HomeMy WebLinkAboutR-1991-084 4:
RESOLUTION NO. 84-91
A RESOLUTION OF THE CITY OF DANIA, FLORIDA, ADOPTING THE
AMENDED AND RESTATED FLEXIBLE BENEFITS PLAN WITHIN THE
MEANING OF SECTION 125(D) OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, since 1986, the City of Dania has implemented a Section 125
Program for its employees so that they may enjoy tax advantages for out
of pocket medical expenses and child care expenses; and
WHEREAS, the I-RS changed its regulations in 1991 affecting said 125
plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
DANIA, FLORIDA:
61 ,i Section 1. That the City of Dania, Florida, hereby adopts the
7 amended and restated flexible benefits plan of the City of Dania within
the meaning of Section 125(d) of the Internal Revenue Code of 1986, as
amended, in the form attached hereto and made a part hereof as Exhibit
"A", and the appropriate city officials are hereby authorized to execute
such documents as shall be necessary for this purpose.
f a
Section 2. That this resolution shall be in force and take effect
immediately upon its passage and adoption.
PASSED and ADOPTED on this 13th day of August , 1991 .
ATTEST: MA �ii.�l�-�
YOR COMMISSIONER
j
'CITY CLERK - AUDITOR
APPROVED AS TO FORM AND CORRECTNESS
BY:-
City Attorney
84-91
Resolution No.
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CERTIFICATE OF CORPORATE RESOLUTION
he laws Of
oration
City Clerk of the CITY OF DANIA, a
municipal corp organized ahaxthelng under
followingtresolution
the State of Florida, do certify
was adopted at a meeting of the City Board held at
M. on �— 199_
RESOLVED, that the City adopt the "Amended and
Restated Flexible Benefits Plan of the "CITY OF DANIA"
within the meaning of Section 125(dn of tformnternaled
Revenue Code of 1986, as amended,
hereto and made a part hereof as Exhibit
The
execute
Officers are directed to take such steps and t ecu
such documents as shall be necessary for this purpose.
Certified to be a true and correct copy •
it
CITY CLERK
CITY OF DANIA
(SEAL)
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EXHIBIT "All
4.
AMENDED AND RESTATED
CITY OF DANIA
MEDICAL EXPENSE REIMBURSEMENT PLAN
1 . Purpose. The purpose of this Plan is to encourage and help
provide medical care for each participating Employee and his spouse
and dependents. It is the intention of the City that this Plan
qualify as an accident and health plan within the meaning of Section
105 (e) of the Internal Revenue Code of 1986, as amended (the Code) ,
and that the benefits payable under the Plan be eligible for exclusion
from gross income under Section 105 (b) of the Code .
2 . Effective Date. The original effective date of this Plan was
November 1 , 1987 . The Plan was amended and restated effective
November 1 , 1990 . The records of the Plan shall be kept on a 12
consecutive month basis beginning November 1st and ending October
31st, which shall be the Plan Year.
3 . Eligibility. All Employees of the City eligible to
participate in the City of Dania Flexible Benefits Plan and the group
medical health insurance plan maintained by the City are eligible to
participate in this Plan.
'j 4 . Participation. Each Employee who is eligible to participate,
as provided in Section 3, may elect to participate by executing the
( j Flexible Benefits Plan Salary Conversion Agreement designating the
ll benefits provided under this Plan.
5 . Funding. Shortly after the end of each pay period, the
City shall deliver to the Trustee of the Flexible Benefits Plan and
Trust established by the City the amount specified by the Participant
under this Plan on the Participant ' s Flexible Benefits Plan Salary
Conversion Agreement. The City will also, on written request by the
Trustee, advance additional sums to the Trustee, to the extent that
funds being held by the Trustee are, at any time, insufficient to pay
benefits in accordance with this Plan. The City shall be entitled to
recoup such advances, to the extent possible, from future Salary
Conversion Amounts within the same Plan Year. The duty of the City to
advance funds shall be limited, in all events, to the sum of the
Salary Conversion Amounts elected with respect to this Plan by all
Plan Participants for the Plan Year. Funds received by the Trustee in
connection with this Plan need not be held in a separate account, but
separate books of account shall be maintained by the Trustee such that
no amounts received by the Trustee for Medical Expense Reimbursement'
shall be used to provide any other benefit.
6. Benefits. On receipt by the Plan Administrator of reasonably
satisfactory third party documentation that a Participant has expended
amounts which may be reimbursed by this Plan, and subject in every
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case to the provisions of Sections 7, 8 and 9 of this Plan, the Plan
Administrator shall direct the Trustee to reimburse, from funds
received for the purpose, the expenses of the Participant submitting
such documentation. The Trustee shall pay to each Participant such
amounts as he has incurred while a Participant for medical care (as
defined in Section 7 . ) for himself and his spouse and dependents but
not in excess of the Participant' s Salary Conversion Amount for
benefits under this Plan for the Plan Year, less prior reimbursement
for claims incurred under this Plan during such Plan Year.
Although there is no limit on the number of claims a Participant
may make under this Plan (subject to the provisions of Section 8 of
this Plan) , a per occurrence limit has been imposed by the City under
your benefit program as follows:
1 . Chiropractic Visits $ 50 . 00
2 . Doctor or Dentist Visits $100 . 00
3 . Eyeglasses and Contacts $150 . 00
'1. 4 . Hospitalization (In-Patient) $200 . 00
1; 5 . Medication (Prescribed) No Limit
6 . Orthodontic (Major) $100 . 00
7 . Out-Patient Services $100 . 00
i 8 . Surgical Procedures $200 . 00
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7 . Expenses Eligible for Reimbursement. Expenses eligible for
reimbursement shall be limited to the following expenses:
u (a) Expenses incurred for medical care (as
defined in Section 213(d) of the Code) , including
hospitalization, medical and dental bills, orthodonture,
prescribed drugs or medicine for alleviation of illness,
eyeglasses, hearing care, in-patient or out-patient nursing
care; and
(b) Transportation and lodging primarily for and
essential to such medical care; and any other expense paid
for medical care that would be deductible (without regard to
the 7 . 5% of adjusted gross income floor) under Section
213(d) of the Code if paid by the Participant.
The total amount to be reimbursed to any Participant for claims
incurred under this Plan during any Plan Year shall not exceed the
total Salary Conversion Amount which the individual Participant has
elected for benefits under this Plan for such Plan Year .
Reimbursement shall not be limited to the Salary Conversion Amounts
previously paid by the City to the Trustee. The Trustee shall not be
required to make any reimbursement amounting to less than $50 in total
prior to the end of the Plan Year.
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8 OOmltation. No Participant
receive
bursementsundertthisll be ent l
Plan forcladimsoincurred more
than $5, 0
during any Plan Year.
ent
nder this
9 . Benefits finmtheother eventsandcto the e. lextent mthat ureimbursement
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shell be made only a ment, for medical care is not provided for
for amounts expended, or p y plan
of the City or
under any insurance policy or under any other p
another employer cr under any federal or state law. in the event that
such
there is such a policy, plan or law in effect pthending to therextent of
reimbursement or payment, in whole or in part the City shall be
the coverage under such policy, plan or law,
relieved of any and all liability hereunder.
10 • Review Procedure . If any claim for benefits under this
Plan is denied in whole or in part, the claimant shall be entitled to
the review procedures set forth in the City of Dania Flexible Benefits
Plan.
11 . Administration. The Plan Administrator appointed by the
City shall have authority and responsibility to control and manage the
operation and administration of this Plan.
This Plan may be amended or
12 . Amendment Termination. provided, that such amendment or
terminated at any time by the City; P participant to claim
' termination shall not affect the right of any
reimbursement for claims incurred during the Plan Year for medical
�'. care provided prior to such amendment or termination.
in Aricle II of
he
_4 13 . Definitions . The definitions set out incortorated intotthis
City of Dania Flexible Benefits Plan are hereby P
Plan.
j IN WITNESS WHEREOF, this Plan has been executed by the City
Mayor, the City' s seal affixed thereto, with the City Clerk attesting
to both acts, this the day of __
199 , effective as of
the day and year first written above .
