GDS ASSOCIATES, INC. FLEXIBLE BENEFITS PLAN

Transcription

1 GDS ASSOCIATES, INC. FLEXIBLE BENEFITS PLAN SUMMARY PLAN DESCRIPTION (THIS PLAN HAS BEEN AMENDED AS OF JULY 1, 2013)

2 TABLE OF CONTENTS ARTICLE I OPERATION 1 1. How Does This Plan Operate? 1 ARTICLE II BENEFITS 2 1. What Employer Sponsored Insurance Benefits May I Purchase? 2 2. What Benefits Are Available through the Plan s Reimbursement Accounts? 2 ARTICLE III ELIGIBILITY 7 1. When Can I Become a Participant in the Plan? 7 2. What Are the Eligibility Requirements for Our Plan? 7 3. When Is My Entry Date? 7 4. Are There Any Employees Who Are Not Eligible? 7 5. What Must I Do To Enroll in the Plan? 7 ARTICLE IV CONTRIBUTIONS 8 1. How Much of My Pay May I Contribute to the Plan? 8 2. What Happens to Contributions That Are Made to the Plan? 8 3. When Must I Decide Which Accounts I Want to Use? 8 4. When Must I Decide What Insurance Coverage I Want? 8 5. When Is The "Election Period" for Our Plan? 9 6. May I Change My Elections During the Plan Year? 9 7. May I Make New Elections In Future Plan Years? 10 ARTICLE V BENEFIT PAYMENTS When Will I Receive Benefit Payments? When Will I Receive Payments From My Accounts? What Happens If I Don't Spend All Plan Contributions? What Happens If I Terminate Employment During the Year? What is the Family and Medical Leave Act? Will My Social Security Benefits Be Affected? 12 ARTICLE VI HIGHLY COMPENSATED AND KEY EMPLOYEES Do Limitations Apply to "Highly Compensated" and "Key" Employees? 12 ARTICLE VII PLAN ACCOUNTING Periodic Statements 13 ARTICLE VIII GENERAL INFORMATION ABOUT OUR PLAN General Plan Information Employer Information Plan Administrator Information Service of Legal Process 14 ARTICLE IX ADDITIONAL PLAN INFORMATION Your Rights Under ERISA Claims Process 16

3 GDS ASSOCIATES, INC. FLEXIBLE BENEFITS PLAN INTRODUCTION We are pleased to announce that we have established a "flexible benefits plan" for you and other eligible employees. Under this program, you will be able to choose among certain benefits that we make available. The benefits that you may choose are outlined in this Summary Plan Description. We will also tell you about other important information concerning the Plan, such as the rules you must satisfy before you can join and the laws that protect your rights. One of the most important features of our Plan is that the benefits being offered are generally ones that you are already paying for, but normally with money that has first been subject to income and social security taxes. Under our Plan, these same expenses will be paid for with a portion of your pay before Federal income or social security taxes are withheld. This means that you will pay less tax and have more money to spend and save. Read this Summary Plan Description carefully so that you understand the provisions of our Plan and the benefits you will receive. We want you to be fully informed before you enroll in the Plan and while you are a participant. You should direct any questions you have to the Administrator. There is a Plan Document on file that you may review if you desire. In the event that there is a conflict between this Summary Plan Description and the Plan Document, the Plan Document will control. Also, if there is a conflict between an insurance contract and either the Plan Document or this Summary Plan Description, the insurance contract will control. 1. How Does This Plan Operate? I OPERATION When you first enroll in the Plan and before the start of each subsequent Plan Year, you will be able to elect to use some of your earnings to pay for some or all of the various benefits offered through the Plan. The available benefits are explained in detail in this Summary Plan Description. The portion of your earnings that you pay into the Plan will be used to pay for the benefits you have elected. The portion of your pay that is paid into the Plan and is used to pay for Plan Benefits is not subject to Federal or State income or withholding taxes or to social security taxes. In other words, the Plan allows you to use tax-free dollars to pay for certain kinds of benefits and expenses that you normally pay for with out-of-pocket, taxable dollars. (1)

