The URL can be used to link to this page

90-278 WHITE - CITV CLERK COUtICIl L /� PINK - FINANCE G I TY OF SA I NT PAU L CANARV - DEPARTMENT �/)-- /�- BLUE - MAVOR File NO. �v rx ' ounci Resolution ��7`�. Presented r o� Referre To ~ Committee: Date °` -"�`2� �� Out of Committee y Date WHEREAS, Th City of Saint Paul provides certain health and welfare benefits to its employees in a format known as a cafeteria plan. WHEREAS, Thl Federal government has established certain laws and corresponding regulations governing the provision of such cafeteria plans. WHEREAS, Th se laws and regulations have undergone recent changes which necessitate changes to the City of Saint Paul cafeteria plan document. NOW, THEREF RE, BE IT RESOLVED, The attached City of Saint Paul cafeteria plan is ado ted to replace the existing cafeteria plan document in its entiret . � ' � COUNCIL MEMBERS Requested by Department of: Yeas Na s D; o Dim�nd � Goswit � In Favor �O � Long xea � G�� s�n be� Macca Against BY � n Ret W' Thune Wi1SOn MAY � '7 1994 Form Appr d by City Att rney Adopted by Council: ate Certified Pa.se Council re By By Approved 1�avor: ate. _ MA �. H �990 Approved Mayor Eor Subrtfiss' n to Council y,�Z✓ K�i��2%` By �� By PUBtiSNED MAY 2 6 199 . r . ��0��' OEPARTM[NT/OFFl(�IOOUNpI DATE INITUTEO Finance/Risk Manage nt Division 2-5-90 GREEN SHEET NO. 5584 CONTACT PERSON 8 PHONE INITIAU GATE tNITIAUDATE �DEPARTMENT DIRECTOR �CITY OOUNqL Terr Haltiner 292— Z�FO �� GTY ATfOFiNEY �CITY CLERK MUST BE ON COUNpI AOENOA BY(DATE ROUTINO �BUDOET DIRECTOR �FIN.i MOT.SERVICEB DIR. Q MAYOR(OR A881STANT) � TOTAL#�OF 81QNATURE P 1 (CLIP ALL LOCATIONS FOR 81GNATUR� ACTION REQUE8TED: Adoption of the new ity of Saint Pau1 Cafeteria Plan Documen REC��s were made only to comply to new Fed ral legislation. (l � AECO�aramoNB:Mv��•(N o►� COtJNCIL COM I�PORT _PLANNINO COMMISSION _ L SERVI�(�OAAMI8810N �� NE I�q. � _CIB OOMMI7TEE — _BTAFF _ C0IAAAENTS: —o��cr couRT _ DEP�IRTMENT OF �iNANCE � ��L�E�� ND M�NAGEMENT SERVICES �;' � W /� � x�uru►nroc��oe�M,�ssuE. M�a.wna.w�,«�.wn.r.,wnr): � Q Congress passed legi lation requiring changes to cafeteria plan documents. � � � � � � ADVANTAQE8 IF APPROVED: The City of Saint Pa 1 Cafeteria Plan Document will comply with Federal regulations. RECEIVE� � �s�ov�wr,�aes�F naaaoveo: O , 1 Q�� . None. . AAAY(�R'S t7�°F�CE as�ovnr�rnoes iF rom�vEC: The City of Saint Pa 1 Cafeteria Plan Document will not be in compliance with Federal reg�lations. �ounci� Kesearch Center FEB 131990 TOTAI AMOUNT OR TRAN=ACTION COST/IIEYENUE OIIDOETED(qRCLE OI�IE) YES NO FUNDING 801JRCE ACTIVITY NUMSER N f A FlNAN(�AL INFORMATION:(EXPWN) � C�r"�o -��d' 8. Resolution 90-280 - amending the 1990 budget by adding $294,560 to the Financing nd Spending Plans for Public Works Curbside Recycling Program. Referred rom Council 2 22 90 Approved 9. Resolution 90-79 - amending Section 8 of the Civil Service Rules � pertaining to pilot projects and/or research projects. (Referred from Council 1 16 90 Laid over t June _.__ ----._-----__..._ _ . -- ---- __-- -- --------- ---- �,-�_ __`. �0 Resolution 0-278 - adopting the new City of St. Paul Cafeteria Plan for�' em lo ee he lth and welfare benefits. Referred from Council 2 22 90 �� Approved � _ - / 11. Policv discUssion on qrievance procedure Laid over tp May 21 Suspension ', Resolution 90-7�9 - Amending the 1990 budget by adding $61,116.92 to the Financinq and Sbendinq Plans for Public Works Youth Jobs Program Approved , � �� i I I I� 6 ,�� _ . �� j �"�Q�� . CITY OF SAINT PAUL CAFETERIA PLAN DOCUMENT JANUARY, 1990 -, . � . �-,-,�a��' � � INDEX PAGE ARTICLE 1 ' PREAMBLE 1 ARTTCLE 2 DEFINITIONS 2 Section �.01 Account 2 Section .02 Affiliated Entiry 2 Section .03 Board 2 - Section .04 Committee 2 Section .OS Code 2 Section .06 Employer 2 Section .07 Compensation 2 Section .08 Employee 2 Section .09 Employers 2 Section .10 Highly Compensated Member 2 Section .11 Medical Plan 3 Section �.12 Member 3 Section �.13 Nonelective Contributions 3 Section �.14 Period of Coverage 3 Section �.15 Plan 3 Section �.16 Plan Year 3 Section �.17 Reimbursement Account 3 Section 2.18 Reimbursement Contributions 3 ARTICLE 3 ELIGIBILITY REQUIREMENTS 4 Section 3.01 Eligibility 4 Section �.02 Enrollment and Membership 4 ARTICLE 4 ! CONTRIBUTIONS S Section 4.01 Insurance Contributions 5 Section 4.02 Reimbursement Contributions 5 Section 4.03 Pay Reduction and Payroll Withholding 5 Section �.04 Nonelective Contribut�ons 5 ARTICLE 5 ' ELECTIONS � Section 5'.O1 In General 6 Section �.02 Contributions and Benefits 6 Section 5.03 Period of Coverage � Section 5.04 Fractional Periods � Section 5.05 Timing of Elections � Section 5.06 Changes of Elections 6 Section 5.07 Medical Plans 6 ARTICLE 6 BENEFITS � Section 6�01 Benefits Available � Section 6�02 Medical Plan Benefits � Section 6�03 Disability Plan Benefits � Section 6F04 Life Insurance Plan Benefits 7 Section 6105 Medical F�cpense Reimbursement Benefits 7 Section 6;06 Dependent Care Reimbursement Benefits 7 . Section 6i07 Cash Benefits � I , , ' ��'°-a�� ' ARTICLE 7 LIMITATIONS ON BENEFITS g Section 7.01 Coverage g Section '7.02 Amount of Benefits g Section 7.03 Forfeitures g Section 7.04 Insurance Plans g ARTICLE 8 MEDICAL EXPENSE REIMBURSEMENT PROGRAM 9 Section $.O1 In General 9 � Section .02 Definitions 