CITY OF DANIA
By:
City Mayor
Attest:
City Clerk
(SEAL)
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AMENDED AND RESTATED
DEPENDENT CARE REIMBURSEMENT PLAN FOR THE
CITY OF DANIA
1p
1 • Purpose. The purpose of this Plan is to encouraEmployeege and eand
dependent care assistance for each participatingthat this
provide dependents . It is the intention of the City
his spouse and dep program within the meaning
Plan qualify as a dependent care assistance oas amended (the
of Section 129 of the Internal yableuunderethe Plan be eligible for
Code) , and that the benefits pay
exclusion from gross income under Section 129(a) of the Code.
of this Plan
2• Eff1987Ve ThMe is Planeisffective amended anderestated effective
November 1 , t on a twelve
November 1 , 1990 . The records ° Plan
rllst and ending
(12) consecutive month basis beginning
`*=1; October 31st, which shall be the Plan Year.
3 • Eliaiity All Employees of the City eligible to eligible
participate in the City of Dania Flexible Benefits Plan are
to participate in this Plan.
who is eligible to
Each Employee
q, cartic�at=°nelect to participate by
! participate, as provided in Section 3, may C
ean ary onversion Agreement
executing the Flexible Beprovidednefitslunderlthis Plan.
designating the benefits p
shall pay to each Participant such
5 • Benefits. The City ant for dependent care for
amounts as he ha=ovideddduringlthe plane a Year, but not in excess of the
his dependents p ersion Amount through the date of
Participant' s total Salary
reim Conv reimbursements under this Plan for claims
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reimbursement (less p Amounts expended for dependent
incurred during the Plan Year) • for by the Employee
means amounts paid for expenses which if paidenses under Section 21 (b) (2)
would be considered employment-related expenses
of the Code. Dependent means a dependent as defined in Section 152 of
the Code.
6• Limitation. N° Participant shall be to entitled a receive for
mounts
his taxable year more than the least of the following
(a) The earned income of such Employee for the taxable
year, or
me of the spouse of such Employee
(b) The earned inco
for such taxable year, or
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(c) $5, 000 ( $2, 500 if the Employee is married filing a
separate return) .
7. Claims Procedure. Claims for benefits must be made on forms
provided by the Plan Administrator and must be supported by
documentation from third parties proving that the funds have been
expended and that the expenditure has not been (and will not be)
reimbursed, through insurance or otherwise. Claims for various
benefits offered under the City of Dania Flexible Benefits Plan are
subject to limitations as set forth in the City of Dania Flexible
Benefits Plan and the various plans forming a part of the City of
Dania Flexible Benefits Plan. These limitations are with respect to
amounts of reimbursement and the circumstances under which
reimbursements will be made.
8. Review Procedure. If any claim for benefits under this Plan
is denied in whole or in part, the claimant shall be entitled to the
review procedures set forth in the City of Dania Flexible Benefits
' Plan.
9. Administration. The City shall have authority and
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responsibility to control and manage the operation and administration
of this Plan.
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1a Amendment Termination. This Plan may be amended or
terminated at any time by the City;
ment
termination shall not affect the right rof1any Participantded, that suchatonclaim or
reimbursement for claims incurred during the Plan Year for depend
• s) care provided prior to such amendment or termination. p ent
11 . Definitions . The definitions set out in Article II of the
City of Dania Flexible Benefits Plan are hereby incorporated into this
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Plan.
IN WITNESS WHEREOF, this Plan has been executed by the City Mayor
of the City, the City ' s seal affixed thereto, with the City Clerk
attesting to both acts, this the day of
effective as of the dayand 199--_'
year first written above.
CITY OF DANIA
By:
City Mayor
Attest :
City Clerk
(CORPORATE SEAL)
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THE AMENDED AND RESTATED
FLEXIBLE BENEFITS PLAN AND TRUST FOR THE
CITY OF DANIA
THIS PLAN, heretofore made and established the 1st day of
November, 1987, is amended and restated this the 1st day of November,
1990, by and between the CITY OF DANIA, (hereinafter referred to as
the "City" ) , a municipal corporation organized and existing under the
laws of the State of Florida with its principal office in Dania,
Florida, and Michael W. Smith (hereinafter referred to as "Trustee" ) .
W I T N E S S E T H :
WHEREAS, the City wishes to make available to its Employees the
benefits provided by law under Section 125 of the Internal Revenue
' .1 Code of 1986; and
ti WHEREAS, the Trustee is willing to serve in such capacity in
connection with this Plan and Trust;
NOW, THEREFORE, effective the 1st day of November, 1990, the City
adopts this Plan and Trust, and the Trustee accepts the trust provided
a u herein, all for the exclusive benefit of the eligible Employees of the
City.
; { ARTICLE I
.y, DEFINITIONS
1 . 1 "Act" shall mean the Employee Retirement Income Security Act
of 1974, as it may be amended from time to time.
1 .2 "Age" shall mean attained age.
1 . 3 "Account" shall mean the separate balance to the credit of
an Employee and shall consist of contributions ( if any) made by the
Employee plus contributions made by the City less benefits paid to or
for the benefit of the Employee and less forfeitures.
1 . 4 "Anniversary Date" shall mean November 1st each year.
1 . 5 "Beneficiary" shall mean, if life insurance is a Plan
benefit, the person designated to receive the benefits which are
payable under the life insurance Plan benefit upon or after the death
of a Participant.
1 . 6 "Code" shall mean the Internal Revenue Code of 1986, as
amended, or replaced, from time to time.
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1 , 7 Compensation" with respect to any Participant shall mean
total taxable compensation paid or accrued by the City to the
Participant for a Plan Year. ny Dependent
1 ,8 Dependent Care Reimbursement Plan shall mean
Code.
can taon any
Care Reimbursement Plan established by the City
in anniversary of this Plan and qualifying under Section 129 of the
1 ,g "Disability Insurance Plan" shall mean any Disability
maintained by the City and qualifying
Insurance Plan established and
under Sections 104 or 105 of the Code.
1 .10 "Discriminatory Excess" shall mean the excess nontaxable
benefits over the highest permitted nontaxable benefit under this
Plan, determined by reducing the nontaxable benefits of Highly
Compensated Participants until suchlan would not be treated as a
discriminatory Employee benefit plan.
1 .11 "Eligible Employee" shall mean any Employee who has
satisfied the provisions of Section 3 . 1 .
•�• is
employed by the
1 . 12 "Employee" shall mean any, person
who
san independent
City, but excludes any person who is engaged
contractor.
q 1 .13 "City" shall mean the City of Dania.
1 . 14 "Fiduciary" shall mean any person who:
(a) Exercises any discretionary authority or
discretionary control respecting management of the Plan or ment or
exercises any authority or control respecting manage
disposition of its assets,
(b) Renders investment advice form fee or to other
any monies
ct, with
or other pro, edtyect or of thelPlaneor has any authority or
or other p p
responsibility to do so, or
(c) Has any discretionary authority or discretionary
responsibility in the administration of the Plan, including,
but not limited to, the Trustee, the City and its governing
board or body, and the Plan Administrator.
1 . 15 "Former Participant" shall mean a person who has been a
Participant, but who has ceased to be a Participant for any reason.
1 . sa The term "415 r professionalshall serviceaandhothertamounts' for
wages, salaries, fees for p rendered in the
personal services, not to exceed $2maintainingutheyPlan ( including,
course of employment with the City
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but not limited to, commissions paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on
insurance premiums, tips and bonuses and, in the case of a Participant
who is an Employee within the meaning of Code Section 401 (c) ( 1 ) and
the Regulations thereunder, the Participant' s earned income (as
described in Code Section 401 (c) (2) and the Regulations thereunder] ) ,
paid or accrued during the "limitation year" . "415 Compensation"
shall exclude:
( 1 ) (A) Contributions made by the City to a plan of
deferred compensation to the extent that, before the
application of the Code Section 415 limitations to the Plan,
the contributions are not includable in the gross income of
the Employee for the taxable year in which contributed;
(B) City contributions made on behalf of an
Employee to a simplified Employee pension plan described in
Code Section 408(k) to the extent such contributions are
deductible by the Employee under Code Section 219(a) ;
;4. (C) Any distributions from a plan of deferred
compensation regardless of whether such amounts are
includable in the gross income of the Employee whendo
distributed; except any amounts received by an Employee
pursuant to an unfunded non-qualified plan shall be included
1 in 415 Compensation to the extent such amounts are
' includable in the gross income of the Employee;
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(2 ) Amounts realized from the exercise of a non-
qualified stock option or when restricted stock (or
property) held by an Employee either becomes freely
transferable or is no longer subject to a substantial risk
of forfeiture;
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( 3 ) Amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock
option; and
( 4) Other amounts which receive special tax benefits,
such as premiums for group term life insurance (but only to
the extent that the premiums are not includable in the gross
income of the Employee) , or contributions made by the City
(whether or not under a Salary Conversion Agreement) towards
the purchase of any annuity contract described in Code
Section 403 (b) (whether or not the contributions are
excludable from the gross income of the Employee) .
