R-92-09JKSRES.VOD
RESOLUTION NO. R -92 -09
RESOLUTION APPROVING A CAFETERIA PLAN
WHEREAS, the Village of Deerfield is a Home Rule
Municipality exercising its Home rule powers pursuant to the
Illinois Constitution of 1970; and
WHEREAS, the Corporate Authorities of the Village of
Deerfield have deemed it in the best interest of the Village to
provide its employees with alternative medical benefit programs;
and
WHEREAS, the Corporate Authorities have previously reviewed
a proposed Village of Deerfield Cafeteria Plan (the "Plan ") for
its employees and approved its adoption by Resolution No. R -92-
03; and
WHEREAS, the Corporate Authorities have determined that the
Plan should be expanded in certain respects to include related
plans such as the Village of Deerfield Medical Reimbursement Plan
and the Village of Deerfield Dependent Care Assistance Plan which
shall hereinafter collectively comprise the Plan in the form of
Exhibit A attached hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES,
ILLINOIS, AS FOLLOWS:
SECTION That the Village of Deerfield Cafeteria Plan as
ONE: expanded in the manner described herein for the
employees of the Village of Deerfield, attached
hereto as Exhibit A, be and is hereby approved and adopted as the
Cafeteria Plan for the Village of Deerfield to be effective as of
9/1 , 1992.
SECTION That the Finance Director of the Village of
TWO: Deerfield be appointed to take any and all such
steps as may be required for the implementation
of the Plan.
SECTION That this Resolution shall be in full force and
THREE: effect from and after its adoption and passage in
the manner provided by law.
AYES: Ehlers, Marovitz, Rosenthal, Seidman, Swanson, Swartz (6)
NAYS: None (0)
ABSENT: None (0)
PASSED this 3rd day of August , A.D., 1992
APPROVED this 3rd day of August , A.D. 1992
V SIDENT f20 TeM
viiMAGE
4 i wl-
VILLAGE OF DEERFIELD
CAFETERIA PLAN
Effective September 1 1992
VILLAGE OF DEERFIELD
CAFETERIA PLAN
TABLE OF CONTENTS
ARTICLE Pa e
ARTICLE 1
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . 1
1 . 1 Purpose of Plan. . . . . . . . . . . . . . . . 1
1.2 Cafeteria plan status. . . . . . . . . . . . . 1
ARTICLE 2
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.1
"Administrator" . . . . . . . .. . . . . . . . . 1
2.2
"Code" . . . . . . . . . . . . . . . . . . . 1
2.3
"
"Dependent Care Assistance Plan . . . . . . . . 1
2.4
"Effective Date" . . . . . . . . . . . . . . . . 1
2.5
"Employee" . . . . . . . . . . . . . . . . . . 2
2.6
"
"Key Employee . . . . . . . . . . . . . . . . . 2
2.7
"
"Medical Reimbursement Plan . . . . . . . . . . 2
2.8
"Participant" . . . . . . . . . . . . . . . . . . 2
2.9
"Plan" . . . . . . . . . . . . . . . . . . . 2
2.10
"Plan Year" . . . . . . . . . . . . . . . . . . 2
2.11
"Village" . . . . . . . . . . . . . . . . . . . . 2
ARTICLE 3
PARTICIPATION . . . . . . . . . . . . . . . . . . . . . . . . 2
3.1
Commencement of participation. . . . . ... . . 2
3.2
Cessation of participation. . . . . . . . . . . 3
3.3
Reinstatement of former Participant. . . . . . 3
ARTICLE 4
OPTIONAL BENEFITS . . . . . . . . . . . . . . . . . . . . . . 3
4.1
Benefit options. . . . . . . . . . . . . . . . 3
4.2
Description of benefits other than cash.' . . . 4
4.3
Election of optional benefits in lieu of cash. 4
4.4
Election procedure. . . . . . . . . . . . . . 5
4.5
New Participants. . . . . . . . . . . . . . . . 5
4.6
Failure to elect. . . . . . . . . . . . . . . . 6
4.7
Changes by Administrator. . . . . . . . . . . . 6
4.8
Irrevocability of election by the Participant
during the Plan Year. . . . . . . . . . . . . . 7
4.9
Automatic termination of election. . . . . . . 8
4.10
Maximum employer contributions. . . . . . 8
ARTICLE
ARTICLE 5
Page
ADMINISTRATION OF PLAN . . . . . . . . . . . . . . . . . . 8
5.1 Plan Administrator. . . . . . . . . . . . . . . 8
5.2 Examination of records. . . . . . . . . . . . . 10
5.3 Reliance on tables, etc. . . . . . . . . . . . 10
5.4 Nondiscriminatory exercise of authority. . . . 10
5.5 Indemnification of Administrator. . . . . . . . 10
ARTICLE 6
AMENDMENT AND TERMINATION OF PLAN . . . . . . . . . . . . . . 11
ARTICLE 7
MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . 11
7.1, Information to be furnished. . . . . . . . . . 11
7.2 Limitation of rights. . . . . . . . . . . . . . 11
7.3 Governing law. . . . . . . . . . . . . . . . . 12
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BAJ07690A2072392
ARTICLE 1
INTRODUCTION
1.1 Purpose of Plan. The purpose of this Plan is to
provide employees of the Village of Deerfield a choice between cash
and benefits under the dependent care and medical reimbursement
plans maintained by the Village of Deerfield.