4 II BENEFITS Under our Plan, you may choose to receive your entire compensation in cash or to use a portion of your compensation to purchase certain employer sponsored insurance benefits or to participate in the Medical Expense, Dependent Care Expense, or Individual Insurance Expense Reimbursement Accounts. 1. What Employer Sponsored Insurance Benefits May I Purchase? Under our Plan, you may use a portion of your compensation to pay premiums for: Our insured group health plan. Our insured group dental plan. Our vision plan. Information regarding any of the above-specified plans may be obtained from your employer. 2. What Benefits Are Available through the Plan s Reimbursement Accounts? (a) The Medical Care Reimbursement Account: Under our Plan you may use a portion of your compensation to fund a Medical Care Reimbursement Account. Your Medical Care Reimbursement Account reimburses you for your family s out of pocket medical, dental and vision expenses. Reimbursable medical expenses may include deductibles, co-payments and amounts exceeding your health insurance plan maximums. Furthermore, any medical out of pocket expense that would otherwise qualify as a medical deduction under IRS rules may be reimbursed by the Plan (with the exception of parking and mileage). (2)

5 The following lists are examples of expenses that are eligible for reimbursement by our Medical Care Reimbursement Account. Also listed are some expenses that are expressly ineligible for reimbursement pursuant to federal law. These lists do not include every expense that is reimbursable. If you have any questions regarding the eligibility of any expense for reimbursement, please contact the Plan s Administrator. In addition, reimbursement is subject to the reasonableness of the amount of the expense. PRESCRIPTION DRUGS Prescription drugs filled by a licensed pharmacist Insulin and syringes Birth control drugs prescribed by doctor and available only by prescription Expenses specifically disallowed: Drugs which are illegal under Federal Law (regardless of State Law) Drugs that do not require a prescription for their use Vitamins, supplements or herbs not dispensed by a licensed pharmacist MEDICAL EQUIPMENT Wheelchair or autoette Crutches (purchased or rented) Special mattress and plywood boards prescribed to alleviate arthritis Oxygen equipment and oxygen used to relieve breathing problems that result from a medical condition Artificial limbs Support hose (if medically necessary) Wigs (when medically necessary to mental health of individual who loses hair because of disease) Excess cost of orthopedic shoes over cost of ordinary shoes Expenses specifically disallowed: Wigs (when not medically necessary) Vacuum cleaner, furnace filters or special bedding purchased by an individual with dust allergy Exercise equipment not related to a specific medical condition PSYCHIATRIC CARE Services of psychotherapists, psychiatrists and psychologists Psychiatric therapy for sexual problems Legal fees directly related to commitment of mentally ill person (PSYCHIATRIC CARE CONTINUED) Expenses specifically disallowed: Psychoanalysis undertaken to satisfy curriculum requirements of a student PHYSICALS Routine and preventive physicals School and work physicals FEES / SERVICES Physician's and Hospital fees Obstetrical expenses Nursing services for a specific medical ailment Cost of a nurse's room and board if paid by the taxpayer when nurse's services qualify The Social Security tax paid with respect to wages of a nurse when nurse's services qualify Surgical or diagnostic services Legal sterilization Cosmetic surgery that treats a deformity caused by an accident or trauma, disease, or an abnormality at birth Services of chiropractors and osteopaths Fees for anesthesiologists, dermatologists and gynecologists Christian Science practitioner fees Expenses specifically disallowed: Cosmetic surgery or procedure that improves the patient's appearance but does not meaningfully promote the proper function of the body or prevent or treat an illness or disease Payments to domestic help, companion, baby sitter, chauffeur, etc. who primarily render services of a non-medical nature (this may be reimbursable through a Dependent Care FSA) Nursemaids or practical nurses who render general care for healthy infants (this may be reimbursable through a Dependent Care FSA) Fees for exercise, athletic or health club memberships when there is no specific health reason for needing membership Marriage counseling provided by clergyman (3)

