Laserfiche WebLink
<br />© 2012 Hitesman & Wold, P.A. City of Elk River <br />Flexible Benefits Plan <br />28 <br />ARTICLE XII. <br />SHORT TERM DISABILITY BENEFITS <br />12.1 Purpose. The purpose of this Article is to provide for the payment opportunity for Short Term <br />Disability Benefits under this Plan as an Optional Benefit. The Employer provides Short Term <br />Disability Benefits through one or more “plans” within the meaning of Sections 105 and 106 of <br />the Code. <br />12.2 Separate Written Plan. For purposes of Sections 105 and 106 of the Code, this Article shall <br />constitute a separate written plan providing for the reimbursement or direct payment of <br />Insurance Premium expenses. To the extent necessary, other provisions of the Plan are <br />incorporated by reference. <br />12.3 Definitions. <br />(a) Insurance Contract means (1) any insurance contract secured from an insurance <br />company authorized to do business in the state in which such contract is issued, which <br />has been obtained for the purpose of providing benefits under this Plan; or (2) a self- <br />insured plan administered by a third party. <br />(b) Insurance Premiums means the amount that must be paid on a periodic basis in <br />return for group coverage under the Insurance Contract. <br />(c) Short Term Disability Benefits means the short term disability coverage made <br />available by the Employer to which the Insurance Premiums relate. It does not include <br />individual short term disability insurance contracts. <br />12.4 Terms, Conditions and Limitations. The Employer shall secure the necessary Insurance <br />Contracts from third party providers, as identified in Exhibit A. Coverage shall begin, benefits <br />shall be provided, and coverage shall terminate in accordance with the applicable Insurance <br />Contracts. Such Insurance Contracts, are expressly incorporated into and made part of this Plan. <br />12.5 Payments. The Plan Administrator shall make Insurance Premium payments for the Short Term <br />Disability Benefits on behalf of the Participant in an amount necessary to provide the benefit <br />applicable to the Participant under this portion of the Plan for the applicable Plan Year. Such <br />payments shall be made from Employer Contributions and, if necessary, contributions made in <br />accordance with the salary deduction arrangements applicable to the Participant under the terms <br />of the Plan. The appropriate portions shall depend on the coverage elected by the Participant. <br />12.6 Tax Consequences. It is intended that the Insurance Premiums paid by the Employer for a <br />Participant’s Short Term Disability Benefits shall be included in the Participant’s gross income. <br />Any benefits received as a result of the Insurance Contract under this portion of the Plan <br />attributable to such after-tax Insurance Premiums shall be excluded from the recipient’s gross <br />income to the fullest extent permitted by law. <br />Page 121 of 254