HomeMy Public PortalAbout120823097288
O R D I N A N C E NO. 12082
AN ORDINANCE, amending and restating the Metropolitan St. Louis Sewer
District Flexible Benefit Plan, pursuant to Section 15.01 of the aforesaid Plan.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. The Metropolitan St. Louis Sewer District Flexible Benefit Plan and
all prior amendments thereto, as attached hereto and made a part hereof, are hereby amended and
restated.
WHEREAS, effective August 1, 1989, the Metropolitan St. Louis Sewer District
(“Company”) adopted the Metropolitan St. Louis Sewer District Flexible Benefit Plan (“Plan”);
and
WHEREAS, the Company retained the right to amend the Plan pursuant to
Section 15.01 thereof; and
WHEREAS, certain regulations under Internal Revenue Code Section 125
became effective with respect to the Plan; and
WHEREAS, the Company desires to amend the Plan in its entirety and restate the
Plan in order to comply with the foregoing changes in the applicable legal requirements and to
effect certain other changes;
NOW, THEREFORE, the Plan is amended in its entirety and restated to read as
follows:
3097288
METROPOLITAN ST. LOUIS SEWER DISTRICT
FLEXIBLE BENEFIT PLAN
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INDEX
Page
ARTICLE 1 PURPOSE AND EFFECTIVE DATES .................................................................... 1
Section 1.01 . Purpose. ............................................................................................................... 1
Section 1.02 . Effective Date. .................................................................................................... 1
ARTICLE 2 DEFINITIONS ........................................................................................................... 1
Section 2.01 . Account. .............................................................................................................. 1
Section 2.02 . Affiliated Company. ........................................................................................... 1
Section 2.03 . Board. .................................................................................................................. 1
Section 2.04 . Committee. ........................................................................................................... 1
Section 2.05 . Code. ................................................................................................................... 1
Section 2.06 . Company. ............................................................................................................ 2
Section 2.07 . Compensation. ..................................................................................................... 2
Section 2.08 . Employee. ........................................................................................................... 2
Section 2.09 . Employer. ............................................................................................................ 2
Section 2.10 . FMLA. ................................................................................................................ 2
Section 2.11 . FMLA Leave. ....................................................................................................... 2
Section 2.12 Medical Plan. ......................................................................................................... 2
Section 2.13 . Medical Plan Benefits. ........................................................................................ 2
Section 2.14 . Member. ............................................................................................................... 2
Section 2.15 . Nonelective Contributions. ................................................................................. 2
Section 2.16 . Period of Coverage. ............................................................................................ 2
Section 2.17 . Plan. ..................................................................................................................... 2
Section 2.18 . Plan Year. ............................................................................................................ 2
Section 2.19 . Reimbursement Account. .................................................................................... 2
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Section 2.20 . Reimbursement Benefits. ..................................................................................... 3
Section 2.21 . Reimbursement Contributions. ........................................................................... 3
Section 2.22 . Uniformed Services. ........................................................................................... 3
ARTICLE 3 ELIGIBILITY REQUIREMENTS ............................................................................ 3
Section 3.01 . Eligibility. ........................................................................................................... 3
Section 3.02 . Enrollment and Membership............................................................................... 3
Section 3.03 . Participation During Leaves of Absence. ........................................................... 3
ARTICLE 4 CONTRIBUTIONS ................................................................................................... 4
Section 4.01 . Insurance Contributions. ..................................................................................... 4
Section 4.02 . Reimbursement Contributions. ............................................................................ 4
Section 4.03 . Pay Reduction and Payroll Withholding.............................................................. 4
Section 4.04 . Nonelective Contributions. .................................................................................. 4
ARTICLE 5 ELECTIONS .............................................................................................................. 4
Section 5.01 . In General............................................................................................................ 4
Section 5.02 . Reimbursement Contributions and Benefits. ....................................................... 4
Section 5.03 . Period of Coverage. ............................................................................................ 5
Section 5.04 . Fractional Periods of Coverage. .......................................................................... 5
Section 5.05 . Timing of Elections............................................................................................. 5
Section 5.06 . Change of Election Due to Change of Status...................................................... 5
Section 5.07 . Change of Election Due to Changes in Member’s Coverage. ............................. 6
Section 5.08 . Change of Election due to Changes in Coverage of a Member’s Family. .......... 7
Section 5.09 . Change of Election Due to Changes in Coverage Costs. .................................... 7
Section 5.10 . Change of Election for HIPAA Special Enrollments. ........................................ 7
Section 5.11 . Change of Election for Medicare or Medicaid Entitlement. ............................... 7
Section 5.12 . Change of Election Due to FMLA Leave. .......................................................... 7
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Section 5.13 . Change of Election as Permitted by Law. ........................................................... 8
Section 5.14 . Termination of Election. ..................................................................................... 8
ARTICLE 6 BENEFITS ................................................................................................................. 8
Section 6.01 . Benefits Available. .............................................................................................. 8
Section 6.02 . Medical Plan Benefits. ........................................................................................ 8
Section 6.03 . Medical Expense Reimbursement Benefits. ....................................................... 8
Section 6.04 . Dependent Care Reimbursement Benefits. ......................................................... 8
Section 6.05 . Cash Benefits. ..................................................................................................... 8
ARTICLE 7 LIMITATIONS ON BENEFITS ............................................................................... 9
Section 7.01 . Coverage. ............................................................................................................ 9
Section 7.02 . Amount of Benefits. ............................................................................................. 9
Section 7.03 . Forfeitures. .......................................................................................................... 9
Section 7.04 . Medical Plan. .................................................................................................... 10
ARTICLE 8 MEDICAL EXPENSE REIMBURSEMENT PROGRAM ..................................... 10
Section 8.01 . In General.......................................................................................................... 10
Section 8.02 . Definitions......................................................................................................... 10
Section 8.03 . Covered Expenses. ............................................................................................ 10
Section 8.04 . Reduction of Benefits. ....................................................................................... 11
Section 8.05 . Other Provisions................................................................................................ 11
ARTICLE 9 DEPENDENT CARE REIMBURSEMENT PROGRAM ...................................... 11
Section 9.01 . In General.......................................................................................................... 11
Section 9.02 . Definitions......................................................................................................... 11