6 VISION CARE Optometrist's or ophthalmologist's fees Eyeglasses and Contact lenses Contact lens supplies and solution TREATMENTS & THERAPIES DENTAL & ORTHODONTIC CARE Dental care including x-rays, fillings, extractions, dentures, etc. Cost of fluoridation of home water supply advised by dentist Braces or other orthodontic devices X-ray treatments Treatment for alcoholism or drug dependency Acupuncture Vaccinations Physical therapy received as rehabilitative medical treatment Speech therapy Expenses specifically disallowed: Tattoos and ear-piercing Treatment for vericose veins Hair transplants Physical treatments unrelated to a specific health problem (e.g., massage for general well being) Weight loss and stop smoking programs not related to a specific health problem or illness Any illegal treatment ASSISTANCE FOR THE HANDICAPPED Cost of guide for a blind person Cost of note-taker for a deaf child in school Cost of Braille books and magazines in excess of cost of regular editions Seeing eye dog (including cost of buying, training and maintaining) Hearing-trained cat or other animal to assist deaf person (including cost of buying, training and maintaining) Household visual alert system for deaf person Excess costs of specifically equipping automobile for handicapped person over the cost of an ordinary automobile; device for lifting handicapped person into automobile Special devices such as tape recorder and typewriter, for a blind person. HEARING EXPENSES Hearing aids Batteries for operation of hearing aids MISCELLANEOUS CHARGES X-rays Expenses of services connected with donating an organ Cost of computer storage of medical records Cost of special diet, but only if taxpayer can show that it is medically necessary and only to the extent that costs exceed that of a normal diet Tuition fees paid to special school for child with severe learning disabilities caused by mental or physical impairment with a letter from attending physician (may not be for disciplinary reasons) Childbirth classes (expense for mother-to-be only) Fertility treatments such as shots, surgery, etc. Expenses specifically disallowed: Expenses of divorce when doctor or psychiatrist recommends divorce Cost of toiletries, cosmetics, and sundry items (e.g., soap, toothbrushes, etc.) Cost of special foods taken as a substitute for regular diet, when the special diet is not medically necessary or taxpayer cannot show cost in excess of cost of a normal diet Weight loss maintenance programs Maternity clothes Diaper service Distilled water purchased to avoid drinking fluoridated water supply Installation of power steering in automobile Pajamas purchased to wear in hospital Mobile telephone used for personal calls as well as calls to physician Insurance against loss of income, loss of life or limb Union dues for sick benefits for members Contributions to state disability funds Auto insurance providing medical coverage for all persons injured in or by the taxpayer's automobile, when amounts apportioned to taxpayer and dependent are not stated separately Parking fees and mileage Premiums paid for insurance coverage Please note that any health care expenses reimbursed through this Plan may not also be claimed as a deduction for income tax purposes. (4)

7 (b) Dependent Care Expense Reimbursement Account Under our Plan, you may use a portion of your compensation to fund a Dependent Care Expense Reimbursement Account. Your Dependent Care Expense Reimbursement Account reimburses you for your family s eligible out-of-pocket, work-related dependent day-care costs. In order for such expenses to be eligible for reimbursement: (1) the expense must be incurred for a work-related reason; (2) the care must be provided for a qualifying individual; and, (3) the expense must be paid to an eligible child care provider. Expenses are considered to be incurred for a work-related reason when the purpose of the expense is to provide care for an individual in your care during your hours of employment and: you are a single parent; or you have a working spouse; or your spouse is a full-time student for at least five months during the year while you are working; or your spouse is physically or mentally unable to provide for his or her own care; or you are divorced or legally separated and have primary custody of your child A qualifying individual is any member of your household who spends at least eight hours per day in your home and for whom you can claim expenses pursuant to Federal tax law. Children must be under the age of 13. Other dependents must be physically or mentally unable to care for themselves. An eligible child care provider includes any one of the following: A Dependent (Day) Care Center provided that if care is provided for more than six individuals, the facility must comply with all applicable state and local laws. An Educational Institution for pre-school children. children, only expenses for non-school care are eligible. For older An "Individual" who provides care inside or outside your home. The "Individual" may not be your spouse or a child of yours under age 19 or anyone who you claim as a dependent for Federal tax purposes. The individual may be your housekeeper so long as that individual s services include, in part, providing care for the qualifying individual. (5)

