HomeMy Public PortalAbout08995
O R D I N A N C E NO. 8995
AN ORDINANCE, ratifying and approving The Metropolitan
St. Louis Sewer District Flexible Benefit Plan and all prior
amendments thereto; and establishing The Metropolitan St. Louis
Sewer District Employee Benefits Committee, pursuant to Article 14
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, is hereby ratified and
approved.
Section Two. Pursuant to Article 14 of The
Metropolitan St. Louis Sewer District Flexible Benefit Plan, there
is hereby established The Metropolitan St. Louis Sewer District
Employee Benefits Committee as the administrator of said Plan,
said Committee to be comprised of the Executive Director as
Chairman, the Director of Administration and the Director of
Personnel.
AMENDMENT TO THE
METROPOLITAN SEWER DISTRICT
FLEXIBLE BENEFIT PLAN
WHEREAS, effective August 1, 1989, 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, since the Plan was adopted, Code section 89,
which contained discrimination rules applicable to benefits under
the Plan, has been retroactively repealed and prior discrimination
rules have been retroactively reinstated; and
WHEREAS, certain regulations under Code Section 125
became effective with respect to the Plan on February 1, 1990; 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:
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 Dates ........................... 1 ARTICLE 2 Definitions ......................................... 2 Section 2.01 Account ................................... 2 Section 2.02 Affiliated Company ........................ 2 Section 2.03 Board ..................................... 2 Section 2.04 Committee ................................. 2 Section 2.05 Code ...................................... 2 Section 2.06 Company ................................... 3 Section 2.07 Compensation .............................. 3 Section 2.08 Employee .................................. 3 Section 2.09 Employer .................................. 3 Section 2.10 Medical Plan .............................. 3 Section 2.11 Medical Plan Benefits ..................... 3 Section 2.12 Member .................................... 3 Section 2.13 Nonelective Contributions ................. 3 Section 2.14 Period of Coverage ........................ 4 Section 2.15 Plan ...................................... 4 Section 2.16 Plan Year ................................. 4 Section 2.17 Reimbursement Account ..................... 4 Section 2.18 Reimbursement Benefits .................... 4 Section 2.19 Reimbursement Contributions ............... 4 ARTICLE 3 Eligibility Requirements ............................ 5 Section 3.01 Eligibility ............................... 5 Section 3.02 Enrollment and Membership ................. 5 ARTICLE 4 Contributions ....................................... 6 Section 4.01 Insurance Contributions ................... 6 Section 4.02 Reimbursement Contributions ............... 6 Section 4.03 Pay Reduction and Payroll Withholding ..... 6 Section 4.04 Nonelective Contributions ................. 7 ARTICLE 5 Elections ........................................... 8 Section 5.01 In General ................................ 8 Section 5.02 Reimbursement Contributions and .................. Benef Section 5.03 Period of Coverage ........................ 8 Section 5.04 Fractional Periods of Coverage ............ 9
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Section 5.05 Timing of Elections ....................... 9 Section 5.06 Changes of Election ....................... 9 Section 5.07 Medical Plans ............................. 10 ARTICLE 6 Benefits ............................................ 11 Section 6.01 Benefits Available ........................ 11 Section 6.02 Medical Plan Benefits ..................... 11 Section 6.03 Medical Expense Reimbursement Benefits .... 11 Section 6.04 Dependent Care Reimbursement Benefits ..... 11 Section 6.05 Cash Benefits ............................. 12 ARTICLE 7 Limitations on Benefits ............................. 13 Section 7.01 Coverage .................................. 13 Section 7.02 Amount of Benefits ........................ 13 Section 7.03 Forfeitures ............................... 14 Section 7.04 Medical Plan .............................. 14 ARTICLE 8 Medical Expense Reimbursement Program ............... 15 Section 8.01 In General ................................ 15 Section 8.02 Definitions ............................... 15 Section 8.03 Covered Expenses .......................... 16 Section 8.04 Reduction of Benefits ..................... 16 Section 8.05 Other Provisions .......................... 16 ARTICLE 9 Dependent Care Reimbursement Program ................ 17 Section 9.01 In General ................................ 17 Section 9.02 Definitions ............................... 17 Section 9.03 Eligibility, Enrollment and Termination ... 18 Section 9.04 Covered Expenses .......................... 