Section 9.03 . Eligibility, Enrollment and Termination. .......................................................... 12
Section 9.04 . Covered Expenses. ............................................................................................ 12
Section 9.05 . Reduction of Benefits. ...................................................................................... 12
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Section 9.06 . Further Limitations. .......................................................................................... 12
Section 9.07 . Principal Shareholders Limitations. .................................................................. 13
Section 9.08 . Prohibition of Certain Payments. ...................................................................... 13
Section 9.09 . Services Outside the Household. ...................................................................... 13
Section 9.10 . Statements. ........................................................................................................ 14
Section 9.11 . Proof of Incurred Expenses. ............................................................................... 14
Section 9.12 Other Provisions................................................................................................... 15
ARTICLE 10 CLAIMS FOR BENEFITS .................................................................................... 15
Section 10.01 . Claims for Reimbursement Benefits. ............................................................... 15
Section 10.02 . Prior Payment Unnecessary. ........................................................................... 15
Section 10.03 . Claim Substantiation. ...................................................................................... 15
Section 10.04 . Time Limit on Claiming Benefits. ................................................................... 15
Section 10.05 . Medical Plans. ................................................................................................. 15
ARTICLE 11 POST-TERMINATION PARTICIPATION.......................................................... 16
Section 11.01 . Termination of Participation on Account of Death......................................... 16
Section 11.02 . Designation of Beneficiary. ............................................................................ 16
Section 11.03 . Failure of Beneficiary Designation. ................................................................ 16
Section 11.04 . Other Termination. .......................................................................................... 16
ARTICLE 12 NONDISCRIMINATION ...................................................................................... 16
Section 12.01 . Reduction of Contributions and Benefits. ....................................................... 16
Section 12.02 . Prohibition of Discrimination. ........................................................................ 17
ARTICLE 13 ACCOUNTS .......................................................................................................... 17
Section 13.01 . Accounts. ........................................................................................................ 17
Section 13.02 . Contributions Made. ....................................................................................... 17
Section 13.03 . Benefits Provided. ........................................................................................... 17
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ARTICLE 14 ADMINISTRATION OF THE PLAN ................................................................... 17
Section 14.01 . Appointment of the Committee. ..................................................................... 17
Section 14.02 . Conduct of Committee Business. .................................................................... 17
Section 14.03 . Records and Reports of the Committee. ......................................................... 17
Section 14.04 . Administrative Powers and Duties.................................................................. 18
Section 14.05 . Allocation or Delegation of Duties and Responsibilities. ................................ 18
Section 14.06 . Claims Procedure. ........................................................................................... 18
ARTICLE 15 AMENDMENT AND TERMINATION ............................................................... 19
Section 15.01 . Amendment of Plan. ....................................................................................... 19
Section 15.02 . Termination of Plan. ....................................................................................... 19
Section 15.03 . Preservation of Rights. .................................................................................... 19
ARTICLE 16 ADOPTION OF PLAN .......................................................................................... 19
Section 16.01 . In General........................................................................................................ 19
ARTICLE 17 MISCELLANEOUS .............................................................................................. 19
Section 17.01 . Facility of Payment. ........................................................................................ 19
Section 17.02 . Lost Payee. ...................................................................................................... 20
Section 17.03 . Funding. .......................................................................................................... 20
Section 17.04 . Indemnification. ............................................................................................... 20
Section 17.05 . Titles and Headings......................................................................................... 20
Section 17.06 . Number. .......................................................................................................... 20
Section 17.07 . Applicable Law. .............................................................................................. 20
Section 17.08 . Assignment of Benefits. .................................................................................. 20
METROPOLITAN ST. LOUIS SEWER DISTRICT
FLEXIBLE BENEFIT PLAN
ARTICLE 1
PURPOSE AND EFFECTIVE DATES
Section 1.01. Purpose. The purpose of this Plan is to permit Members to
choose between cash Compensation and nontaxable welfare benefits purchased on their behalf
by the Employer. This Plan is intended to be a cafeteria plan as defined in Code section 125(d).
Section 1.02. Effective Date. The Plan shall be effective as of August 1,
1989. The provisions of this amended and restated Plan shall be generally effective as of
February 1, 2005.
ARTICLE 2
DEFINITIONS
Each word and phrase defined in this Article 2 shall have the following meaning
whenever such word or phrase is capitalized and used herein unless a different meaning is clearly
required by the context of the Plan. In addition to the definitions in this Article 2, certain words
and phrases used in the Plan are defined in other portions of the Plan.
Section 2.01. Account. The individual account established on the books of
the Employer under Section 13.01 in the name of each Member for the purpose of accounting for
contributions allocated to and benefits paid for a Member.
Section 2.02. Affiliated Company. The Company and any company, trade,
or business unit that is: (a) a member of a controlled group of corporations, within the meaning
of Code section 414(b), that includes the Company; (b) under common control, within the
meaning of Code section 414(c), with the Company; or (c) a member of an affiliated service
group, within the meaning of Code section 414(m), that includes the Company.
Section 2.03. Board. The board of trustees of the Company.
Section 2.04. Committee. The Metropolitan St. Louis Sewer District
Employee Benefits Committee as described in Section 14.01.
Section 2.05. Code. The Internal Revenue Code of 1986, as amended from
time to time.
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Section 2.06. Company. Metropolitan St. Louis Sewer District.
Section 2.07. Compensation. A Member’s wages and salary, including
bonuses, overtime and commissions, as determined by the Committee, for personal services
rendered in the course of employment with any Affiliated Company, including contributions
under Sections 4.01 and 4.02 on a Member’s behalf.
Section 2.08. Employee. Any person employed by an Affiliated Company
but excluding (i) any person covered by a collective bargaining agreement between an Affiliated
Company and a bargaining unit of employees, unless coverage under this Plan is provided for
under the collective bargaining agreement, and (ii) a person who is classified by the Employer as
an independent contractor (regardless of retroactive reclassification).
Section 2.09. Employer. Any Affiliated Company which, with the consent
of the Board, ratifies and adopts this Plan.
Section 2.10. FMLA. The Family and Medical Leave Act of 1993, as now
in effect or as hereafter amended.
Section 2.11. FMLA Leave. A leave of absence that the Employer is
required to extend to a Member under the provisions of the FMLA.
Section 2.12 Medical Plan. Any plan of any Affiliated Company other
than this Plan which provides medical care benefits (including dental care benefits) for
employees generally.
Section 2.13. Medical Plan Benefits. The benefits under a Medical Plan as
described in Section 6.02.
Section 2.14. Member. Any Employee who has become eligible to
participate in the Plan in accordance with Section 3.01 and who has not ceased to be an
Employee.
Section 2.15. Nonelective Contributions. The contributions made pursuant
to Section 4.04.
Section 2.16. Period of Coverage. The Plan Year, except that it may be a
fraction of a Plan Year as provided in Section 5.04.
Section 2.17. Plan. The Metropolitan St. Louis Sewer District Flexible
Benefit Plan, together with all amendments hereto.
