PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION

Transcription

1 PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION Dependent Care Flexible Spending Account A Component of the Mayo Flexible Spending Account Plan January 2017

2 (A Component of the Mayo Flexible Spending Account Plan) January 2017

3 HOW TO USE THIS DOCUMENT HOW TO USE THIS DOCUMENT The Table of Contents on page 5 provides an overview of the detailed information in the Plan. You will also find a Glossary of terms used in the Plan document beginning on page 27. To quickly search for a specific word or phrase, simply press your Ctrl and F keys simultaneously to open the search function. 522.MC rev Page 2 of 28

4 HEALTH CARE FLEXIBLE SPENDING ACCOUNT INTRODUCTION INTRODUCTION Mayo Clinic sponsors the ( Plan ), which is a component of the Mayo Flexible Spending Account Plan, to reimburse eligible employees of Mayo Clinic and other participating employers for dependent care expenses on a pre-tax basis. Effective January 1, 2016, this document sets forth the benefits under the Plan and replaces all previous Plan statements and descriptions. There are separate summaries for the and Pre-Tax Health Savings Account Plan which are the other components of the Mayo Flexible Spending Account Plan. Because this document is intended to give employees an easily understood explanation of the Plan, it also serves as the summary plan description. Privacy rules required by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) are part of this Plan and are stated in a separate document that is available from the Plan Administrator. Many of the provisions in the Plan are interrelated. Therefore, please review this entire document so that you understand fully what your benefits and responsibilities are under this Plan. The right of Mayo Clinic to amend or terminate this Plan is explained in the administrative section of this document. The pre-tax payments under this Plan are permitted under Section 125 of the Internal Revenue Code, subject to certain rules and limitations, including the requirement of a written plan document. This document includes the written Pre-Tax Premium Payment Rules for this Plan ( Pre-Tax Premium Rules ). The Plan will be administered in accordance with these rules and limitations and with any subsequent amendment to or clarification of the rules and limitations. The Pre-Tax Premium Rules are not subject to ERISA. The plan year for the Premium Payment Rules is the calendar year. You should also consider the fact that an adult dependent child who may be eligible for coverage under the Mayo Medical Plan is not an eligible family member under this Plan unless that adult child is your tax dependent for Federal income tax purposes. If you have any questions about whether your child is a tax dependent, please consult your tax advisor. 521.MC rev Page 3 of 28

5 HEALTH CARE FLEXIBLE SPENDING ACCOUNT CONTACT INFORMATION CONTACT INFORMATION Mayo Clinic Health Solutions is the Claim Administrator for the Dependent Care Flexible Spending Account and processes claims and answers claim questions for the Plan. Mayo Clinic Health Solutions customer service representatives are available to answer any questions or concerns regarding Plan. For enrollment or eligibility questions, please contact Mayo Clinic s HR Connect. HR Connect is your contact for this Plan. QUESTIONS ABOUT PLAN Mayo Clinic Health Solutions Street NW Rochester, MN (local) (toll free) TDD at (toll free) M F, 7 a.m. to 7 p.m. CT (excluding holidays) QUESTIONS ABOUT ENROLLMENT/ELIGIBILITY HR Connect 200 First Street SW Rochester, MN (local) (toll free) M F, 5 a.m. to 6 p.m., Saturday/Sunday, 5 a.m. 9 a.m. CT (excluding holidays) HR Connect and Mayo Clinic Health Solutions Customer Service have access to translation services to meet the needs of non-english speaking persons. El presente Resumen del Plan de Descripción, que también sirve como documento del plan, está redactado en inglés y ofrece detalles sobre sus derechos y beneficios bajo el Plan Médico de Mayo. Si tiene alguna dificultad para entender cualquier parte de este documento, por favor comuníquese con el Centro para Servicios al Empleado o con el Servicio de Atención al Cliente de Mayo Clinic Health Solutions, a los números que constan abajo. 521.MC rev Page 4 of 28