1 . 17 A "Highly Compensated Participant" shall generally mean
any Participant who at any time during the Plan Year is:
(a) Compensated in excess of Seventy-five Thousand
Dollars ($75 , 000 ) .
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(b) Compensated in excess of Fifty Thousand Dollars
($50, 000 ) and in the top twenty percent (20%) of the City' s
Employees, ranked by compensation.
(c) An officer of the City within the meaning of
Section 416(i ) of the Code. No less than three (3) and no
more than fifty ( 50 ) Employees of the City shall be treated
as officers.
(d) A spouse or dependent (within the meaning of
Section 152 of the Code) of an individual described in (a) ,
(b) or (c) above.
1 . 18 "Group Term Life Insurance Plan" shall mean any Employees '
Group Term Life Insurance Plan established and maintained by the City
and qualifying under Section 79 of the Code.
1 . 19 "Health Insurance Plan" shall mean any Employees ' Health
Insurance Plan established and maintained by the City and qualifying
+r' under Sections 105 and 106 of the Code.
-�y 1 . 20 "Investment Manager" shall mean an entity that:
(a) Has the power to manage, acquire, or dispose of
r 1i Plan assets, and
3 (b) Acknowledges fiduciary responsibility to the Plan
in writing.
}` entity
Such
Y must be a person, firm, or corporation registered as an
investment adviser under the Investment Advisers Act of 1940, a bank,
or an insurance company.
1 . 21 "Key Employee" shall mean an Employee as defined in Code
Section 416(i ) and the Regulations thereunder. Generally, any
Employee or Former Employee (as well as each of his Beneficiaries) is
considered a Key Employee if he, at any time during the Plan Year or
any of the preceding four ( 4 ) Plan Years, is or was an officer of the
' City (as that term is defined within the meaning of the Regulations
under Code Section 416) having annual "415 compensation" greater than
fifty percent ( 50%) of the amount in effect under Code Section
415(b) ( 1 ) (A) for any such Plan Year.
1 . 22 Medical Reimbursement Plan shall mean any Medical
Reimbursement Plan established by the City and in effect on any
anniversary date of this Plan and qualifying under Sections 105 and
106 of the Code.
1 . 23 "Non-Highly Compensated Participant" shall mean any
Participant or Former Participant who is not a Highly Compensated
Participant.
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1 . 24 "Non-Key Employee" shall mean any Employee or Former
Employee (and his Beneficiaries) who is not a Key Employee.
1 . 25 "Participant" shall mean any Eligible Employee who elects to
participate in the Plan as provided in Sections 3. 2 and 3 .4, and has
not for any reason become ineligible to participate further in the
Plan.
1 . 26 "Pay Period" shall mean, for each Employee, the period
covered by a normal compensation check.
1 . 27 "Period of Coverage" shall mean the pay period or pay
periods for which salary has been converted in accordance with the
provisions of Section 1 . 32.
1 . 28 "Plan" shall mean this instrument, including all amendments
thereto.
1 . 29 "Plan Administrator" shall mean the person designated by the
City pursuant to Section 2 . 2 to administer the Plan on behalf of the
City.
1 . 30 "Plan Year" shall mean the twelve ( 12) month period
beginning each November 1st ending each October 31st.
1 . 31 "Regulations" shall mean Regulations as promulgated by the
q Secretary of the Treasury or his delegate, as amended from time to
time, and as promulgated by the Secretary of Labor or his delegate, as
amended from time to time.
1 . 32 "Salary Conversion Agreement" shall mean a legally binding
written document executed by both the Participant and the City,
wherein the Participant agrees to have his salary converted by a
Salary Conversion Amount for a Plan Year and to have such amount
applied to the purchase of various tax-free fringe benefits as
provided in the Agreement.
1 . 33 "Salary Conversion Amount" shall mean the amount per pay
period which the Employee has elected under his Salary Conversion
Agreement as a conversion in his Compensation, which shall be applied
by the Plan Administrator for the purchase of Plan benefits for the
Employee and his family, but not more than $10, 000 per Employee per
Plan Year.
1 . 34 "Terminated Participant" shall mean a person who has been a
Participant, but whose employment has been terminated other than by
death, Total and Permanent Disability or retirement .
1 . 35 "Trustee" shall Michael W. Smith and his successor (or
successors) thereto.
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1 . 36 "Trust Fund" shall mean the assets of the Plan and Trust as
the same shall exist from time to time.
ARTICLE II
PLAN ADMINISTRATION
2 . 1 POWERS AND RESPONSIBILITIES OF THE CITY
(a) The City shall be empowered to appoint and remove any
Trustee or Plan Administrator from time to time as it deems necessary
for the proper administration of the Plan to assure that the Plan is
being operated for the exclusive benefit of the Participants and their
Beneficiaries in accordance with the terms of the Plan, the Code, and
the Act.
(b) The City shall periodically review the performance of any
Fiduciary or other person to whom duties have been delegated or
allocated by it under the provisions of this Plan or pursuant to
procedures established hereunder. This requirement may be satisfied
by formal periodic review by the City or by a qualified person
specifically designated by the City, through day-to-day conduct and
evaluation, or through other appropriate ways.
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2 . 2 ASSIGNMENT AND DELEGATION OF ADMINISTRATIVE AUTHORITY
The City may appoint one or more Plan Administrators. Any
person, including but not limited to the Employees of the City, shall
be eligible to serve as a Plan Administrator. Any person so appointed
shall signify his acceptance in a writing delivered to the City. A
Plan Administrator may resign by delivering his written resignation to
.0 the City or may be removed by the City by delivery of written notice
of removal, to take effect at a date specified therein, requiring at
least thirty ( 30) days ' advance written notice in either event
(resignation or removal) . The City, upon the resignation or removal
of a Plan Administrator, shall promptly designate in writing a
successor to this position . If the City does not appoint a Plan
Administrator, the City will function as the Plan Administrator.
2 . 3 ALLOCATION AND DELEGATION OF RESPONSIBILITIES
If more than one person is appointed as Plan Administrator, the
responsibilities of each Plan Administrator may be specified by the
City and accepted in writing by each Plan Administrator. In the event
that no such delegation is made by the City, the Plan Administrators
may allocate the responsibilities among themselves, in which event the
Plan Administrators shall notify the City and the Trustee in writing
of such action and specify the responsibilities of each Plan
Administrator. The Trustee thereafter shall accept and rely upon any
documents executed by the appropriate Plan Administrator until such
time as the City or the Plan Administrators file with the Trustee a
. written revocation of such designation.
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2. 4 POWERS AND DUTIES OF THE PLAN ADMINISTRATOR
(a) The Plan Administrator shall have authority to control and
manage the operation and administration of the Plan. The Plan
Administrator shall have all powers necessary or appropriate to the
general operation and administration of the Plan, including, without
limitation, the power to construe the Plan, to decide all questions
arising under the Plan, to provide for disclosure of all information
and to provide all reports and statements to Employees and
Participants; to make, establish and change rules, regulations and
procedures with respect to the operation of the Plan; and all the
powers elsewhere herein conferred upon it. The Plan Administrator
shall have the authority to decide all questions relating to the
eligibility of Employees to be participants in the Plan and shall have
the authority to determine, compute and certify the amount, kind,
manner and time of payment of any benefits to which any Participant
may be entitled under Articles IV and V hereof . The Plan
Administrator shall have the right and authority to take all necessary
action to secure payment of benefits on behalf of any and all persons
having or claiming any interest under the Plan.
(b) Except to the extent the Plan Administrator is required by
} applicable law to perform the duties and responsibilities set forth
y under the provisions of this Article II, in a particular manner, the
i performance of such duties and responsibilities by the Plan
Administrator shall be at his sole and absolute discretion.
(c) To the extent allowed by law, the Plan Administrator shall
j. be indemnified by the City against any and all liabilities arising by
N reason of any act, or failure to act, made in good faith pursuant to
the provisions of this Plan, including any expenses reasonably
incurred in connection with the Plan or in defense of any claim or
grievance .
(d) An individual serving as Plan Administrator who already
receives full-time pay from the City shall not receive compensation
from the Plan for such individual ' s services as Plan Administrator.
2 . 5 RECORDS AND REPORTS
The Plan Administrator shall keep or cause to be kept a record of
all actions taken and shall keep all other books of account, records,
and other data that may be necessary for proper administration of the
Plan and shall be responsible for supplying all information and
reports to the Internal Revenue Service, Department of Labor,
Participants, Beneficiaries and others as required by law.