1.2 Cafeteria plan status. This Plan is intended to
qualify as a "cafeteria plan" under section 125 of the Internal
Revenue Code of 1954, as amended, and is to be interpreted in a
manner consistent with the requirements of section 125.
ARTICLE 2
DEFINITIONS
2.1 "Administrator" means the Village acting through its
Corporate Authority (as defined in the Illinois Municipal Code) or
such other person or committee as may be appointed from time to
time by the Corporate Authorities of the Village to supervise the
administration of the Plan.
2.2 "Code" means the Internal Revenue Code of 1986, as
amended from time to time. Reference to any section or subsection
of the Code includes reference to any comparable or succeeding
provisions of any legislation which amends, supplements or replaces
such section or subsection.
2.3 "Dependent Care Assistance Plan" means the Village of
Deerfield Dependent Care Assistance Plan as amended from time to
time.
2.4 "Effective Date" means September 1 1 1992.
K
2.5 "Employee" means any individual employed by the Village
of Deerfield. The term Employee shall also include any "leased
employee" as defined in Section 414(n)(2) of the Code.
2.6 "Key Employee" means any person who is a key employee
as defined in section 416(1)(1) of the Code.
2.7 "Medical Reimbursement Plan" means the Village of
Deerfield Medical Reimbursement Plan, as amended from time to time.
2.8 "Participant" means any individual who participates in
the Plan in accordance with Article III.,
2.9 "Plan" means the Village of Deerfield Cafeteria Plan
as set forth herein, together with any and all amendments and
supplements hereto.
2.10 "Plan Year" means the period beginning on the Effective
Date and ending on April 30, 1993, and the 12 -month period ending
on each April 30 thereafter.
2.11 "Village" means the Village of Deerfield, an Illinois
municipal corporation.
A pronoun or adjective in the masculine gender includes the
feminine gender, and the singular includes the plural, unless the
context clearly indicates otherwise.
ARTICLE 3
PARTICIPATION
3.1 Commencement of participation. Each full -time Employee
whose customary employment, with the Company is at least 30 hours
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per week excluding overtime work will be eligible to participate
in the Plan. An Employee will become a Participant on the later
of (a) the Effective Date or (b) the day immediately following the
completion of 30 days of employment by the Village.
3.2 Cessation of participation. A Participant will cease
to be a Participant as of the earlier of: (a) the date on which
the Plan terminates; (b) the date on which he elects to revoke an
election after he separates from service with the Village; (c) the
date he fails to make any required deferral under an irrevocable
election; (d) the date he revokes any election as permitted in this
Plan, the Medical Reimbursement Plan or the Dependent Care
Assistance Plan; or (e) the date he ceases to be an Employee
eligible to participate under Section 3.1.
3.3 Reinstatement of former Participant. A former
Participant will become a Participant again if and when he meets
the eligibility requirements of Section 3.1.
ARTICLE 4
OPTIONAL BENEFITS
4.1 Benefit options. A Participant may choose under this
Plan to receive his full compensation for any Plan Year in cash or
to have a portion of it applied by the Village toward the cost of
one or more of the following optional benefits:
(a) Benefits available to the Participant under the
Dependent Care Assistance Plan; and
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(b) Benefits available to the Participant under the
Medical Reimbursement Plan.
4.2 Description of benefits other than cash. While the
election to receive one or more of the optional benefits described
in Section 4.1 may be made under this Plan, the benefits will be
provided not by this Plan but by the Dependent Care Assistance Plan
and the Medical Reimbursement Plan. The types and amounts of
benefits available under each option described in Section 4.1, the
requirements for participating in such option, and the other terms
and conditions of coverage and benefits under such option are as
set forth from time to time in the Dependent Care Assistance Plan
and Medical Reimbursement Plan. The benefit descriptions in such
Plans, as in effect from time to time, are hereby incorporated by
reference into this Plan.
