5.3. ERMUSR 02-09-2010 - Laserfiche WebLink

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(e) Change in Cost. (1) Automatic Increase or Decrease for Insignificant Cost Changes. If the cost of an Optional Benefit (other than Medical Expense Reimbursement Plan) Deleted: the increases or decreases during a Plan Year by an insignificant amount, then the pre-tax contributions or after-tax contributions (as applicable) under each affected Participant Election shall be prospectively increased or decreased to reFlect such change. The Plan Administrator, on a reasonable and consistent basis, will automatically effectuate this prospective increase or decrease in Participant contributions in accordance with such cost changes. The Plan Administrator (in its sole discretion) will decide, in accordance with prevailing IRS guidance, whether increases or decreases in costs are "insignificant" based upon all the surrounding facts and circumstances (including, but not limited to, the dollar amount or percentage of the cost change). (2) Significant Cost Increases. If the Plan Administrator determines that the cost of an Optional Benefit (other than Medical Expense Reimbursement Plan) Deleted: the significantly increases during a Plan Year, the Participant may either make a corresponding increase in his or her Deleted: (a) Deleted: prospective or revoke his or her Election similar coverage is The Plan Deleted: contributions, Administrator (in its sole discretion) will decide, in accordance with prevailing IRS Deleted: (b) simply guidance, whether a COSt increase IS significant and what constitutes "similar Deleted: ,and in lieu thereof, receive coverage coverage" based upon all the surrounding facts and circumstances. under another Plan option which provides Deleted:. If no similar coverage Deleted: available, the Participant may revoke his or her Election. Deleted: the Deleted: under this Plan (f) Change in Coverage. Deleted: or ceases (1) Significant Curtailment. If the Plan Administrator determines that Deleted: revoke his or her Election under [he an Optional Beneft (other than Medical Expense Reimbursement Plan) is Plan. To the extent there is significantly curtailed during a Plan Year, the Participant may Deleted: ,the Participant may prospectively slmllar coverage elect such coverage. If no similar coverage is Covera e under an accident or health Ian is 9 P available, me Participant may simply revoke nis or her Election. deemed "significantly curtailed" only if there is an overall reduction in coverage " " provided to Participants under the Plan so as to constitute reduced coverage to Deleted: significant , Participants in general. The Plan Administrator (in its sole discretion) will decide, Deleted: substitute optional Benefit in accordance with prevailing IRS guidance, whether a curtailment is Deleted: Addition or Elimination and whether a Constitutes "similar coverage" Deleted: a Benefit Providing Similar based upon all the surrounding facts and circumstances. Deleted: during a Plan Year, (2) of Coverage. If the Plan Deleted: adds or eliminates an Optional Benefit (other than Medical Expense Reimbursement Plan) Deleted: the Deleted: , an affected Participant may elect a Slmllar coverage newly-added option or elect another Optional Beneft (where a Plan option has been eliminated), and may do so prospectively on a pre-tax basis by making corresponding Election changes with respect to coverage under another Optional Benefit that provides © 2009 Flitesman & Associates, P.A. 11 Elk River Muniapal Utilities Flexible Benefits Plan (No. 8.0.0.0)