CAFETERIA BENEFIT PLAN - S.B. 539: COMMITTEE SUMMARY
Senate Bill 539 (as introduced 4-27-99)
Sponsor: Senator Bill Bullard, Jr.
Committee: Local, Urban and State Affairs
Date Completed: 9-24-99
CONTENT
The bill would amend Chapter 16 of the Revised Statutes of 1846, which provides for the powers and duties of townships, to allow a township to establish a cafeteria plan, authorized under Section 125 of the Internal Revenue Code, for its elected or appointed officers and employees, any classes of elected or appointed officers and employees, and dependents of the officers and employees.
The term "cafeteria plan" would be defined as it is in the Internal Revenue Code, i.e., a written plan under which all participants are employees, and the participants may choose among two or more benefits consisting of cash and qualified benefits. The term does not include any plan that provides for deferred compensation.
MCL 41.110b - Legislative Analyst: N. Nagata
FISCAL IMPACT
Townships would be able to establish a cafeteria plan to provide employee benefits, which could minimally reduce benefit costs. This bill would have no State fiscal impact.
- Fiscal Analyst: R. RossS9900\s539sa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.