Section 2.18. Plan Year. February 1 through January 31, except for the
first Plan Year which shall run from August 1, 1989 through January 31, 1990.
Section 2.19. Reimbursement Account. Each subaccount of a Member’s
Account established under Section 13.01 for contributions of, and payments for, Reimbursement
Benefits.
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Section 2.20. Reimbursement Benefits. The Medical Expense and
Dependent Care Reimbursement Benefits described in sections 6.03 and 6.04.
Section 2.21. Reimbursement Contributions. Contributions made under
Section 4.02 for Reimbursement Benefits.
Section 2.22. Uniformed Services. The Armed Forces, the Army National
Guard, and the Air National Guard when engaged in active duty for training, inactive duty
training, or full-time National Guard duty, the commissioned corps of the Public Health Service,
and any other category of persons designated by the President of the United States in time of war
or emergency.
ARTICLE 3
ELIGIBILITY REQUIREMENTS
Section 3.01. Eligibility. An Employee shall become a Member as of the
latest of:
(a) August 1, 1989;
(b) with respect to an Employee’s election under Section 4.01, the date the Employee
becomes eligible for coverage under a Medical Plan;
(c) the date of the Employee’s coverage under this Plan through the adoption of this
Plan by the Employee’s Employer;
(d) the thirtieth day after the date such person becomes an Employee; or
(e) the date the Employee makes his or her salary reduction election under
Section 5.02.
Section 3.02. Enrollment and Membership. The Committee shall notify
in writing each Employee who becomes a Member of the Plan and shall explain the rights,
privileges and duties of a Member of the Plan. Each Member may elect to participate as of the
date on which he or she becomes eligible in accordance with Section 3.01 by completing and
delivering to the Committee, on forms provided by the Committee, a salary reduction agreement,
a beneficiary designation form and an election of benefits form.
Section 3.03. Participation During Leaves of Absence. An Employee,
who is not at work because of an unpaid FMLA Leave or due to an unpaid period of duty in the
Uniformed Services may, at the Employee’s option, continue to participate in any group health
plan offered through this Plan as required by federal law, provided that such Employee makes
the required premium contributions.
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ARTICLE 4
CONTRIBUTIONS
Section 4.01. Insurance Contributions. For any Plan Year, each Member
may elect to have contributed to his or her Account a specified amount of his or her
Compensation for such Plan Year to pay for benefits under a Medical Plan. The amount of such
contributions shall be determined in accordance with the type of coverage the Member elects
under his or her Medical Plan and in accordance with the terms of such Plan. The maximum
amount which a Member may elect shall be the maximum contribution which may be elected by
such member under such Medical Plan.
Section 4.02. Reimbursement Contributions. For any Plan Year, in
addition to the contributions in Section 4.01, each member may elect to have contributed to his
or her Account a specified amount of his or her Compensation for such Plan Year up to a
maximum of $7,500.00 to be used to fund Reimbursement Benefits; provided, however, in the
case of Reimbursement Benefits for Dependent Care Expenses, such contributions shall not
exceed the limitations provided in Section 9.06.
Section 4.03. Pay Reduction and Payroll Withholding. A Member’s
Compensation for a Plan Year shall be reduced by the amount of the contributions which he or
she elects for such Plan Year under Sections 4.01 and 4.02. Except as otherwise required by
federal law, contributions shall be made only by way of payroll withholding which shall be made
during a Member’s applicable Period of Coverage.
Section 4.04. Nonelective Contributions. For any Plan Year, the Employer
may make further contributions to the Plan on behalf of Members up to a maximum of $2,000.00
of Nonelective Contributions per Member. Any such Nonelective Contributions shall be made
only on a nondiscriminatory basis and shall be described on the election of benefits form
provided by the Committee in accordance with Section 3.02.
ARTICLE 5
ELECTIONS
Section 5.01. In General. Elections of contributions and benefits shall be
made at the time, in the manner and subject to the conditions specified by the Committee which
shall prescribe uniform and nondiscriminatory rules for such elections. Members may elect
whether or not to have salary reduction contributions made on their behalf to a Medical Plan
under Section 4.01, or to Reimbursement Accounts under Section 4.02. The Committee may
require either that a Member affirmatively elect salary reduction contributions or affirmatively
elect not to have salary reduction contributions made on his or her behalf. The Committee shall
provide an annual election form summarizing Members’ election options as described in
Section 3.02.
Section 5.02. Reimbursement Contributions and Benefits. Members must
elect both the amount of contributions to a Medical Plan and the amount of Reimbursement
5
Contributions and how much of such contributions, as well as Nonelective Contributions
allocated to their Accounts shall be allocated to each benefit for an elected Period of Coverage.
Contributions allocated to a particular benefit may never by used for any other benefit.
Section 5.03. Period of Coverage. Except as otherwise provided in this
Article 5, any Member electing contributions and benefits must make an irrevocable election for
a Period of Coverage of an entire Plan Year. Except as provided in this Article 5, elections of
contributions and/or benefits may not be revoked or changed in the middle of a Period of
Coverage.
Section 5.04. Fractional Periods of Coverage. Members who first become
eligible to participate in the middle of a Plan Year may elect to participate during a Period of
Coverage which lasts until the end of the current Plan Year. In such cases, the interval
commencing the day after their elections are made and ending at the end of the current Plan Year
shall be deemed to be their Period of Coverage. Such Members must elect to participate no later
than 30 days after becoming eligible to do so.
Section 5.05. Timing of Elections. Elections of contributions and benefits
for a Period of Coverage shall be made prior to such Period of Coverage, provided that where a
Member commences participation in the middle of a Period of Coverage as provided in
Section 5.04, he or she shall make elections prior to commencement of participation.
Section 5.06. Change of Election Due to Change of Status.
(a) A Member shall be entitled to prospectively change a previous benefit election by
revocation or modification during a Plan Year in the event that the Member experiences a
“Change of Status.”
(b) For this purpose, a “Change of Status” is a change in an individual’s eligibility for
coverage under the Plan due to at least one of the following:
(i) the birth, death, adoption, and placement for adoption of one of a
Member’s dependents;
(ii) the Member’s marriage, divorce, legal separation, annulment or the death
of the Member’s spouse;
(iii) a change in the Member’s employment status or the employment status of
the Member’s spouse or a dependent (e.g., commencement or termination of employment,
reduction or increase in work hours, strike or lock-out, commencement of or return from an
unpaid leave of absence, new worksite, etc.);
(iv) a change in a Member’s residency or the residency of Member’s spouse or
a dependent; or
(v) a change in the status of one of a Member’s dependents under the
eligibility criteria for the Plan (attainment of a specified maximum age, enrollment or graduation
in school, and any similar circumstance).