9 Section .03 Eligibility, Enrollment and Termination 9 Section .04 Covered F�penses 9 Section .OS Reduction of Benefits 10 Section .06 Other Provisions 10 ARTTCLE 9 DEPENDENT CARE REIMBURSEMENT PROGRAM 11 Section �.01 In General 11 Section �.02 Definitions 11 Section 9.03 Eligibility, Enrollment and Termination 11 Section 9.04 Covered Expenses 11 Section 9.05 Reduction of Benefits 11 Section 9.06 Further Limitations � 12 Section 9.07 Prohibition of Certain Payments 12 Section 9.08 Services Outside the Household 12 Section 9.09 Annual Report to Members 12 Section 9.10 Other Provisions 13 ARTICLE 10 CLAIMS FOR BENEFITS 14 Section �0.01 Claims for Reimbursement Benefits 14 Section �0.02 Prior Payment Unnecessary 14 Section 0.03 Claim Substantiation 14 Section �0.04 Time Limit on Claiming Benefits 14 Section 10.05 Medical Plans 14 ARTICLE 11 POST-TERMINATION PARTTCIPATION 15 Section �1.01 Termination of Participation on Account of Death 15 Section �1.02 Determination of Beneficiary 15 Section 11.03 Other Termination 15 Section 11.04 Medical Plans 15 ARTICLE 12 NONDISCRIMINATION 16 Section �2.01 Reduction of Contributions and Benefits 16 Section 1;2.02 Prohibition of Discrimination 16 ARTICLE 13 ACCOUNTS l� Section ]i3.01 Accounts 1� Section 1;3.02 Contributions Made 1� Section 1i3.03 Benefits Provided 17 Section 13.04 A.ssignment of Benefits 17 I , �9�-��' � �' ARTICLE 14 ', ADMINISTRATION OF THE PLAN 18 Section 4.01 Composition of the Committee 18 Section 4.02 Condact of Committee Business 18 Section 4.03 Records and Reports of the Committee 18 Section 4.04 Administrative Powers and Duties 18 Section 4.05 Fiduciary Duties 19 Section I1-4.06 Allocation or Delegation of Duties and Responsibilities 19 Section I14.07 Procedure for Allocation/Delegation of Fiduciary Duties 19 Section I14.08 Claims Procedure 20 � Section �14.09 Medical and Other Benefit Plans ' 20 ARTICLE 15 ! AMENDMENT AND TERMINATION 21 Section I15.01 Amendment of Plan 21 Section i15.02 Termination of Plan 21 Section�15.03 Preservation of Rights 21 ARTICLE 16 i MISCELLANEOUS 22 Section I16.01 Faciliry of Payment 22 Section I16.02 Lost Payee 22 Section 16.03 Funding 22 Section 16.04 Indemnification 22 Section I16.05 Titles and Heading 23 Section'16.06 Number 23 Section 16.07 Applicable Iaw 23 Section 16.08 Plan not a Contract of Employment 23 � i I • , I �r � CA- JCO"o?' �, CITY OF SAINT PAUL CAFETERIA PLAN . , ARTICLE 1 PREAMBLE The u I ose of this Plan is to ermit Members to choose amon frin � p �p p g ge benef�ts available to be ipurchased on their behalf by the Employers. This Plan is intended to be a cafeteria plan a�s defined in section 125(d) of the Code. The pro isions of this Plan shall be effective as of January 1, 1990. 1 I . t , ��d a �� ' ' ARTICLE 2 DEFINITIONS . Each wo d and phrase defined in this Article 2 shall have the following meaning whenever such ord or phrase is capitalized and used herein unless a different meaning is clearly required y the context of the Plan. Section .01. Account. The individual account established on the books of the � Employers und r Section 13.01 in the name of each Member for the purpose of accounting for contribution allocated to and benefits paid for a Member. Section .02. Affiliated EntitX: The City or any bargaining unit thereof that is part of (a) a membe of the employer, within the meaning of Code section 414(b), that includes the City; (b) un�ler common control, within the meaning of Code section 414(c), with the City; or (c) a rr�ember of an affiliated service group, within the meaning of Code section 414(m), that inc�udes the City. Section 7�03. Boar . The Board shall consist of the Mayor of Saint Paul and the Saint Paul Ciry �ouncil. The Mayor shall be the Chairperson of the Board. Section 2.04. Committee. The Saint Paul Employee Benefits Committcc as described in Sedtion 14.01. Section �.05. Code. The Internal Revenue Code of 1954, as amended from time to time. Section .0 . Employer. City of Saint Paul. Section .� Com�ensation. A Member's basic pay, including bonuses, overtime and commissior�s, as determined by the Committee, for personal services rendered in the course of emplqyment with any affiliated entity and contributions under Sections 4.01 and 4.02 on a Member's behalf. Section �.08. Em�lovee. Any person employed by an affiliated entity who is eligible for benefits uqder a Medical Plan but excluding any person covered by a collective bargaining agre�ement, unless coverage under this Plan is provided for under the collective bargaining agreement. Section �.09. Em�loyers. Any Affiliated Entity which shall ratify and adopt this Plan in a mann�r satisfactory to the Board. , Section �.10. Highly Com�ensated Member. A member who is: (a) Pa�d more than $50,000; (b) Ar�ong the highest paid 20% of all employees of the employer (other than no�-members who are part-time or seasonal employees, or excludable co�lective bargaining or non-resident alien employees, as provided in section 10$(h)(3)(B) and (5)(C) of the Code); (c) Ot�erwise treated as highly compensated under section 125 of the Code; or � 2 i �I � � ��o�a � �' .' (d) A spouse or dependent (within the meaning of Code section 152) of one of the ab e. ction .11. Medical �Plan. Any plan of the City other than this Plan which provides medic care benefits (including dental care benefits) for employees generally. Section 2�.12. Member. Any Employee who has become eligible to participate in the Plan in accoxdance with Section 3.01 and who has not ceased to be an Employee. Section �.13. Nonelective Contributions. The contributions made pursuant to � Section 4.04. Section 2�14. Period of Coveraee. 