2 . 6 DELEGATION OF AUTHORITY
The Plan Administrator may allocate or delegate all or any of its
responsibilities hereunder to one or more entities, individuals or
committees of individuals only upon the written consent of the City.
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Such allocation or delegation shall be effected by a written
instrument which shall be signed by the Plan Administrator and the
party or parties to whom any responsibility is allocated or delegated,
which instrument shall set forth the responsibilities so allocated or
delegated, shall provide that it may be revoked or terminated by
either the Plan Administrator or the City, and shall reflect the
signature of the City consenting to the delegation or allocation. If
the Plan Administrator elects to allocate or delegate all or any of
its responsibilities to any other entity, individual, or committee of
individuals on a contractual basis, such delegate shall be known as
the Contract Administrator. The Plan Administrator may not delegate
responsibility or authority to the extent that a Contract
Administrator would become a Fiduciary within the meaning of Section
1 . 14 without notice to the Contract Administrator of such fact and
acceptance in writing, specifically acknowledging acceptance of
Fiduciary status .
2 . 7 INFORMATION FROM CITY
(a) To enable the Plan Administrator to perform his functions,
the City shall supply full and timely information to the Plan
Administrator on all matters relating to the Compensation of all
Participants, their Hours of Service, their retirement, death,
disability, or termination of employment, and such other pertinent
facts as the Plan Administrator may require; and the Administrator
i, shall advise the Trustee of such of the foregoing facts as may be
y j pertinent to the Trustee ' s duties under the Plan. The Plan
° I Administrator may rely upon such information as is supplied by the
City and shall have no duty or responsibility to verify such
h information.
z (b) The Plan Administrator shall cause to be distributed to
every Plan Participant a Summary Plan Description written in language
calculated to be understood by Plan Participants and containing a
brief description of the important features of the Plan. The Plan
Administrator shall also be responsible for furnishing to each Plan
Participant, if requested, a complete copy of the Plan and a copy of
the most recently filed return of the Plan. The Plan Administrator
may charge a reasonable fee for copying and delivering such documents.
2 .8 PAYMENT OF EXPENSES
All expenses of administration shall be paid by the City. Such
expenses shall include any expenses incident to the functioning of the
Plan Administrator, including, but not limited to, fees of
accountants, counsel, and other specialists and their agents, and
other costs of administering the Plan. However, until paid, the
expenses shall constitute a liability of the City .
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2 . 9 MAJORITY ACTIONS
Except where there has been an allocation and delegation of
administrative authority pursuant to Section 2 . 6, if there shall. be
more than one Plan Administrator, they shall act by a majority of
their number, but may authorize one or more of them to act on their
behalf.
2. 10 CLAIMS PROCEDURES
Claims for benefits under the Plan may be filed with the Plan
Administrator on forms supplied by the Administrator. written notice
of the disposition of a claim shall be furnished to the claimant
within sixty ( 60) days after the application is filed. In the event
the claim is denied, the reasons for the denial shall be specifically
set forth in the notice in language calculated to be understood by the
claimant. Pertinent provisions of the Plan shall be cited, and, where
appropriate, an explanation as to how the claimant can perfect the
claim will be provided. In addition, the claimant shall be furnished
\= with an explanation of the Plan' s claims review procedure.
2 . 11 CLAIMS REVIEW PROCEDURE
1 Any Employee, former Employee, or Beneficiary of either, who has
been denied a benefit by a decision of the Plan Administrator pursuant
¢ j to Section 2. 10 shall be entitled to request the Plan Administrator to
give further consideration to his claim by filing with the Plan
Administrator (on a form which may be obtained from the Plan
Administrator) a request for a hearing. Such request, together with a
written statement of the reasons why the claimant believes his claim
should be allowed, shall be filed with the Plan Administrator no later
than sixty (60 ) days after receipt of the written notification
provided for in Section 2 . 10 The Plan Administrator shall then
conduct a hearing within the next sixty (60) days, at which the
claimant may be represented by an attorney or any other representative
of his choosing and at which the claimant shall have an opportunity to
submit written and oral evidence and arguments in support of his
claim. At the hearing (or prior thereto upon five (5 ) business days
written notice to the Plan Administrator) the claimant or his
representative shall have an opportunity to review all documents in
the possession of the Plan Administrator which are pertinent to the
claim at issue and its disallowance. Either the claimant or the Plan
Administrator may cause a court reporter to attend the hearing and
record the proceedings. In such event, a complete written transcript
of the proceedings shall be furnished to both parties by the court
reporter. The full expense of any such court reporter and such
transcripts shall be borne by the party causing the court reporter to
attend the hearing. A- final decision as to the allowance of the claim
shall be made by the Plan Administrator within 10 days of receipt of
the appeal (unless there has been an extension of sixty ( 60 ) days due
to special circumstances, provided the delay and the special
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the
mant
circumstances occasioning It Suchccommunicatdionoshallcbelwrittentinna
the sixty (60) day period) . the claimant and shall include
specific references to the
manner calculated to be understood by
Specific reasons for the decision and
pertinent Plan provisions on which the decision is based.
ARTICLE III
ELIGIBILITY
3 . 1 CONDITIONS OF ELIGIBILITY to of the City for not less
e eighteen (18) and is regularly
An Employee who has been in the emP y hours per
than ninety (90) days, has attained ag
eligible to enroll and participate and to receive the
scheduled to work at least seventeen and one-halfi e( who has met the
week, shall be, an Employee shall be
benefits provided herein. Thereafter,
eligibility and enrollment reantinethe planhon theti next plant following
eligible to become a Particip icipate in the Plan,
November 1st to occur.
In order to part such application for
Employee must complete and file with the Ci y
anticipation and such other information or documentation as may be
p the City or the Plan Administrator.
y' required by Eligible Emp
in loyee written.
The City shall give each prospecaeelthe Plan no later than the
v notice of his eligibility to particip
p
on which he first becomes an Eligible Employee-
date
j PARTICIPATE IN THE PLAN
3 . 2 ELECTION TO receding the first day
30) days immediately P
During the thirty ( ant shall be entitled to elect:
of each Plan Year, each Particip period
(a) To have his compensation converted l each Pa
Salary
during and to have such amount applied the Plan Year by an amount specified lied by the
Conversion Agreement,
City to the benefits specified therein; or
have all of his Salary Conversion Amount paid
To
(b) in cash during each pay period of the
to him by
the City compensation
Plan Year in accordance with his establishe
schedule; or
(o) Any combination of (a) and (b) •
the Participant entering into a Salary
which, unless revoked pursuant to
Such election shall be made by eriod during the Plan
Conversion Agreement with the ve for each pay P
this Article, shall be effective rovided
Year. If a Salary Conversion Agreement is entered into y an
such Salary Conversion Agreement, unless pay period P
Employee, of the pay P
herein, shall be effective on the first day
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coincident with or immediately following the date on which the
Participant executes such Salary Conversion Agreement. In the event a
Participant fails to make an election for benefits as set forth in
Section 3 . 2 above, such Participant shall be deemed to have elected to
receive all of his Salary Conversion Amount in cash pursuant to
Section 3 . 2(b) above.
Notwithstanding the preceding sentence, in the event a
Participant who has elected (whether actually or constructively) to
receive one or more nontaxable benefits under Section 3 . 2 for a
particular Plan Year fails to revoke or modify his Salary Conversion
Agreement during the thirty (30 ) day period immediately preceding the
next Plan Year, the Participant will be deemed to have elected for
such next Plan Year to receive the same benefit coverage he was
receiving for the particular Plan Year.
3 . 3 TERMINATION OF PARTICIPATION
Participation in the Plan shall terminate as to each Participant
on the earliest to occur of the following:
(a) The date this Plan is terminated pursuant to
tl , Article XII hereof;
(b) The date on which this Plan no longer qualifies
under the provisions of Section 125; 9
(c) The date on which the Participant ' s employment
with the City is terminated.
3 .4 SALARY CONVERSION AGREEMENT
d As a condition of participation in the Plan, each Participant
shall execute and deliver to the City a writing substantially in the
form attached to this Agreement as Exhibit "I" . The City shall
countersign such Agreement and return a copy thereof to the
Participant . Each such Salary Conversion Agreement shall provide that
the Participant shall irrevocably elect on an annual basis either:
(i ) To have all of his Salary Conversion Amount paid
to him in cash, or
(ii ) To have his Compensation during each pay period
converted by the Salary Conversion Amount selected by the
Participant, but not more than the amount specified in
Section 1 .33 for the Plan Year.