6 TABLE OF CONTENTS TABLE OF CONTENTS HOW TO USE THIS DOCUMENT...2 INTRODUCTION...3 CONTACT INFORMATION...4 ELIGIBILITY AND PARTICIPATION...7 Who is eligible for coverage?...7 When You Can You enroll?...7 Can I change or cancel my enrollment during the year?...8 How do I cancel my coverage or reduce my coverage level?...10 What is my deadline to change my election?...10 What if I have questions about enrolling or changing my election after a change in status? When does my coverage become effective? WHEN DOES COVERAGE END Employee Coverage Ends Effect of Termination of Coverage Effect of Return to Employment Additional Termination of Coverage Rules DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT Annual Contributions Tax Benefits Employee Contributions Definition of Dependent..13 Information Regarding Your Account ELIGIBLE EXPENSES INELIGIBLE EXPENSES CLAIM PAYMENT AND APPEAL PROCEDURES Important Notes: CLAIM PROCEDURE Filing an Initial Claim Time for Filing a Claim Filing a Claim Claim Decision Claim Payment APPEAL PROCEDURE Time for Filing First Level Appeal Filing of First Level Appeal Appeal Decision GENERAL RULES FOR CLAIM PROCEDURES Authority Time Limits for Commencing Legal Action Exhaustion of Administrative Remedies CLAIM ADMINISTRATION FOR CLAIMS AND APPEALS GENERAL PROVISIONS Applicable Law Conformity with Governing Law Construction of Terms Assignment Prohibited No Guarantee of Employment Non-Discrimination Policy MC rev Page 5 of 28

7 TABLE OF CONTENTS Plan Provisions Binding Section Titles PLAN ADMINISTRATION Powers and Duties of the Plan Administrator Records Assignment of Benefits Amendment and Termination of Plan NON-ERISA STATUS OF PLAN PLAN ADMINISTRATIVE INFORMATION GLOSSARY MC rev Page 6 of 28

8 ELIGIBILITY AND PARTICIPATION ELIGIBILITY AND PARTICIPATION Who is eligible for coverage? If you are classified by a participating employer for payroll and personnel purposes as an employee who is regularly scheduled to work at least half-time [forty (40) hours or more per pay period] for the employer, you are considered an eligible employee and eligible to enroll on the first day of employment and during the annual open enrollment. If you have eligible dependents and qualifying dependent care expenses (See the Definition of Dependents and Eligible Expenses sections of the Plan for more information on these requirements). Regularly scheduled means your schedule on file with your employer is.5 FTE or more. A.4 FTE working extra hours does not qualify as regularly scheduled to work.5 FTE. An employer s classification is conclusive and binding for purposes of determining benefit eligibility under the Plan. No reclassification of an employee s or non-employee s status for any reason by a third party, whether by a court, governmental agency, or otherwise, and without regard to whether or not the employer agrees to the reclassification, shall make the employee retroactively or prospectively eligible for benefits. Any uncertainty regarding an employee s classification will be resolved by excluding that person from eligibility. Waiting Period. There is no waiting period. An eligible employee is eligible for coverage on the first day of employment or change to eligible status with the employer. FMLA Covered Persons. Family Medical Leave Act leaves of absence will be administered according to applicable law and policies established by the employer. Copies of FMLA policies are available from the employer. Military Leave Covered Persons. Military leaves of absence will be administered according to applicable law and policies established by the employer. Copies of military leave policies are available from the employer. Leave of Absence. Employees who would normally be working as a regular employee for the employer for at least the required number of hours per pay period to qualify as an eligible employee, but who are on an employer approved leave of absence, including approved personal, disability, parental, and/or military leave, remain eligible employees for the duration of the approved leave. Any contributions, however, that are made during unpaid or third-party paid leaves have to be made with after-tax dollars. When You Can You enroll? The following paragraphs describe enrollment. Initial Enrollment Eligible employees. An eligible employee has 31 days from the date he/she first satisfies the definition of eligible employee to enroll for coverage in the Plan. This is called the initial enrollment period. Enrollment materials are available from the designated person of the employer. Enrollment materials must be completed and returned to the Plan Administrator or its designee within the 31 day period. If enrollment does not occur within this initial period, the eligible employee may enroll in the Plan only if a special enrollment situation occurs or during the annual open enrollment. Open Enrollment Prior to the start of a coverage year, the Plan has an open enrollment period. If you wish to participate, you must enroll each year. At that time, you may elect to enroll, increase, decrease your contributions, or drop coverage. The terms of the open enrollment period, including duration 521.MC rev Page 7 of 28

