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<br />© 2012 Hitesman & Wold, P.A. City of Elk River <br />Flexible Benefits Plan <br />44 <br />ARTICLE XVIII. <br />CASH PAYMENT <br />18.1 Purpose. The purpose of this Article is to describe the Cash Payment available under this Plan <br />as an Optional Benefit. The Employer Contribution that is not allocated for the purposes of <br />benefits under this Plan may be available to the Participant in cash as provided herein. <br />18.2 Terms, Conditions and Limitations. A Participant is required to allocate the Employer <br />Contribution to pay for Core Benefits and may allocate the Employer Contribution for Optional <br />Benefits. To the extent a Participant waives Group Medical Benefits and does not allocate all of <br />the Employer Contribution to Benefits available under this Plan, a Participant shall receive a Cash <br />Payment of the unused Employer Contribution. <br />18.3 Payment. Cash Payments shall be made at least monthly and within the month that the <br />Employer Contribution would otherwise have been used for benefits. Cash Payments shall be <br />made only to Participants. If a Participant ceases to meet the eligibility requirements, then Cash <br />Payments shall cease. <br />18.4 Tax Consequences. Any cash payment received through the Plan is taxable income to the <br />Participant. <br />Page 137 of 254