3 . 5 REVOCATION OF SALARY CONVERSION AGREEMENT
Except as otherwise provided in this Article III, a Participant' s
Salary Conversion Agreement shall continue in effect from Plan Year to
Plan Year unless and until revoked by the Participant. Revocation
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must be in writing, delivered to the City, and may only be done in
accordance with the provisions of Sections 3 .6 through 3.8, inclusive.
3. 6 EFFECTIVE DATE. OF REVOCATION
Except as otherwise provided in this Article III, any revocation
delivered to the City shall be effective on the first. day of the Plan
Year next following the Plan Year during which the revocation is
received by the City .
3,7 REVOCATION IN THE EVENT OF CHANGE IN FAMILY STATUS
change in his family
In the event a Participant experiences a
marriage, divorce, death of a spouse or child, birth or
status [e.g. ,
adoption of a child, new or changed employment of a ng from full-time
termination of employment of a spouse, or the shifting
to part-time (or part-time to full-time)nt emplall bementitledent uto revoke his
Participant' s spouse] , reement if both
Salary Conversion Agreement and to enter into a new Ag
Agreement
the revocation and the new election are on account of and cons
isten
with the change in family status. Such revocation and
eriod cnew
cident with
shall be effective on the fe=iodst din whichay of etheycity receives such
or next following the p y P
1; notice from the Participant.
ti 3 .8 MODIFICATION IN THE EVENT OF A CHANGE IN GROUP HEALTH
' INSURANCE PREMIUMS
offers a group health insurance program under the
If the City and the
Plan, and a Participant has elected benefits such Planor
independent third party insuror underwriting Agreement of such
cordinng
decreases the premium cost, the Salary Conversiongly. In the event
Participant shall be automatically revised ac
of a substantial increase in premium costs, if the Participant elects
in writing, within thirty (30) days after notice of such substantial
increase, to drop his enrollment in the prior group health insurance ^
and elect participation in a substantially
offeredsimilar
underrgroup
this
program adopted by the City
health insurance program Conversion Agreement shall be
Plan, the Participant' s Salary
automatically revised consistent with the Partiao Tams election o
participate in the new group health insurance p 4
3 .9 DETERMINATION OF ELIGIBILITY
The Plan Administrator shall determine the eligibility of each
Employee for part icipatiSuchon ndeterminat the Plan bioneshallnbenconclusive and
furnished by the City . as the same is made pursuant to the
binding upon all persons, as long
Plan and the Act. Such determination shall be subject to review in
accordance with Section 2. 11 .
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3 . 10 TERMINATION OF ELIGIBILITY
In the event a Participant shall cease to be an Eligible
Employee, such Former Participant shall be allowed to submit claims
with respect to expenses incurred during the Plan Year and prior to
the time the Participant ceased to be an eligible Employee, in
accordance with the applicable provisions of Article IV or Article V.
3 . 11 REEMPLOYMENT
Notwithstanding the provisions of Section 3 . 1 , in the case of an
Employee who terminates employment during the Plan Year after
satisfying the eligibility requirements of Section 3. 1 and resumes
employment during the same Plan Year, such Employee shall not be
eligible to participate in the Plan at any time during the remainder
of the Plan Year. Subject to the provisions of this Section 3 . 11 , for
purposes of applying the provisions of Section 3 . 1 , the reemployed
Employee shall be treated as a new Employee.
ARTICLE IV
ADMINISTRATION OF DEPENDENT CARE REIMBURSEMENT PLAN
i
�i 4 . 1 DEPENDENT CARE REIMBURSEMENT PLAN 1
s i In the evert that the City offers a Dependent Care Reimbursement
Plan, the Trustee shall establish an account under the Dependent Care
y f Reimbursement Plan for each Employee electing to participate in such
Plan.
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4 . 2 PAYMENTS TO TRUSTEE
The City shall pay over to the Trustee all Salary Conversion
Amounts attributable to participation by any Employee in such
Dependent Care Reimbursement Plan.
4 . 3 REQUIRED DOCUMENTATION
On any day of any month (excluding weekends and holidays) , each
Employee electing to participate in the Plan and designating the
benefits under this Article IV, shall submit to the Plan Administrator
such documents as the Plan Administrator shall reasonably request to
evidence eligible expenditures under the Plan, since submitting the
last request for reimbursement, together with a request on forms
furnished by the City for reimbursement of such expenses .
4.4 REIMBURSEMENT PROCEDURE
Within thirty ( 30 ) days after any reimbursement request deadline,
as specified in Section 4 . 3, the Plan Administrator shall either:
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(a) Direct the Trustee to immediately make reimbursement to the Employee from his account; provided,
however, that the amount of any such reimbursement shall not
exceed the Participant ' s total Salary Conversion Amount
under the Dependent Care Plan for the Plan Year through the
date of reimbursement, less prior reimbursements for claims
incurred under the Dependent Care Plan during such Plan
Year; or
(b) Follow the procedures for denial of a claim as set
forth in Section 2. 10 .
4 .5 STATEMENT OF ACCOUNT BALANCE
At the end of the Plan Year the Plan Administrator shall, within
thirty (30) days after the end of the Plan Year, furnish to each
Participant a statement of the balance, if any, remaining in his
account. The Participant shall have sixty ( 60) days after the close
of the Plan Year to request additional reimbursement for eligible
expenses incurred during the Plan Year. Sixty (60) days after the end
of the Plan Year all remaining account balances shall be forfeited and
disposed of as provided elsewhere herein.
ARTICLE V
�Y ADMINISTRATION OF MEDICAL EXPENSE REIMBURSEMENT PLAN
5 . 1 MEDICAL EXPENSE REIMBURSEMENT PLAN
In the event that the City offers a Medical Expense Reimbursement
Plan (Medical Reimbursement Plan) , the Trustee shall establish an
account under the Medical Reimbursement Plan for each Employee
electing to participate in such Medical Reimbursement Plan.
5. 2 PAYMENTS TO TRUSTEE
The City shall pay over to the Trustee all Salary Conversion
I Amounts attributable to participation by any Employee in such Medical
Reimbursement Plan.
5 . 3 REQUIRED DOCUMENTATION
On any day of any month (excluding weekends and holidays) , each
Employee electing to participate in the Plan and designating benefits
under this Article V, shall submit to the Plan Administrator such
documents as the Plan Administrator shall reasonably request to
evidence eligible expenditures under the Plan, since submitting the
last request for reimbursement, together with a request on forms
furnished by the City for reimbursement of such expenses .
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5 . 4 REIMBURSEMENT PROCEDURE
within thirty ( 30) days after any reimbursement request deadline,
as specified in Section 5 .3, the Plan Administrator shall either;
(a) Direct the Trustee to immediately make reimbursement to the Employee from his account; provided,
however, that the amount of any such reimbursementmountt shall not
exceed the Participant' s total Salary less
under the Medical Reimbursement Plan for the Plan Year,
prior reimbursements for claims incurred under the Medical
Reimbursement Plan during such Plan Year; or
(b) Follow the procedures for denial of a claim as set
forth in Section 2 . 10.
5 .5 STATEMENT OF ACCOUNT BALANCE
At the end of the Plan Year the Plan Adminis furnish tratr stol within
each
thirty (30) days after the end of the Plif anyan rlremaining in his
' Participant a statement of the balance,
account. The Participant shall have sixty (60) days after the
hebclose
of the Plan Year to request additional reimbursement days for afterthe tA
expenses incurred during the Plan Year. Ninety ( )
ing account balances shall be forfeited and
Plan Year, all remain
disposed of as provided elsewhere herein.
VI
¢ � EMPLOYER CONTRIBUTIONS
' •' No contribution shall be required under
the PlanSala froonversion
any
Participant. All contributions made p to the Trustee
Agreements are City contributions . The City shall pay
from time to time such amounts in cash the as th rovidePlan
Adm un inistrator and is
City shall determine to be ne alica provide
of accepted actuarial
under the Plan determined by the apppp
methods and assumptions. The method of funding shall be consistent
with Plan objectives .
ARTICLE VII
FORFEITURES
7 .1 POSSIBILITY OF FORFEITURES
All Forfeitures under the Plan shall be disposed of in accordance
with the provisions of this Article VII and shall in no event b
returned or made available to Plan Pa pants in such aofa that the
as to
Participant, directly or indirectly, fails
to benefits not utilized .
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7 .2 CITY CONTRIBUTIONS
City contributions made pursuant to Salary Conversion Agreements
shall be treated as City contributions and shall in no event be
retained by the City.
