Sarasota County Section 125 Cafeteria Plan Tax ID Number:

Transcription

1 Sarasota County Section 125 Cafeteria Plan Tax ID Number: PREAMBLE The Employer hereby establishes a Cafeteria Plan ("Plan") for the purpose ofproviding its eligible Employees an opportunity to elect among the tax-free benefits available under the Plan. The Plan is intended to qualify as a cafeteria plan under Section 125 of the Internal Revenue Code. The Effective Date of this Plan is January 1, This Plan represents a restatement of the Section 125 Plan with an effective date ofjanuary 1, This plan is a non-erisa plan and that no use ofterms similar to those used in plans governed by ERISA should be construed as an election by the County to make the Plan subject to ERISA or to assume any liabilities or obligations analogous to those imposed by ERISA. The Plan Administrator in accordance with Resolution is hereby granted discretionary authority to determine eligibility for benefits and/or to construe the terms ofthe plan. ARTICLE 1-DEFINITIONS 1.01 "Benefit Plan(s) or Policy(ies)" means those Qualified Benefits available to eligible Employees under this Plan as amended or restated from time to time "Change in Status" means any of the events included under Section 125 or regulations issued under Section 125 that the Plan Administrator in its sole discretion decides to recognize on a uniform and consistent basis as a reason to enroll, change an election, or terminate participation mid-year "Code" means the Internal Revenue Code of 1986 as amended "Compensation" means the cash wages or salary paid to an Employee by the Employer "Dependent" means the legal spouse and/or dependent child(ren) of the Participant. Dependent children may be covered by the medical, dental and vision plans through the end ofthe calendar year in which the child reaches age 26. The term "child" includes any ofthe following: A natural child A step child A legally adopted child A child placed for adoption Page 1

2 A child for whom legal guardianship has been awarded to the Participant or the Participant's spouse A newborn (up to age 18 months) ofa covered dependent (Florida only) 1.06 "DOL'' means the United States Department of Labor "Effective Date" means the effective date of this Plan stated in the Preamble "Employee" means any individual who is considered to be in a legal employee-employer relationship with the Employer for federal tax-withholding purposes. Such term includes "former employees" for the limited purpose of allowing continued eligibility for benefits hereunder for the remainder of the Plan Year in which an employee ceases to be employed by the Employer. The term "Employee" shall not include any leased employee (as that term is defined in Code Section 414(n)) or any self-employed individual who received from the Employer "net earnings from "selfemployment" within the meaning of Code Section 401 ( c )(2) unless such individual is also an Employee "Employer" means the Sarasota County Board of County Commissioners and other associated constitutional entities that choose to participate including the Sarasota County Sheriff's Office, the Sarasota County Clerk of the Circuit Court, the Sarasota County Tax Collector, the Sarasota County Property Appraiser and the Sarasota County Supervisor ofelections "FMLA" means the Family and Medical Leave Act "Highly-Compensated Employee" means an individual defined under Code Sections 105(h), 125(e) or 414(q), as amended, as a "highly-compensated individual" or "highlycompensated employee." 1.12 "IRS" means the Internal Revenue Service "Key Employees" means an individual who is a "key employee" as defined in Code Section 125(b)(2), as amended "Open Enrollment" means a period oftime established by the Plan Administrator before the beginning ofa Plan Year in which all eligible Employees may elect to participate in Qualified Benefits, change prior elections, or cease participation. The effective date of such elections shall be the first day ofthe coming Plan Year "Participant" means an Employee who elects a Qualified Benefit as defined herein "Plan" means this document "Plan Administrator" means the person(s) or committee that is appointed by the Employer with authority, discretion, and responsibility to manage and direct the operation and administration ofthe Plan. The Plan Administrator is currently Christopher Louria, Director and Chief Human Resources Officer, 1660 Ringling Boulevard, Sarasota, FL 34236, (941) Page2