6
(c) A Member otherwise entitled to implement a new prospective election because of
having experienced a Change of Status must do so within the period specified by the Committee.
However, any such election change is subject to the following restrictions.
(i) A Member may not cancel coverage for an individual who has become
eligible for coverage under another plan unless the individual actually becomes covered under
the other plan.
(ii) If a Member, his spouse, or a dependent loses coverage under the health
insurance plan sponsored by the Company and elects continuation coverage as permitted by the
Employer, the Member may increase any health insurance contribution election under this Plan
to pay for such coverage.
(iii) A Member may make an election change with respect to dependent care if
a Change of Status affects his covered Dependent Care Expenses as defined in the Employer’s
Dependent Care Assistance Program.
(iv) A Member who terminates employment with a balance under the
Company’s Medical Expense Reimbursement Program may not reduce his coverage for the
remainder of the plan year to the amount of premiums he had already paid and then suspend his
remaining premiums.
(v) A Member’s termination of employment for more than 30 days during a
Plan Year will be deemed to be a bona fide termination that would permit the Member to cancel
coverage for the remainder of the Plan Year, reinstate his prior elections, or make a new election
without regard to his prior elections.
(d) A change in benefit election pursuant to this Section 5.06 must be consistent with
the Change of Status. A change in benefit election is considered consistent with a Change of
Status if the election change is on account of and corresponds with the Change of Status.
Section 5.07. Change of Election Due to Changes in Member’s
Coverage.
(a) If coverage under any plan that is a benefit option offered under this Plan is
significantly curtailed or terminated during the Plan Year, an affected Member shall be permitted
to change to coverage under another option providing similar coverage. In this context, coverage
under an accident or health plan is significantly curtailed only if there is an overall reduction in
coverage that affects all Members.
(b) If the Plan adds or eliminates a benefit package or coverage option during the
Plan year, affected Members may elect the new option or a replacement for a cancelled option
and make corresponding election changes with respect to other options providing similar
coverage.
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Section 5.08. Change of Election due to Changes in Coverage of a
Member’s Family.
(a) A Member may make a mid-Plan Year prospective election change on account of
(and consistent with) a coverage change under a Code Sec. 125 cafeteria plan or other qualified
benefit plan sponsored by the employer of the Member’s spouse, former spouse, or dependent
that results from:
(i) a permissible election change under Code Section 125 and the Regulations
promulgated thereunder; or
(ii) if the Member’s and the family member’s cafeteria plans or other qualified
benefit plans have different plan years, such family member’s new election during an open
enrollment period.
For purposes of this Section, the term “other qualified benefit plan” means an employee benefit
plan offering benefits that may be provided through a cafeteria plan as provided in Code Section
125(f).
Section 5.09. Change of Election Due to Changes in Coverage Costs. If
the cost of a benefit under the Plan (other than Medical Expense Reimbursement Benefits)
increases or decreases during a Plan Year, and so affects Members’ premiums for such Plan, the
Committee will automatically make a prospective adjustment, on a reasonable and consistent
basis, in affected Members’ pretax premiums. If the cost that is charged to all Members with
respect to a benefit package options is significantly increased, each affected Member may be
given the choice of either making corresponding increase in his premiums for that option or
electing another benefit package option providing similar coverage on a prospective basis. This
Section will apply in the case of the Employer’s Dependent Care Assistance Program only if the
cost change is imposed by a dependent care provider who is not a relative of the Member, as
defined in Code Sections 152(a) and (b).
Section 5.10. Change of Election for HIPAA Special Enrollments. If a
Member, his spouse, or any of his dependents become covered under a group health insurance
plan maintained by the Employer by reason of special enrollment rights arising under the Code,
the Member shall be permitted to make a prospective change to his health benefit election under
this Plan that corresponds with such special enrollment rights.
Section 5.11. Change of Election for Medicare or Medicaid
Entitlement. If a Member, his spouse, or a dependent becomes enrolled for
general benefits under Medicare or Medicaid, the Member may be allowed to cancel coverage
for such individual. Alternatively, if the Member, spouse, or dependent loses coverage under
Medicare or Medicaid, the Member may make a prospective election to begin or increase
coverage of that individual under the Member’s accident or health plan.
Section 5.12. Change of Election Due to FMLA Leave. A Member who
takes an FMLA Leave shall have the right to make any election change under an Employer-
sponsored group health plan option as may be provided for under FMLA.
8
Section 5.13. Change of Election as Permitted by Law. A Member may
have the right to make any election change otherwise permitted under Code section 125 or the
regulations promulgated thereunder, as determined by the Committee in a nondiscriminatory
manner.
Section 5.14. Termination of Election. An Employee may revoke a prior
election upon terminating employment or taking an unpaid leave of absence. Likewise, failure to
make required contributions for any benefit elected under this Plan shall automatically terminate
any prior election with respect to such benefit, unless delinquent contributions are brought
current within 30 days of the date that they became delinquent. If revocation occurs under this
Section, no new election may be made by such Employee during the remaining coverage period
of the Plan Year.
ARTICLE 6
BENEFITS
Section 6.01. Benefits Available. Subject to Article 10, Members may
elect one or more of the following benefits:
(a) Medical Plan Benefits.
(b) Medical Expense Reimbursement Benefits.
(c) Dependent Care Reimbursement Benefits.
(d) Cash.
Section 6.02. Medical Plan Benefits. Contributions under Section 4.01
may be used to purchase benefits under a Medical Plan for the Member, and his or her spouse
and dependents (as defined in Code section 105(b)), subject to the limitations on coverage and
benefits provided by the terms of such Medical Plan.
Section 6.03. Medical Expense Reimbursement Benefits. The Employer
has adopted a Medical Expense Reimbursement Program set forth in Article 8 designed to
qualify as a nontaxable employee benefit under Code section 105(b). Members may elect
benefits under such program subject to all of the requirements and restrictions contained in that
program.
Section 6.04. Dependent Care Reimbursement Benefits. The Employer
has adopted a Dependent Care Reimbursement Program set forth in Article 9 designed to qualify
as a nontaxable employee benefit under Code section 129(a). Members may elect benefits under
such programs subject to all of the requirements and restrictions contained in that program.
Section 6.05. Cash Benefits. To the extent a Member does not elect the
maximum permissible salary reduction in a Plan Year to fund the benefits described in
Sections 6.01(a) through 6.01(c), the Member shall receive a cash benefit equal to the maximum
permissible salary reduction which the Member could elect under Sections 4.01 and 4.02 for
9
such Plan Year less salary reduction contributions actually elected by the Member under such
sections.