8 (c) You should make sure that the dependent care expenses that you are currently paying meet the above criteria and qualify under our Plan. The law places limits on the amount of money that you can contribute to the Dependent Care Assistance Account. The limit is currently $5, per year per family. If you are married and file your taxes separately, your participation in our Dependent Care Expense Reimbursement Account will be limited to $2, per year. PLEASE NOTE: Federal tax laws permit a personal tax credit for certain dependent care expenses you may be paying for even if you are not a participant in this Plan. You may not use both the Dependent Care Assistance Account and the dependent care personal tax credit for the same expenses. Generally, our Plan will benefit you more than the personal tax credit. In any event, you should ask the Claims Administrator or your personal tax advisor which option is better for you. In making a claim for reimbursement for your dependent care expenses under our Plan, you will be required to provide the name, address and taxpayer identification number or Social Security number of the dependent care provider. You will want to obtain this information before electing to participate in the Dependent Care Expense Reimbursement Account. Individual Insurance Premium Expense Reimbursement Account: Under our Plan, you may use a portion of your compensation to fund an Individual Insurance Premium Expense Reimbursement Account. This Account will enable you to use tax-free dollars to pay for certain premium expenses for individual insurance policies that you may have instead of or in addition to company sponsored insurance programs we offer. These individual insurance premium expenses may include any of the following: Health care premiums under your own individual insurance plan. Dental insurance premiums under your own individual insurance plan. Long-term disability premiums under your own individual insurance plan. Short-term disability premiums under your own individual insurance plan. Cancer/Dread Disease premiums under your own individual plan. Premiums paid for individual term life insurance benefits are not reimbursable through the Individual Insurance Premium Expense Reimbursement Account. Additionally, premiums paid for insurance benefits which are provided by or sponsored by your spouse s employer are not reimbursable through the Individual Insurance Premium Expense Reimbursement Account. (6)

9 III ELIGIBILITY 1. When Can I Become a Participant in the Plan? Before you become a member or a "participant" in the Plan, there are certain conditions and procedures that you must satisfy. First, you must meet the "eligibility requirements. After you satisfy eligibility, you need to indicate in writing that you want to join the Plan. To enroll in the Plan on the "entry date" that we have established for all employees, you will be required to complete certain application or election forms. 2. What Are the Eligibility Requirements for Our Plan? You will be eligible to join the Plan 30 days after your date of employment with us. 3. When Is My Entry Date? Once you meet the eligibility requirements, your entry date will be the first day of the pay period coinciding with or following the date you satisfy the eligibility requirements. 4. Are There Any Employees Who are Not Eligible? Yes, there are certain employees who are not eligible to join the Plan. They are: Employees who are not eligible to receive medical benefits under our group medical plan. Employees who are leased employees. Certain non-resident aliens whose income is not considered income earned within the United States under Federal tax laws. Employees who are considered "self-employed individuals" under the Federal tax law. Partners in a partnership are "self employed individuals" and therefore are not eligible to participate. 5. What Must I Do to Enroll in the Plan? You must complete an Election Form And Salary Redirection Agreement to enroll in the Plan. This form allows you to select which benefits (offered under the Plan) you wish to participate in and the amount you wish to have redirected from your salary to fund each of the benefits you choose. (7)

10 IV CONTRIBUTIONS 1. How Much of My Pay May I Contribute to the Plan? You may elect to contribute up to $5, per year to a Dependent Care Expense Reimbursement Account. For your Health Care Flexible Spending Account, you may elect to contribute up to $2, per Plan Year. If you elect an Individual Insurance Expense Reimbursement Account, there is no limit on the amount you may elect to contribute as long as the amount equals the actual premium expense you are paying for coverage. Generally, you may elect to contribute any amount you choose, as long as the total amount you contribute for benefits offered through this Plan does not exceed your total cash compensation from this employer and does not exceed any of the specific limitations stated in this paragraph. 2. What Happens to Contributions That Are Made to the Plan? Before each Plan Year begins, you will select which group insurance benefits you wish to purchase, which Reimbursement Accounts you want your contributions to be placed in, and how much money you want to go into each Reimbursement Account. It is very important that you make your choices for Reimbursement Accounts very carefully. You should base your decision about how much to contribute on what you expect to spend out of your own pocket on each covered expense during the Plan Year. Contributions you make each pay period will be used to pay the premium expenses for the insurance benefits you have selected or will be placed into Reimbursement Accounts in the exact amounts you designated. Later, the amounts placed in your Reimbursement Accounts will be used to pay or reimburse you for eligible expenses as you incur them during the Plan Year. 3. When Must I Decide Which Reimbursement Accounts I Want to Use? You are required by Federal law to decide which accounts you want to use before the Plan Year begins. This time is known as the "election period or open enrollment period. During the election period you must decide two things. First you must decide which Reimbursement Accounts you want contributions to go into and, second, how much should go into each Reimbursement Account. 4. When Must I Decide What Insurance Benefits I Want? You are required by Federal law to decide which insurance benefits you want before the Plan Year begins. This time is called the "election period or open enrollment period. (8)