3 1.18 "Plan Year" initially means twelve-month period of coverage beginning each January 1 st and continuing to the following December 31 st 1.19 "Policy" means a document provided by an insurer that defines the benefits and terms of participation ofa Qualified Benefit under this Plan "Qualified Benefit" means any benefit excluded from the Employee's taxable income under Chapter 1 ofthe Code other than Sections 106(b), 117, 124, 127 or 132 and any other benefit permitted by the Income Tax Regulations (i.e. any life insurance coverage that is included in gross income by virtue of exceeding the dollar limitation on nontaxable coverage under Code Section 79). Notwithstanding the previous sentence, long-term care insurance is not a "Qualified Benefit." 1.21 "Section 125" means Code Section 125 which is titled "Cafeteria Plans." 2.01 Eligibility to Participate. ARTICLE 2-ELIGIBILITY AND PARTICIPATION Each Employee who is eligible for the Employer's medical insurance plan is eligible for this Plan. No enrollment in this Plan is necessary. Participation is automatic if the Employee enrolls in one or more Qualified Benefits. The provisions ofthis Article are not intended to override any eligibility requirement(s) or waiting period(s) specified in applicable Benefit Plans or Policies, and the terms of eligibility and participation for the Benefit Plans and Policies shall be subject to the requirements oftheir respective governing documents Termination of Participation. ParticipatioQ ends on the earlier _of: The date your eligibility ends; The date your employment ends; or The date this Plan is terminated Certain laws such as COBRA and FMLA may allow you to continue participating in the Benefit Plans or Policies available under this Plan; however, you may not be eligible to use this Plan to obtain tax-free benefits. Page3

4 2.03 Qualifying Leave under FMLA. Notwithstanding any provision to the contrary in this Plan, if a Participant goes on a qualifying leave under the Family and Medical Leave Act, then to the extent required by the FMLA, the Participant will be entitled to continue Participant's Benefit Plans or Policies that provide health coverage on the same terms and conditions as ifthe Participant were still an active Employee. The Plan Administrator will establish a procedure for the payment of premiums and contributions for other benefits with the intent of providing a means for the Participant to have continuous coverage while on leave. Generally, payment of premiums and contributions shall be made before the month ofcoverage. Such rules and payment options will be administered in accordance with regulations issued under Code Section 125 and in accordance with the FMLA Non-FMLA Leave. Ifa person goes on an unpaid leave that does not affect eligibility under this Plan or the Benefit Plans or Policies chosen by the Participant, then the Participant will continue to participate and the premiums or contributions will be paid by one ofthe options described in the immediately preceding provision. Ifa Participant goes on an unpaid leave that affects eligibility under this Plan or the Benefit Plans or Policies, coverage will terminate at the end of the month that leave becomes effective as defined in Article Upon return from an unpaid leave, participation in the Plan will be in accordance with Article Ifsuch policy requires coverage to continue during the leave but permits a Participant to discontinue premiums or contributions while on leave, the Participant will, upon returning from leave, be required to repay the prel!liums (!r con~butions not paid by the Participant while on leave Election of Contributions. ARTICLE 3 - BENEFIT ELECTIONS An Employee may elect to participate in any of the Qualified Benefits offered under this Plan provided the eligibility requirements have been met. The premiums and/or contributions for such Qualified Benefits will be tax-free under this Plan ifpermitted under federal, state or local law. The election of any Qualified Benefit will serve as an election to participate in this Plan. Such elections are optional, subject to the rules stated herein and in the Benefit Plans and/or Policies. The Employee may retain any or all earned income (cash) in lieu of benefits. The Employer may contribute to any or all Qualified Page4

5 Benefits however the Employee has no right to such contributions unless the Qualified Benefit is elected and the Employee pays a corresponding premium and/or contribution Newly-eligible Employees. Employees that become eligible to participate in this Plan, either due to new employment or regaining eligibility including returning from non-fmla leave, shall have 30 days to make an election to participate in any or all of the Qualified Benefits. Such election shall take effect on the first day of the month following thirty (30) days of employment or entering into a benefit-eligible position. Elections may be made via electronic enrollment and/or paper form, as required by the Employer. Some Qualified Benefits may require the separate approval of the benefit provider and the election of a Qualified Benefit which is not guaranteed Open Enrollment. An Open Enrollment period will be established by the Employer before the start of each Plan Year. Both current Participants and newly-eligible Employees may elect from the Qualified Benefits made available for the coming Plan Year using the Employer-designated electronic enrollment system. The Open Enrollment period is a limited time that has a deadline for making elections that ends days or weeks before the new Plan Year starts. Once the Open Enrollment period ends, elections are irrevocable during the Plan Year, except as permitted under Section 3.04, and no further elections for the new Plan Year will be accepted. Failure to make an election may have one or more of the following consequences: a. You may be automatically re-enrolled in the same Qualified Benefit(s) you had before the new Plan Year ifthe same option(s) continues to be available. b. You may be enrolled in the Qualified Benefit(s) that most closely matches the Qualified Benefit( s) you had before the new Plan Year began ( as determined by the Employer). c. You may be excluded from participating in the Qualified Benefit(s) for the new Plan Year. The Employer has sole discretion regarding which of the above options apply to each available Qualified Benefit if an eligible Employee fails to make an election during the Open Enrollment period. Automatic re-enrollments will not apply to Flexible Spending Accounts because an election is required each year to continue participation Mid-Plan Year Election Changes. An eligible Employee may enroll in Qualified Benefits, change prior elections, or cease participation in Qualified Benefits during a Plan Year only under the following conditions: a. The Employee or a Dependent experience a qualifying Event or other circumstance for which a mid-year election change is permissible under Internal Revenue Code Page5