4.3 Election of optional benefits in lieu of cash. A
Participant may elect under this Plan to receive one or more of the
optional benefits described in Section 4.1 in accordance with the
procedure described in Section 4.4. If a Participant elects an
optional benefit, the Participant's cash compensation will be
reduced, and an amount equal to the reduction will be credited by
the Village to a reimbursement account in accordance with the
Dependent Care Assistance Plan or Medical Reimbursement Plan, as
the case may be. Separate accounts will be maintained for Medical
Reimbursement and Dependent Care Assistance. Amounts credited in
4 -
one account of a participant cannot be transferred to or commingled
with another account of that participant.
4.4 Election procedure. Prior to the commencement of each
Plan Year, the Administrator shall provide one or more written
election forms and compensation reduction agreements to each
Participant and to each other Employee who is expected to become
a Participant at the beginning of the Plan Year. The election
forms shall be effective as of the first day of the Plan Year.
Each Participant who desires one or more optional benefit coverages
described in Section 4.1 for the Plan Year shall so specify on the
appropriate election form or forms and shall agree to a reduction
in his compensation. The amount of the reduction in the
Participant's compensation for the Plan Year for each optional
benefit shall be the amount elected by the Participant, subject to
the limitations of the Dependent Care Assistance Plan-and the
Medical Reimbursement Plan. Each election form must be completed
and returned to the Administrator on or before such date as the
Administrator shall specify, which date shall be no later than the
beginning of the first pay period for which the Participant's
compensation reduction agreement will apply.
4.5 New Participants. As soon as practicable before an
Employee becomes a Participant under Section 3.1 or 3.3. the
Administrator shall provide the written election forms and
compensation reduction agreements described in Section 4.4 to the
Employee. If the Employee desires one or more optional benefit
- 5 -
coverages described in Section 4.1 for the balance of the Plan
Year, he shall so specify on the election forms and shall agree to
a reduction in his compensation as provided in Section 4.4. The
election forms must be completed and returned to the Administrator
on or before such date as the Administrator shall specify, which
date shall be no later than the beginning of the first pay period
for which the Participant's compensation reduction agreements will
apply.
4.6 Failure to elect. A Participant failing to return a
completed election form to the Administrator on or before the
specified due date for the initial Plan Year of the Plan, or for
the Plan Year in which he became a Participant, shall be deemed to
have elected to receive his full compensation in cash. A
Participant failing to return a completed election form to the
Administrator relating to the optional benefits described in
Section 4.1 on or before the specified due date for any Plan Year
shall be deemed to have elected cash compensation in lieu of such
optional benefit, regardless of the election in effect during the
preceding Plan Year.
4.7 Changes by Administrator. If the Administrator
determines, before or during any Plan Year, that the Plan may fail
to satisfy for such Plan Year any nondiscrimination requirement
imposed by the Code or any limitation on benefits provided to Key
Employees, the Administrator shall take such action as the
Administrator deems appropriate under rules uniformly applicable
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to similarly situated participants, to assure compliance with such
requirement or limitation. Such action may include, without
limitation, a modification of elections by highly compensated
Employees or Key Employees with or without the consent of such
Employees.
4.8 Irrevocability of election by the Participant during
the Plan Year. Elections made under the Plan (or deemed to be made
under Section 4.6) shall be irrevocable by the Participant during
the Plan Year, subject to a change in family status. A Participant
may revoke a benefit election for the balance of a Plan Year and
file a new election only if both the revocation and the new
election are on account of and consistent with a change in family
status. A change in family status for this purpose includes
marriage, divorce, death of a spouse or child, birth or adoption
of a child, termination of employment of A spouse, loss of medical
coverage from a spouse's employer, switching from full -time to
part -time status of a Participant or his spouse or significant
changes in health care coverage attributable to the spouse's
employment. In addition, a Participant shall be entitled to revoke
an election and make a new 'election if health care under a plan
maintained by the Village ceases or is significantly curtailed for
all covered employees, or new health care plans are offered on a
prospective basis during the election period. The Administrator
may permit the revocation of an election based on such other events
that the Administrator determines will permit a change or
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revocation of an election during a Plan Year under regulations and
rulings of the Internal Revenue Service. Any new election under
this Section 4.8 shall be effective at such time as the
Administrator shall prescribe, but not earlier than the first pay
period beginning after the election form is completed and returned
to the Administrator.
4.9 Automatic termination of election. Elections made
under this Plan (or deemed to be made under Section 4.6) shall
automatically terminate on the date on which the Participant ceases
to be a Participant in the Plan, although coverage or benefits
under the Dependent Care Assistance and Medical Reimbursement Plans
may continue if and to the extent provided by such Plans.