18 Section 9.05 Reduction of Benefits ..................... 18 Section 9.06 Further Limitations ....................... 19 Section 9.07 Principal Shareholders Limitation ......... 20 Section 9.08 Prohibition of Certain Payments ........... 21 Section 9.09 Services Outside the Household ............ 21 Section 9.10 Statements ................................ 22 Section 9.11 Other Provisions .......................... 22 ARTICLE 10 Claims for Benefits ................................ 23 Section 10.01 Claims for Reimbursement Benefits ......... 23 Section 10.02 Prior Payment Unnecessary ................. 23 Section 10.03 Claim Substantiation ...................... 23 Section 10.04 Time Limit on Claiming Benefits ........... 24 Section 10.05 Medical Plans ............................. 24
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ARTICLE 11 Post-Termination Participation ..................... 25 Section 11.01 Termination of Participation on Account .......... of De Section 11.02 Designation of Beneficiary ................ 25 Section 11.03 Failure of Beneficiary Designation ........ 25 Section 11.04 Other Termination ......................... 26 ARTICLE 12 Nondiscrimination .................................. 27 Section 12.01 Reduction of Contributions and Benefits ... 27 Section 12.02 Prohibition of Discrimination ............. 27 ARTICLE 13 Accounts ........................................... 28 Section 13.01 Accounts .................................. 28 Section 13.02 Contributions Made ........................ 28 Section 13.03 Benefits Provided ......................... 28 ARTICLE 14 Administration of the Plan ......................... 29 Section 14.01 Appointment of the Committee .............. 29 Section 14.02 Conduct of Committee Business ............. 29 Section 14.03 Records and Reports of the Committee ...... 29 Section 14.04 Administrative Powers and Duties .......... 30 Section 14.05 Allocation or Delegation of Duties and ........... Respo Section 14.06 Claims Procedure .......................... 31 ARTICLE 15 Amendment and Termination .......................... 33 Section 15.01 Amendment of Plan ......................... 33 Section 15.02 Termination of Plan ....................... 33 Section 15.03 Preservation of Rights .................... 33 ARTICLE 16 Adoption of Plan ................................... 34 Section 16.01 In General ................................ 34 ARTICLE 17 Miscellaneous ...................................... 35 Section 17.01 Facility of Payment ....................... 35 Section 17.02 Lost Payee ................................ 35 Section 17.03 Funding ................................... 36 Section 17.04 Indemnification ........................... 36 Section 17.05 Titles and Headings ....................... 36 Section 17.06 Number .................................... 37 Section 17.07 Applicable Law ............................ 37 Section 17.08 Assignment of Benefits .................... 37
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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 Dates. The Plan shall be
effective as of August 1, 1989. The provisions of this amended
and restated Plan shall be generally effective August 1, 1989.
However, the provisions Sections 7.02, 8.02(c), 9.05, 10.03, and
11.04 shall be effective February 1, 1990.
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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 directors of the
Company.
Section 2.04 Committee. The Metropolitan St. Louis
Sewer District Employee Benefits Committee as described in
Section 14.01.
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Section 2.05 Code. The Internal Revenue Code of
1986, as amended from time to time.
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 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.
Section 2.09 Employer. Any Affiliated Company which,
with the consent of the Board, ratifies and adopts this Plan.
Section 2.10 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 2.11 Medical Plan Benefits. The benefits
under a Medical Plan as described in Section 6.02.
Section 2.12 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.
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Section 2.13 Nonelective Contributions. The
contributions made pursuant to Section 4.04.
Section 2.14 Period of Coverage. The Plan Year,
except that it may be a fraction of a Plan Year as provided in
Section 5.04.
Section 2.15 Plan. The Metropolitan St. Louis Sewer
District Flexible Benefit Plan, together with all amendments
hereto.
Section 2.16 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 2.17 Reimbursement Account. Each subaccount
of a Member's Account established under Section 13.01 for
contributions of, and payments for, Reimbursement Benefits.
Section 2.18 Reimbursement Benefits. The Medical
Expense and Dependent Care Reimbursement Benefits described in
Sections 6.03 and 6.04.
