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PLAN AMENDMENTPLAN AMENDMENT ARTICLE PREAMBLE 1.1 Adoption and effective date of amendment. The Employer adopts this Amendment to the City of Clearwater Cafeteria Plan (enter name of plan) ("Plan") to reflect changes to internal Revenue Code (IRC) Section 125(i), as amended by the Internal Revenue Service (IRS) Notice 2013-17. The employer and Plan sponsor Intends this Amendment as good faith compliance with the requirements of this Notice. This Amendment shall be effective on or after the date the Employer elects in Section 2.1 below. 1.2 Election of Carryover. To the extent that the Plan contains "grace period" language, said language for any "grace period" for the health flexible spending account (health FSA) will be voided for Plan years following the Plan year that carryover is adopted and such language shall be replaced with the "carryover" language outlined below. 1.3 Supersession of inconsistent provisions. This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. ARTICLE II CARRYOVER ELECTION 2.1 Effective Date. This Amendment Is entered Into as of the date outlined below and shall be effective for al the 2013 PlanyearorLjthe2Ol4Planyearand beyond. 2.2 Carryover Amount. The Plan shall provide for a carryover of $500 of any amount remaining unused in a health FSA as of the end of the Plan year. Such carryover amount may be used to pdy or reimburse medical expenses under the health FSA incurred during the entire Plan year to which it is carried over. 2.3 Participant Opt Out Notwithstanding the foregoing, any Plan participant shall have the right to opt out of the carryover if such participant has already enrolled in a healthcare savings account for the following Plan year. This Amendment has been executed this (5 day of /j1,19 i-tr Name of Employer: City of Clearwater By: See attached EMPLOYER Countersigned: --ctkoter\cr Qf George N. Cretekos Mayor Approved as to form: -C4 Leslie K. DougaI des Assistant City A • ney CITY OF CLEARWATER, FLORIDA By: William B. Horne II City Manager Attest: 6dUltaiti- Rosemarie Ca I City Clerk