HomeMy Public PortalAboutRES 96/10RESOLUTION NO. 96 -10
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN
OF GULF STREAM, PALM BEACH COUNTY, FLORIDA,
CREATING A FLEXIBLE BENEFITS PLAN FOR ELIGIBLE
EMPLOYEES OF THE TOWN OF GULF STREAM, FLORIDA.
WHEREAS, the Town of Gulf Stream has employees rendering
valuable services; and
WHEREAS, the establishment of a Flexible Benefits Plan for such
employees serves the interests of the employer by enabling it to
provide an opportunity for employees to pay insurance premiums with
before -tax dollars, one of the most progressive benefit management
tools available to assist in the attraction and retention of
competent personnel; and
WHEREAS, the Town of Gulf Stream has determined that the
establishment of a flexible benefits plan to be administered by the
Town of Gulf Stream serves the above objectives.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COMMISSION OF THE
TOWN OF GULF STREAM:
Section 1. The Town of Gulf Stream hereby adopts the Flexible
Benefits Plan attached hereto as Appendix "A ", said Appendix "A"
being a part of this Resolution as if fully set forth herein. The
Town of Gulf Stream hereby appoints the Finance Director of the Town
of Gulf Stream to serve as administrator thereunder.
Section 2. This Resolution shall become effective on October
1, 1996.
PASSED AND ADOPTED in a regular adjourned session assembled this
4th day of September , 1996.
, e'�_d
YOR
(SEAL)
ATTEST:
TOWN CLERK
SIONER
COMMISSIONER
COMMISSIONER
J
Flexible Benefits Plan
Model
Plan Document
COLONIAL
LIFE & ACCIDENT INSURANCE COMPANY
A UNUM• Compam
The Leader in Payroll Marketing
Model Plan Document
This Plan is merely an example of a Flexible Benefits Plan. The Plan has not been
approved by the Internal Revenue Service. nor is it necessarily the best plan for a
particular employer. The Plan is provided solely as a guide for employers desiring to
adopt such a plan. It should not be used without being reviewed by an employer's own
professional advisers.
Flexible Benefits Plan
Effective
Table of Contents
Page
Article I Foreword and Purpose .......................................................... ............................1 -1
Article II Definitions and Construction
2.1 Definitions ............................................................................... ...........................II -1
a.
Code .................................................................................. ...............................
II -1
b.
Component Plan ..................................................................... ...........................II
-1
C.
Coverage Expenses ............................................................ ...............................
II -1
d.
Covered Compensation ...................................................... ...............................
II -1
e.
Dependent .............................................................................. ...........................11
-1
f.
Effective Date ...................................................................... ...............................
II -1
g.
Eligible Employee ................................................................ ...............................
II -1
h.
Employee ............................................................................ ...............................
II -1
i.
Employer ............................................................................. ...............................
II -1
j.
Employer Contribution ........................................................ ...............................
II -1
k.
ERISA ................................................................................ ...............................
II -1
I.
Fiduciaries ........................................................................... ...............................
II -2
M.
Flexible Pay ............................................................................. ...........................11
-2
n.
Highly Compensated Individual ............................................... ...........................11
-2
o.
Highly Compensated Participant .............................................. ...........................II
-2
P.
Key Employee ......................................................................... ...........................II
-2
q.
Participant ............................................................................... ...........................II
-2
r.
Plan ..................................................................................... ...............................
II -2
S.
Plan Administrator ................................................................... ...........................II
-2
t.