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 Saint Paul Cafeteria Plan, as set forth herein. Section 2i16. Plan Year. T'he calendar year. Section 2F17. Reimbursement Account. The subaccounts of a Member's Account established und�r Section 13.01 for contributions and payments for Reimbursement Benefits. Section .18. Reimbursement Contributions Contributions made under Section 4.02 for Reimbu�sement Benefits. 3 � �� I I . , � �o'�� ARTICLE 3 ELIGIBILITY REQUIREMENTS . Section .01. Eli ibili . Any employee employed by an Employer shall become a Member as of t e later of January 1, 1989 or the date of the Employee's coverage under the Plan through the adoption of the Plan by the Employee's employing entity. Section .02. Enrollment and Membershi�, The Committee shall notify in writing � each Employee �vho becomes a Member of the Plan and shall explain the rights, privileges and duties of a �vlember of the Plan. Each Member may elect to participate as of the date on which he or Ishe becomes eligible in accordance with Section 3.01 by completing and delivering to th ' Committee a salary reduction agreement, a beneficiary designation form and an election f benefits form on the forms provided therefore by the Committee. � 4 . . . . a _a ��' , , G�+� 9 � ARTICLE 4 CONTRIBUTIONS � e i n .)1. Insurance Contributions. For any Plan Year, each Member may elect to have contrib�ted to his or her Account a specified amount of his or her Compensation for such Plan Ylear to pay for benefits under a Medical Plan, a Disability Plan or a Life Insurance Plan.� The amount of such contributions shall be determined in accordance with � such Plan. Section .02. Reimbursement Contributions. For any Plan Year, in addition to the contributions i Section 4.01, each Member may elect to have contributed to his or her Account a spedified amount of his or her Compensation for such Plan Year up to a maximum of$7,I000.00 to be used to fund Reimbursement Benefits. Section. �.03. Pay Reduction and Payroll Withholding„ A Member's pay for a Plan Year shall be r�duced by the amount of the contributions which he or she elects for such Plan Year und�r Sections 4.01 and 4.02. Except as otherwise provided in Article 11, contributions sl�all be made only by way of payroll withholding which shall be made during a Member's applicable Period of Coverage. Section �.04. Nonelective Contributions. For any Plan Year, the Employers may make further couitributions to the Plan on behalf of Members. Any such contributions shall be made only orn a nondiscriminatory basis. I � 5 I i �� i , . � � �� Va�� ' ' ARTICLE 5 ELECTIONS . Secti n .01. In General. Elections of contributions and benefits shall be made at the time, in th manner and subject to the conditions specified by the Committee which shall prescribe t�niform and nondiscriminatory rules for such elections. Sec i n .02. �ontributions and Benefits. Members must elect both the amount of � Reimbursemen Contributions and how much of the Reimbursement Contributions as well as Nonelective ontributions allocatecl 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 f�r any other benefit. c ion �. 3. Period of Coverage. Except as provided in Sections 5.04 and 5.06, any Member electi�g contributions and benefits must make an irrevocable election for an entire Period o�Coverage. Section �.04. Fractional Periods. Members who become eligible to participate in the middle of aj Period of Coverage may elect to participate for a period lasting until the end of the current Period of Coverage. In such cases, the interval commencing thc day after their elections are made and ending at the end of the current Period of Coverage shall be deemed to be their Period of Coverage. Such Members must elect to participate no later than 3q days after becoming eligible to do so or within such other time limit as the Committee maX prescribe. ection .05. Timing of Elections. Elections of contributions and benefits for a Period of Covexage shall be made prior to such Period of Coverage, provided that where a Member com�ences or recommences participation in the middle of the Period of Coverage, he o� she shall make elections prior to commencement of participation. Section �.06. Chan�es of Elections. Elections of contributions and/or bencfits may be changed during of a Period of Coverage on account of and consistent with a change in family status b�cause of marriage, divorce, death of a spouse or dependent birth or adoption of a ahild, or change in the employment status of the employee or spouse. The change in em�loyment status of an employee or spouse shall only include the commencement or termination of the spouse's employment and the change in the employee's or s�ouse's employment from part time to full time or vice versa. A failure to elect shall be i considered an election and a change from or to a zero amount of contributions s�all be considered a change of an election. Changes in elections shall only be effective