7 .3 DISPOSITION OF FORFEITURES
Forfeited City contributions shall be disposed of through any of
the following methods, at the discretion of the City:
(a) Through pro rata refund to all Plan Participants,
without regard to forfeitures, if any, of a particular
Participant;
(b) Through reduction of the costs of benefits to all
Plan Participants uniformly, without regard to forfeitures,
if any, of a particular Participant, in a subsequent Plan
Year;
(c) To defray administrative expenses of the Plan,
(d) Through maintenance of a suspense fund as a Plan
asset to be applied, at the discretion of the City, in a
future Plan Year or Plan Years 7� jr pursuant to (a) , (b) or
c)
On termination of the Trust, all remaining funds shall be
disposed of pursuant to (a) or (c) .
ARTICLE VIII
TRUSTEE
8. 1 BASIC RESPONSIBILITIES OF THE TRUSTEE
The Trustee shall have the following responsibilities:
(a) Consistent with the "fundingmeth "
determined by the City, to invest, manage, andacontrolothe
Plan assets subject, however, to the direction of an
Investment Manager if the Trustee should appoint such
manager as to all or a portion of the assets of the Plan;
(b) At the direction of the Plan Administrator, to pay
benefits required under the Plan to be paid to Participants,
or, in the event of their death, to their Beneficiaries;
(c) To maintain records of receipts and disbursements
and furnish to the City and/or Plan Administrator for each
Fiscal Year a written annual report in accordance with
Section 8. 6.
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(d) If there is more than one Trustee for this Plan,
they shall act by a majority of their number, but may
authorize one or more of them to act on behalf of all the
Trustees.
8. 2 INVESTMENT POWERS AND DUTIES OF THE TRUSTEE
(a) The Trustee shall invest and reinvest the Trust Fund to keep
the Trust Fund invested without distinction between principal and
income and in such liquid investment media, wherever situated, as the
Trustee shall deem advisable, including, but not limited to, bank
accounts, whether or not interest bearing, Treasury Sills, Treasury
Notes, or commercial paper. The Trustee shall at all times in making
investments of the Trust Fund consider, among other factors, the short
term financial needs of the Plan on the basis of information furnished
by the City. In making such investments, the Trustee shall give due
regard to any limitations imposed by the Code or the Act so that at
Trust.
all times the Plan may qualify as a qualified Cafeteria Plan and
(b) The Trustee may employ a bank or trust company pursuant to
the terms of its usual and customary bank agency agreement, under
which the duties of such bank or trust company shall be of a
custodial, clerical and record-keeping nature. }
y 8.3 DUTIES OF THE TRUSTEE REGARDING PAYMENTS
v j At the direction of the Plan Administrator, the Trustee shall,
j from time to time, in accordance with the terms of the Plan, make
payments out of the Trust Fund. The Trustee shall not be responsible
aj in any way for the application of such payments, provided such
payments are made in accordance with the directions of the Plan
Administrator.
8 . 4 COMPENSATION AND EXPENSES AND TAXES
The Trustee and any Contract Administrator shall be paid such
writing between them and the City. An individual serving as Trustee
reasonable compensation as shall from time to time be agreed upon in
who already receives full-time pay from the City shall not receive
compensation from the Plan. In addition, the Trustee and Contract
Administrator shall be reimbursed for any reasonable expenses incurred
in connection with their duties under the Plan and Trust. Such
compensation and expenses shall be paid by the City. All taxes of any
kind and all kinds whatsoever that may be levied or assessed under
existing or future laws upon, or in respect of, the Trust Fund or the
income thereof, shall be paid by the City.
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8. 5 ANNUAL REPORT OF THE TRUSTEE
Within sixty ( 60 ) days after the later of the Anniversary Date or
receipt of the City ' s contribution for each Plan Year, the Trustee
shall furnish to the City and Plan Administrator a written statement
of account with respect to the Plan Year for which such contribution
was made setting forth:
(a) The net income, or loss, of the Trust Fund;
(b) The gains, or losses, realized by the Trust Fund
upon sales or other disposition of the assets;
(c) The increase, or decrease, in the value of the
Trust Fund;
(d) All payments and distributions made from the Trust
Fund; and
(e) Such further information as the Trustee and/or
aS . M, Plan Administrator deems appropriate. The City, forthwith
upon its receipt of each such statement of account, shall
acknowledge receipt thereof in writing and advise the
1' Trustee and/or Plan Administrator of its approval or
disapproval thereof. Failure by the City to disapprove any
such statement of account within thirty (30) days after its
receipt thereof shall be deemed an approval thereof. The
approval by the City of any statement of account shall be
i binding as to all matters embraced therein as between the
! City and the Trustee to the same extent as if the account of
the Trustee had been settled b
judgment
action for a judicial settlementin o decree
whichtheT'rustee, athe
City and all persons having or claiming an interest in the
Plan were parties; provided, however, that nothing herein
contained shall deprive the Trustee of its right to have its
accounts judicially settled if the Trustee so desires .
8. 6 AUDIT
(a) If an audit of the Plan ' s records shall be required by the
Act and the regulations thereunder for any Plan Year, the Plan
Administrator shall direct the Trustee to engage on behalf of all
Participants an independent qualified public accountant for that
purpose. Such accountant shall, after an audit of the books and
records of the Plan in accordance with generally accepted auditing
standards, within a reasonable period after the close of the Plan
Year, furnish to the Plan Administrator and the Trustee a report of
his audit setting forth his opinion as to whether each of the
following statements, schedules or lists, or any others that are
required by Section 103 of the Act or the Secretary of Labor to be
filed with the Plan ' s annual report, are presented fairly in
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conformity with generally accepted accounting principles applied
consistently:
(i) Statement of the assets and liabilities of the
Plan;
(ii) Statement of changes in net assets available to
the Plan;
(iii) Statement of receipts and disbursements, a
schedule of all assets held for investment purposes, a
schedule of all loans or fixed income obligations in default
at the close of the Plan Year;
(iv) A list of all leases in default or uncollectible
during the Plan Year;
(v) The most recent annual statement of assets and
liabilities of any bank common or collective trust fund in which
Plan assets are invested or such information regarding separate
accounts or trusts with a bank or insurance company as the
^' Trustee and Plan Administrator deem necessary; and
�.
(vi ) A schedule of each transaction or series of
transactions involving an amount in excess of three percent
y (3%) of Plan assets .
3
All auditing and accounting fees shall be an expense of and may,
at the election of the Plan Administrator, be paid from the Trust
Fund.
h,
(b) If some or all of the information necessary to enable the
Plan Administrator to comply with Section 103 of the Act is maintained
by a bank, insurance company, or similar institution, regulated and
supervised and subject to periodic examination by a state or federal
agency, it shall transmit and certify the accuracy of that information
to the Plan Administrator as provided in Section 103 (b) of the Act
within one hundred twenty ( 120) days after the end of the Plan Year or
by such other date as may be prescribed under regulations of the
Secretary of Labor.
8. 7 RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE
(a) The Trustee may resign at any time by delivering to the
City, at least thirty ( 30 ) days before its effective date, a written
notice of his resignation.
(b) The City may remove a Trustee by mailing by registered or
certified mail, addressed to each Trustee at his last known address,
at least thirty (30 ) days before its effective date, a written notice
of his removal .
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(c) Upon the death, resignation, incapacity, or removal of any
Trustee, a successor may be appointed by the City; and such successor,
upon accepting such appointment in writing and delivering same to the
City, shall, without further act, become vested with all the estate,
rights, powers, discretions, and duties of his predecessor with like
respect as if he were originally named as a Trustee herein. Until
such a successor is appointed, the remaining Trustee or Trustee shall
have full authority to act under the terms of the Plan.
(d) The City may designate one or more successors prior to the
death, resignation, incapacity, or removal of a Trustee. In the event
a successor is so designated by the City and accepts such designation,
the successor shall, without further act, become vested with all the
estate, rights, powers, discretions, and duties of his predecessor
with the like effect as if he were originally named as Trustee herein
immediately upon the death, resignation, incapacity, or removal of his
predecessor.
