Fort Walton Beach Resolution — 94-10 Adopt Flex Benifit Plan - ABC — reading text

not incorporated) which is a member of an affiliated service group ( as defined in Code Section 414( m)) which includes the Employer; and any other entity required to be aggregated with the Employer pursuant to Treasury regulations under Code Section 414( 0). 1. 2 " Benefit" means any of the optional benefit choices available to a Participant as outlined in Section 4. 1. 1.3 " Cafeteria Plan Benefit Dollars" means the amount available to Participants, pursuant to Article nI, to purchase Benefits. Each dollar contributed to this Plan shall be converted into one Cafeteria Plan Benefit Dollar. 1.4 " Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time. 1. 5 " Dependent" means any individual who qualifies as a dependent under an Insurance Contract or under Code Section 152. 1.6 " Effective Date" means 02/ 01194. 1. 7 wElection Period" means the 30-day period immediately preceding the beginning of each Plan Year for the election of Benefits and Salary Redirections. However, an Employee' s initial Election Period shall be detennined pursuant to Section 5. 1. 1. 8 WEligible Employee" means any Employee who has satisfied the provisions of Section 2. 1. 1.9 wEmployeeW means any person who is employed by the Employer, but excludes any person who is employed as an independent contractor. The tenn Employee shall include leased employees within the meaning of Code Section 414( n)( 2). 1. 10 " Employer" means ABC Company and any successor which shall maintain this Plan; and any predecessor which has maintained this Plan. 1. 1 I " ERISA. means the Employee Retirement Income Security Act of 1974, and all amendments thereto. I. 12 WHighly Compensated Employee. means, for the purposes of determining discrimination, an Employee described in Code Section 125( e) and the Treasury regulations thereunder. 1-  o o ARTICLE III CONTRIBUTIONS TO TIlE PLAN 3. 1 SALARY REDlRECfION Benefits under the Plan shall be financed by Salary Redirections sufficient to support Benefits that a Participant has elected hereunder and to pay the Participant' s Premium Expenses. Tbe salary administration program of the Employer shall be revised to allow each Participant to agree to reduce his pay during a Plan Year by an amount determined necessary to purchase the elected Benefit. Tbe amount of such Salary Redirection shall be specified in the Salary Redirection Agreement and shall be applicable for a Plan Year. Notwithstanding the above, for new Participants, the Salary Redirection Agreement shall only be applicable from the first day of the pay period following the Employee' s entry date up to and including the last day of the Plan Year. These contributions shall be converted to Cafeteria Plan Benefit Dollars and allocated to the accounts of each Participant pursuant to elections made under Article V. Any Salary Redirection shall be determined prior to the beginning of a Plan Year ( subject to initial elections pursuant to Section 5. 1) and shall be irrevocable for such Plan Year. However, a Participant may revoke a Benefit election or a Salary Redirection Agreement after the Plan Year has commenced and make a new election and/ or Salary Redirection Agreement with respect to the remainder of the Plan Year, jf both the revocation and the new election are on account of and consistent with a change in family status as determined under the rules and regulations of the Department of Treasury ( e. g., marriage, divorce, death of a spouse or child, birth or adoption of a child and termination of employment of a spouse). Furthermore, if permitted by Treasury regulations, a Salary Redirection amount may be adjusted during the Plan Year if there is a change if)Premium Expense for an insured Benefit. Salary Redirection amounts shall be contributed for each pay period during the Plan Year. All individual Salary Redirection Agreements are deemed to be part of this Plan and incorporated by reference hereunder. 3. 2 APPLICATION OF CONTRIBUTIONS As soon as reasonably practical after each payroll period, the Employer shall apply tbe Salary Redirection to provide the Benefits elected by the affected Participants. 3. 3 PERIODIC CONTRIBUTIONS Notwithstanding the requirement provided above and in other Articles of this Plan that Salary Redirections be contributed to the Plan by the Employer on behalf of an Employee on a level and pro rata basis for each payroll period, the Plan Administrator and Plan Coordinator may implement a procedure in which the Salary Redirections are contributed throughout the Plan Year on a periodic basis that is not pro rata for each payroll period. 4-  c o any administrative act under this pantgraph shall he forfeited and deposited into the Employer' s benefit plan surplus. ARTICLE V PARTICIPANT ELECfIONS 5. 1 INITIAL ELECTIONS An Employee who meets the eligibility requirements of Section 2. 1 on the first day of, or during, a Plan Year may elect to participate in this Plan for all or the remainder of such Plan Year, provided he elects to do so before this effective date of participation pursuant to Section 2.2. However, if such Employee does not complete an Enrollment Form and deliver it to the Plan Administrator before such date, his Election Period shall extend 30 calendar days after such date, or for such further period as the Administrator shall determine and apply on a uniform and non-discrimnatory basis. However, any election pursuant to this Section 5. 1 shall not be effective until the first pay period following the later of such Participant' s effective date of participation pursuant to Section 2. 2 or the date of the receipt of the election form by the Administrator, and shall be limited to the Benefit expenses incurred for the balance of the Plan Year for which the election is made. 5. 2 SUBSEQUENT ANNUAL ELECTIONS During the Election Period prior to each subsequent Plan Year, each Participant shall be given the opportunity to elect. on an Enrollment Form to be provided by the Plan Administrator, which Benefit options he wishes to select and purchase with his Cafeteria Plan Benefit Dollars. Any such election shall be effective for any Benefit expenses incurred during the Plan Year which follows the end of the Election Period. With regard to subsequent annual elections, the following option shall apply: a) A Participant or Employee who failed initially to elect to particip~te may elect different or new Benefits under the Plan during the Election Period; b) A Participant may terminate his participation in the Plan by notifying the Plan Administrator in writing during the Election Period that he does not want to participate in the Plan for the next Plan Year;' c) An E!DPloyee who elects not to participate for the Plan Vear following the Election Period will have to wait until the next Election Period before again electing to participate in the Plan. 5. 3 FAILURE TO ELECT Any Participant failing to complete the election of benefits portion of the Enrollment Form pursuant to Section 5. 2 by the end of the applicable Election Period shall be deemed to have made the same Benefit option elections as are then in effect for the current Plan Year. The Participant shall also be deemed to have elected Salary Redirection in an amount necessary to purchase such Benefit options. 5.4 CHANGE OF ELECTION Any Participant may change a Benefit election after the Plan Year ( to which such election relates) has commenced and make new elections with respect to the remainder of such Plan Year where the changes are necessitated by and are consistent with a change in family status which is acceptable under rules and regulations adopted by the Department of Treasury ( e. g., marriage, divorce, death of Spouse or child, birth or adoption of child and termination of employment of a Spouse). Any new election under this Section 5.4 shall be effective at such time as the Plan Administrator shall prescribe, but not earlier than the first period beginning after the election form is completed and returned to the Plan Administrator. 6-