S E C T I O N 3 0 0 : C O M P E N S A T I O N
Orig Date:
Last Rev:
Subsection .850: Pretax Medical and Dental Benefit
Plan
1. Definitions
The following definitions shall apply to the Stevens County Rural Library District's Pretax Medical and Dental Plan:
1.1 “Benefit Election Form” shall mean the form provided by the Plan Administrator to Employees for the purpose of joining the Pretax Benefit Plan.
1.2 “Benefit Election Period” shall also mean the month of open enrollment during each Plan year subsequent to the year of hire. Benefit Election Period shall also include the normal orientation/introductory period following employee’s date of hire.
1.3 “Compensation” shall mean an Employee’s basic salary, overtime, and paid leave.
1.4 “Insurance Plan” shall mean the Stevens County Rural Library District’s medical and dental insurance plans which are available to employees.
1.5 “Plan Administrator” shall mean the person or persons responsible for the administration of the insurance plan.
1.6 “Plan Year” shall mean the twelve-month period beginning January 1 and ending December 31.
2. Eligibility
2.1 Employees shall be eligible to participate in the pretax Benefit Plan commencing on the date the Employee becomes eligible for coverage under the Insurance Plan and ending on the earlier of the date the employee ceases to be eligible or terminates employment..
3. Participation
3.1 Each employee who is eligible for medical and dental insurance coverage may participate in the Pretax Benefit Plan by completing a Benefit Election Form within the Benefit Election Period.
3.2 A Benefit Election Form once filed will remain in effect until the earlier of (a) the Employee’s ineligibility for coverage under the Insurance Plan for whatever reason; and (b) the filing of a new Election Form. An Election made (or deemed made) is irrevocable for the Plan Year. Changes can be made by reason of if there are changes in an employee’s family status which include but are not limited to birth of a child, marriage, and divorce and are allowable under the District’s medical and dental insurance plans.
3.3 The Employee’s election shall state whether s/he shall participate in the Insurance Plan as Employee; Employee and Spouse; Employee, Spouse, and Children; or Employee and Children. The premium shall reduce the Employee’s Compensation throughout the Plan year by allowing employees to pay for medical and dental premiums with pre-tax dollars.
3.4 If no Benefit Election Form is filed by the Employee, the Employee shall be deemed to have not accepted the Pretax Benefit Plan.
3.5 An Election Form shall become effective for the Plan Year (or remainder of the Plan Year) following the end of the Benefit Election Period. If a change is made as provided in section 3.2, it will be effective on the first day of the month following the filing receipt of the new Benefit Election Form.
4. Benefits
4.1 The Pretax Benefit Plan’s nontaxable benefit shall be the portion of the Employee’s total cost of coverage of the Insurance Plan allocated to Employees in accordance with normal personnel practices in effect during the Plan Year.
4.2 Compensation for employees participating in the Insurance Plan shall be reduced by the amount of premium costs of the Insurance Plan(s). The maximum benefit available to an Employee will be the sum of monthly premium costs attributable to family coverage while eligible.
5. Administration
5.1 The Plan Administrator shall have general responsibility for the administration and interpretation of the Pretax Benefit Plan.
5.2 The Plan Administrator shall establish procedures and provide for the keeping of records of all actions taken in accordance with his/her duties.
5.3 The duties, claims determinations, and liability of the Plan Administrator shall be determined by the terms of the Insurance Plan.
6. Amendment and Termination
6.1 The District’s Board of Trustees reserves the right at any time to amend, suspend, or terminate the Pretax Benefit Plan, in whole or in part and for any reason, and to adopt any amendment or modification thereto.
7. General Limitations and
Provisions
7.1 Nothing contained in the Pretax Benefit Plan shall give any Employee the right to be retained in the employment of the Employer or affect the right of the Employer to dismiss any Employee. The adoption and maintenance of the Pretax Benefit Plan shall not constitute a contract between the employer and any Employee for consideration for, or an inducement to or condition of, the employment of any Employee.
7.2 All notices, statements, reports, and other communications from the Plan Administrator to any employee or other person required or permitted under the Pretax Benefit Plan shall be deemed to have been duly given when delivered to, or when mailed by first-class mail postage at his address last appearing on the records of the Plan Administrator.
7.3 The Pretax Benefit Plan
and all rights thereunder shall be governed by and construed in accordance with the laws
of the State of
Attachment:
IRS Code Section 125 Election Form for the Medical and Dental Pretax Benefits Plan