11 5. When Is the "Election Period" for Our Plan? When you first meet the "eligibility requirements, your election period will start on that date and run to your "entry date". The election period will continue for thirty days past your "entry date". (You should review Section I on Eligibility to better understand the terms "eligibility requirements" and "entry date.) Then for each following Plan Year, the election period will be established by the Administrator and will be applied uniformly to all participants. According to Federal law, the election period must be a period of time before the beginning of the Plan Year. The Administrator will tell you what the election period is each year. 6. May I Change My Elections During the Plan Year? Generally the answer is no, you may not change the elections you have made after the beginning of the Plan Year. However, there are certain specific situations that, if they occur, will allow you to change your elections after the beginning of the Plan Year. For the Dependent Care portion of the Plan, you are permitted to request a change to your election after the beginning of the Plan Year if there is a change in your family status. Currently, Federal law allows you to change your election if: You get married or divorced. Your spouse or your child dies. You have a child or adopt one. You or your spouse have a change in employment status. Your spouse has a change in benefits. For the other benefits offered under the Plan, events that will permit a change to your elections will typically involve a change in status event. To be eligible, this event must cause you, your spouse, or your dependent to become eligible for or to lose eligibility for coverage under this Plan or an accident or health plan maintained by your employer, your spouse s employer or your dependent s employer. According to Federal law such change in status events include: a change in your legal marital status (marriage, divorce, annulment, legal separation, death of spouse); a change in the number of dependents you claim for tax purposes (birth, adoption, placement for adoption, death); a change in your job status or the job status of your spouse or dependent (termination or commencement of employment); a change in your, your spouse s or your dependent s work schedule (reduction or increase in work hours such as a strike, lockout, begin or return from unpaid leave of absence, switch between part time and full time); a change in the work site or place of residence of you, your spouse or your dependent (moving into or out of an HMO service area); your dependent becomes eligible or ceases to be eligible under the coverage (9)

12 requirements for unmarried children for your health plan (reaching limiting age, losing or gaining student status, or marriage). Other special situations which may permit you to change your elections include: (1) a court order requiring that health coverage be provided for your child by you or the other parent; (2) approval for Medicare or Medicaid benefits for you, your spouse or your dependent; or, (3) exercising special enrollment rights you may have under HIPAA. You may also be permitted to change your election if the cost of your health benefits change during the plan year. If the change in cost is minor, the Administrator will automatically adjust your election to reflect the new premium cost. If the cost (and/or the coverage) of the health plan changes significantly, you will have the option of changing your election to reflect the new premium cost or revoking your election and electing to participate in another health plan with similar coverage for the remainder of the Plan Year. Any change you make to your election must be consistent with the reason or event you use to justify your request to change your election. For example, you may not decrease your Medical Care Reimbursement Account election because you adopt a baby. The decrease in your election is not logical with respect to the event. When you become eligible to make a change in your election(s), you must complete a Request For Change In Election Due To Change In Status form and submit it with a new election form within 45 days of the actual date of your status change event. You may obtain the appropriate forms from your Plan Administrator. Your amended salary redirections will begin on the first payroll date coinciding with or following the date the change in flexible benefits election form is received by the Plan Administrator. 7. May I Make New Elections in Future Plan Years? Yes, you may. For each new Plan Year, you may change the elections that you previously made. You may also choose not to participate in the Plan for the upcoming Plan Year. However, if you do not change the elections already in place from the previous Plan Year, we will assume: 1) you want your insurance benefits to remain the same, and 2) you choose not to participate in any Reimbursement Accounts for the upcoming plan year. New elections must be made during the "election period" prior to the beginning of each Plan Year. V BENEFIT PAYMENTS 1. When Will I Receive Payments For Insured Benefits? The amount of pay you contribute to the Plan and employer contributions will be used to pay premiums for the insurance coverage that is available. The provisions of (10)