Plan Year ................................................................................ ...........................11
-2
2.2 Construction ........................................................................ ............................... II -2
Article III Eligibility, Participation and Enrollment
3.1 Eligibility ................................................... ............................... ..........................III -1
3.2 Commencement of Participation ............... ............................... ..........................III -1
3.3 Termination of Participation ...................... ............................... ..........................III -1
3.4 Enrollment .......................................................................... ............................... III -1
ArticleIV Contributions ....................................................................... ...........................IV -1
4.1 Nonelective Contributions ................................................. ............................... IV -1
4.2 Elective Contributions ............................................................ ...........................IV -1
4.3 Effect of Change in Family Status .......................................... ...........................IV -1
4.4 Cash Benefit .......................................................................... ...........................IV -1
Page
Article V Administration
5.1 Allocation of Responsibility Among Fiduciaries for Plan Administration ............... V -1
5.2 Administration ..................................................................... ............................... V -1
5.3 Claims Procedure ............................................................... ............................... V -1
5.4 Other Administrative Powers and Duties ............................. ............................... V -2
5.5 Rules and Decisions ........................................................... ............................... V -2
5.6 Forms and Requests for Information ...................................... ............................V -2
5.7 Responsibility for Plan ......................................................... ............................... V -2
Article VI Amendment of the Plan ................................................. ............................... VI -1
Article VII Termination of the Plan ................................................. ............................... VII -2
Article VIII Miscellaneous
8.1 Employment Rights ................................. ............................... ......................... VIII -1
8.2 Spendthrift Clause ................................... ............................... .........................VIII -1
8.3 No Guarantee of Non - Taxability .............. ............................... .........................VIII -1
8.4, Nondiscrimination .................................... ............................... .........................VIII -1
8.5 Delegation of Authority by the Employer .. ............................... ......................... VIII -1
8.6 Construction of Agreement ...................... ............................... .........................VIII -1
8.7 Headings ................................................ ............................... ......................... VIII -1
8.8 Entire Plan Stated ................................... ............................... .........................VIII -1
ArticleIX Signature .............................................................................. ...........................IX -1
Schedule A
Article I " Foreword and Purpose
The -2 !ten 15 t� 6,—",
Flexible Benefits Plan is a program that permits PE
coverage for themselves and their eligible Depend
which provide 171z,42- 114 � f/j �, V,ac
benefits.
ticipants to elect to receive cash or
nts under variou%� Component Plans
The Plan has been established by the
for the benefit of its Eligible Employees. This Plan is effective
It is intended that this Plan shall qua!ify under Section 125 of the Code as a "cafeteria
plan."
Flexible
Benefit~
1 -1
Article 11 Definitions and Construction
2.1 Definitions: Where the following words and phrases appear in this Plan they shall
have the meaning set forth below, unless a different meaning is plainly required by the
context:
(a) Code: The Internal Revenue Code of 1986, and regulations and rulings issued
thereunder, as amended from time to time.
(b) Component Plan: Any one of the plans listed in subsection (c) below. It is in-
tended that each of the Component Plans shall constitute a "qualified benefit" within the
meaning of Section 125 of the Code.
(c) Coverage Expenses: The insurance premiums or other costs for the benefit
coverage a Participant elects pursuant to Section 3.4, and which is provided under one
of the following Component Plans which are attached hereto and incorporated herein
by reference:
L /��4- 73 loc At ,_,('�S
For each Plan Year, the Plan Administrator shall specify the premium or other costs for
benefit coverage which is applicable to each of the foregoing Component Plans.
(d) Covered Compensation: For each Plan Year, a Participant's Covered Compensa-
tion shall mean the actual compensation (including bonuses and overtime) accrued or
paid by the Employer to the Employee for the period during which the Employee was a
Participant in thi Plan (including amounts contributed to the Employer's
�H Plan on behalf of the Employee in accordance
with Code Section 401(k) ).
(e) Dependent: A spouse, child, or other dependent of a Participant, subject to further
limitations provided by each Component Plan.
(f) Effective Date: The date upon which this Plan is effective, /1) -
(g) Eligible Employee: Each Employee who meets the requirements set forth in
Section 3.1 of this Plan.
(h) Employee: Any person who is an employee (the term "employee" having its
customary, common law meaning) of the Employer and who is receiving remuneration
for personal services render to e Employer.
(i) Employer: ��-
(j) Employer Contri utio . The Employer Contribution for each Plan Year shall be the
sum of (1) and (2) below:
(1) Nonelective contributions: The amount the Employer makes available for the
benefit of each Participant for the Plan Year pursuant to Section 4.1.
(2) Elective contributions: The amount of Flexible Pay applied to a Participant's Cover-
age Expenses under the Plan. It is intended hereunder that such amounts shall, for tax
purposes (including Section 125 of the Code), constitute an Employer Contribution.