as tb contributions following the effective date of such changes. Sec ion .0 . Medical Plans., Elections of contributions under Section 4.01 shall be subject to the r les governing elections of benefits under a Member's Medical Plan. 6 . . ��° � a � � � • � ARTICLE 6 BENEFITS . Section .01. Benefits Available. Subject to Article 10, Members may elect one or more of the foll wing benefits: (a) Me ical Plan Benefits. (b) Dis bility Plan Benefits. - (c) Lif Insurance Plan Benefits. (d) De endent Care Reimbursement Benefits. (e) Me ical Expense Reimbursement Benefits. (� Ca . ion . Medical Plan Benefits. Contributions under Section 4.01 may be used to purchase ber�efits under a Medical Plan which shall be governed by the terms of such Plan. �ection f.03. Disability Plan Benefits. Contributions under Section 4.01 may be used to purchase benefits under a Disability Plan which shall be governed by the terms of such Plan. Section .04. Life Insurance Plan Benefits. Contributions under Section 4.01 may be used to purchase benefits under a Life Insurance Plan which shall be governed by the terms of such Plan. Section �.05. Medical Ex�ense Reimbursement Benefits. The Employers have adopted a Med�cal Expense Reimbursement Program set forth in Article 8 designed to qualify as a non�axable employee benefit under Code Section 105(b). Members may elect benefits under sjuch Program subject to all of the requirements and restrictions contained in that Program. Section �.06. Dependent Care Reimbursement Benefits. The Employers have adopted a Dep�ndent Care Reimbursement Program set forth in Article 9 designed to qualify as a non�axable employee benefit under Code section 129(a). Members may clect benefits under such Program subject to all of the requirements and restrictions contained in that Program. Section �.07. Cash Benefits. Cash benefits are represented by the maximum permissible Reitnbursement Contributions and the amount of such Contributions elected by a Member. � 'I _ �y�oa �� ' � ` ARTICLE 7 LIMITATIONS ON BENEFITS . Section .01. ov ra e. 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 i contributions made for such Benefit during such Period of Coverage. Expenses shall bje considered incurred when the medical or dependent care is provided or, � in the case of injsured benefits, during the period of insurance coverage, and not when the Member is form�lly billed, charged for, or pays the expenses. e i n�: Amount of Benefits The maximum amount of Reimbursement Benefits payabl� for a Plan Year shall be $7,000.00 plus the amount of Nonelective Contributions al�ocated to a Member's Account. This $7,000.00 maximum Reimbursement Benefit consists' of a maximum Reimbursement Benefit of $2,000.00 under the Medical Expense Reimb�rsement Program described in Article 8 and a maximum Reimbursement Benefit of $S,OQ0.00 under the Dependent Care Reimbursement Program described in Article 9. With respect to the Dependent Care Reimbursement Program, amounts payable may not exceed jthe balance of the Member's subaccount for such Benefit less the amount necessary to pay such Member's accrued claims for such Benefit. If claims for amounts in excess of such balance are made at any time, such claims may be paid when and if further Reimbursement�or Nonelective Contributions allocable to such Benefit are made during the applicable P�riod of Coverage. With respect to the Medical Expense Reimbursement Program, amo�Znts payable may not exceed the Member's elected Reimbursement Contributions artd Nonelective Contributions, if any, for such Benefit for the entire Period of Coverage redt�ced by any amounts previously paid to said Member as reimbursement for such Benefit inc�rred during that Period of Coverage. Section '�.03. Forfeitures. Amounts remaining in a Reimbursement Benefit subaccount shall be forfeited after payment of all timely presented claims for the Benefit for expenses incu�rred during the applicable Period of Coverage. Section 7r04. Insurance Plans. Coverage and limitations for a Members' Benefit Plan shall be set forth in the Member's Benefit Plan. 8 � ��-�� ' ARTICLE 8 MEDICAL EXPENSE REIMBURSEMENT PROGRAM . i n .0 . In General. Members covered by this Program may submit claims for the reimburse ent of a Member's covered Medical Expense. Such claims shall be reimbursed up t the maximum amount payable for the Period of Coverage as described in Section 7.02. S , i n . 2. Definitions. For purposes of this Article, the following special definitions shall I apply: (a) "B n fits" means Medical Expense Reimbursement Benefits under this Pragram. (b) "D��endent" means a dependent as defined in the Member's Medical and/or De�tal Plan or a child who has ceased to be an eligible dependent because of atta�ining the maximum age limit under the Medical and/or Dental Plan but who is still a dependent as defined by the Code. (c) "H�ghly ompensated Member" means a Member who is a highly co�pensated individual who is among the highest paid 20 percent of all Employees of the Employer (other than non-Members who are part-time or sea�onal employees, or excludable collective bargaining or nonresident alien employees as provided in section 105(h)(3)(B) and (5)(C) of the Code); or oth@rwise treated as a highly compensated individual under section 105(h) of the