ARTICLE 7
LIMITATIONS ON BENEFITS
Section 7.01. Coverage. Amounts for a particular Reimbursement Benefit
may only be paid for expenses incurred during the Period of Coverage elected for such Benefit
and only from contributions made for such Reimbursement Benefit during such Period of
Coverage. Expenses shall be considered incurred when the medical or dependent care is
provided, or, in the case of insured benefits, during the period of insurance coverage, and not
when the Member is formally billed, charged for or pays the expenses.
Section 7.02. Amount of Benefits. The maximum amount of
Reimbursement Benefits payable for a Plan Year shall be $7,500.00 plus the amount of
Nonelective Contributions allocated to a Member’s Account. The same maximum shall apply to
any single Reimbursement Benefit subject to the limitation on Dependent Care Reimbursement
Benefits set forth in Section 9.06. In addition, amounts payable for Dependent Care
Reimbursement Benefits may not exceed the balance of the Member’s subaccount for such
benefit less amounts necessary to pay such Member’s accrued claims for such benefit. If claims
for amounts in excess of the balance of the Member’s subaccount for Dependent Care
Reimbursement Benefits are made at any time, such claims may be paid when and if further
Reimbursement or Nonelective Contributions allocable to such subaccount are made during the
applicable Period of Coverage. With respect to any Member, the amount of Medical Expense
Reimbursement Benefits payable at any time during a Period of Coverage shall equal the total
Reimbursement Contributions to be made by the Member during the Period of Coverage for
Medical Expense Reimbursement Benefits, plus any Nonelective Contributions allocated during
such Period of Coverage to the Member’s subaccount for Medical Expense Reimbursement
Benefits, less any prior Reimbursement Benefits made under Section 8.01 for such Period of
Coverage. If claims are made for amounts in excess of the then existing balance in a Member’s
subaccount for Medical Expense Reimbursement Benefits, such claim must be reimbursed and
subsequently collected from any Reimbursement Contributions made throughout the balance of
the Period of Coverage. Termination rules are set forth in Section 11.04.
Section 7.03. Forfeitures.
(a) Medical Expense Reimbursement Subaccount. If amounts remain in a Member’s
Medical Expense Reimbursement Subaccount after payment of all timely presented claims for
Medical Expenses incurred during the applicable Period of Coverage, the remaining amounts in
such subaccount may be used for the payment of claims for Medical Expenses incurred during
the grace period ending on the fifteenth day of the third month after the last day of such Period of
Coverage. Amounts remaining in a Medical Expense Reimbursement Subaccount shall be
forfeited after payment of all timely presented claims for Medical Expenses incurred during the
applicable Period of Coverage and the above-described grace period. In no event may amounts
in a Medical Expense Reimbursement Subaccount be used for a type of benefit other than the
reimbursement of Medical Expenses.
10
(b) Dependent Care Reimbursement Subaccount. Amounts remaining in a Dependent
Care Reimbursement Account shall be forfeited after payment of all timely presented claims for
Dependent Care Expenses incurred during the applicable Period of Coverage.
Section 7.04. Medical Plan. Coverage and limitations for benefits under a
Member’s Medical Plan shall be as set forth in the Medical Plan.
ARTICLE 8
MEDICAL EXPENSE REIMBURSEMENT PROGRAM
Section 8.01. In General. Members covered by the Medical Expense
Reimbursement Program (which for purposes of this Article 8 is called the “Program”) may
submit claims for the reimbursement of a Member’s covered Medical Expenses from
contributions allocated to the Member’s subaccount for Medical Expense Reimbursement
Benefits.
Section 8.02. Definitions. For purposes of this Article 8, the following
special definitions shall apply:
(a) “Benefits” means Medical Expense Reimbursement Benefits under this Program.
(b) “Dependent” means a dependent as defined in Code section 152. For purposes of
this Program, any child to whom Code section 152(e) applies shall be treated as a Dependent of
the Member.
(c) “Medical Expenses” means amounts not compensated for by insurance or
otherwise which are paid or incurred by or on behalf of a Member, a Member’s spouse or a
Member’s Dependents and incurred for the following reasons if and to the extent they are
included in the definition of “medical care” set forth in Code sections 213(d)(1)(A) and
213(d)(1)(B):
(1) For the diagnosis, cure, mitigation, treatment, or prevention of disease, or
for the purpose of affecting any structure or function of the body.
(2) For the transportation primarily for and essential to medical care referred
to in (1).
(3) For the cost of eyeglasses or contacts, subject to such dollar limitation, if
any, as may be established by the Committee prior to the election period for a Period of
Coverage and made applicable to all participants in a manner that does not discriminate in favor
of highly compensated individuals (as defined in Code section 105(h)).
In addition, Medical Expenses shall include premiums for insurance for medical care referred to
in (1) or (2) above under any other employee benefit plan maintained by the Employer.
Section 8.03. Covered Expenses. The Program shall only cover Medical
Expenses incurred during the Period of Coverage in which the Member has elected to receive
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Benefits, and only from contributions made for Benefits under this Program during such Period
of Coverage. Expenses shall be considered incurred when the medical care is provided and not
when the Member is formally billed, charged for or pays the Medical Expenses.
Section 8.04. Reduction of Benefits. The Committee may reduce the
amount of Benefits payable to a Member to the extent the Committee deems necessary to assure
that the Program does not discriminate in favor of highly compensated individuals (as defined in
Code section 105(h)(5)) or discriminate in any other manner that would make Benefits taxable to
Members. Any such reduction of Benefits shall be made by the Committee on a reasonable and
uniform basis. Contributions which may not be paid out because of benefit reductions imposed
by this Section 8.04 shall be forfeited.
Section 8.05. Other Provisions. Other matters concerning contributions,
elections, benefits, claims, and the like shall be governed by the general provisions of the Plan.
ARTICLE 9
DEPENDENT CARE REIMBURSEMENT PROGRAM
Section 9.01. In General. Members covered by the Dependent Care
Reimbursement Program (which, for purposes of this Article 9, is called the “Program”) may
submit claims for the reimbursement of a Member’s covered Dependent Care Expenses from
contributions allocated to the Member’s subaccount for Dependent Care Reimbursement
Benefits.
Section 9.02. Definitions. For purposes of this Article 9, the following
special definitions shall apply:
(a) “Benefits” means Reimbursement Benefits for Dependent Care Expenses under
this Program.
(b) “Dependent” means, effective January 1, 2005:
(1) a dependent of the Member who is a qualifying child (as defined in Code
Section 152(a)(1) who has not attained the age of 13;
(2) a dependent of the Member who is physically or mentally incapable of
caring for himself or herself and who has the same principal place of abode as the taxpayer for
more than one-half of the taxable year; or
(3) the spouse of a Member who is physically or mentally incapable of caring
for himself or herself and who has the same principal place of abode as the taxpayer for more
than one-half of the taxable year.