For each Plan Year, the maximum amount of Employer Contribution available under
the Plan to any Participant for application to his or her Coverage Expenses shall be that
amount set forth in Schedule A of the Plan. For purposes of Section 125 of the Code.
the amount set forth in Schedule A shall constitute the maximum Employer Contribution
available to any Participant under the Plan during a Plan Year. The maximum amount
shall be determined by the Employer prior to the beginning of the Regular Enrollment
Period for the ensuing Plan Year and shall be adjusted as necessary due to the in-
Flexible creases in cost to the Component Plans.
Benefit. (k) ERISA: Public Law 93 -406, the Employee Retirement Income Security Act of 1974.
II -1 and regulations and rulings issued thereunder, as amended from time to time.
(1) Fiduciaries: The Fiduciaries who shall be the Employer and the Plan Administrator.
and other parties designated as Fiduciaries by such Fiduciaries in accordance with the
powers herein provided, but only with respect to the specific responsibilities of each in
connection with the Plan.
(m) Flexible Pay: The amount of Covered Compensation that, pursuant to Section
4.2, is applied on behalf of a Participant to pay his or her Coverage Expenses or that (to
the extent not otherwise applied) he or she may elect to receive as additional cash
compensation.
(n) Highly Compensated Individual: An individual who is (1) an officer, (2) a share-
holder owning more than 5 percent of the voting power or value of all classes of stock
of the Employer, (3) highly compensated, or (4) a spouse or dependent (within the
meaning of Code Section 152) of an individual described in (1), (2), or (3).
(o) Highly Compensated Participant: A Participant who is described in subparagraph
(1), (2), (3) or (4) of paragraph 2.1 (n).
(p) Key Employee: A Participant who is (1) an officer of the Employer having at least
$59,400 annual compensation from the Employer or such other amount as is pre-
scribed by the Secretary of the Treasury from time to time, pursuant to Code Section
415 (d)(1); provided, however, that no more than 50 employees, or if the number of
employees of the Employer is less than 500, the greater of three or 10% of the employ-
ees, shall be treated as officers; (2) one of the 10 Employees having at least $30,000
annual compensation from the Employer (or such other amount as is prescribed by the
Secretary of the Treasury from time to time pursuant to Code Section 415 (d)(1)) and
owning (or considered as owning within the meaning of Code Section 318) the largest
interests in the Employer; (3) a 5- percent owner of the Employer; or (4) a 1- percent
owner of the Employer having annual compensation from the Employer of more than
$150,000. Such term shall not include any officer or employee of an entity referred to in
Code Section 414(d) (relating to governmental plans).
(q) Participant: Any Employee who has qualified under the terms of the Plan for
participation herein and wh remains so qualified.
(r) Plan: �wLr��a�
Flexible Benefits Plan, the Plan set forth herein, as amended from time to time.
(s) Plan Administrator: The Employer or its successor or successors, which shall
have authority to administer the Plan as provided in Article V.
(t) Plan Year: The first Plan Year shall be the period commencing zl_ - /
and ending P7
All subsequent Ian Years shall be the 12 -month period commencing on */a
and ending on
2.2 Construction: As used in this Plan, the masculine gender includes the feminine,
and the singular includes the plural, unless the context clearly indicates to the contrary.
The words "hereof," "hereunder' and other similar compounds of the word "here" mean
and refer to the entire Plan, not to any particular provision or section.
Flexible
Benefits
II -2
Article III Eligibility, Participation and Enrollment
3.1 Eligibility: Generally, all full -time Employees shall be eligible jt participate in the
Plan. Full -time Employees are defined as those employed for or more
hours per week on a regularly scheduled basis and paid either on a weekly. biweekly,
semi - monthly or monthly basis.
3.2 Commencement of Participation: An Eligible Employee shall commence (or
recommence) participation in this Plan on the latest of the following dates: (1) the
Effective Date of the Plan; (2) the Employee's first day of his _month of
employment or reemployment [may not exceed 37 months] as an Eligible Employee: or
(3) the date (as determined by the Plan Administrator) that the Election Form is filed by
the Participant. See Section 3.4 (c) for limitations on enrollment elections for Employ-
ees who recommence employment.