Section 2.19 Reimbursement Contributions.
Contributions made under Section 4.02 for Reimbursement Benefits.
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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 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.
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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. Contributions shall be made
only by way of payroll withholding which shall be made during a
Member's applicable Period of Coverage.
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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.
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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 at 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 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 be used for any other
benefit.
Section 5.03 Period of Coverage. Except as provided
in Sections 5.04 and 5.06, any Member electing contributions and
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benefits must make an irrevocable election for a Period of
Coverage of an entire Plan Year.
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 Changes of Election. Except as provided
in Section 5.07, elections of contributions and/or benefits may
not be revoked or changed in the middle of a Period of Coverage
unless such change or revocation is on account of and consistent
with one of the following events: (a) the Member's marriage, (b) the Member's divorce, (c) the death of the Member's spouse or child, (d) the birth or adoption of a child,
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(e)the termination of employment of the Member or the Member's spouse, (f)the commencement of employment of the Member's spouse, (g)the switching from part-time to full-time employment status or from full-time to part-time status by the Member or the Member's spouse, (h)the taking of an unpaid leave of absence by the Member or the Member's spouse, (i)a significant change in the health coverage of the Member or the Member's spouse attributable to the employment of the Member's spouse, or (j)some other change in family status as determined by the Committee which, pursuant to Code Section 125 and the regulations thereunder, permits the revocation or change of a Member's election.
Such change or cancellation shall take effect as of the date such
event occurs provided the Member submits a notice of the change or
cancellation within 30 days after the event occurs. Otherwise,
such change or cancellation shall take effect as of the date that
such notice is received by the Committee. Changes in elections
shall only be effective as to contributions and benefits following
the effective date of such changes.
Section 5.07 Medical Plans. Elections of
contributions and benefits under Section 4.01 shall be subject to
the rules governing elections of benefits under a Member's
Medical Plan. In the case of an increase or decrease of the cost
of benefits under a Medical Plan during a Period of Coverage, the
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amount of a Member's payroll reduction shall be automatically
increased or decreased as the case may be.
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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 program subject to all of the requirements and
restrictions contained in that program.
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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 such Plan Year less salary
reduction contributions actually elected by the Member under such
sections.
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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. 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
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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. Amounts remaining in a
Reimbursement Benefit subaccount shall be forfeited after payment
of all timely presented claims for the benefit for 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.
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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 Dependant 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):
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(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 transportation primarily for and
essential to medical care referred to in (1).
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 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.
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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.
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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
(1) a dependent (as defined in Code section
152) of a Member (A) who is under the age of 13 and with respect
to whom the Member is entitled to a deduction under Code section
151(c); or (B) who is physically or mentally incapable of caring
for himself or herself; or
(2) the spouse of a Member, if such spouse
is physically or mentally incapable of caring for himself or
herself. For purposes of this Section 9.02(b), Dependent status
shall be determined by taking into account the rules of Code
section 21(e)(5).
(c) "Earned Income" means earned income, as
defined in section 32(c)(2) of the Code, excluding any amounts
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paid or incurred by the Employer for dependent care assistance to
a Member.
(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 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
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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
(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;
(2) the Earned Income of such Member for
such year; or
(3) the Earned Income of the spouse of such
Member for such year.
(c) In the case of a Member who is married at the
close of such year and files a separate return, the least of:
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(1) $2,500;
(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 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 $200 per month if the Member has only one
Dependent, and $400 per month 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 Limitation. 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
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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 151(c)(3)) 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 individuals who reside at the facility, and receives a fee,
payment or grant for providing services for any of the
individuals, unless:
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(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 Other Provisions. Other matters
concerning contributions, elections, benefits, claims, and the
like shall be governed by the general provisions of the Plan.
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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
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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.
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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.
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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 participants 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.
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.
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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.
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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
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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.
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;
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(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 reasonably
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 the terms of
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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.
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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.
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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 with 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.
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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;
(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
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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
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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 superseded 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.
IN WITNESS WHEREOF, the Company has caused this
Amendment to be executed by one of its duly authorized officers
this day of , 1990. METROPOLITAN ST. LOUIS SEWER DISTRICT By
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The foregoing Ordinance was adopted May 12, 1993.