4.10 Maximum employer contributions. The maximum amount of
employer contributions under the Plan for any Participant shall be
the maximum amounts which the Participant may receive in the form
of dependent care assistance under the Dependent Care Assistance
Plan and as medical reimbursements under the Medical Reimbursement
Plan, as set forth in such Plans.
ARTICLE 5
ADMINISTRATION OF PLAN
5.1 Plan Administrator. The administration of the Plan
shall be under the supervision of the Administrator. It shall be
a principal duty of the Administrator to see that the Plan is
carried out, in accordance with its. terms, for the exclusive
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benefit of persons entitled to participate in the Plan without
discrimination among them. The Administrator will have full power
to administer the Plan in all of its details, subject to applicable
requirements of law. For this purpose, the Administrator's powers
will include, but will not be limited to, the following authority,
in addition to all other powers provided by this Plan:
(a) To make and enforce such rules and regulations as
it deems necessary or proper for the efficient
administration of the Plan, including the
establishment of any claims procedures that may
be required by applicable provisions of law;
(b) To interpret the Plan, its interpretation thereof
in good faith to be final and conclusive on all
persons claiming benefits under the Plan;
(c) To decide all questions concerning the Plan and
the eligibility of any person to participate in
the Plan;
(d) To appoint such agents, counsel, accountants,
consultants and other persons as may be required
to assist in administering the Plan; and
(e) To allocate and delegate its responsibilities
under the Plan and to designate other persons to
carry out any of its responsibilities under the
Plan, any such allocation, delegation or
designation to be in writing.
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Notwithstanding the foregoing, any claim which arises under
the Dependent Care Assistance Plan or the Medical Reimbursement
Plan shall not be subject to review under this Plan, and the
Administrator's authority under this Section 5.1 shall not extend
to any matter as to which an administrator under any such other
plan is empowered to make determinations under such plan.
5.2 Examination of records. The Administrator will make
available to each Participant such of his records under the Plan
as pertain to him, for examination at reasonable times during
normal business hours.
5.3 Reliance on tables, etc. In administering the Plan,
the Administrator will be entitled to the extent permitted by law
to rely conclusively on all tables, valuations, certificates,
opinions and reports which are furnished by, or in accordance with
the instructions of, the administrators of the Dependent Care
Assistance and Medical Reimbursement Plans, or by accountants,
counsel or other experts employed or engaged by the Administrator.
5.4 Nondiscriminatory exercise of authority. Whenever, in
the administration of the Plan, any discretionary action by the
Administrator is required, the Administrator shall exercise its
authority in a nondiscriminatory manner so that all persons
similarly situated will receive substantially the same treatment.
5.5 Indemnification of Administrator. The Village agrees
to indemnify and to defend to the fullest extent permitted by law
any Employee serving as the Administrator or as a member of a
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W
committee designated as Administrator (including any Employee or
former Employee who formerly served as Administrator or as a member
of such committee) against all liabilities, damages, costs and
expenses (including attorneys' fees and amounts paid in settlement
of any claims approved by the Village) occasioned by any act or
omission to act in connection with the Plan, if such act or
omission is in good faith.
ARTICLE 6
AMENDMENT AND TERMINATION OF PLAN
The Plan may at any time be amended or terminated by a written
instrument signed by the Village Manager of the Village.
ARTICLE 7
MISCELLANEOUS PROVISIONS
7.1 Information to be furnished. Participants shall
provide the Village and Administrator with such information and
evidence, and shall sign such documents as may reasonably be
requested from time to time for the purpose of administration of
the Plan.
7.2 Limitation of rights. Neither the establishment of the
Plan nor any amendment thereof, nor the payment of any benefits,
will be construed as giving to any Participant or other person any
legal or equitable right against the Village or Administrator,
except as provided herein.
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7.3 Governing law. This Plan shall be construed,
administered and enforced according to the laws of Illinois.
IN WITNESS WHEREOF, the Village has caused this Plan to be
executed in its name and behalf this,�day of 1992,
by its officer thereunto duly authorized.
VILLAGE OF DEERFIELD
By
Its yl LI n'--' ZM47
THE VILLAGE OF DEERFIELD CORPORATION
MEDICAL REIMBURSEMENT PLAN
Effective September 1 , 1992
t
TABLE OF CONTENTS
ARTICLE
PAGE
I. INTRODUCTION ........... ...............................
1
II. DEFINITIONS ............ ...............................
1
2.1.
" Administrator" .. ...............................
1
2.2.
"Cafeteria Plan" . ...............................
1
2.3.
" Code "... ..... ...............................
2
2.4.
" Dependent "... . ...............................
2
2.5.
"Effective Date" . ...............................