6 Section 125 and applicable Treasury guidance ("Qualifying Event"). Such Qualifying Events include, but are not limited to, marriage, divorce, legal separation, adding an eligible dependent, losing an eligible dependent, or a change in employment that affects eligibility for coverage including changes pursuant to FMLA. b. Employees who experience a Qualifying Event must notify the employee benefits department ofthe Employer on or before 30 days after the Qualifying Event unless otherwise required by law. Such notification shall be made in writing on an Employer approved form or via an electronic enrollment system. c. Any requested changes in elections (whether a new election, change or ceasing participation) must be on account of the Qualifying Event and consistent with the nature ofthe Qualifying Event. Except for special enrollment rights required by HIP AA for birth, adoption or placement for adoption for a child, all election changes will be prospective and will take effect on the date determined by the Plan Administrator Effect of Termination of Employment and Loss of Eligibility on Elections Termination of employment or cessation of eligibility will automatically revoke any elections made under this Plan. The effective date of such revocations will be determined by the Plan Administrator and may vary for each Qualified Benefit. Participants may have rights to continue certain Qualified Benefits under COBRA. Rehires that meet all eligibility requirements may make new elections in the Qualified Benefits subject to availability and timing with respect to the Plan Year. Page6

7 4.01 Source of Benefit Funding ARTICLE IV - BENEFIT FUNDING The cost of Qualified Benefits may be funded through any or all ofthe following: Employee pre-tax contributions Employee post-tax contributions Conditional Employer contributions The Employee's cost of each Qualified Benefit shall be reduced by conditional Employer contributions, if any. The Employee's contributions, if any, shall be pre-tax ifmade via payroll deductions and permitted by Section 125. Employee contributions made by some means other than payroll deduction shall be post-tax. Employer contributions for each Qualified Benefit and benefit level under the Qualified Benefit shall be the same for similarly-situated Participants except as stated in Reduction of Elections to Prevent Discrimination Ifthe Employer determines that the Plan may fail to satisfy any requirement ofsection 125 or any limitation on pre-tax contributions allocable to Key Employees or Highly Compensated Employees, the Plan Administrator may take such actions as deemed appropriate under rules uniformly applicable to similarly situated Participants, to assure compliance with such requirement or limitation. Such action may include, without limitation, a modification or revocation of a Highly-Compensated Employee or Key Employee's election without consent of such Employee Qualified Benefits ARTICLE V - BENEFITS Eligible Employees may use pre-tax contributions for one or more ofthe following Qualified Benefits: Medical Insurance Dental Insurance Vision Insurance Cancer Insurance Employee Group Term Life Insurance (ifthe Employee elects the Pre-tax option) Short-term Disability Insurance (ifthe Employee elects the Pre-tax option) Long-Term Disability Insurance (ifthe Employee elects the Pre-tax option) Health Care Flexible Spending Account Dependent Care Flexible Spending Account Page7