9 ELIGIBILITY AND PARTICIPATION of the election period, shall be determined by the Plan Administrator and communicated prior to the start of the open enrollment period. Once your elections are effective, you may not change them until the next annual enrollment period unless you experience a special enrollment. The open enrollment effective date of coverage is January 1. Can I change or cancel my enrollment during the year? Because you contribute to the Plan on a pre-tax basis, federal law limits your ability to change benefit elections during the year. This means that once you make your enrollment, you cannot change or cancel it unless you experience an event that qualifies under the Change in Status Events listing. Your change must be both on account of and consistent with the change in status event. Change in status events and consistency requirements that apply to the Plan are described in the chart below. You may be asked to provide proof of your change in status event and the date the event occurred. Failure to do so may result in denial of your change request. You must contact HR Connect within 31 days of the event to request a change. Marriage Change in Status Event Divorce, Annulment, or Legal Separation Death of spouse Decrease in Number of Dependents (divorce, death of spouse, adoption, death, etc.) Dependent Loses Eligibility Permitted Election Changes Enroll or increase coverage because of new dependent(s) with eligible expenses. Cancel coverage if your spouse does not work outside the home. Cancel or decrease coverage if your spouse has dependent care benefits that will reduce your expenses. Enroll or increase coverage if as a result of divorce you have new or additional expenses for eligible dependent(s). Decrease or cancel coverage if your dependent(s) with eligible expenses will reside with spouse and your dependent care needs are reduced or eliminated. Enroll or increase coverage if as a result of the death you have new or additional expenses for eligible dependent(s). Decrease or cancel coverage if your spouse had eligible dependent care expenses. Enroll or increase coverage. Decrease or cancel coverage if the death of a dependent affects your need for dependent care. Decrease or cancel coverage only relating to dependent losing eligibility. 521.MC rev Page 8 of 28

10 ELIGIBILITY AND PARTICIPATION Change in Status Event Dependent Gains Eligibility Employment Status Changes of Spouse You or dependents gain or lose eligibility under the dependent care component of another flexible benefit plan Your Employment Status Changes You gain or lose eligibility under your employer s Plan Residence Change Certain Changes under Spouse s Employer s Plan. If they are due to and correspond with a permitted change made under your spouse s employer s plan (for example, if your spouse s employer adds a new dependent care option midyear and your spouse elects coverage under the new option) or during the annual enrollment period of your spouse s employer s plan, if it (and the plan year) is different from Mayo s annual enrollment and Plan year. Change to Cost or Coverage Needs Permitted Election Changes Enroll or increase coverage only relating to dependent gaining eligibility. Enroll or increase coverage because of loss of other coverage (e.g., if you participated in spouse s plan and spouse loses coverage). Cancel or decrease coverage if as a result of spouse s employment status change you no longer have eligible expenses (e.g., spouse is terminated). Enroll in coverage if you have gained eligibility for the Plan and you have eligible dependent care expenses. If you have lost eligibility in an employment related change such as termination or moving from a benefit eligible to benefit ineligible job classification, your coverage and pre-tax election will be canceled. You can continue to submit any expenses you incurred before your coverage was canceled until March 31 of the following year. Enroll, increase, or decrease coverage, as applicable, if your dependent care coverage costs or needs change as a result of the residence change. Enroll or increase coverage if you are dropping coverage under spouse s plan. Cancel or decrease coverage if you and/or any dependent(s) will be covered by spouse s plan. Increase or Decrease if your dependent care costs (as long as the day care provider is not your relative) or coverage needs change. For example, if your day care center increases its rates, you can increase your contributions prospectively as long as you have not already elected to contribute the annual maximum. 521.MC rev Page 9 of 28

11 ELIGIBILITY AND PARTICIPATION Change in Status Event Permitted Election Changes Similarly, if your work hours change and you need fewer (or more) hours of day care, you can make a corresponding change to your election. How do I cancel coverage or reduce my coverage level? Some changes to your will happen automatically. For example, if you terminate or are no longer eligible for coverage under the Plan, your coverage will automatically be terminated. If you return to work to a benefit eligible position within 30 days of your termination, your benefits are automatically reinstated at the previous election level. If you are rehired or otherwise become benefit eligible after 30 days, you are treated as a new hire. What is my deadline to change my election? If you experience one of the change in status events listed above and want to enroll in the plan, or change or cancel your enrollment in the Plan, contact your Human Resources office within 31 days of the occurrence of the event. What if I have questions about enrolling or changing my election after a change in status? Mayo Clinic administers the Plan according to the rules and retains the discretion to determine whether you can make the desired cancellation or reduction of coverage. If you have further questions, contact your Human Resources office. When does my coverage become effective? The date on which coverage becomes effective depends on when enrollment occurs. a. Enrollment within Initial Enrollment Period. The effective date of coverage for eligible employees who enroll during the initial enrollment period is the first day of employment or change to eligible status with the employer. Open Enrollment Period. If an eligible employee does not enroll within the initial enrollment period, he or she must wait until the next open enrollment period unless a special enrollment situation occurs. The effective date of coverage would be the first day of the coverage year for which the open enrollment period was held. Additional information is available on page 7. b. Change in Status. When enrollment occurs as the result of a change in status described above, your new elections will be effective the first payroll period following the date your completed election change is approved. 521.MC rev Page 10 of 28