2
2.6.
"Employee "............ ........................
2
2.7.
" ERISA...........................................
2
2.8.
"Medical Reimbursement Account " .................
2
2.9.
" Participant" .... ...............................
2
2.10.
" Plan "... ..... ...............................
2
2.11.
"Plan Year " ..................... ..............
2
2.12.
"Qualifying Medical Care Expense " ...............
2
III. PARTICIPATION .......... ............................... 3
3.1. Date of participation ........................... 3
3.2. Cessation of participation ...................... 3
3.3. Reinstatement of former Participant ............. 3
IV. ELECTION TO RECEIVE MEDICAL CARE EXPENSE REIMBURSEMENTS. 4
4.1. Election procedure .............................. 4
4.2. Maximum reimbursements .......................... 4
V. MEDICAL REIMBURSEMENT ACCOUNTS ........................ 4
5.1. Establishment of accounts ....................... 4
5.2. Crediting of accounts ........................... 5
5.3. Debiting of accounts ............................ 5
5.4. Forfeiture of accounts .......................... 5
VI. PAYMENT OF MEDICAL CARE EXPENSE REIMBURSEMENTS........ 6
6.1. Claims for reimbursement ........................ 6
6.2. Reimbursement or payment of expenses............ 7
VII. TERMINATION OF PARTICIPATION .......................... 7
VIII. ADMINISTRATION ........ ............................... 8
8'.1. Plan Administrator .............................. 8-
8.2. Examination of records .......................... 9
8.3. Reliance on tables, etc ......................... 9
8.4. Named fiduciary .. ............................... 9
8.5. Claims and review procedures .................... 10
8.6. Nondiscriminatory exercise of authority......... 11
8.7. Indemnification of Administrator ................ 12
IX. AMENDMENT OR TERMINATION OF PLAN ...................... 12
9.1. Amendment of Plan ............................... 12
9.2. Termination of Plan ............................. 12
X. MISCELLANEOUS .......... ............................... 13
10.1. Communication to employees ..................... 13
10.2. Limitation of rights ........................... 13
10.3. Benefits solely from general assets............ 13
10.4. Nonassignability of rights ..................... 13
10.5. No guarantee of tax consequences ............... 14
10.6. Governing Law ... ............................... 14
10.7. Gender.......... . ............................... 14
BAJ07694A1072792
THE VILLAGE OF DEERFIELD
MEDICAL REIMBURSEMENT PLAN
ARTICLE I
Introduction
This Plan is intended to qualify as a medical reimbursement
plan under Section 105(b) of the Internal Revenue Code of 1986,
as amended, and is to be interpreted in a manner consistent with
the requirements of Section 105(b). The purpose of the Plan is
to enable Participants to elect to receive payments or
reimbursements of Qualifying Medical Care Expenses for coverage
under the Village's health plan that are excludable from the
Participant's gross income under Section 105(b) of the Code.
ARTICLE II
Definitions
Wherever used herein, the following terms have the following
meanings unless a different meaning is clearly required by the
context:
2.1. "Administrator" means the Village acting through its
Corporate Authority (as defined in the Illinois Municipal Code)
or such other person or committee as may be appointed from time
to time by the Corporate Authority of the Village to supervise
the administration of the Plan.
2.2. "Cafeteria Plan" means the Village of Deerfield
Cafeteria Plan effective of even date herewith, from time to
time.
2.3. "Code" means the Internal Revenue Code of 1986, as
amended from time to time. Reference to any section or
subsection of the Code includes reference to any comparable or
succeeding provisions of any legislation which amends,
supplements or replaces such section or subsection.
2.4. "Dependent" means any person who falls within the
definition of dependent provided in Section 152 of the Code.
2.5. "Effective Date" means 9/1 1992.
2.6. "Employee" means any individual employed by the
Village.
2.7. "ERISA" means the Employee Retirement Income Security
Act of 1974, as amended.
2.8. "Medical Reimbursement Account" means the account
described in Article V hereof.
2.9. "Participant" means each Employee who participates in
the Plan in accordance with Article III.
2.10. "Plan" means the Village of Deerfield Medical
Reimbursement Plan as set forth herein, together with any and all
amendments and supplements hereto.
2.11. "Plan Year" means the period beginning of the
Effective Date and ending on April 3,0, 1993 and the 12-
consecutive -month period ending each April 30, thereafter.
2.12. "Qualifying Medical Care Expense" means an expense
incurred by a Participant, or by the spouse or Dependent of such
Participant, for medical care as defined in Section 213 of the
- 2 -
Code (including, without limitation, amounts paid for vision
care, hearing care, hospital fees, doctor and dental bills,
prescription drugs and'premiums for accident and health insurance
and coverage under health maintenance organizations ( "HMOs ")),
but only to the extent that the Participant or other person
incurring the expense is not reimbursed for the expense through
insurance, HMOs or otherwise (other than under the Plan).