ICode. (d) "M�dical Ex�enses" means amounts not compensated for by insurance or oth�rwise which are paid or incurred by or on behalf of a Member, a Me�ber's spouse or a Member's Dependents and incurred for the following iter�s to the e}rtent they are covered by section 213(d) of the Code: (1) ', 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). Section 8�.03. Eli�ibi�, Enrollment and Termination All Members of the Cafeteria Plan s�all be eligible to receive benefits under this Program. Enrollment and termination of �articipation under the Cafeteria Plan shall constitute enroliment and termination of p�rticipation under this Program. Section 8.p4. Covered Ex�enses. The Program shall anly cover Medical Expenses incurred during the Period of Coverage the Member has elected for Benefits. Expenses shall be consider�d incurred when the medical care is provided and not when the Member is formally billed� charged, or pays the Expenses. I 9 � � I ��r�7� � � � ' ection .05. Reduction of Benefits. The Committee may reduce the amount of Benefits payabl to a Member to the extent the Committee deems necessary to assure that the Program d es not discriminate in favor of Highly Compensated Members or Key Members (as de ined in Code section 416(i)) in violation of Code section 125, or any other applicable pro 'sion of law. Any such reduction of Benefits shall be made by the Committee on reasonable and nondiscriminatory basis. Contributions which may not be paid out becaus of benefit reduction imposed by this Section 8.05 shall be forfeited. � ec ion .0 . Other Provisions. Other matters concerning contributions, selections, benefits, claims, and the like shall be governed by the general provisions of the Cafeteria Plan. II I �' '� � � 10 . �o a �� AR�ICLE 9 DEPENDENT CARE REIMBURSEMENT PROGRAM , Section 9.01. In General. Members covered by this Program may submit claims for the reimbursem�ent of a Member's covered dependent care Fxpenses from contributions allocated to the Member's subaccount for Dependent Care Reimbursement Benefits. Section .02. Definitions. For purposeS of this Article, the following special ' definitions shall apply: (a) "B n fi " means Reimbursement Benefits for Expenses under this Program. (b) "D endent" means (1) a dependent (as defined in Code section 152 of an Employee (A) who is under the age of 13 and with respect to whom the Employees is entitled ; to a deduction under Code section 151(e); or (B) who is physically or mentally incapable of caring for himself or herself; or (2) ' the spouse of an Employee, if such spouse is physically or mentally incapable of caring for himself or herself. (c) "Ealrned Income" means earned income as defined in section 32(c)(2) of the Co�e, excluding any amounts paid or incurred by the Employers for depjendent care assistance to a Member. (d) "E enses" means amounts paid or incurred by or on behalf of a Member for houlsehold services or for the care of a Dependent, either inside or outside of the�Member's home, subject to the limitations in Section 9.09, in order to ena�le the Member to be gainfully employed for any period for which he or she I,has as Dependent. (e) "Hi' hl Com ensated Member" means a Member who is (as determined un r the provisions of section 129 of the Code) among the top 20% of the pay�oll or a dependent of one. e tion .0 . Eligibiliry, Enrollment and Termination All Members of the Cafeteria Plan �hall be eligible to receive benefits under this Program. Enrollment and termination of articipation under the Cafeteria Plan shall constitute enrollment and termination of p�rticipation under this Program. Section 9 04. Covered Expenses. The Program shall only cover Expenses incurred during the Peri�d of Coverage the member has elected for Benefits, and only from contributions m�ade during the Period of Coverage for Benefits under this Program. F.arpenses shall ble considered incurred when the dependent care is provided and not when the Member is f rmally billed, charged for, or pays the Expenses. Section 9 O5. 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 i ' 11 ��a-�� ' the Program do�s not discriminate in favor of Highly Compensated Members in violation of Code section 129 or any other applicable provision of law. Any such reduction of benefits shall b� made by the'Committee on a reasonable and nondiscriminatory basis. Contributions w�ich may not be paid out because of benefit reductions imposed by this Section 9.05 will 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 Ear�ed Income of such Member for such year; or (b) the (Earned Income of the spouse of such Member for such year. For purposes of paragraph (b)(2) if during any month the Member's spouse is a full-time student at an ejducational institution or physically or mentally incapable of caring for himself or hers$lf, each spouse shall be deemed to be gainfully employed and to have Earned Income pf $200 if the Member has only one Dependent, and $400 if the Member has two or morel,Dependents. In the case of any husband and wife, the preceding sentence shall apply with t�espect to only one spouse for any one month. Section i.0 . Prohibition of Certain Payments No Benefits shall be paid to a Member during �ny ta�cable year of such Member for Expenses paid to an individual: (a) with respect to whom, for such