6.5. ERMUSR 01-15-2008 - Laserfiche WebLink

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Participant has elected to have the cost of their coverage paid under this portion of the Plan, the Plan Administrator shall also make such payments on behalf of the Participant's Spouse and Dependents. However, if the Dependent is not a "dependent" under Section 152 of the Code, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof (a "non-tax Dependent', the value of the coverage provided to such Dependent shall be included in the Participant's income as the coverage is provided. 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 reduction 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. 9.6 Nondiscrimination. To the extent this portion of the Plan, is subject to Section 105(h) of the Code, it shall not discriminate in favor of Highly Compensated Individuals as to eligibility to participate or benefits. If the Plan Administrator determines that this portion of the Plan is or may be discriminatory, the Plan Administrator may take action permitted by law to avoid such a result. If this portion of the Plan fails any applicable nondiscrimination requirements, Highly Compensated Individuals shall have taxable income imputed to the extent required by law. 9.7 Medical Child Support Orders. Notwithstanding any provision of this Medical Plan to the contrary, this Medical Plan shall recognize child support orders regarding coverage under this Medical Plan to the extent required by applicable law. Participants involved in a divorce or child custody matter should be directed to have their legal counsel contact the Plan Administrator. 9.8 Continuation of Coverage. Continued coverage shall be provided if it is required under, and in accordance with, the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA', as amended, and as reflected in the Public Health Services Act ("PHSA'~, as amended. To the extent not contained in Article XIV, the Plan Administrator shall, within the parameters of the law, establish uniform policies by which to provide such continuation coverage. There shall also be compliance with state laws concerning continuation of medical insurance coverage to the extent not preempted by federal law. ©2007 Hitesman & Associates, P.A. 21 Elk River Municipal Utilities 122707 Flexible Benefits Plan