ARTICLE III
Participation
3.1. Date of participation. Each full -time Employee whose
customary employment with the Village is at least 30 hours per
week excluding overtime work, will be eligible to participate in
the Plan. An Employee will become a Participant on the later of
(a) the Effective Date, or (b) the day immediately following the
completion of 30 days of employment by the Village.
3.2. Cessation of participation. A Participant will cease
to be a Participant as of the earliest of (a) the date on which
the Plan terminates or (b) the date on which his participation
ends pursuant to Article VII hereof.
3.3. Reinstatement of former Participant. If a former
Participant who is eligible under Section 3.1 elects again under
the Cafeteria Plan to receive reimbursement of Qualifying Medical
Care Expenses under this Plan, he will again become a Participant
in this Plan on the effective date of such election.
ARTICLE IV
Election to Receive Medical Care Expense Reimbursements
4.1. Election procedure. A Participant may elect to receive
payments or reimbursements of his Qualifying Medical Care
Expenses under this Plan by filing an election and compensation
reduction agreement in accordance with the procedures established
under the Cafeteria Plan. An election to receive payments or
reimbursements of Qualifying Medical Care Expenses shall be
irrevocable during the Plan Year, subject to.a change in family
status, as provided in the Cafeteria Plan.
4.2. Maximum reimbursements. The maximum amount which the
Participant may receive under this Plan in the form of payments
or reimbursements for Qualifying Medical Care Expenses incurred
in any Plan Year initially shall be $ 5,000 The maximum
amount of Qualifying Medical Care Expenses in the future may be
changed by the Village from time to time in its discretion.
ARTICLE V
Medical Reimbursement Accounts
5.1. Establishment of accounts. The Village will establish
and maintain on its books a Medical Care Expenses Reimbursement
Account for each Plan Year with respect to each Participant who
has elected to receive reimbursement of Qualifying Medical Care
Expenses incurred during the Plan Year.
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5.2. Crediting of accounts. There shall be credited to a
Participant's Medical Care Expenses Reimbursement Account for
each Plan Year, as of each date compensation is paid to the
Participant in such Plan Year, an amount equal to the reduction,
if any, to be made in such compensation in accordance with the
Participant's election and compensation reduction agreement under
the Cafeteria Plan. All amounts credited to each such Medical
Care Expenses Reimbursement Account shall be the property of the
Village until paid out pursuant to Article VI.
5.3. Debiting of accounts. A Participant's Medical Care
Expenses Reimbursement Account for each Plan Year shall be
debited from time to time in the amount of any payment under
Article VI to or for the benefit of the Participant for
Qualifying Medical Care Expenses incurred during such Plan Year.
Amounts debited to each such Medical Premium Reimbursement
Account shall be treated as payments of the earliest amounts
credited to the Account and not yet treated as paid under this
sentence under a "first -in /first -out" approach.
5.4. Forfeiture of accounts. The amount credited to a
Participant's Medical Care Expenses Reimbursement Account for any
Plan Year shall be used only to reimburse the Participant for
Qualifying Medical Care Expenses incurred during such Plan Year.
If any balance remains in the Participant's Medical Care Expenses
Reimbursement Account fora Plan Year after all reimbursements
hereunder, such balance shall not be carried over to reimburse
- 5 -
the Participant for Qualifying Medical Care Expenses incurred
during a subsequent Plan Year, and shall not be available to the
Participant in any other form or manner, but shall remain the
property of the Village, and the Participant shall forfeit all
rights with respect to such balance.
ARTICLE VI
Payment of Medical Care Expense Reimbursements
6.1. Claims for reimbursement. A Participant who has
elected to receive reimbursement of Qualifying Medical Care
Expenses for a Plan Year may apply for reimbursements by
submitting an application in writing to the Village, in such form
as the Village may prescribe, setting forth:
(a) the amount, date and nature of the expense with
respect to which a benefit is requested;
(b) the name of the person, organization or entity to
which the expense was or is to be paid;
(c) the name of the person for whom the expense was
incurred and, if such person is not the Participant, the
relationship of such person to the Participant; and
(d) the amount of the expense recovered or expected to
be recovered under any insurance arrangement or other plan.
Such application shall be accompanied by bills, invoices,
receipts, cancelled checks or other statements showing the
- 6 -
amounts of such expenses, together with any additional
documentation which the Administrator may request.