(c) “Earned Income” means earned income, as defined in section 32(c)(2) of the
Code, excluding any amounts paid or incurred by the Employer for dependent care assistance to
a Member.
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(d) “Dependent Care Expenses” means, subject to the limitations in Section 9.09,
amounts paid or incurred by or on behalf of a Member for household services attributable in part
to the care of a Dependent or for the care of a Dependent, either inside or outside of the
Member’s home, in order to enable the Member to be gainfully employed for any period for
which he or she has a Dependent.
Section 9.03. Eligibility, Enrollment and Termination. All Members of
the Plan shall be eligible to receive Benefits under this Program. Enrollment and termination of
participation under the Plan shall constitute enrollment and termination of participation under
this Program.
Section 9.04. Covered Expenses. The Program shall only cover Dependent
Care Expenses incurred during the Period of Coverage the Member has elected to receive
Benefits, and only from contributions made during the Period of Coverage for Benefits under
this Program. Dependent Care Expenses shall be considered incurred when the dependent care is
provided and not when the Member is formally billed, charged for or pays the Dependent Care
Expenses.
Section 9.05. Reduction of Benefits. The Committee may reduce the
amount of benefits payable to a Member to the extent the Committee deems necessary to assure
that the Program does not discriminate in favor of highly compensated employees as defined in
Code section 414(q), that the average Benefits under the Program of non-highly compensated
employees is at least 55% of those of such highly compensated employees, and that the Program
does not discriminate in any other manner that would make Benefits taxable to members. Any
such reduction of Benefits shall be made by the Committee on a reasonable and uniform basis.
Contributions which may not be paid out because of benefit reductions imposed by this
Section 9.05 shall be forfeited.
Section 9.06. Further Limitations. The amount of Benefits for a Member
during any year shall not exceed:
(a) In the case of a Member who is not married at the close of such year, the lesser of:
(1) $5,000, or such other dollar limitation as may be set forth in Code Section
129(a)(2); or
(2) the Earned Income of such Member for such year.
(b) In the case of a Member who is married at the close of such year and who files a
joint return with his or her spouse, the least of:
(1) $5,000, or such other dollar limitation as may be set forth in Code Section
129(a)(2);
(2) the Earned Income of such Member for such year; or
(3) the Earned Income of the spouse of such Member for such year.
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(c) In the case of a Member who is married at the close of such year and files a
separate return, the least of:
(1) $2,500, or such other dollar limitation as may be set forth in Code Section
129(a)(2);
(2) the Earned Income of such member for such year; or
(3) the Earned Income of the spouse of such member for such year.
For purposes of paragraphs (b)(3) and (c)(3), if the Member’s spouse is a full-time student at an
educational institution, as defined in Code Section 21, or physically or mentally incapable of
caring for himself or herself, such spouse shall be deemed to be gainfully employed and to have
Earned Income of $250 per month, or such other amount as shall be set forth in Code Section
21(d)(2), if the Member has only one Dependent, and $500 per month, or such other amount as
shall be set forth in Code Section 21 (d)(2), if the Member has two or more Dependents. In the
case of any husband and wife, the preceding sentence shall apply with respect to only one spouse
for any one month. For purposes of this Section 9.06, marital status shall be determined by
taking into account the rules of Code sections 21(e)(3) and 21(e)(4). For benefits to be excluded
from a Member’s gross income, the Member must report on his individual federal income tax
return to which the exclusion relates, the name, address, and, unless the provider is an
organization described in Code section 501(c)(3) and exempt from tax under Code
section 501(c)(1), the taxpayer identification number of the dependent care provider.
Section 9.07. Principal Shareholders Limitations. Not more than 25
percent of the amounts paid by the Employer for Benefits during a Plan Year may be provided
for the class of Members (or their spouses or Dependents), each of whom (on any day of such
Plan Year) owns more than 5 percent of the stock or the capital or profits interest of the
Employer, as determined under section 129 of the Code. The Committee may reduce the
Benefits for such Members to the extent that it reasonably believes necessary to prevent this
limitation from being exceeded.
Section 9.08. Prohibition of Certain Payments. No Benefits shall be paid
to a Member during any taxable year of such Member for Dependent Care Expenses paid to an
individual:
(a) With respect to whom, for such taxable year, a deduction is allowable under Code
section 151(c) (relating to personal exemptions for dependents) to such Member or his or her
spouse; or
(b) Who is a child of such Member (within the meaning of Code section 152(f)(1) as
in effect on or after January 1, 2005) under the age of 19 at the close of such taxable year.
Section 9.09. Services Outside the Household.
(a) Dependent Care Centers. Benefits shall not be paid for services provided outside
a Member’s household by a facility that provides care for more than six individuals other than
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individuals who reside at the facility, and receives a fee, payment or grant for providing services
for any of the individuals, unless:
(1) such facility complies with all applicable laws and regulations of a state or
unit of local government, and
(2) the requirements of Sections 9.09(b) and 9.09(c) are met.
(b) Certain Dependents. Benefits shall not be paid for services outside a Member’s
household unless the services are provided for the care of (1) a Dependent within the meaning of
Section 9.02(b)(1)(A); or (2) any other Dependent who regularly spends at least eight hours each
day in the Member’s household.
(c) Overnight Camp. Benefits shall not be paid for services outside the Member’s
household at a camp where the Dependent stays overnight.
Section 9.10. Statements. The Plan shall furnish to a Member on or before
January 31, a written statement showing the amounts paid or expenses incurred by the Employer
in providing dependent care assistance to such Member during the previous calendar year.
Section 9.11. Proof of Incurred Expenses. Members requesting
reimbursement under the Plan will be required to submit to the Committee reasonable proof that
Dependent Care Expenses have actually been incurred for the care of one or more Dependents.
Such proof will include, but not necessarily be limited to:
– Name(s) of Dependent(s)
– Nature of the services performed
– Birth date(s) of Dependent(s)
– Nature of Dependent disability, if applicable
– Name of dependent care provider(s), and, unless such provider is a not-for-profit
organization, the address and social security or federal employer identification
number of such provider, the relationship of the provider, if any, to the Employee,
and, if the dependent care provider is a child of the Employee, the age of such
child
– If services are performed outside the Member’s household, a statement whether a
Dependent being provided services spends at least 8 hours per day in such
household
– If applicable, a statement that the dependent care facility meets the requirements
of Code Section 21(b)(2)
– If the Member is married, a statement of (i) the spouse’s salary or wages, if
employed, or (ii) if the spouse if not employed, a statement that (A) he or she is
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incapacitated, or (B) he or she is a full time student at an educational institution
and the months of the Plan Year that such spouse will be in attendance at such
institution.