12 WHEN DOES COVERAGE END WHEN DOES COVERAGE END Employee Coverage Ends Coverage ends at midnight on the earliest of the following dates: The day in which you terminate employment with the employer. The day in which your employment position or status changes such that you are no longer an eligible employee. The date the employer terminates the Plan or its participation in the Plan. The date of your death. If the Plan is amended so that you lose coverage, the effective date of the amendment. The last day of the Plan year for which you have a benefit election in effect. The last day of the pay period following the date you request your benefit election be terminated as a result of, and consistent with, a change in status event or leave of absence rule. Effect of Termination of Coverage On the date your participation ends, no further reductions in pay will be contributed to your accounts. All claims must be submitted for reimbursement by March 31 following the year in which your participation terminated. In the event of your death, the person entitled to receive payment under applicable law can submit claims for expenses incurred prior to your death to the extent those claims would have been eligible for reimbursement to you. Effect of Return to Employment The following special rules apply when you return to work for the employer: Thirty (30) Days or Less If you return to work within 30 days of the date you terminated employment, your prior elections will be reinstated automatically for the remainder of the Plan year. After 30 Days If you return to work more than 30 days from the date you terminated employment, you will be treated as a newly hired employee, and the initial enrollment rules will apply. Refer to the Initial Enrollment section for more information. Additional Termination of Coverage Rules Your participation under the Plan will terminate immediately upon termination of the Plan or will terminate at midnight upon the occurrence of the earliest of: The date you provide fraudulent information to obtain Plan benefits or coverage including falsifying information on your application for coverage and/or submitting fraudulent, altered, or duplicate billings for personal gain. If any claims are mistakenly paid for expenses incurred due to such fraudulent information, the employee will be required to reimburse the Plan. The date you do not reimburse the Plan for any claims mistakenly paid. 521.MC rev Page 11 of 28

13 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT This section details how the Plan works and outlines the eligible expenses under the Plan. Annual Contributions Tax Benefits The Plan allows you contribute up to $5,000 pre-tax dollars annually to a Dependent Care Flexible Spending Account to pay for eligible out-of-pocket dependent care expenses incurred in order for you and, if you are married, your spouse to work or look for work. You may be reimbursed under the for qualifying expenses for day care. In administering the Account the employer may, in its sole discretion, consult various Internal Revenue Service publications, rulings, notices, and other authorities to determine if an expense is eligible. The minimum employee contribution is $5 per payroll, or $120 annually. The maximum family contribution is the lesser of $5,000 annually, your earned income, or your spouse s earned income. Special rules apply if your spouse is a student or incapable of self-care; please contact HR Connect if this applies to you. If you and your spouse file federal income tax returns separately, the maximum contribution election is $2,500. To be eligible for reimbursement, the expense must be incurred during the Plan year while you are a participant and must not be reimbursed by any other dependent care reimbursement accounts. Expenses are incurred when services are provided, not when you are billed for or pay for the services. Note that you may not claim a dependent care tax credit on your federal income tax return for expenses for which you were reimbursed from your. You will save money when you use pre-tax dollars to reimburse your eligible dependent care expenses. In most cases, you will not pay Federal Income Tax (approx percent), State Income Tax (approx. 3 percent), or Social Security (FICA) Tax (approx percent) on the amount you contribute to or are reimbursed from the Plan. Because your contributions are deducted before your social security taxes are calculated, your social security benefit may be affected. In addition, for expenses reimbursed under Dependent Care Flexible Spending Plan, you may not claim a dependent care tax credit on your federal income taxes. For some employees, it may be preferable to use the dependent care expense tax credit rather than to participate in the Plan. The tax savings when you participate in the Plan will vary from taxpayer to taxpayer based on personal circumstances, exemptions, deductions, and filing status. You may want to discuss these issues with your tax advisor. 521.MC rev Page 12 of 28

