authorizing staff to amend the plan waiting period as requested by the service provider. The resolution takes effect as described by staff, with the Jan. 1, 2025 effective date for the waiting-period rule.