13 the insurance policies will control what benefits are paid and when. 2. When Will I Receive Payments From My Flexible Spending Accounts? During the course of the Plan Year, you may submit requests for reimbursement of expenses that you have incurred. Expenses are considered incurred when the service is performed, not necessarily when it is paid. The Administrator will provide you with acceptable forms for submitting these requests for reimbursement. If the request qualifies as a benefit or expense that the Plan has agreed to pay, you will receive a reimbursement payment in accordance with the administrative procedure established by your employer. Check with the Claims Administrator for specific information regarding the timing of claims processing and reimbursement. You will be reimbursed from the Dependent Care Assistance Account and/or the Individual Insurance Reimbursement Account to the extent that there are sufficient funds in the Account to cover your request. The reimbursements that are made from the Plan are not subject to Federal income tax or withholding, nor are they subject to social security taxes. Remember that requests for payment of insured benefits should be made directly to the insurer. The provisions of the insurance policies will control what benefits will be paid and when. 3. What Happens If I Don't Spend All Plan Contributions? Any money left in your Reimbursement Account(s) at the end of the Plan Year will be forfeited. Obviously, qualifying expenses that you incur late in the Plan Year for which you seek reimbursement after the end of such Plan Year will be paid first before any amount is forfeited. However, you must make your requests for reimbursement no later than 90 days after the end of the Plan Year. Because it is possible that you might forfeit amounts in your Reimbursement Account(s) if you do not fully use the contributions that have been made, it is important that you decide how much to place in each account carefully and conservatively. Remember that you must decide which Reimbursement Accounts you want to contribute to and how much to place in each account before the Plan Year begins. You want to be as certain as you can that the amount you decide to place in each account will be used up entirely. (11)

14 4. What Happens If I Terminate Employment During the Year? If you leave our employ during the Plan Year, you will be able to request reimbursement for qualifying medical expenses incurred prior to your date of termination of employment. You will be able to request reimbursement for qualifying dependent care and/or individual insurance premium expenses incurred during the remainder of the Plan Year. In addition, you will remain covered by your employer sponsored insurance, but only for a period for which the premiums have been paid for prior to your termination. However, no further salary redirection will be made on your behalf after you terminate. Under the Federal law commonly known as COBRA, you, your spouse, and your dependents may be entitled to continuation of coverage under any of the component medical benefit plans. The Administrator will inform you of these rights if you terminate your employment. 5. What is the Family and Medical Leave Act? If your Employer is subject to the Family and Medical Leave Act ( FMLA ) (generally, employers with at least 50 employees) and you are on eligible leave under FMLA, you may continue to pay for your health coverage on an after-tax basis. If your Employer pays a portion of your health coverage, they must continue those payments. However, if you do not return from FMLA, you may be required to repay the portion of your health coverage paid by your Employer during your absence. If your Employer is subject to FMLA, you will be provided with a complete explanation of your FMLA rights and responsibilities. 6. Will My Social Security Benefits Be Affected? Your social security benefits may likely be reduced. When you receive tax-free benefits under our Plan, it reduces the amount of contributions you make towards your Social Security benefits as well as the matching amount we pay to the Federal social security system on your behalf. VI HIGHLY COMPENSATED AND KEY EMPLOYEES 1. Do Limitations Apply to "Highly Compensated" and "Key" Employees? Under the Internal Revenue Code, "highly compensated" and "key" employees generally are Participants who are officers, shareholders or highly paid. You will be notified by the Administrator each Plan Year whether you are a "highly compensated" and/or a "key" employee. (12)