14 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT Employee Contributions You must carefully plan the amount you wish to contribute because the Plan is governed by federal regulations and restrictions. Important points to remember: No Tax Credit. You cannot take a tax credit on your federal income tax return for expenses reimbursed from your. No Change to Election. During the year you cannot change your contribution election except under certain conditions, see Change in Status Events for details. Use It or Lose It. If your contributions during the year exceed the eligible expenses you incur during that year, you will forfeit the excess money in your account at the end of the year. Filing Deadline. Even if you incur eligible expenses for the year, if you do not file a claim for reimbursement of those expenses before the filing deadline, you will forfeit the amount remaining in your account. The filing deadline for the year is March 31 of the following year. Definition of Dependent The definition of dependent for this Plan is different than for Mayo s Medical Plan or for the Health Care Flexible Spending Account. Generally, your dependent for purposes of reimbursement from your (and as used throughout this Plan) is an individual who meets the following criteria: Your child or sibling (or the descendent of a sibling) who is under age 13, who has the same principal place of abode as you for more than one-half of the Plan year, and who has not provided more than one-half of his or her own support for the Plan year A relative (or any other individual who has the same principal place of abode as you for the Plan year and who is a member of your household) who depends on you for at least half his/her support and who is physically or mentally incapable of caring for himself or herself Your spouse, if he or she is physically or mentally incapable of caring for himself or herself., who has the same principal place of abode as you for more than one-half of the Plan year Information Regarding Your Account Detailed information about your account contributions and payments are available by accessing the Self Service Tools on your Human Resources website. Account information may also be obtained by calling Human Resources. 521.MC rev Page 13 of 28

15 ELIGIBLE EXPENSES ELIGIBLE EXPENSES Important Note: In administering the Plan, the Plan Administrator and HRAS may, in its sole discretion, consult various Internal Revenue Service publications, rulings, notices, and other authorities to determine if an expense is eligible. The Plan Administrator reserves the right to deny payment for any service it considers ineligible. Dependent care expenses for which you submit a claim must be employment related. This means the expenses must be necessary to allow you (and your spouse, if married) to work or to look for work. The following is a list of eligible dependent care expenses: After school or extended day programs Dependent care center expenses Dependent care expenses incurred in connection with self-employment: that allows one or more custodial parent(s) to be gainfully employed Dependent care provider inside or outside the participant s houshold (unless the care is being given by a child of the employee under age 19 or otherwise claimed as a dependent by the employee) Employment of an au pair. Up front fees may be reimbursed proportionately over the duration of the au pair agreement. Expenses paid to relative of participant for dependent care (unless the care is being given by a child of the employee under age 19 or otherwise claimed as a dependent by the employee) FICA and FUTA taxes of daycare provider Nanny expenses Preschool and nursery school expenses Summer day camp (if primary purpose is custodial and not educational) 521.MC rev Page 14 of 28

16 INELIGIBLE EXPENSES INELIGIBLE EXPENSES Important Note: In administering the Plan, the Plan Administrator and Mayo Clinic Health Solutions may, in its sole discretion, consult various Internal Revenue Service publications, rulings, notices, and other authorities to determine if an expense is eligible. The Plan Administrator reserves the right to deny payment for any service it considers ineligible. The following is a list of ineligible dependent care expenses: Activity fees Chauffeur Disabled spouse or tax dependent living outside the home Educational expenses (kindergarten and above) Expenses incurred in another plan year Expenses paid to relative of participant for dependent care if care is provided by a child of the employee under age 19 or otherwise claimed as a dependent by the employee Food expenses Household services (i.e., cook, gardener, housekeeper, maid, etc.) Overnight camp expenses Pre-payment of dependent care expenses Transportantion expenses Vacation day fees for which the participant for dependent care did not receive care on the day(s) charged These examples are not intended to be comprehensive. If you have questions about whether an expense is reimbursable, call Mayo Clinic Health Solutions at the number listed in the Contact Information. 521.MC rev Page 15 of 28

17 CLAIM PAYMENT AND APPEAL PROCEDURES CLAIM PAYMENT AND APPEAL PROCEDURES Important Notes: Unless specifically noted, oral inquiries about coverage and benefits are not considered claims or appeals. All time periods described in this section are in calendar days, not business days. If you do not file a claim or follow the claim procedures, you are giving up important legal rights. The addresses for Claim Administrators and Committees responsible for deciding claims in the Plan are given in a chart at the end of this section. 521.MC rev Page 16 of 28