8 5.02 Cash Benefit Any earned income not used to purchase Qualified Benefits with pre-tax contributions under this Plan or post-tax contributions shall be paid to the Employee as normal compensation. ARTICLE VI-PLAN ADMINISTRATION 6.01 Allocation of Authority Sarasota County, an applicable governing body, or an authorized officer of the Employer shall appoint a Plan Administrator that keeps the records for the Plan and shall control and manage the operation and the administration ofthe Plan. The Plan Administrator shall be an Employee or legal representative of the Employer. The Plan Administrator shall have the exclusive right to interpret the Plan and to decide how all matters arising thereunder, including the right to make determinations of fact, and construe and interpret possible ambiguities, inconsistencies, or omissions in the Plan. In the case of an insured Benefit Plan or Policy, the insurer shall be the named fiduciary with respect to benefit claim determinations thereunder, and with respect to benefit claims shall have all of the powers of the Plan Administrator described herein. All determinations of the Plan Administrator with respect to any matter hereunder shall be conclusive and binding on all persons. Without limiting the generality of the foregoing, the Plan Administrator shall have the following powers and duties: a. To require any person to furnish reasonable information for the purpose of the proper administration ofthe Plan as a condition to receiving any benefits under the Plan. b. To make and enforce such rules and regulations and prescribe the use ofsuch forms as the Plan Administrator may deem necessary for the efficient administration of the Plan. c. To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan and to make and revoke elections under the Plan, in accordance with the provisions ofthe Plan. d. To determine the amount of benefits which shall be payable to any person in accordance with the provisions of the Plan; to inform the Employer or insurer as appropriate, of the amount ofsuch benefits; and to provide a full and fair review to any Participant whose claim has been denied in whole or in part. e. To designate other persons to carry out any duty or power ofthe Plan Administrator. f. To keep records or all acts and determinations, and to keep such records, books of account, and data and other documents as may be necessary for the proper operation ofthe Plan. g. To do all things necessary to operate and administer the Plan in accordance with its provisions and applicable laws and regulations. Page8

9 6.02 Reporting and Disclosure Obligations Unless specified otherwise, it shall be the Employer and Plan Administrator's sole responsibility to comply with all filings, reporting, and disclosure requirements, imposed by the DOL and/or IRS. Furthermore, the Employer and Plan Administrator shall be required to amend the Plan as is necessary to ensure compliance with applicable tax and other laws and regulations Indemnification The Plan Administrator and designees shall be indemnified by the Employer against claims, and the expenses of defending against such claims, resulting from any action or conduct relating to the administration of the Plan except claims arising from gross negligence, willful neglect, or willful misconduct. ARTICLE VII- PLAN FUNDING The Plan shall be funded with amounts withheld from Compensation pursuant to Participant elections and contributions the Employer may choose to make to offset the Participant's cost of certain Qualified Benefits. The Employer may elect to pay all, part or none of the cost of each Qualified Benefit or tier within each benefit. The Employer will apply all such amounts, without regard to their source, to pay for the Qualified Benefits provided herein as soon as administratively feasible and shall comply with all applicable regulations promulgated by the DOL taking into considerations any enforcement procedures adopted by the DOL. ARTICLE VIII- CLAIM PROCEDURES The Plan has established procedures for reviewing claims denied under this Plan and those claims review procedures are set forth in the respective policies and other documents for each Qualified Benefit. The Plan's claim review process as set forth in such policies and documents shall only apply to - issues - - germane to the _pr~-jax benefi~ _ a_yailable under this plan (i.e. such as a determination of a Change in Status, change in cost or coverage, or eligibility and participation matters under this Plan). Page9

10 9.01 Permanency ARTICLE IX-AMENDMENT OR TERMINATION OF THE PLAN While the Employer fully expects this Plan will continue indefinitely, due to unforeseen, future contingencies, permanency of the Plan shall be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 9.02 and 9.03 below. Nothing in this Plan is intended to be or shall be construed to entitle any Participant, retired or otherwise, to vested or non-terminable benefits Employer's Right to Amend The Employer reserves the right to amend at any time any or all provisions ofthe Plan. All amendments shall be made in writing and shall be approved by the Employer in accordance with the delegation granted in Resolution R Such amendments shall apply retroactively or prospectively as set forth on the amendment. Each Benefit Plan shall be amended in accordance with the terms specified therein, or, if no amendment procedure is prescribed, in accordance with this section Employer's Right to Terminate The Employer reserves the right to discontinue or terminate the Plan without prejudice at any time and for any reason without notice. Such decision to terminate the Plan shall be made in writing and shall be approved by the Employer in accordance with its normal procedure for transacting business Determination of the Effective Date of Amendment or Termination Any such amendment, discontinuance, or termination shall be effective as of such date as the Employer shall determine Not an Employment Contract ~TICLE X-GE~~ PROVISIONS Neither this Plan nor any action taken with respect to it shall confer upon any person the right to continue employment with any Employer Applicable Laws The provisions of the Plan shall be construed, administered, and enforced according to applicable federal law and the laws of the state of the principal place of business of the Employer to the extent not preempted Post-Mortem Payments Page IO