15 If you are within this category, the amount of contributions and benefits may be limited so that the Plan does not unfairly favor highly compensated and key employees, their spouses or dependents. Federal tax laws state that a plan will be considered to unfairly favor the key employees if they, as a group, receive more than 25% of all of the nontaxable benefits provided for under our Plan. Plan experience will dictate whether contribution limitations on highly compensated and key employees will apply. You will be notified of these limitations if you are affected. 1. Periodic Statements VII PLAN ACCOUNTING The administrator will provide you with a statement of your account periodically during the Plan Year. The statement shows your account balance and other information about your contributions, claims and reimbursements. It is important to read these statements carefully so you understand the amount remaining in your Reimbursement Account(s). Remember that you want to spend all the money in your Reimbursement Account(s) by the end of the Plan Year. VIII GENERAL INFORMATION ABOUT OUR PLAN This section contains certain general information that you may need to know about the Plan. 1. General Plan Information GDS ASSOCIATES, INC. FLEXIBLE BENEFITS PLAN is the name of the Plan. The three-digit Plan Number, assigned for IRS reporting purposes, is 525. The provisions of your amended Plan become effective on July 1, Your Plan was originally effective on June 1, Your Plan's records are maintained on a twelve-month period of time. This is known as the Plan Year. The Plan Year begins on July 1 and ends on June 30. (13)

16 2. Employer Information Your Employer's name, address, and identification number are: GDS Associates, Inc Parkway Place, Suite 800 Marietta, GA The Plan allows other employers to adopt its provisions. You or your beneficiaries may examine or obtain a complete list of employers, if any, who have adopted your Plan by making a written request to the Administrator. 3. Plan Administrator Information GDS Associates, Inc. is the Plan Administrator. GDS Associates, Inc., however, has contracted with a claims administrator to handle the day-to-day administration of the Plan. The name, address and business telephone numbers of the claims administrator are: ADMIN AMERICA, INC. Post Office Box 1209 Alpharetta, GA (770) (800) FLEXBEN keeps the records for the Plan and is responsible for the administration of the Plan. FLEXBEN will also answer any questions you may have about our Plan. 4. Service of Legal Process The name and address of the Plan's agent for service of legal process is: Plan Administrator of the GDS Associates, Inc. Flexible Benefits Plan GDS Associates, Inc Parkway Place, Suite 800 Marietta, GA (14)

17 1. Your Rights Under ERISA IX ADDITIONAL PLAN INFORMATION As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall be entitled to (a) examine, without charge, at the Administrator's office, all Plan documents, and copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions; and (b) obtain copies of all Plan documents and other Plan information upon request to the Administrator. The Administrator may make a reasonable charge for the copies. In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of an employee benefit plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the best interest of you and other Plan participants. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. If your claim for a benefit is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have your claim reviewed and reconsidered. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within thirty (30) days, you may file suit in a Federal court. In such a case, the court may request the Administrator to provide the materials and pay you up to $100 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay the court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees; for example, if it finds your claim is frivolous. (15)

18 2. Claims Process You should submit reimbursement claims during the Plan Year, but in no event later than 90 days after the end of a Plan Year. At the Administrator's discretion, any claims submitted after that time may not be considered for reimbursement. Claims for benefits that are insured will be reviewed in accordance with procedures contained in the policies or contracts. All other general claims or requests should be directed to the Administrator of the Plan. If your claim under the Plan is denied, in whole or in part, you or your beneficiary will receive written notification. The notification will include the reasons for the denial, a reference to the specific provisions of the Plan on which the denial was based, a description of any additional information needed to process the claim and an explanation of the claims review procedure. If the Plan Administrator fails to respond within 90 days, your claim is treated as denied. Within 60 days after denial, you or your beneficiary may submit a written request for reconsideration of the application to the Administrator. Documents or records in support of your appeal should accompany any such request. You or your beneficiary may review pertinent documents and submit issues and comments in writing. The Administrator will review the claim and provide, within 60 days, a written response to the appeal. (This period may be extended an additional 60 days under certain circumstances.) In this response, the Administrator will explain the reason for the decision, with specific reference to the provisions of the Plan on which the decision is based. The Administrator has the exclusive right to interpret the appropriate plan provisions. Decisions of the Administrator are conclusive and binding. SUMMARY The money you earn is important to you and your family. You need it to pay your bills, enjoy recreational activities and save for the future. Our flexible benefits plan will help you keep more of the money you earn by lowering the amount of taxes you pay. The Plan is the result of our continuing efforts to find ways to help you get the most for your earnings. IF YOU HAVE QUESTIONS REGARDING ANY INFORMATION CONTAINED IN THIS SUMMARY OF THE PLAN, PLEASE CONTACT THE PLAN SPONSOR OR THE CLAIMS ADMINISTRATOR. (16)