18 CLAIM PAYMENT AND APPEAL PROCEDURES CLAIM PROCEDURE This Section explains how to submit claims for reimbursement from your Dependent Care Flexible Spending Account. Filing an Initial Claim Important Note: Dependent care expenses for which you submit a claim must be employment related. This means the expenses must be necessary to allow you (and your spouse, if married) to work or to look for work. Time for Filing a Claim Your claim must be received by the Claim Administrator no later than March 31 following the year in which the expense was incurred. You will forfeit or lose any funds remaining in your Dependent Care Flexible Spending Account after all your claims received by the Claim Administrator through March 31 are processed. Filing a Claim Your claims may be submitted by using the online portal or claim form. Forms are available by contacting Mayo Clinic Health Solutions or on the Mayo intranet. You must complete a claim form. The claim form must include the six-digit Mayo Employee ID number in order to be processed, or it will be returned to you. If necessary, attach to the claim form a receipt or itemized statement from your provider. The receipt or statement should include the following information: Claim Decision Amount of the charges Date(s) of service Name and address of provider Names and ages or dependent for whom care was provided Provider Social Security Number or Tax ID Number The Claim Administrator will typically decide your claim within 30 days. If your claim is denied in whole or in part, you will receive a written notification. You may be notified that an extension of up to 15 days is needed to decide your claim. If the extension is required because you need to provide additional information in order for your claim to be decided, you will be given at least 45 days to provide that information. Claim Payment Your reimbursement of pre-tax monies will be provided to you by means of check or direct deposit. 521.MC rev Page 17 of 28

19 CLAIM PAYMENT AND APPEAL PROCEDURES APPEAL PROCEDURE Time for Filing First Level Appeal You must file an appeal within 180 days after the date you received notice your claim is denied. Filing of First Level Appeal Your written appeal must be submitted to the Claim Administrator and must include the following information: Appeal Decision Name of plan Your name and address Information regarding the denial for claim benefits, A statement that you are appealing the denial of benefits The reason(s) you disagree with the denial of your claims Any information, documents, or arguments you want considered in the first appeal The Claim Administrator will generally decide your appeal within 30 days after its receipt. If your appeal is denied, you will be notified in writing. 521.MC rev Page 18 of 28

20 CLAIM PAYMENT AND APPEAL PROCEDURES GENERAL RULES FOR CLAIM PROCEDURES Authority Mayo Clinic is the Plan Administrator and has delegated the authority to decide benefit claims and appeals the Claims Administrator described in these claim procedures. The Claims Administrator has the discretion, authority, and responsibility to make final decisions on all factual and legal questions under the Plan, to interpret and construe the Plan and any ambiguous or unclear terms, and to determine whether a participant is eligible for benefits, and the amount of the benefits. The Claim Administrator may rely on any applicable statute of limitations as a basis to deny a claim. The Claims Administrators decisions are conclusive and binding on all parties. Time Limits for Commencing Legal Action If you file your initial claim within the required time and the Claim Administrator denies your claim and appeal, you may sue over your claim (unless you have executed a release on your claim). You must, however, commence that suit within three years from the time your initial claim was submitted. Exhaustion of Administrative Remedies Before commencing legal action to recover benefits or to enforce or clarify rights, you must exhaust the claim and review procedures for this Plan. 521.MC rev Page 19 of 28

21 CLAIM PAYMENT AND APPEAL PROCEDURES CLAIM ADMINISTRATION FOR CLAIMS AND APPEALS The Claims Administrator for claims and appeals of denied claims is the following: Plan Claim Administrator Mayo Clinic Health Solutions PO Box Eagan, MN MC rev Page 20 of 28

22 GENERAL PROVISIONS GENERAL PROVISIONS Applicable Law The Plan is intended to be construed, and all rights and duties hereunder are to be governed, in accordance with the laws of the State of Minnesota, except to the extent federal law applies. Conformity with Governing Law If any provision of the Plan is contrary to any law to which it is subject, such provision is hereby amended to conform thereto. Construction of Terms Words of sex will include persons and entities of any sex. The plural will include the singular, and the singular will include the plural. Assignment Prohibited You may not pledge or assign your benefits under the Plan to anyone else. No Guarantee of Employment Participation in the Plan will not be construed as giving you any right to continue in the employ of the employer. You will remain subject to discharge by the employer to the same extent had the Plan not been adopted. Non-Discrimination Policy The Plan will not discriminate against you or your eligible dependents based on race, color, religion, national origin, disability, sex, or age. Plan Provisions Binding The provisions of the Plan will be binding upon you and your eligible dependents and their respective heirs and legal representatives, upon the employer, its successors and assigns, and upon the Plan Administrator, Claim Administrator, and any other provider of services to the Plan. Section Titles Section titles are for convenience only and are not to be considered in interpreting the Plan. 521.MC rev Page 21 of 28

