04-0036R

RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH SUPERIORUSA BENEFITS CORPORATION TO PROVIDE ADMINISTRATIVE SERVICES FOR A FLEXIBLE BENEFITS PLAN FOR THE CITY FOR YEAR 2004 AT AN ESTIMATED COST OF $11,642.

BY COUNCILOR ATKINS:

RESOLVED, that the proper city officers are hereby authorized to execute an administrative services agreement with SuperiorUSA Benefits Corporation to provide communication, implementation, and management of a flexible benefits plan for city employees for year 2004, in accordance with the provisions of Section 125 of the Internal Revenue Code, which agreement shall be substantially in the form of Public Document No. ____________, on file with the city clerk, at an estimated cost of $11,642, which shall be paid from the General Fund 0100, Agency 700, Organization 1479.


STATEMENT OF PURPOSE:  This resolution authorizes the execution of an agreement with SuperiorUSA Benefits Corporation to administer the city's flexible benefits plan during year 2004. The monthly administrative participant fee will be raised from $3.00 to $3.25, and the annual administrative fee will be raised from $1,375 to $1,500. However, the premium only participants monthly fee of $.25 will be waived beginning January 1, 2004, which will result in a savings of approximately $1,100 over the annual cost in 2003.