A Participant's right to participate in any Component Plan shall be dependent upon the
Participant's satisfying the specific terms and conditions of participation which are
applicable to such Component Plan.
3.3 Termination of Participation: A Participant shall continue to participate in this
Plan until the earlier of the following dates:
(1) The date the Participant terminates employment by death, disability, retirement or
other separation from service; or
(2) The date the Participant ceases to work for the Employer as an Eligible Employee.
3.4 Enrollment: An Eligible Employee may enroll (or re- enroll) in the Plan by submit-
ting to the Plan Administrator, during an enrollment period described in subsection (a)
below, an election form which specifies his or her elections for the Plan Year as to
Dependent status and benefit coverage under the Component Plans for which he is
eligible, which sets forth his agreement to use the necessary amount of Flexible Pay to
pay his Coverage Expenses (if any), and which meets such other standards for com-
pleteness and accuracy as the Plan Administrator may establish. Such Employee shall
specify his election as to Dependent status as coming within one of the following
categories: (i) Employee without Dependents, or (ii) Employee with Dependents. A
Participant's election form shall not be effective prior to the date such form is submitted
to the Plan Administrator. Any election form submitted by a Participant in accordance
with this Section shall remain in effect until the earlier of the following dates: the date
the Participant terminates participation in the Plan or the effective date (as determined
by the Plan Administrator) of a subsequently filed election form submitted pursuant to
subsections (a)(2) and (3) below.
(a) Enrollment Periods:
(1) Each Eligible Employee who meets the requirements of Section 3.2, on d'�
shall have an initial enrollment period which shall begin on � and shall
terminate on — . Each Eligible Employee who meets he requirements after
/0-/ shall have an initial enrollment period which shall begin on the first day
after the Employee has met the requirements and shall terminate err days
thereafter.
(2) Each Participant shall have a regular enrollment period during which to make
elections for the immediately ensuing Plan year. The regular enrollment period for such
Plan Year shall commence on �N prior to such Plan Year and shall terminate
days thereafter ( P- 3n).
Flexible (3) A Participant who incurs a change in family status. as provided in paragraph (c)
Benefits
III -1
below. shall have a Special Enrollment Period which shall begin on the date of his or
her family status change and shall terminate days thereafter.
(b) Enrolling Dependents: An Eligible Employee may enroll in the Plan any or all of
his or her Dependents during his or her Initial Enrollment Period. Regular Enrollment
Period. or Special Enrollment Period. A Participant who incurs a family status change
may enroll any new Dependents during the Special Enrollment Period commencing on
the date such individuals become Dependents of the Participant. Any Dependent not
enrolled during an Enrollment Period described in the two preceding sentences may be
enrolled thereafter for the current Plan Year only with the consent of the Plan Adminis-
trator. An Employee shall enroll his or her Dependents by specifying. on such forms as
the Plan Administrator may require. the Dependents' names and birth dates, and by
electing the category of dependent coverage that corresponds to the number of Depen-
dents the Employee wishes to enroll.
(c) Limitation on Enrollment Elections: A Participant's right to elect certain benefit
coverage shall be limited hereunder to the extent such rights are limited in a Compo-
nent Plan or in rules adopted by the Plan Administrator. Furthermore. a Participant
shall not be entitled to revoke an enrollment election after a period of coverage has
commenced and to make a new enrollment election with respect to the remainder of
the period of coverage unless both the revocation and the new election are on account
of and consistent with a change in family status (e.g.. marriage. divorce. death of
spouse or child. birth or adoption of child. and termination of employment of spouse).
Furthermore. if the Employee's participation in the Plan ceases as a result of the
Employee's separation from service, and if the Employee recommences employment
as an Eligible Employee within the same Plan Year, the Employee may not make a
new enrollment election for the remaining portion of that Plan Year.
Flexible
Benctits
111 -2
Article IV Contributions
4.1 Noneiection Contributions: For each Plan Year, the Employer in its sole discre-
tion. may make on behalf of each Participant a Nonelective Contribution to provide
benefits for such Participant and his or her Dependents, if applicable. under the Plan.