23 PLAN ADMINISTRATION PLAN ADMINISTRATION Powers and Duties of the Plan Administrator Records The Plan Administrator will have the powers and duties of the general administration of the Plan including the following: The discretion to determine all factual and legal questions relating to the eligibility of individuals to participate, or for you to remain a participant in the Plan and to receive benefits under the Plan. To require any person to furnish such reasonable information as the Plan Administrator may request for the proper administration of the Plan as a condition of eligibility to participate under the Plan and to receive any benefits under the Plan. To delegate to other persons authority to carry out any duty or power which under the terms of the Plan or applicable law would otherwise be a responsibility of the Plan Administrator. To maintain or to delegate to others the duty of maintaining all necessary records for the administration of the Plan. To interpret the provisions of the Plan and to make and publish such rules and procedures for regulation of the Plan and to prescribe such forms as the Plan Administrator will deem necessary. The Plan Sponsor, the Plan Administrator, the Claim Administrator, and others to whom the Plan Sponsor has delegated duties and responsibilities under the Plan shall keep accurate and detailed records of any matters pertaining to administration of the Plan in compliance with applicable law. Assignment of Benefits Your right to receive benefits under the Plan is personal to you and may not be assigned or be subject to anticipation, garnishment, attachment, execution, or levy of any kind, or be liable for the debts or obligations of you. Amendment and Termination of Plan Mayo Clinic reserves the right to amend or terminate the Plan or any benefit option described in any document for the Mayo Flexible Spending Account Plan including this document at any time, for any reason, and in any respect. Mayo Clinic s right to amend or terminate the Plan or benefit options includes, but is not limited to, changes in the eligibility requirements, employee and employer contributions, benefits provided, and termination of all or a portion of any coverage(s) provided under the Plan. If the Plan or any benefit option is amended or terminated, you will be subject to all the changes effective as a result of such amendment or termination and your rights will be reduced, terminated, altered, or increased accordingly as of the effective date of the amendment or termination. You do not have ongoing rights to any plan or program benefit. 521.MC rev Page 22 of 28

24 NON-ERISA STATUS OF PLAN NON-ERISA STATUS OF PLAN The is governed by federal tax law but is not an ERISA plan. 521.MC rev Page 23 of 28

25 PLAN ADMINISTRATIVE INFORMATION PLAN ADMINISTRATIVE INFORMATION Plan Sponsor, Plan Administrator Mayo Clinic 200 First Street SW Rochester, MN (507) Plan Sponsor EIN Agent for Service of Legal Process Mayo Clinic c/o William A. Brown, Assistant Treasurer 200 First Street SW Rochester, MN (507) Plan Fiscal Year January 1 - December 31 Collectively Bargained Groups The Plan is maintained in part pursuant to one or more collective bargaining agreements. A copy of any such agreements may be obtained by you upon written request to the Plan Administrator and is available for examination. Type of Plan The is not governed by ERISA. The is an employee welfare program that is governed by ERISA. The Pre-Tax Health Savings Account Plan is not governed by ERISA. Type of Administration Source of Contributions Claim Administrators Please Note: The claim administrators perform claim processing services pursuant to a written contract; they do not insure benefits under Mayo Flexible Spending Account Plan. Components of Mayo Flexible Spending Account Plan Contract Administration This Plan is funded with employee contributions and all benefits are paid from the general assets of Mayo Clinic. Mayo Clinic Health Solutions PO Box Eagan, MN (toll free) (local) HIPAA Privacy Rules 521.MC rev Page 24 of 28

26 PLAN ADMINISTRATIVE INFORMATION Employers Participating in Mayo Flexible Spending Account Plan Flexible Spending Account Plan Options Available Charterhouse Franklin Heating Station Gold Cross Ambulance Service Mayo Clinic Mayo Clinic Arizona Mayo Clinic Florida Mayo Clinic Health Solutions Mayo Clinic Health System-Austin and Albert Lea Mayo Clinic Health System-Cannon Falls Mayo Clinic Health System-Decorah Clinic Physicians Mayo Clinic Health System-Fairmont Mayo Clinic Health System-Franciscan Healthcare, Inc. Mayo Clinic Health System-Lake City Medical Center Mayo Clinic Health System-Mankato Mayo Clinic Health Systems-New Prague 521.MC rev Page 25 of 28