6.2. Reimbursement or payment of expenses. The Village
shall reimburse the Participant from the Participant's Medical
Care Expenses Reimbursement Account for Qualifying Medical Care
Expenses incurred during the Plan Year, for which the Participant
submits a written application and documentation in accordance
with Section 6.1. The Village may, at its option, pay any such
Qualifying Medical are Expenses directly to the person providing
or supplying medical care in lieu of reimbursing the Participant.
Any amounts reimbursed to a Participant in excess of the amount
in the Participant's Medical Reimbursement Account shall be
returned to the Village from subsequent credits to the
Participant's Account. Reimbursement or payment of claims shall
be made only once a month.
ARTICLE VII
Termination of Participation
7.1. In the event that a Participant ceases to be a
Participant for any reason, any election to receive
reimbursements for Qualifying Medical Care Expenses and any
related compensation reduction agreement made under the Cafeteria
Plan shall terminate at the end of the month for which the last
salary reduction payment was applied.
- 7 -
ARTICLE VIII
Administration
8.1. Plan Administrator. The administration of the Plan
shall be under the supervision of the Administrator. It shall be
a principal duty of the Administrator to see that the Plan is
carried 'out, in accordance with its terms, for the exclusive
benefit of persons entitled to participate in the Plan without
discrimination among them. The Administrator will have full
power to administer the Plan in all of its details subject,
however, to the requirements of ERISA. For this purpose, the
Administrator's powers will include, but will not be limited to,
the following authority, in addition to all other powers provided
by this Plan:
(a) To make and enforce such rules and regulations as
it deems necessary or proper for the efficient
administration of the Plan;
(b) To interpret the Plan, its interpretation thereof
in good faith to be final and conclusive on all persons
claiming benefits under the Plan;
(c) To decide all questions concerning the Plan and
the eligibility of any person to participate in the Plan;
(d) To compute the amount of benefits which will be
payable to any Participant or other person in accordance
with the provisions of the Plan, and to determine the person
or persons to whom such benefits will be paid;
- 8 -
(e) To authorize the payment of benefits;
(f) To appoint such agents, counsel, accountants, -
consultants and actuaries as may be required to assist in
administering the Plan: and
(g) To allocate and delegate its responsibilities
under the Plan and to designate other persons to carry out
any of its responsibilities under the Plan, any such
allocation, delegation or designation to be'by written
instrument and in accordance with Section 405 of ERISA.
8.2. Examination of records. The Administrator will make
available to each Participant such of his records as pertain to
him, for examination at reasonable times during normal business
hours.
8.3. Reliance on tables, etc. In administering the Plan,
the Administrator will be entitled, to the extent permitted by
law, to rely conclusively on all tables, insurance policies,
valuations, certificates, opinions and reports which are
furnished by any accountant, counsel or other expert who is
employed or engaged by the Administrator.
8.4. Named fiduciary. The Administrator will be a "named
fiduciary" for purposes of Section 402(a)(1) of ERISA with
authority to control and manage the operation and administration
of the Plan, and will be responsible for complying with all of
the reporting and disclosure requirements of Part 1 of Subtitle B
of Title I of ERISA.
- 9 -
0
8.5. Claims and review procedures.
(a) Claims procedure. If any person believes he is
being denied any rights or benefits under the Plan, such
person may file a claim in writing with the Administrator.
If any such claim is wholly or partially denied, the
Administrator will notify such person of its decision in
writing. Such notification will be written in a manner
calculated to be understood by such person and will contain
(i) specific reasons for the denial, (ii) specific reference
to pertinent Plan provisions, (iii) a description of any
additional material or information necessary for such person
to perfect such claim and an explanation of why such
material or information is necessary and (iv) information as
to the steps to be taken if the person wishes to submit a
request for review. Such notification will be given within
90 days after the claim is received by the Administrator (or
within 180 days, if special circumstances require an
extension of time for processing the claim, and if written
notice of such extension and circumstances is given to such
person within the initial 90 day period). If such
notification is not given within such period, the claim will
be considered denied as of the last day of such period and
such person may request a review of his claim.
(b) Review procedure. Within 60 days after the date
on. which a person receives a written notice of a denied
- 10 -
claim (or, if applicable, within 60 days after the date on
which such denial is considered to have occurred) such
person (or his duly authorized representative) may (i) file
a written request with the Administrator for a review of his
denied claim and of pertinent documents and (ii) submit
written issues and comments to the Administrator. The
Administrator -will notify such person of its decision in
writing. Such notification will be written in a manner
calculated to be understood by such person and will contain
specific reasons for the decision as well as specific
references to pertinent Plan provisions. The decision on
review will be made within 60 days after the request for
review is received by the Administrator (or within 120 days,
if special circumstance require an extension of time for
processing the request, such as an election by the
Administrator to hold a hearing, and if written notice of
such extension and circumstances is given such person within
the initial 60 day period). If the decision on review is
not made within such period, the claim will be considered
denied.
