HomeMy WebLinkAboutRES 047 Draft 01 1988-1992OFFICE INFORMATION ONLY
Meeting: April 19, 1989
Action: Approve adoption of Res. 47-89.
Re; Res. 47-89/FC-42
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COUNTY OF HAW;A~# STATE OF HAWAII
RESOLUTION No. 47 89
WHEREAS, Section 125 of the Internal Revenue Code allows for
an employee salary reduction plan providing favorable tax
treatment for health fund premiums; and
WHEREAS, such a plan would allow employees to pay their health
fund contributions with pre-tax dollars, thus reducing Social
Security contributions and both State and Federal income tax
liabilities; and
WHEREAS, such a plan is voluntary for employees; and
WHEREAS, the County of Hawaii could realize approximately
$31,500 per year in savings in matching employer Social Security
contributions; and
WHEREAS, many local companies and local and mainland public
sector jurisdictions have successfully implemented such plans; and
WHEREAS, the Governor of the State of Hawaii is supportive of
the "cafeteria plan" and has directed the public employees' Health
Fund agency to develop a plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that the Director of Finance, with the assistance of the
Director of Civil Service and the Corporation Counsel, is
requested to establish a pre-tax payroll deduction plan for health
fund contributions for all county employees.
BE IT FURTHER RESOLVED that the Director of Civil. Service
consult on provisions of such a plan with representatives of the
various labor organizations representing county employees; and
BE IT FURTHER RESOLVED that copies of this resolution be
transmitted to the Mayor, the Managing Director, the Director of
Finance, the Director of Civil Service, the Corporation Counsel,
and the State Health Fund Administrator.
Dated at Hilo, Hawaii, this 19th day of April ,
1989.
INTRODUCED BY:
~~ ~~
UNCIL EMBER, COUNT OF H WAII
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL
of the County of Hawaii on-P~.ril 19_, In $9
ATTEST:
.,~ ~ /
COUN~K AIRMAN & PRESI NG OFFICER
ROLL CALL VOTE.
AYES NOES ABS EX
DOMINGO X
HALE
INOUYE
KOKUBUN
LAI
MAKUAKANE X
RUDDLE X
SCHUTTE X
YAMASHIRO
8 Q 1
Reference FC-
RESOLUTION NO. `~7 89
P,USSELL S. KOKUBUN
Chairman & Presiding Officer
MERLE K. LAI
Vice-Chairwoman
COUN`I Y COUNCIL
Cowity of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hazoaii 96720
April 19, 1989
Mr. Cenric Ho
State Health Fund Administrator
P.O. Box 2121
Honolulu, Hawaii 96805
Enclosed is a copy of Resolution No. 47-89 which was
adopted by the Council of the County of Hawaii on
April 19, 1989.
John A. Wagner
COUNTY CLERK
TAKASHI DOMINGO
HELENE H. HALE
LORRAINE R. INOUYE
ROBERT H. MAKUAKANE
HARRY 5. RUDDLE
SPENCER K. SCHLTTE
STEPHEN K. Y:~\fASHIRO
Encl.
REPORT OF THE
COMMITTEE ON FINANCE
Date: April 11, 1989
Place: YBA Hall, Pahoa
Time: 10:00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No. 47-89, reports as follows:
The purpose of Resolution No. 47-89 is to support the adoption of an
employee salary reduction plan providing favorable tax treatment for
health fund premiums. It also enables the County to realize savings
in matching employer social security contributions. The so-called
'cafeteria plan' will also benefit participating employees.
The resolution is in anticipation of a State-sponsored plan which is
supported by the Governor and is expected to be passed by the
current legislature.
Mr. Mike Ben, Deputy Director, Department of Civil Service,
explained about the concept of the proposed plan and the benefits
that can be derived from it by the employees and the employer.
The State Health Fund Administrator Cenric Ho presented figures on
the health fund premiums being paid by the County employees and
explained how these figures could reduce the County's FICA
obligation. He also stated that the proposed plan is capable of
expanding the 'menu' or the types of benefits that can be offered to
the employees.
Your Committee on Finance concurs with the intent of Resolution
No. 47-89 and recommends its adoption.
LA/TY
FC REPORT N0,
42
ADOPTED: ~Pf`; ~ ~ 1~JI~9