The amount of a Nonelective Contribution shall be calculated for each Plan Year in a
uniform and nondiscriminatory manner based on the Participant's Dependent status
category (as elected under Section 3.4), the commencement or termination date of the
Participant's employment during the Plan Year. and such other factors as the Employer
shall prescribe. If the amount of the Nonelective Contribution exceeds the cost of the
benefit coverage selected by the Participant, no such excess amounts will be paid to
the Participant.
4.2 Elective Contributions:
(a) Amount of Flexible Pay: Each Participant shall have an amount of Flexible Pay
equal to the Employer Contribution less the Nonelective Contribution described in
Section 4.1.
(b) Flexible Pay Contributions: Each Participant shall authorize the Plan Administra-
tor to withhold from his or her Covered Compensation for the Plan Year an amount of
Flexible Pay equal to his or her Coverage Expenses in excess of his or her Nonelective
Contribution for such year. In the event that the Coverage Expenses for the benefit
coverage elected by the Participant increase or decrease during the Plan Year, the
amount of Flexible Pay withheld from the Participant's Covered Compensation shall be
increased or decreased accordingly. Any Flexible Pay which is withheld from a
Participant's Covered Compensation pursuant to this Section shall be withheld in
approximately equal installments from the amounts payable to the Participant for each
pay period during the Plan Year (or such portion of the year as the Plan Administrator
may designate). For Employees whose salary during the year is paid to them over a
period of time less than a year. Flexible Pay amounts will be withheld in installments as
determined by the Plan Administrator. If an Employee becomes a Participant after the
beginning of the first pay period of the Plan Year, the amount withheld from his or her
Covered Compensation during such year shall be a pro rata share of the amount that
would have been withheld had he or she been a Participant in the Plans as of the
beginning of the Plan Year.
(c) Election: An election under subsection (b) to authorize withholding of Flexible Pay
shall be made on an Election Form submitted in accordance with Section 3.4. An
election to have withheld an amount of Flexible Pay which, in the determination of the
Plan Administrator. exceeds the limitation on Flexible Pay set forth in subsection (a)
may in the discretion of the Plan Administrator be treated as void or as an election to
have withheld the maximum amount permissible under such limitation.
4.3 Effect of Change in Family Status: If a Participant's elections change during the
Plan Year because of an election made pursuant to Section 3.4(a)(3), then in accor-
dance with rules adopted by the Plan Administrator appropriate adjustments shall be
made in the amount withheld from or added to the Participant's pay for the balance of
the year to reflect any changes in the Participant's Elective Contributions and benefit
elections.
4.4 Cash Benefit: Any Flexible Pay not expended for the purchase of benefits under
this Plan shall be considered a cash benefit under the Plan payable to the Participant.
Flexible
Benefits
IV -1
Article V Administration
5.1 Allocation of Responsibility Among duaesct responsibilities, n d obligations as are
Fiduciaries shall have only those powers,
specifically given or delegated to them under this Plan.
(a) The Employer shall have the sole responsibility for making the Employer Contribu-
tions under the Plan as specified in Article N.
(b) The Employer shall have the sole authority n whole or in and remove the Plan Admin-
istrator, and to amend or terminate this Plan
(c) The Plan Administrator shall have the sole responsibility for the administration of the
Plan, which responsibility is specifically described herein.
(d) Each Fiduciary warrants that any th'thetio directions given,
ions of the Plan authorizing or provid-
ing by it shall be in accordance P rely upon
for such direction, information ct action action.
nother Fiduciary ary as being proper under the Plan,
any direction, information
and not required under the Plan to
informa-
tion or action. It is intended under t his Plan that each Fiduciary shall be responsible for
the proper exercise of its own powers, duties, responsibilities and obligations under the
Plan and shall not be responsible for any act or failure to act of another Fiduciary.
