4.13 SR 05-06-2024 - Laserfiche WebLink

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© 2012 Hitesman & Wold, P.A. City of Elk River Flexible Benefits Plan 27 ARTICLE XI. GROUP TERM LIFE BENEFITS 11.1 Purpose. The purpose of this Article is to provide an opportunity to purchase Group Term Life Benefits under this Plan as a Core Benefit or Optional Benefit. The Employer provides Group Term Life Benefits through one or more “plans” within the meaning of Sections 79, 105, and 106 of the Code. Note: This Article does not permit pre-tax payment of Insurance Premiums for coverage other than Participant coverage (e.g., no spousal or dependent coverage). 11.2 Separate Written Plan. For purposes of Sections 79, 105 and 106 of the Code, this Article shall constitute a separate written plan providing for the reimbursement or direct payment of Insurance Premium expenses. To the extent necessary, other provisions of the Plan are incorporated by reference. 11.3 Definitions. (a) Group Term Life Benefits means the group term life insurance and accidental death and dismemberment coverage made available by the Employer through this Article to which the Insurance Premiums relate. It does not include individual insurance contracts. The Group Term Life Benefits that are Core Benefits include accidental death and dismemberment coverage. The Group Term Life Benefits that are Optional Benefits do not include accidental death and dismemberment coverage. (b) Insurance Contract means any insurance contract secured from an insurance company authorized to do business in the state in which such contract is issued, which has been obtained for the purpose of providing benefits under this portion of the Plan. (c) Insurance Premiums means the amount that must be paid on a periodic basis in return for group coverage under the Insurance Contract(s). 11.4 Terms, Conditions and Limitations. The Employer shall secure the necessary Insurance Contracts from third party providers, as identified in Exhibit A. Coverage shall begin, benefits shall be provided, and coverage shall terminate in accordance with the applicable Insurance Contracts. Such Insurance Contracts are expressly incorporated into and made part of this Plan. 11.5 Payments. The Plan Administrator shall make Insurance Premium payments for the Group Term Life Benefits on behalf of the Participant in an amount necessary to provide the benefit applicable to the Participant under this portion of the Plan for the applicable Plan Year. Such payments shall be made from Employer Contributions, if any, provided by the Employer under the Plan and, if necessary, contributions made in accordance with the salary deduction arrangement and other arrangements applicable to the Participant under the terms of the Plan. The appropriate portions shall depend on the coverage elected by the Participant. 11.6 Tax Consequences. It is intended that the Insurance Premiums paid by the Employer for Group Term Life Benefits that are Core Benefits shall be excluded from the Participant’s gross income. It is intended that the Insurance Premiums paid by the Employer for Group Term Life Benefits that are Optional Benefits, including through the Participant’s allocation of the Employer Contribution, shall be included in the Participant’s gross income. 11.7 Continuation/Conversion of Coverage. The Group Term Life Benefits shall comply with applicable state law regarding continuation of coverage and conversion of coverage to the extent such state laws are not preempted by federal law. In addition, any continuation and conversion rights provided under the terms of the Insurance Contract(s) through which benefits are provided shall be available to the extent they are not prohibited or preempted by federal law. Page 120 of 254