27 PLAN ADMINISTRATIVE INFORMATION Mayo Clinic Health System-Northwest Wisconsin, Inc. Mayo Clinic Health System-Owatonna Mayo Clinic Health System-Red Cedar, Inc. Mayo Clinic Health System-Red Wing Mayo Clinic Hospital-Rochester Mayo Clinic Jacksonville Mayo Collaborative Services Mayo Foundation for Medical Education and Research Mayo Medical Laboratories New England Rochester Airport Company 521.MC rev Page 26 of 28

28 GLOSSARY GLOSSARY Claim Administrator The Claim Administrator s responsibilities typically consist of initially determining the validity of claims and administering benefit payments under the Plan. Coverage Year The time period, not to exceed twelve (12) months, from the effective date of the Plan to the anniversary date. All subsequent coverage years shall begin on the anniversary date and consist of a period of not more than twelve (12) months. The Plan s coverage year is January 1 through December 31. Dependent Generally, your dependent for purposes of reimbursement from your (and as used throughout this Plan) is an individual who meets the following criteria: Your child or sibling (or the descendent of a sibling) who is under age 13, who has the same principal place of abode as you for more than one-half of the Plan year, and who has not provided more than one-half of his or her own support for the Plan year or A member of your family (or any other individual whose principal residence is your home and who is a member of your household) and who depends on you for at least half their support and who are physically or mentally incapable of caring for themselves or Your spouse, if he or she is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as you for more than one-half of the Plan year. Employee A person classified by the employer for payroll and personnel purposes as a regular employee, except it shall not include a selfemployed individual as described in Section 401(c) of the Internal Revenue Code of All employees who are treated as employed by a single employer under Subsections (b), (c), or (m), or Section 414 of the Internal Revenue Code of 1986 are treated as employed by a single employer for purposes of the Plan. Employee does not include any person classified by the employer as any of the following: Any individual who is a temporary employee. Any individual who is a supplemental or non-benefit eligible employee. Any individual included within a unit of employees covered by a collective bargaining unit unless such agreement expressly provides for coverage of the employee under the Plan. Any individual who is a nonresident alien and receives no earned income from the employer from sources within the United States. Any individual who is a leased employee as defined in Section 414 (n) (2) of the Internal Revenue Code of Any individual who performs services for the employer through, and is paid by, a third-party (including but not limited to an employee leasing or staffing agency) even if such individual is subsequently determined to be a common law employee of the employer. Any individual who performs services for the employer pursuant to a contract or agreement (whether verbal or written) which provides that such individual is an independent contractor or consultant, even if such individual is subsequently determined to be a common law employee of the employer. An employer s classification is conclusive and binding for purposes of determining benefit eligibility under the Plan. No reclassification of a worker s status for any reason by a third party, whether by a court, governmental agency, or otherwise, and without regard to whether or not the employer agrees to the reclassification, shall make the worker retroactively or prospectively eligible for benefits. Any uncertainty regarding a worker s classification will be resolved by excluding that person from eligibility. Employer Mayo Clinic and any subsidiary or affiliated entities recognized by Mayo Clinic as eligible to participate and that agree to participate in the Plan. In this document, employer shall mean the participating employers listed in the Plan Administrative Information section. ERISA Employee Retirement Income Security Act of 1974, as amended from time to time. Expenses Incurred An expense is incurred when the dependent care service is provided. FMLA The Family and Medical Leave Act of 1993, as amended from time to time. 521.MC rev Page 27 of 28

29 GLOSSARY Open Enrollment Period The period of time occurring toward the end of the coverage year during which eligible employees may elect to begin coverage for themselves under the Plan effective the first day of the upcoming coverage year. Plan The, a component of the Mayo Flexible Spending Account Plan for the provision of pretax benefits, as amended from time to time. Plan Administrator The Plan Administrator is Mayo Clinic. The Plan Administrator retains ultimate authority for the Plan including final appeal determinations. Plan Participant An eligible employee whose enrollment form has been accepted, whose coverage is in force, and whose coverage has not terminated. Plan Sponsor Mayo Clinic is the Plan Sponsor. Regularly Scheduled The schedule on file with your employer is your regular schedule. If it is.5 FTE or more you qualify to enroll in certain benefit plans with your employer. A schedule of.4 FTE working additional hours does not qualify as regularly scheduled. Spouse An individual who is legally married to an eligible employee under the law of the domestic state or foreign jurisdiction having legal authority to sanction the marriage. 521.MC rev Page 28 of 28

30 MC rev0117