RESOLUTION NO. 1324

A RESOLUTION OF THE COUNCIL OF THE CITY OF SALISBURY, MARYLAND TO AMEND THE CITY OF SALISBURY FLEXIBLE BENEFITS PLAN.

WHEREAS, effective September 1, 2004 the Salisbury City Council adopted the City of Salisbury Flexible Benefits Plan under Section 125 of the Internal Revenue Code of 1986; and

WHEREAS, the City Council wants to ensure that their Flexible Benefits Plan is current according to the latest changes made to Section 125 of the Internal Revenue Code; and

WHEREAS, Section 125 of the Internal Revenue Code was modified to add a 90 day grace period to the end of spending years.

NOW, THEREFORE, BE IT RESOLVED that Amendment Number One to the City of Salisbury Flexible Benefits Plan effective August 31, 2005 presented to this meeting is hereby approved and adopted and the proper officers are hereby authorized and directed to execute and deliver to the Administrator of the Plan one or more counterparts of the amendment.

BE IT FURTHER RESOLVED, that the proper officers shall act as soon as possible to notify employees of the City of Salisbury of the adoption of this Amendment by delivering to each employee a copy of the summary plan description material modifications of the change to the Plan, which form is hereby approved.

BE IT FURTHER RESOLVED, that the undersigned certifies that attached hereto as Exhibits A and B respectively, are true copies of Amendment Number One to City of Salisbury Flexible Benefits Plan and the Summary Plan Description Material Modification adopted in the foregoing resolutions.

THE ABOVE RESOLUTION was introduced and duly passed at a meeting of the Council of the City of Salisbury, Maryland held on November 14, 2005 and is to become effective immediately upon adoption.

ATTEST:

_________________________ _________________________________

Brenda J. Colegrove Michael P. Dunn

CITY CLERK PRESIDENT, City Council

APPROVED by me this__________ day of __________ 2005

_______________________________

Barrie P. Tilghman, MAYOR