5.2 Administration: The Plan shall be administered by the Plan Administrator which
may appoint or employ persons to assist in the administration of the Plan and may
appoint or employ any other agents it deems advisable, including legal counsel, actuar-
ies, auditors, bookkeepers and recordkeepers to serve at the Plan Administrator's
of the Plan and the Plan Administrator
direction. All usual and reasonable expenses
shall be paid by the Employer. Y the Plan
designated b
5.3 Claims Procedure: The Plan Administrator, or a party g
Administrator, shall make all determinations as to the right of any person to an Em-
ployer Contribution under the Plan. If an assertion of any such right by a Participant or
Dependent is wholly or partially denied, the Plan Administrator, or the designated party,
will provide such claimant a comprehensible an notice
of within
me not 90
toaexcefed anceipt
of the claim, unless circumstances warrant
additional 90 days, setting forth:
(a) The specific reason or reasons for such denial;
(b) Specific reference to pertinent Plan provisions on which the denial is based;
(c) A description of any additional material or information necessary for the claimant to
h material or information is
submit to perfect the claim and an explanation of why suc
necessary;
(d) A description of the Plan's claims review procedure. The review procedure is
available upon written request by the claimant to the Plan Administrator,
or the desig-
nated party, within 60 days after receipt by the claimant of written notice of the denial of
the claim, and includes the right to examine pertinent documents and submit issues
and comments in writing to the Plan Administrator, or the designated parry.
The decision on review shall be made within 60 days after receipt of the request for
review, unless circumstances warrant an extension of time not to exceed an additional
60 days. The decision shall be in writing and drafted in a manner calculated to be
understood by the claimant, and shall include specific reasons for the decision with
references to the specific Plan provisions on which the decision is based.
Flexible
Benefits
V -1
5.4 Other Administrative Powers and Duties: The Plan Administrator shall have
such powers and duties as may be necessary to discharge its functions hereunder.
including the power:
(a) to construe and interpret the Plan, decide all questions of eligibility and determine
the amount. manner and time of payment of any reimbursements hereunder;
(b) to prescribe procedures to be followed by Participants electing benefit coverages or
filing applications for reimbursements;
(c) to prepare and distribute, in such manner as the Plan Administrator determines to
be appropriate, information explaining the Plan;
(d) to receive from Employees, agents and Participants such information as shall be
necessary for the proper administration of the Plan;
(e) to receive, review and keep on file (as it deems convenient or proper) reports of the
receipts and disbursements of the Plan;
(f) to appoint or employ individuals or other parties to assist in the administration of the
Plan and any other agents it deems advisable, including accountants, legal counsel.
bookkeepers and recordkeepers; and
(g) to designate or employ persons to carry out any of the Plan Administrator's fiduciai ,,/
duties or responsibilities under the Plan.
5.5 Rules and Decisions: The Plan Administrator may adopt such rules and proce-
dures as it deems necessary, desirable, or appropriate for the administration of this
Plan. All rules, procedures and decisions of the Plan Administrator shall be uniformly
and consistently applied to all Participants in similar circumstances. When making a
determination or calculation, the Plan Administrator shall be entitled to rely upon infor-
mation furnished by a Participant, a Dependent, the duly authorized representative of a
Participant or Dependent or the legal counsel of the Plan Administrator.
5.6 Forms and Requests for Information: The Plan Administrator may require a
Participant to complete and file such forms as are provided for herein and all other
forms prescribed by the Plan Administrator, and to furnish all pertinent information
requested by the Plan Administrator. The Plan Administrator may rely upon all such
information, including the Participant's current mailing address.
5.7 Responsibility for Plan: The complete authority to control and manage the
operation and administration of the Plan shall be placed in the Plan Administrator, who
shall be solely responsible for the operation of the Plan in accordance with its terms.
The sponsor(s) of the Component Plans shall have no responsibility for, nor liability
toward the operation and administration of this Plan.
Flexible
BenefiLs
V -2
Article VI Amendment of the Plan
The Employer shall have the right at any time by instrument in writing, duly executed
and acknowledged, to modify, alter or amend this Plan in whole or in part, provided,
however, that no such amendment shall diminish or eliminate any claim for any benefit
to which a Participant shall have become entitled prior to such amendment. Notwith-
standing the foregoing, the Employer shall have the limited right to amend the Plan at
any time, retroactively or otherwise, in such respects and to such extent as may be
necessary to fully qualify it as a "cafeteria plan" under existing and applicable laws and
regulations, including Section 125 of the Code, and if and to the extent necessary to
accomplish such purpose, may by such amendment decrease or otherwise affect
benefits to which Participants may have already become entitled.