– Copies of bills or other documentation indicating the amount of expenses incurred
and the dates to which they apply.
The Committee reserves the right to request additional proof when, in its opinion, such proof is
necessary to fully determine if submitted expenses are eligible for reimbursement under the Plan.
Section 9.12 Other Provisions. Other matters concerning contributions,
elections, benefits, claims, and the like shall be governed by the general provisions of the Plan.
ARTICLE 10
CLAIMS FOR BENEFITS
Section 10.01. Claims for Reimbursement Benefits. Claims for
Reimbursement Benefits totaling at least $25.00 may be made at any time. Claims for
Reimbursement Benefits totaling less than $25.00 may be made at the end of the Plan Year, or at
any other time in the event of a final claim following termination of participation under the Plan.
Section 10.02. Prior Payment Unnecessary. Members need not actually
make payment for reimbursable expenses before being reimbursed for them under the Plan.
However, verification that expenses have been properly incurred is required under Section 10.03.
Section 10.03. Claim Substantiation. The Committee shall require a
Member to substantiate claims for Reimbursement Benefits under the Plan. For items covered
by a Medical Plan but not paid by such Plan because of deductibles, co-payments or maximum
limits, such substantiation shall include the Explanation of Benefits form provided pursuant to
such medical Plan. All claims for Medical Expenses and Dependent Care Expenses shall be
substantiated by copies of bills or receipts or a written statement from an independent third party
stating that the Medical or Dependent Care Expense has been incurred and the amount of such
expense. Request for reimbursement shall include a written statement from the Plan Member
that the expense has not been reimbursed or is not reimbursable under any other plan.
Section 10.04. Time Limit on Claiming Benefits. Claims for
Reimbursement Benefits shall be paid only if presented within sixty (60) days after the end of the
Plan Year in which the expense occurred.
Section 10.05. Medical Plans. Claims for benefits under a Medical Plan
shall be governed by the terms of such Medical Plan.
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ARTICLE 11
POST-TERMINATION PARTICIPATION
Section 11.01. Termination of Participation on Account of Death. Upon
the death of any Member or former Member who has a balance in his or her Account, a
beneficiary of the Member may elect to continue to claim Reimbursement Benefits under a
Member’s Account in the same manner as the Member could have. Disposition of the Account
will be governed by the provisions of Section 11.04 as if the beneficiary were a Member who
had terminated participation for reasons other than death.
Section 11.02. Designation of Beneficiary. Upon enrolling in the Plan, a
Member shall designate a beneficiary or beneficiaries to succeed to his or her rights under the
Plan in the event of the death of the Member, which designation may be changed by the Member
from time to time. To be effective, the original designation of a beneficiary and any subsequent
change must be in writing on the form provided for that purpose by the Committee and filed with
the Committee. A Member may choose only a spouse or dependent as a beneficiary.
Section 11.03. Failure of Beneficiary Designation. In the event that no
beneficiary is properly designated or in the event that a beneficiary designated by the Member
predeceases the Member and no new designation of beneficiary is made, the Committee, in its
discretion, may designate as a beneficiary or beneficiaries the Member’s spouse and/or one or
more dependents.
Section 11.04. Other Termination. Except as otherwise provided by Code
section 4980B or other applicable law, a Member who has terminated employment for reasons
other than death may no longer have contributions made to the Plan on his or her behalf or make
contributions to the Plan but may continue to receive benefits under the Plan for claims made for
the Period of Coverage prior to, but not after, such termination; and, in the case of
reemployment, in the same Period of Coverage, such person may not file new benefit elections
under this Plan for the remaining portion of such Period of Coverage.
ARTICLE 12
NONDISCRIMINATION
Section 12.01. Reduction of Contributions and Benefits. The Committee
may reject any election and reduce the amount of Reimbursement Contributions or nontaxable
benefits to the extent the Committee deems necessary to assure that the Plan does not
discriminate in favor of highly compensated Members or highly compensated individuals (as
defined in Code section 125(e)) in violation of Code section 125 or any other applicable
provision of law or to prevent taxation of key employees (as defined in Code section 416(i)(1))
under the provision of Code section 125(b)(2). Any rejection of elections or any reduction of
Reimbursement Contributions or benefits shall be made by the Committee on a reasonable and
uniform basis. Reimbursement Contributions which may not be paid out because of benefit
reductions imposed by this Section 12.01 shall be forfeited.
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Section 12.02. Prohibition of Discrimination. Any discretionary acts to be
taken under the terms and provisions of this Plan by the Committee or by the Employer shall be
uniform in their nature and application to all those similarly situated, and no discretionary acts
shall be taken that would be discriminatory under the provisions of the Code relating to cafeteria
plans, medical reimbursement plans or dependent care assistance plans as such provisions now
exist or may from time to time be amended.
ARTICLE 13
ACCOUNTS
Section 13.01. Accounts. A separate Account shall be maintained for each
member to reflect the amount of contributions on his or her behalf under Article 4 and the cost of
all benefits paid to the Member or on the Member’s behalf under the Plan with subaccounts for
each of the possible Reimbursement Benefits.
Section 13.02. Contributions Made. Contributions on behalf of a Member
shall be credited to the Account and appropriate subaccount of such Member.
Section 13.03. Benefits Provided. The cost of benefits provided to a
Member shall be charged to the Account and appropriate subaccount of such Member.
ARTICLE 14
ADMINISTRATION OF THE PLAN
Section 14.01. Appointment of the Committee. The administration of the
Plan, as provided herein, including the payment of all benefits to Members or their beneficiaries,
shall be the responsibility of the Metropolitan St. Louis Sewer District Employee Benefits
Committee, which shall be the administrator of the Plan. In addition, the Committee and each
member thereof shall be named fiduciaries of the Plan. The Committee shall consist of a
Chairperson and at least two other persons appointed from time to time by the Company who
shall serve at the pleasure of the Board, without compensation, unless otherwise determined by
the Board.
Section 14.02. Conduct of Committee Business. The Committee shall
elect its Chairperson who shall be a member of the Committee. It shall appoint such
subcommittees as it shall deem necessary and appropriate. The Committee shall conduct its
business according to the provisions of this Article 14 and shall hold regular meetings in any
convenient location. A majority of all of the members of the Committee shall have power to act,
and the concurrence or dissent of any member be by telephone, wire, cablegram or letter.