(e) Whenever any Trustee hereunder ceases to serve as such, he
shall furnish to the City and Plan Administrator a written statement
of account with respect to the portion of the Plan Year during which
he served as Trustee . This statement shall be either:
1 (i) Included as part of the annual statement of
account for the Plan Year required under Section 8. 6, or
1 ( ii) Set forth in a special statement. Any such
+ special statement of account should be rendered to the
R,t City no later than the due date of the annual statement of
account for the Plan Year.
w The procedures set forth in Section 8 . 6 for the approval by the
City of annual statements of account shall apply to any special
statement of account rendered hereunder and approval by the City of.
any P such special statement in the manner provided in Section 8. 6 shall
have the same effect upon the statement as the City' s approval of an
annual statement of account. No successor to the Trustee shall have
any duty or responsibility to investigate the acts or transactions of
any predecessor who has rendered all statements of account required by
this subparagraph.
ARTICLE IX
LIMITATION OF BENEFITS
9 . 1 TWENTY-FIVE PERCENT CONCENTRATION TEST
Nontaxable benefits provided to Employees who are classified as'
"Key Employees" as defined in Section 1 . 21 , shall not exceed twenty-
five percent (25%) of the total nontaxable benefits provided to all
Employees . In the event that nontaxable benefits to such "Key
Employees" should exceed twenty-five percent ( 25%) of the total
nontaxable benefits provided to all Employees, the Plan Administrator
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is hereby given authority to modify the Salary Conversion Agreement or
Agreements of "key Employees" in an impartial and nondiscriminatory
manner to reduce the nontaxable benefits available to "Key Employees"
to twenty-five percent (25%) of the total nontaxable benefits provided
to all Employees, reducing the benefits of the most highly compensated
Employees first.
9. 2 NO DISCRIMINATION
Contributions and benefits under the Plan shall not discriminate
in favor of Highly Compensated Participants (as defined in Section
1 . 17) . The Plan shall be considered not to discriminate in favor of
Highly Compensated Participants with respect to health benefits if,
based on all the facts and circumstances, the Plan does not so
discriminate. In addition, the Plan shall be considered not to so
discriminate if the contribution for nontaxable insured health
benefits provided to each Participant who is not a Highly Compensated
Participant is at least equal to the lesser of:
( 1 ) One Hundred Percent ( 100%) of the contribution for
nontaxable insured health benefits made for the majority of
Participants who are Highly Compensated Participants and are
similarly situated to the Participant who is not a Highly
1,
Compensated Participant, or
(2) Seventy-five Percent ( 75%) of the contribution for
nontaxable insured health benefits made for the Participant
who is a Highly Compensated Participant receiving the
highest contribution for such benefits and who is similarly
i situated to the Participant who is not a Highly Compensated
Participant. For purposes of this Section 9 . 2, "similarly
r.� situated" means having the same family size.
9 . 3 MODIFICATION OF SALARY CONVERSION AMOUNTS
In the event any Highly Compensated Participant (as defined in
Section 1 . 17) is receiving a discriminatory excess nontaxable health
benefit, the Plan Administrator shall have the authority, at any time
and from time to time, to modify the Salary Conversion Agreement of
any Highly Compensated Participant, in accordance with the manner
prescribed by Regulations, to eliminate such discriminatory excess.
ARTICLE X
CONTINUATION OF COVERAGE
To the extent required by the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) , as amended from time to time,
continuation of coverage shall be provided in accordance with
applicable law. The Plan Administrator shall notify the Participant
in writing within the time period specified by law of the
Participant ' s rights and responsibilities relating to continuation of
coverage under COBRA.
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ARTICLE XI
PLAN AMENDMENT
The City shall have the right at any time to amend the Plan.
However, no such amendment shall authorize or permit any part of the
Trust Fund (other than such part as is required to pay taxes and
administration expenses) to be used for or diverted to purposes other
than for the exclusive benefit of the Participants or their
Beneficiaries or estates; and no such amendment which affects the
rights, duties or responsibilities of the Trustee and Plan
Administrator may be made without the Trustee ' s and the Plan
Administrator' s written consent. Any such amendment shall become
effective as provided therein upon its execution. The Trustee shall
not be required to execute any such amendment unless the Trust
provisions contained herein are a part of this agreement and the
amendment affects the duties of the Trustee hereunder.
ARTICLE XII
PLAN TERMINATION
(a) This Plan is intended to be permanent. Nevertheless, the
City shall have the right to terminate the Plan by delivering to the
Trustee and the Plan Administrator written notice of such termination.
In the event of a termination, however, benefits shall continue to be
paid as provided by the Plan until all account balances are
distributed or forfeited, as provided herein. No termination shall
have the effect of accelerating any forfeiture of benefits.
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j (b) In terminating the Plan, the Plan Administrator shall first
`! notify all "affected parties" (as defined in Act Section 4001 (a) (21 ) ]
of the City' s intention to terminate the Plan and the proposed date of
termination. Such termination notice must be provided at least sixty
(60) days prior to the proposed termination date.
ARTICLE XIII
MERGER OR CONSOLIDATION
13 . 1 AUTHORITY
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The City shall have the right to merge or consolidate this Plan
into any similar plan of another employer or group of employers
providing similar benefits and qualified under Section 125 of the Code '
and Regulations thereunder.
13 . 2 REQUIREMENTS
No merger or consolidation shall be effected until the City has
satisfied any liability which it may have to make City contributions
or to pay over Employee Salary Conversion amounts through the date of
merger or consolidation.
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ARTICLE IV
MISCELLANEOUS
14 . 1 PARTICIPANT' S RIGHTS
This Plan shall not be deemed to constitute a contract of
Employment between the City and any Participant or to be a
consideration or an inducement for the employment of any Participant
or Employee. Nothing contained in this Plan shall be deemed to give
any Participant or Employee the right to be retained in the service of
the City or to interfere with the right of the City to discharge any
Participant or Employee at any time regardless of the effect which
such discharge shall have upon him as a Participant of this Plan.
14 .2 ALIENATION
No benefit which shall be payable out of the Trust Fund to any
person (including a Participant or his Beneficiary) shall be subject
in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, or charge a same
V shall be void; and no such benefit shall in any manner be liable for,
or subject to, the debts, contracts, liabilities, engagements, or
61 torts of any such person, nor shall it be subject to attachment or
3 !i legal process for or against such person, and the same shall not be
recognized by the Trustee, except to such extent as may be required by
law.
'. � 14 . 3 CONSTRUCTION OF PLAN
This Plan and Trust shall be construed and enforced according to
the Act and the laws of the State of Florida, other than its laws
respecting choice of law, to the extent not preempted by the Act.
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14 . 4 GENDER AND NUMBER
Wherever any words are used herein in the masculine, feminine or
neuter gender, they shall be construed as though they were also
used
in another gender in all cases where they would so apply, and
ver
any words are used herein in the singular or plural form, they shall
be construed as though they were also used in the other form in all
cases where they would so apply.
14 . 5 LEGAL ACTION
In the event any claim, suit, or proceeding is brought regarding
the Trust and/or Plan established hereunder to which the Trustee or
the Plan Administrator or any Contract Administrator may be a party,
and such claim, suit, or proceeding is resolved in favor of the
Trustee or Plan Administrator or Contract Administrator, they shall be
entitled to be reimbursed by the City for any and all costs,
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attorney' s fees, and other expenses pertaining thereto incurred by
them for which they shall have become liable.
14.6 PROHIBITION AGAINST DIVERSION OF FUNDS
Except as provided below and otherwise specifically permitted by
law, it shall be impossible by operation or termination of the Plan or
of the Trust, by power of revocation or amendment, by the happening of
any contingency, by collateral arrangement or by any other means, for
any part of the corpus or income of any trust fund maintained pursuant
to the Plan or any funds contributed thereto to be used for, or
diverted to, purposes other than the exclusive benefit of Participants
or their Beneficiaries .
14.7 BONDING
Every Fiduciary, except a bank or an insurance company, unless
exempted by the Act and regulations thereunder, shall be 'bonded in an
amount not less than ten percent ( 10%) of the amount of the funds such
Fiduciary handles; provided, however, that the minimum bond shall be
$1 , 000 and the maximum bond shall be $500, 000 . The amount of funds
•i .'. ' handled shall be determined at the beginning of each Plan Year by the
amount of funds handled by such person, group, or class to be covered
and their predecessors, if any, during the preceding Plan Year, or if
there is no preceding Plan Year, then by the amount of the funds to be
handled during the then current year. The bond shall provide
'i protection to the Plan against any loss by reason of acts of fraud or
;. dishonesty by the Fiduciary alone or in connivance with others. The
a j surety shall be a corporate surety company (as such term is used in
1 Section 412(a) ( 2) of the Act) , and the bond shall be in a form
h, approved by the Secretary of Labor. Notwithstanding anything in the
Plan to the contrary, the cost of such bonds shall be an expense of
and may, at the election of the Plan Administrator, be paid from the
Trust Fund or by the City.