11 Any benefit payable under the Plan after the death of the Participant shall be paid to his surviving spouse (if any), otherwise to his estate. Ifthere is doubt as to the right of any beneficiary to receive any amount, the Plan Administrator may retain such funds until the rights thereto are determined, without liability for any interest Nonalienation of Benefits Except as expressly provided by the Plan Administrator, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts ofany person Mental or Physical Incompetency Every person receiving or claiming benefits under the Plan shall be presumed to be mentally and physically competent and ofage until the Plan Administrator receives written notice, in a form and manner acceptable to it, that such person is mentally or physically incompetent or a minor, and that a guardian, conservator or other person legally vested with the care ofhis affairs has been duly appointed Inability to Locate Payee Ifthe Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under the Plan because it cannot ascertain the identity or whereabouts ofsuch Participant or other person after reasonable efforts have been made to identify or locate such person, such payment and all subsequent payments otherwise due to such Participant or other person shall be forfeited one year after the date any such payment became first due Requirement for Proper Forms All communications in connection with the Plan made by a Participant shall become effective only when duly executed on any forms as may be required and furnished by, and filed with, the Plan Administrator Source of Payments The Employer and any insurance company contracts purchased or held by the Employer or funded pursuant to this Plan shall be the sole sources of benefits under the Plan. No Employee or beneficiary shall have any right to, or interest in, any assets of the Employer upon termination ofemployment or otherwise, except as provided from time to time under the Plan to such Employee or beneficiary Tax Effects Page 11

12 Neither the Employer, its agents, the Plan Administrator makes any warranty or other representation as to whether any pre-tax contributions made to or on behalf of any Participant hereunder will be treated as excludable from gross income for local, state, or federal income tax purposes. If for any reason it is determined that any amount paid for the benefit of a Participant or beneficiary is includable in an Employee's gross income for local, state or federal income tax purposes, under no circumstances shall the recipient have any recourse against the Plan Administrator or the Employer with respect to any increased taxes or other losses or damages suffered by the Employee as a result Gender and Number Masculine pronouns include the feminine as well as the neutral genders, and the singular shall include the plural, unless indicated otherwise by the context Headings The Article and Section headings contained herein are for convenience of reference only and shall not be construed as defining or limiting the matter contained thereunder Incorporation J>y Reference The actual terms and conditions ofthe separate component Benefit Plans or Policies offered under this Plan are contained in separate, written documents governing each respective benefit, and shall govern in the event of a conflict between the individual plan document, and this Plan as to substantive content. To that end, each such document, as amended or substantially replaced, is hereby incorporated by reference as iffully recited herein Severability Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the remainder thereof shall be given effect to the maximum extent possible Effect of Mistake In the event ofa mistake as to the eligibility or participation ofan Employee, the allocations made to the account of any Participant, or amount ofdistributions made or to be made to a Participant or other person, the Plan Administrator shall, to the extent it deems possible, cause to be allocated or cause to be withheld or accelerated, or otherwise make adjustment of, such amounts as will in its judgment accord to such Participant or other person the credits to the account or distributions to which he is properly entitled. Such action by the Plan Admiqistrator may include withholding of any amounts due to the Plan or the Employer from Compensation paid by the Employer, or other actions as it deems necessary to collect from the Participant or other person overpayments or improper benefits received by the Participant or other person. Page 12

13 10.15 Agent for Service of Legal Process Plan Administrator 1660 Ringling Boulevard Sarasota, FL (941) IN WITNESS WHEREOF, the Employer has caused this Plan to be executed on the day of Ju.if( a3, api g to ratify the adoption ofthe Plan as ofthe Effective Date. WITNESS: Employer: By: Title: -- {jjru.jal Dt NW'Y\an i2l60ufee.j, ~ f-j/2() Date: ch,1_/:4 a3 I a.01 K Page 13