Loading...
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Code section 89, which contained discrimination rules applicable to benefits under the Plan, has been retroactively repealed and prior discrimination rules have been retroactively reinstated; and WHEREAS, certain regulations under Code Section 125 became effective with respect to the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 -i- 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 -ii- 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 -iii- 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 -1- 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. -2- 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. -3- 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. -4- 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. -5- 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. -6- 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. -7- 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. -8- 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 -9- 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, -10- (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 -11- amount of a Member's payroll reduction shall be automatically increased or decreased as the case may be. -12- 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. -13- 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. -14- 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 -15- 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. -16- 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): -17- (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. -18- 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. -19- 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 -20- 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 -21- 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: -22- (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 -23- 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: -24- (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. -25- 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 -26- 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. -27- 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. -28- 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. -29- 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. -30- 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. -31- 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 -32- 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; -33- (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 -34- 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. -35- 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. -36- 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. -37- 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 -38- 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 -39- 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 -40- The foregoing Ordinance was adopted May 12, 1993.