' 14.8 CITY' S AND TRUSTEE' S PROTECTIVE CLAUSE
Neither the City nor the Trustee, nor their successors, shall be
responsible for the validity of any Contract issued hereunder or for
the failure on the part of the insurer to make payments provided by
any such Contract, or for the action of any person which may delay
payment or render a Contract null and void or unenforceable in whole
or in part.
14.9 INSURER' S PROTECTIVE CLAUSE
No insurer who shall issue Contracts hereunder shall have any
responsibility for the validity of this Plan or for the tax or legal
aspects of this Plan. The insurer shall be protected and held
harmless in acting in accordance with any written direction of the
Trustee, and shall have no duty to see to the application of any funds
paid to the Trustee, nor be required to question any actions directed
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by the Trustee. Regardless of any provision of this Plan, the insurer
shall not be required to take or permit any action or allow any
benefit or privilege contrary to the terms of any Contract which it
issues hereunder, or the rules of the insurer.
14 . 10 RECEIPT AND RELEASE FOR PAYMENTS
Any payment to any Participant, his legal representative,
Beneficiary, or to any guardian or committee appointed for such
Participant or Beneficiary in accordance with the provisions of the
Plan, shall, to the extent thereof, be in full satisfaction of all
claims hereunder against the Trustee and the City, either of whom m
ay
require such Participant, legal representative, Beneficiary, guardian
or committee, as a condition precedent to such payment, to execute a
receipt and release thereof in such form as shall be determined by the
Trustee or City.
14. 11 ACTION BY THE CITY
Whenever the City under the terms of the Plan is it shall or
�! required to do or perform any act or matter or thing, it shall be done
and performed by a person duly authorized by its legally constituted 9
authority.
' 14 . 12 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
The "named Fiduciaries" of this Plan are ( 1 ) the City,
(2) the
Plan Administrator and ( 3) the Trustee . The named Fiduciaries shall
have only those specific powers, duties, responsibilities, and
obligations as are specifically given them under the Plan. In
general, the City shall have the sole responsibility for making the
contributions provided for under Section 4. 1 or Section 5 . 1 ; and shall
have the sole authority to appoint and remove the Trustee and the Plan ^
Administrator; to formulate the Plan' s "funding policy and method ,
and to amend or terminate, in whole or in part, the Plan. The Plan
Administrator shall have the sole responsibility for the
administration of the Plan, which responsibility is specifically
described in the Plan. The Trustee shall have the sole responsibility
of management of the assets held under the Trust, except those assets
the management of which has been assigned to an Investment Manager,
who shall be solely responsible for the management of the assets
assigned to it, all as specifically provided in the Plan. Each named
Fiduciary warrants that any directions given, information furnished,
or action taken by it shall be in accordance with the provisions of
the Plan, authorizing or providing for such direction, information or
action. Furthermore, each named Fiduciary may rely upon any such
direction, information or action of another named Fiduciary as being
proper under the Plan, and is not required under the Plan to inquire
into the propriety of any such direction, information or action. It
is intended under the Plan that each named Fiduciary shall be
responsible for the proper exercise of its own powers, duties,
responsibilities a: J obligations under the Plan. No named Fiduciary
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manner against investment loss
person or group may serve in more
shall guarantee the Trust Fund in any
or depreciation in capet acity .
than Any
than one Fiduciary cap
14 .13 HEADINGS
The headings and subheadings of this Plan have beeonstructionfof
convenience of reference and are to be ignored in any
the provisions hereof .
14 .14 UNIFORMITY reted and applied in a
All provisions of this Plan shall be interp
uniform, nondiscriminatory manner.
14 . 15 PERFORMANCE OF ACT
act that is required under this Plan document
if
With respect to any articular day of the month,
to be performed on or not later than Supart or a legal holiday,
such day of the month is a Saturday, Sunday
such that the time for
the Plan document will be interpthan
performing such act shall be
c or legal n or no tholiday the next business day
which is not a Saturday,
the City
this Plan has been executed by the
attesting
IN WITNESS WHEREOF, with the City effective the
Mayor, the City' s seal affixed thereto, 199_,
this the day of
to both acts,
1! day and year first above written.
"EMPLOYER"
CITY OF DANIA
By :
City Mayor
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I Attest: Clerk
City
( SEAL)
"TRUSTEE"
Michael W. Smith
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EXHIBIT I
SALARY CONVERSION AGREEMENT
THIS AGREEMENT entered into on the day of ,
199_, between the CITY OF DANIA. , (hereinafter the "City" ) and
, ( the "Employee") ;
W I T N E S S E T H :
WHEREAS, the City has established a Flexible Benefits Plan ("the
Plan") for the benefit of its Employees; and
WHEREAS, the Employee desires to participate in the Plan.
NOW, THEREFORE, in consideration of these premises and the
agreements as hereinafter provided, the City and the Employee agree as
follows:
1 . The Employee revokes any prior election made under
the Plan and the related Salary Conversion Agreement.
2 . The City and the Employee agree that this Salary
Conversion Agreement is subject to the terms, conditions and
limitations of the City of Dania Flexible Benefits Plan and
the various plans under which benefits are provided, as in
effect from time to time.
a 3 . The Employee hereby elects: (check one)
(A) To receive his Salary Conversion Amount
of $ in cash as part of (and not
in addition to) his annual compensation;
or
(B) To have his compensation, as that term
is defined in the Plan, reduced by the
amount of $ per pay period.
4. If Option (B) under Paragraph 3 above is elected by the
Employee, the Employee further elects under the terms of the Plan
to apply the total Salary Conversion Amount in the following
manner:
(A) Group Health Insurance Plan $
(B) Group Dental Insurance Plan $
(C) Group Term Life Insurance Plan $
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(D) Disability Income Plan $
(E) Medical Expense Reimbursement Plan $
(F) Dependent Care Reimbursement Plan $
( if this option is selected, check
this box [ ] if you are married
filing separately)
5 . The City agrees each pay period to reduce the
Compensation of the Employee pursuant to Paragraphs 3 and 4 above
and to pay to, or for the benefit of, the Employee those benefits
to which the Employee is entitled under the terms of the Flexible
Benefits Plan and under each of the plans (designated by the
Participant) covered by the provisions of such Plan.
6 . The Employee acknowledges and understands that:
(A) A description of each benefit option under the
plan which he has chosen has been made available and
explained and that benefits will be available only as
- provided in such plan.
(B) No change or revocation of this Salary Conversion
Agreement can be made at any time during the Plan Year
unless there is a change in family status (including
marriage, divorce, death of a spouse or child, birth or
adoption of a child, termination or commencement of
employment of a spouse, the switching from part-time to
full-time employment or from full-time to part-time status
by the Employee or spouse, or a significant change in the
health coverage of the Employee or spouse) .
(C) The salary conversion resulting from this
Agreement will reduce the Employee' s Social Security base
wage which is used in calculating Social Security
contributions during the period that the Plan is in effect,
and accordingly, a reduction in Social Security benefits
' ultimately payable to the Employee may result.
(D) This Agreement will automatically terminate if the
Plan is terminated or discontinued, or if the Employee
ceases to be eligible to participate in the Plan.
(E) The reduction in compensation under this Agreement
shall be in addition to any other reductions under any other
agreements or benefit plans.
(F) If the required contributions for the elected
benefits are increased or decreased while this Agreement
remains in effect, the Employee ' s salary conversion amount
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will automatically be adjusted to reflect this increase or
decrease.
7 . The Employee agrees to notify the City if there is
a reason to believe that any item for which reimbursement
has been made is not allowable under the terms of the Plan.
8 . The Employee agrees on demand to indemnify and
reimburse the City for any liability which it may incur for
failure to withhold federal and state income tax or Social
Security tax as provided in the Plan.
9 . This Agreement will continue in force until
amended or revoked by the Employee or until terminated under
paragraph 6(D) above. This Agreement will be automatically
amended to reflect any significant increase or decrease in
premium cost of included plans.
10 . The salary conversion will not be effective for
any payroll period that begins before the Employee has
:;+:.'. `' signed this form and returned it to the Plan Administrator.
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IN WITNESS WHEREOF, the undersigned have read, understand and
agree to comply with the terms of the Plan and this Salary Conversion
Agreement and have hereunto set their hands and seals effective as of
the day and year first above written.
, 1 CITY OF DANIA
(Signature of City Officer) (Employee' s Signature)
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(Employee' s Social Security No. )
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