4.13 SR 05-06-2024 - Laserfiche WebLink

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© 2012 Hitesman & Wold, P.A. City of Elk River Flexible Benefits Plan 10 ARTICLE V. ELECTION OF AVAILABLE BENEFITS 5.1 Initial Elections. An Election must have been made prior to the date on which an Eligible Employee becomes a Participant. An affirmative Election to participate is generally required. If the initial Election Period ends and an Eligible Employee has not returned an Election form to the Plan Administrator, the Eligible Employee will be deemed to have elected: (1) to pay for Core Benefits with the Employer Contribution; and (2) to not participate in Optional Benefits. 5.2 Subsequent Annual Elections. During the Election Period prior to each subsequent Plan Year, each Participant and Eligible Employee shall be given the opportunity to make a new Election. Such new Election may include the following: (a) an Eligible Employee who is not participating may elect to begin participating by electing Optional Benefits during the Election Period; (b) a Participant may terminate participation in the Plan; or (c) a Participant may elect different Optional Benefits or different levels of Optional Benefits. If the annual Election Period ends and an Eligible Employee has not returned an Election form to the Plan Administrator, the Eligible Employee will be deemed to have: (1) to pay for Core Benefits with the Employer Contribution; and (2) to not participate in Optional Benefits. 5.3 Elections Irrevocable. For purposes of this Section 5.3, the term “dependent” shall mean an individual who is a “dependent” under the provision of the Code applicable to the Optional Benefit(s) to which the Election being changed or revoked relates. An Election becomes effective and shall be irrevocable for the Plan Year or the remainder of the Plan Year except under the following circumstances: (a) Change in Status. A Participant may change or terminate his or her actual or deemed Election under the Plan upon the occurrence of a Change in Status, but only if such change or termination is made on account of and corresponds with a Change in Status that affects coverage eligibility of a Participant, a Participant’s Spouse, or a Participant’s dependent (referred to as the general consistency requirement). The Plan Administrator (in its sole discretion) shall determine, based on prevailing IRS guidance, whether a requested change is on account of and corresponds with a Change in Status. Assuming that the general consistency requirement is satisfied, a requested change must also satisfy the following specific consistency requirements in order for a Participant to be able to alter his or her Election based on that change. (1) Loss of Dependent Eligibility. For a Change in Status involving a Participant’s divorce, annulment or legal separation from a Spouse, the death of a Spouse or a dependent, or a dependent ceasing to satisfy the eligibility requirements for coverage, a Participant may only elect to cancel accident or health insurance, or insurance-type, coverage for the Spouse involved in the divorce, annulment, or legal separation, the deceased Spouse or dependent, or the dependent that ceased to satisfy the eligibility requirements. Canceling coverage for any other individual under these circumstances fails to correspond with that Change in Status. (2) Gain of Coverage Eligibility Under Another Employer’s Plan. For a Change in Status in which a Participant, a Participant’s Spouse, or a Participant’s Page 103 of 254