Submitted By
Kira Tchang, Assistant Village Manager/HR Director
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving An Amendment to the Village’s Dependent Care Flexible Spending Account Plan for Village Employees
End
Overview
Overview
In response to the childcare challenges that employees are facing related to the COVID-19 pandemic and subsequent remote learning plans for many area schools, the Village seeks an amendment to the Dependent Care Flexible Spending Account (DCFSA) Plan that would allow a special enrollment to occur for the months of September 2020 through December 2020. The Village further seeks to implementat a DCFSA Match Program for the period from September 2020 through December 2020 where employees may be eligible to receive up to $2,000 in matching contributions to their DCFSA from the Village.
End
Recommendation
Recommendation
Approve the resolution.
Fiscal Impact
Maximum liability to the program which is based on known employee dependents and current employee salaries is approximately $52,500. This maximum liability would be offset by payroll tax savings related to employee DCFSA contributions. The Village believes this liability may be further offset be reduced utilization of Families First Coronavirus Response Act childcare leave benefits which the Village is federally mandated to provide, but for which the Village does not receive federal reimbursement.
Background
The COVID-19 pandemic has had a significant impact to regular childcare and school programming and this has created hardship for many working parents within the Village. Village employees who are not first responders are eligible for Families First Coronavirus Response Act (FFCRA) childcare leave provisions which grant employees up to twelve weeks of expanded family medical leave at 2/3 pay to a maximum of $200 per day. To date, 11 Village employees have utilized this leave in some form. The Village supports employees in utilizing this leave when appropriate, and would like to provide additional and cost-effective solutions that would allow employees an opportunity to remain in the workforce.
The Village proposes a special enrollment window for the Dependent Care Flexible Spending Account Program that would allow employees to elect or increase pre-tax contributions to be used for the purposes of childcare from September 2020 through December 2020. The Village further proposes a tiered match program based on employee salary.
Employees earning less than $45,500 (which is 50% of the median income in the area for a family for four) would be eligible for a 200% match to a maximum of $2000 in employer contributions.
Employees earning greater than $45,500 but less than $72,800 (which is 80% of the median income in the area for a family of four) would be eligible for a 100% match up to a maximum of $1,500 in employer contributions.
Employees earning greater than $72,800 would be eligible to participate in the special enrollment and would not receive a matching contribution from the Village.
Alternatives
N/A
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A