taxable year, a deduction is allowable under Coc�e section 151(e) (relating to personal exemptions for dependents) to such Me�inber or his or her spouse; or (b) who� is a child of such member (within the meaning of Code section 151(e)(3)) und�r the age of 19 at the close of such taxable year. Section 9J08. Services Outside the Household. (a) De�endent Care Centers Benefits shall not be paid for services provided out�ide 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: (1) such facility complies with all applicable laws and regulations of a state or unit of local government, and (2) I the requirements of section 9.08(b) are met. (b) Cer�ain Dependents. Benefits shall not be paid for services outside a Mer�nber's household unless the services are provided for the care of (1) a Dependent within the meaning of section 9.02(b)(1); or (2) I any other Dependent who regularly spends at least eight hours each day in the Member's household. Secti n 9 09. Annual Report to Members The Committee shall furnish to each Member on who�e behalf Benefits are paid, on or before January 31 of each year, a written I 12 � . � ��o-a�� , � statement showiuig the amounts paid by the Employers in providing Benefits on behalf of such Member d ring the previous calendar year. e i n .1 . Other Provisions. Other matters concerning contributions, elections, benefits, claims, and the like shall be governed by the general provisions of the Cafeteria Plan. I I . � � i � � I , �i I � i 13 � , � , �yo -��' ' ARTICLE 10 CLAIMS FOR BENEFITS . Section 10.01. Claims for Reimbursement Benefits Claims for Reimbursement Benefits totalin at least $50.00 may be made at any time. Claims for Reimbursement Benefits totalin less than $50.00 may be made at the end of each calendar year, or at any other time in e event of a final claim following termination of participation. The ' Committee ma in its discretion, waive or alter these requirements. Section 0.02. Prior Payment Unnece sar,y Members need not actually make payment for re�mbursable expenses before being reimbursed for them under the Plan. However, the Committee may require verification that expenses have been properly incurred. ' Sectian 10.03. Claim Substantiation. The Committee shall require a Member to substantiate claums for Reimbursement Benefits under the Plan. Each Member who requests reimb�rsement of a Benefit under Article 8 or Article 9 must provide to the Committee a wkitten statement from an independent third party stating that the expense has been incur�ed and the amount of such expense. Furthermore, the Member must provide a written statement that the expense has not been reimbursed or is not reimbursable under any other insurance or reimbursement plan. For items covered by a Medical Plan, but not paid by such Plan because of the deductibles, copayments or maximum limits, such substantiation may include the Explanation of Benefits form provided by such Plan. All claims for medical expenses may also be substantiated by copies of bills or receipts. The Committee may, in its discretion, make rules for determining what forms or materi�ls will be considered acceptable to substantiate claims. Such rules shall be applied in a uni�'orm and nondiscriminatory manner. Section �0.04. Time Limit on Claiming Benefits Claims for Reimbursement Benefits shall o�ly be paid if presented within time limits which shall be prescribed by the Committee. Section �0.05. Medical Plans. Claims under a Member's Medical Plan shalt be governed by the terms of such Plan. i � 14 . .� a.a� � . . , ARTICLE 11 �� POST-TERMINATION PARTICIPATION . ion 1.01. Termination of Partici�ation 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 ay elect to continue to claim Reimbursement Benefits under a Member's Account in the ame manner as the Member could have. Disposition of the account will be " governed by th provisions of Section 11.04 as if the beneficiary were a member who had terminated part cipation for reasons other than death. Section 11.02. Determination of Beneficiar� In the event of the death of a Member a ben�ficiary or beneficiaries shall be determined to succeed to his or her rights under the Plan. I The beneficiary shall be the Member's spouse and/or all dependents. Section '1.03. Other Termination. A Member who has terminated employment for reasons other tl�an death may no longer have contributions made to the Plan on his or her behalf, but ma� continue to receive benefits under the Plan for claims incurred for the Period of Covarage in which termination occurs. Such claims shall include claims for e�►penses incur�led after termination but prior to the end of the Period of Coverage. Notwithstandin� the preceding, however, claims for Medical Expenses as described in Section 8.02(d) iwhich have been incurred after the Member's termination of employment shall not be reimbursed under this Plan unless such Member elects to make contributions to this Plan in!accordance with the requirements of Code section 4980B and Internal Revenue Servicle regulations on Code section 125. In the event that a Member elects to contribute to his Reimbursement Account(s) following his or her termination of employment, t�e Benefits of such Member shall be determined under uniform and nondiscriminatqry rules established by the Committee and intended