Flexible
Benefits
VI -1
Article VII Termination of the Plan
The Plan herein provided for has been established by the Employer with the bona fide
intention that it shall be continued in operation indefinitely. However. the Employer
reserves the right at any time to terminate or partially terminate the Plan.
Should the Employer decide to terminate or partially terminate the Plan. the Plan
Administrator shall be notified of such termination in writing and shall proceed at the
direction of the Employer to take such steps as are necessary to discontinue the
operation of the Plan in an appropriate and timely manner.
Flexible
Benefits
VII -1
Article VIII `° Miscellaneous
8.1 Employment Rights: Under no circumstances shall the terms of employment of
any Participant be modified or in any way affected hereby. This Plan shall not consti-
tute a contract of employment nor afford any individual any right to be retained in the
employ of the Employer.
8.2 Spendthrift Clause: To the extent permitted by law, Participants are prohibited
from anticipating, encumbering, alienating or assigning any of their rights, claims or
interest in this Plan, and no undertaking or attempt to do so shall in any way bind the
Plan Administrator or be of any force of affect whatsoever. Furthermore, to the extent
permitted by law, no such rights, claims or interest of a Participant in this Plan shall in
any way be subject to such Participant's debts, contracts or engagements, nor to
attachment, garnishment, levy or other legal or equitable process. Provided, however,
anything to the contrary herein notwithstanding, to the extent permissible under appli-
cable law, a Participant's interest hereunder is subject to all bona fide and existing
debts owed by such Participant to the Plan.
8.3 No Guarantee of Non - Taxability: The plan is designed and is intended to be
operated as a "cafeteria plan" under Section 125 of the Code. Nonetheless, neither the
Employer nor any Fiduciary shall in any way be liable for any taxes or other liability
incurred by a Participant or anyone claiming through him or her by virtue of Participa-
tion in this Plan. The Plan does not prohibit, and indeed contemplates, the payment of
taxable benefits under certain of the Component Plans.
8.4 Nondiscrimination: In accordance with Section 125 (b)(1) and (2) of the Code, the
Plan is intended not to discriminate in favor of Highly Compensated Individuals as to
eligibility to participate, nor Highly Compensated Participants as to contributions and
benefits, nor to provide more than 25% of all qualified benefits to Key Employees. If, in
the operation of the Plan, more than 25% of the total qualified benefits are found to be
provided to Key Employees, or the Plan discriminates in any other manner (or is in
danger of so discriminating), then notwithstanding any other provision contained herein.
the Plan Administrator shall reduce or adjust such contributions and /or benefits under
the Plan as shall be necessary to assure that, in the judgment of the Plan Administra-
tor, the Plan thereafter will not discriminate. All rules, procedures and decisions of the
Plan Administrator shall be adopted, made and /or applied in such fashion that they do
not discriminate in favor of Highly Compensated Individuals, Highly Compensated
Participants or Key Employees.
8.5 Delegation of Authority by the Employer: Whenever the Employer under the
terms of this Agreement is permitted or required to do or perform any act or matter or
thing, it shall be done and performed by any officer or individual thereunto duly autho-
rized by the Employer.
8.6 Construction of Agr ement: This Plan shall be construed according to the laws
of the State of r" , and all provisions hereof shall be administered
according to, and its validity and enforceability shall be determined under, the laws of
such state, except where preempted by the Code or ERISA.
8.7 Headings: The headings of sections and subsections are for ease of reference
only and shall not be construed to limit or modify the detailed provisions hereof.
8.8 Entire Plan Stated: This document sets forth the entire plan. No other employee
benefit or employee benefit plan which is, or may hereafter be maintained by the
Employer on a nonelective basis shall constitute a part of this Plan.
Flexible
Benefts
VIII -1
Article IX I Signature
The a P ove Plan is hereby adopted and approved, to be effective as of
this / day of p
By:
i A XAuthorized Officer
Flexible
Benefits
IX -1
Schedule A
Flexible Benefits Plan
Maximum amount of Employer Contributions for Plan:
Plan Years- Commencing Maximum
on or After Amount
/b JILP ---
'For plan years consisting less than 12 months, the stated maximum amount shall be prorated for such
shorter period.