Section 14.03. Records and Reports of the Committee. The Committee
shall keep such written records as it shall deem necessary or proper, which records shall be open
to inspection by the Company. The Committee shall prepare and submit to the Company an
annual report which shall include such information as the Committee deems necessary or
advisable.
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Section 14.04. Administrative Powers and Duties. The Committee shall
have the power to take all actions required to carry out the provisions of the Plan and shall
further have the following powers and duties, which shall be exercised in a manner consistent
with the provisions of the Plan:
(a) To construe and interpret the provisions of the Plan, and make rules and
regulations under the Plan to the extent deemed advisable by the Committee;
(b) To decide all questions as to eligibility to become a Member in the Plan and as to
the rights of Members under the Plan;
(c) To file or cause to be filed all such annual reports, returns, schedules,
descriptions, financial statements and other statements as may be required by any federal or state
statute, agency, or authority;
(d) To obtain from the Affiliated Companies and Employees such information as
shall be necessary to the proper administration of the Plan;
(e) To determine the amount, manner, and time of payment of benefits hereunder;
(f) To contract with such insurance carriers or other supplier as may be necessary to
provide for benefits;
(g) To communicate to any insurer or other contract supplier of benefits under this
Plan in writing all information required to carry out the provisions of the Plan;
(h) To notify the Members of the Plan in writing of any amendment or termination of
the Plan, or of a change in any benefits available under the Plan;
(i) To prescribe such forms as may be required for Employees to make elections
under this Plan; and
(j) To do such other acts as it deems reasonable necessary to administer the Plan in
accordance with its provisions, or as may be provided for or required by law.
Section 14.05. Allocation or Delegation of Duties and Responsibilities. In
furtherance of their duties and responsibilities under the Plan, the Committee and the Board may,
(a) Employ agents to carry out administrative responsibilities;
(b) Consult with counsel, who may be of counsel to the Company; and
(c) Provide for the allocation of administrative responsibilities among Committee
members, in the case of the Committee, and among members of the Board, in the case of the
Board.
Section 14.06. Claims Procedure. Medical Plans shall be administered by
the administrators of such plans and all claims for benefits under such plans shall be governed by
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the terms of such plans. The Committee shall establish a reasonable claims procedure for all
other claims arising under this Plan. The claims procedures will be outlined on claim forms
provided by the Committee.
ARTICLE 15
AMENDMENT AND TERMINATION
Section 15.01. Amendment of Plan. The Board or the Committee may
amend any or all provisions of this Plan at any time by written instrument identified as an
amendment of the Plan effective as of a specified date.
Section 15.02. Termination of Plan. The Company has established the
Plan with the intention of maintaining it indefinitely. However, since future conditions affecting
the Company cannot be anticipated or foreseen, the Company, by action of its Board, must
necessarily and does hereby reserve the right to terminate the Plan at any time.
Section 15.03. Preservation of Rights. Termination or amendment of the
Plan shall not affect the rights of any Member in his or her Account, or the right to claim
reimbursement for expenses incurred prior to such termination or amendment as the case may be,
to the extent such amount is payable under the terms of the Plan prior to the effective date of
such termination or amendment.
ARTICLE 16
ADOPTION OF PLAN
Section 16.01. In General. The Plan may be adopted by any Affiliated
Company, provided that such adoption is with the consent of the Board. In addition, the Plan
may be separately adopted by separate business units within any Affiliated Company provided
that such adoption is what the consent of the Board. Any entity adopting the Plan shall file a
notice of adoption with the Committee which notice shall specify which of its Employees are
covered by the Plan, and the effective date or dates of the adoption.
ARTICLE 17
MISCELLANEOUS
Section 17.01. Facility of Payment. If the Committee deems any person
entitled to receive any amount under the provisions of this Plan incapable of receiving or
disbursing the same by reason of minority, illness or infirmity, mental incompetency, or
incapacity of any kind, the Committee may, in its discretion, take any one or more of the
following actions:
(a) Apply such amount directly for the comfort, support and maintenance of such
person;
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(b) Reimburse any person for any such support theretofore supplied to the person
entitled to receive any such payment;
(c) Pay such amount to a legal representative or guardian or any other person selected
by the Committee to disburse it for such comfort, support and maintenance, including without
limitation, any relative who had undertaken, wholly or partially, the expense of such person’s
comfort, care and maintenance, or any institution in whose care or custody the person entitled to
the amount may be. The Committee may, in its discretion, deposit any amount due to a minor to
his or her credit in any savings or commercial bank of the Committee’s choice.
Section 17.02. Lost Payee. Any amount due and payable to a Member or
beneficiary shall be forfeited if the Committee after reasonable effort is unable to locate the
Member or beneficiary to whom payment is due. Such forfeited amounts shall be applied toward
contributions to the Plan. However, any such forfeited amount will be reinstated through a
special contribution to the Plan by the Employer and become payable if a claim is made by the
Member or beneficiary. The Committee shall prescribe uniform and nondiscriminatory rules for
carrying out this Provision.
Section 17.03. Funding. The obligations of the Employer under this Plan
may but need not be funded through contributions to a trust or otherwise. Nothing contained in
the Plan shall give a Member any right, title or interest in any property of the Affiliated
Companies.
Section 17.04. Indemnification. To the extent permitted by law, the
Employer shall indemnify and hold harmless the Committee, Members, and Employees, and any
other person or persons to whom the Employer or the Committee have delegated fiduciary or
other duties under the Plan, against any and all claims, losses, damages, expenses, and liabilities
arising from any act or failure to act that constitutes or is alleged to constitute a breach of such
person’s responsibilities in connection with the Plan under any law, unless the same is
determined to be due to gross negligence, willful misconduct, or willful failure to act.
Section 17.05. Titles and Headings. The titles and headings of the Articles
and Sections of this instrument are placed herein for convenience of reference only, and in the
case of any conflicts, the text of this instrument, rather than the titles or headings, shall control.
Section 17.06. Number. Wherever used herein, the singular shall include
the plural and the plural shall include the singular, except where the context requires otherwise.
Section 17.07. Applicable Law. The provisions of this Plan shall be
construed according to the laws of the State of Missouri, except as superceded by federal law,
and in accordance with the Code. The Plan is intended to be a cafeteria plan under
section 125(d) of the Code containing a medical expense reimbursement plan under
section 105(h) of the Code and a dependent care assistance program under section 129 of the
Code, and the Plan shall be construed accordingly.
Section 17.08. Assignment of Benefits. Any interest under the Plan may
not be assigned, transferred or alienated in any manner whatsoever by any member or
beneficiary.
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The foregoing Ordinance was adopted September 8, 2005.