to comply with Code section 4980B apd IRS regulations. Section �11.04. Medical Plans. Post-termination participation in a Medical Plan shall be govern�d by the terms of such Plan. However, contributions to such Plan will no longer be made�by this Plan following a member's termination of employment. II � i I ; 15 � . ° � qo'a�� ' ' ARTICLE 12 ' NONDISCRIMINATION . ec ion 2. l. Reduction of Contributions and Benefits The Committee may reject any elect on and reduce the amount of contributions or nontaxable benefits to the extent the Comf mittee deems necessary to assure that the Plan does not discriminate in favor of Highly;Compensated Members in Code section 125 or Key Members (as defined " in Code sectionj 416(i)) or any other applicable provision of law or to prevent taxation of key employees lunder the provisions of section 125(b)(2) of the Code. Any rejection of elections or any� reduction of contributions or benefits shall be made by the Committee on a reasonable a�d nondiscriminatory basis. Contributions which may not be paid out because of ben�fit reductions imposed by this Section 12.01 shall be forfeited. Section �2.02. Prohibition of Discrimination Any discretionary acts to be taken under the term� and provisions of this Plan by the Committee or by the Employers shall be uniform in thei� nature and application to all those similarly situated, and no discretionary acts shall be tal�en that would be discriminatory under the provisions of the Code relating to cafeteria pla�ps, medical reimbursement plans or dependent care assistance plans as such provisions now exist or may from time to time be amended. I , 16 I . �- �o,a�� ARTICLE 13 � ACCOUNTS . ti 1 . 1. Accounts. A separate Account shall be maintained for each Member to reflect the a ount of contributions on his or her behalf under Article 4 and the cost of all benefits pa�d to the Member or on the Member's behalf under the Plan with subaccounts for leach of the possible Reimbursement Benefits. " Section 1�3.02. Contributions Made. Contributions on behalf of a Member shall be credited to the�ccount and appropriate subaccount of such Member. S ion .0 . Benefits Provided. The cost of benefits provided to Members shall be charged to tt�e account and appropriate subaccount of such Member. Section �3.04. Assignment of Benefits Any interest in a Member's Account may not be assignec�, transferred or alienated in any manner whatsoever by any Member or beneficiary. ' i ; I 17 � �� -___ _ �� _a�� ' ARTICLE 14 ADMINISTRATION OF THE PLAN J Se tion 4.01. Com�osition of the Committee. The administration of the Plan, as provided herei , including the payment of all benefits to Members or their beneficiaries, shall be the res onsibility of the Saint Paul Employee Benefits Committee, which shall be the administra r of the Plan. In addition, the Committee shall consist of the following employees: th Personnel Director, the Labor Relations Manager, the Risk Manager, the Employee Be efits Administrator, the Chief Accountant, the Risk Analyst, and an Assistant City ttorney who will be appointed by the Chairperson of the Board. In the event of a vac ncy in any of these positions, the Chairperson of the Board shall appoint an � ee to s rve as an interim Committee Member. Committee Members shall serve em lo P Y without comp nsation, unless otherwise determined by the Board. Section 14.02. Conduct of Committee Business. The Committee shall elect its Chairperson ho shall be a member of the Committee and a Secretary who may or may not be a mem er 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 ticle 14 and shall hold regular meetings in any convenient location. A majoriry of 1 of the members of the Committee shall have power to act, and the concurrence r dissent of any member may be by telephone, wire, cablegram, or letter. Sectio 14.3. Records and R�orts of the Committee. The Committee shall keep such written ecords as it shall deem necessary or proper, which records shall be open to inspection by the Employer. The Committee shall prepare and submit to the Employer an annual repor which shall include such information as the Committee deems necessary or advisable. Sectio 14.04. Administrative Powers and Duties. The Committee shall have the power to tak all actions required to carry out the provisions of the Plan and shatl further have the foll wing powers and duties, which shall be exercised in a manner consistent witli the provision�s of the Plan: (a) �o construe and interpret the provisions of the Plan, and make rules and �egulations under the Plan to the extent deemed advisable by the Committee; (b) {to decide all questions as to eligibiliry to become a Member in the Plan and as �to the rights of Members under the Plan; (c) Ito file or cause to be filed all such annual reports, returns, schedules, descriptions, financial statements and other statements as may be required by 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; I 18 I I I � �� ' ' ' (a) such action shall be taken by a majority of the Committee or the Board, as the case may be, in a resolution approved by a majoriry of such Committee or Boa�d; � (b) the !vote cast by each member of the Committee or the Board for or against the adoption of such resolution shall be recorded and made a part of the written record of the Committee's or Board's proceedings; and (c) any� delegation of fiduciary responsibilities or any allocation of fiduciary " resp�onsibilities among members of the Committee or the Board may be moc�ified or rescinded by the Committee or the Board according to the pro�edure set forth in subsections (a) and (b) of this Section 14.07. c ion 4.08. Claims Procedure. The Committee shall establish a reasonable claims procedur . S c ion 1 .09. Medical and Other Benefit Plans. Plans shall be administered by the administrators o�such Plans and all claims for benefits under such Plans shall be governed by the terms of s,�ch Plans. I 20 . . i � �' � ARTICLE 15 �/� a � AMENDMENT AND TERMINATION '� . ection 1 .01. Amendment of Plan. The Committee may amend, with the approval of the Board, an or all provisions of this Plan at any time by written instrument identified as an amendme �t of the Plan effective as of a specified date. Section 1 . 2. Termination of Plan. This Plan may be terminated in whole or in ' part at any time�y the Board. Section 1 .03. Preservation of Ri�hts. Termination or amendment of the Plan shall not affect the jrights of any Member in his or her account or the right to claim reimbursement or expenses incurred prior to such termination or amendment as the case ma be to the �xtent such amount is a able under the terms of the Plan prior to the Y PY effective date oflsuch termination or amendment. 21 i . �9a�a7 � ` ' � ' ARTICLE 16 '�I MISCELLANEOUS . Section 1 .01. Facil� of Payment. If the Committee deems any person entitled to receive any amo nt under the provisions of this Plan incapable of receiving or disbursing the same by reas�on of minority, illness or infirmiry, mental incompetency, or incapacity of any kind, the C�mmittee may, in its discretion, take any one or more of the following � actions: i (a) app�y such amount directly for the comfort, support and maintenance of such per on; (b) rei burse any person for any such support theretofore supplied to the person entif led to receive any such payment; or (c) pay isuch amount to a legal representative or guardian or any other persons selected by the Committee to disburse it for such comfort, support and maintenance, including without limitation, any relative who had undertaken, whdlly 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 amaunt due to a minor to his or her credit in any savings or commercial bank of tl�e Committee's choice. Section .02. Lost Payee. Any amount due and payable to a Member or beneficiary shall be forfeited if the Committee, after reasonable effort, is unable to locate the Member or beneficiary to whom payment is due. Such forfeited amounts shall be applied towards Icontributions to the Plan. However, any such forfeited amount will be reinstated throu�h a special contribution to the Plan by the Employers and become payable if a claim is madle by the Member or beneficiary. The Committee shall prescribe uniform and nondiscrimir�atory rules for carrying out this provision. Section 16.03. Fundine The obligations of the Employers under this Plan may be, 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 properry of the Employer. Section 1�.04. Indemnification. To the extent permitted by law, the Employer shall indemnify and t�old harmless the Committee, Members, any Employee, and any other person or perso�s whom the Employers or the Committee have delegated fiduciary or other duties un er the Plan, against any and all claims, losses, damages, expens.es, and liabilities arising from any act or failure to act that constitutes or is alleged to constitute a breach of such p�erson's responsibilities in connection with the Plan under any law, unless the same is dete�mined to be due to gross negligence, willful misconduct, or willful failure to act. 22 I � ,I � � ��p��7�' ' � '' Section 1i6.05. Titles and Headings. The titles and headings of Articles and Sections af this i�strument are placed herein for convenience of reference only, and in the case of any con icts, the text of this instrument, rather than the titles or headings, shall control. Section 1�.06. Number. Wherever used herein, the singular shall include the plural and the plural sh�ll include the singular, except where the context requires otherwise. Section 1�.07. Ap�licable Law. The provisions of this Plan shall be construed � according to the �aws of the state of Minnesota, 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 Co�le containing a medical expense reimbursement plan under section 105 of the Code and a �dependent care assistance program under section 129 of the Code, and shall be construe}i accordingly. tion 1 . . Plan not a Contract of Employment. Nothing-herein contained shall be deemed to gi�ie any Member the right to be retained in the employ of the Employer or to interfere with Ithe Member's right to discharge any Member at any time, nor shall it be deemed to give t1�e Employer the right to require any Member to remain in its employ, nor shall it interfere�vith the Member's right to terminate his or her employment at any time. IN WITN►ESS WHEREOF, the City of Saint Paul, by action of their Board, has caused this instrulment to be executed by their officers thereunto duly authorized, this day of ; , 19 , effective January 1, 19 CITY OF SAINT PAUL By: ATTEST: ,; ' 23