8.6. Nondiscriminatory exercise of authority. Whenever the
administration of the Plan, any discretionary action by
Administrator is required, the Administrator shall exercise in a
non - discriminatory manner so that all persons similarly situated
will receive substantially the same treatment.
- 11 -
8.7: Indemnification of Administrator. The Village agrees
to indemnify and to defend to the fullest extent permitted by law
any Employee serving as the Administrator or as a member of a
committee designated as Administrator (including any Employee or
former Employee who formerly served as Administrator or as a
member of such committee) against all liabilities, damages, costs
and expenses (including attorneys' fees and amounts paid in
settlement of any claims approved by the Village) occasioned by
any act or omission to act in connection with the Plan, if such
act or omission is in good faith.
ARTICLE IX
Amendment or Termination of Plan
9.1. Amendment of Plan. The Village reserves the power at
any time or times to amend the,provisions of the Plan to any
extent and in any manner that it may deem advisable, by a written
resolution of the Village.
9.2. Termination of Plan. The Village has established the
Plan with the bona fide intention and expectation that it will be
continued indefinitely, but the Village will have no obligation
whatsoever to maintain the Plan for any given length of time and
may discontinue or terminate the Plan at any time without
liability. Upon termination or discontinuance of the Plan, all
elections and reductions in compensation related to the Plan
- 12 -
shall terminate, and reimbursements shall be made only in
accordance with Article VII.
ARTICLE X
Miscellaneous
10.1. Communication to Employees. Promptly after the Plan
is adopted, the Village will notify all Employees of the
availability and terms of the Plan.
10.2. Limitation of rights. Neither the establishment of
the Plan nor any amendment thereof will b
any Participant or other person any legal
against the Administrator or the Village,
provided herein, and in no event will the
service of any Participant be modified or
hereby.
e construed as giving to
or equitable right
except as expressly
terms of employment or
in any way be affected
10.3. Benefits solely from general assets. The benefits
provided hereunder will be paid solely from the general assets of
the Village. Nothing herein will be construed to require the
Village or the Administrator to maintain any fund or segregate
any amount for the benefit of any Participant, and no Participant
or other person shall have any claim against, right to, or
security or other interest in, any fund, account or asset of the
Village from which any payment under the Plan may be made.
10.4. Nonassignability of rights. The right of any
Participant to receive any reimbursement under the Plan shall not
- 13 -
be alienable by the Participant
method, and will not be subject
any process whatsoever, and any
so subjected will not be recogn
be required by law.
10.5. No guarantee of tax
by assignment or any other
to be taken by his creditors by
attempt to cause such right to be
ized, except to such extent as may
consequences. Neither the
Administrator nor the Village makes any commitment or guarantee
that any amounts paid to or for the benefit of a Participant
under Article VI will be excludable from the Participant's gross
income for federal or state income tax purposes, or that any
other federal or state tax treatment will apply to or be
available to any Participant.
10.6. Governing law. The Plan will be construed,
administered and enforced according to the laws of Illinois.
10.7. Gender. A pronoun or adjective in the masculine
gender includes the feminine gender, and the singular includes
the plural, unless the context clearly indicates otherwise.
IN WITNESS WHEREOF. the Village has caused this Plan to be
executed in its name and on its behalf by its officers thereunto
duly authorized this 3-AA1 day.of , 1992.
THE VILLAGE OF DEERFIELD
By
Its V i LLACF_ PRF--6 b /r PRd ITEM
- 14 -
THE VILLAGE OF DEERFIELD
DEPENDENT CARE ASSISTANCE PLAN
Effective September 1 , 1992
TABLE OF CONTENTS
ARTICLE PAGE
I. INTRODUCTION ........... ............................... 1
II. DEFINITIONS ............ ............................... 1
2.1.
"Administrator" . ...............................
1
2.2.
"Cafeteria Plan" . ...............................
1
2.3.
" Code ". • ....... ...............................
1
2.4.
"
"Village .........................................
2
2.5.
" Dependent " ...................... ............
2
2.6.
"Dependent Care Assistance Account " .............
2
2.7.
"Dependent Care Expenses " .......................
2
2.8.
"Dependent Care Service Provider " ...............
2.
2.9.
"Effective Date "....... .......................
3
2.10.
" Employee ". .... ...............................
3
2.11.
" Participant" ..... ...............................
3
2.12.
" Plan "... ..... ...............................
3
2.13.
"Plan Year" ...... ...............................
3
III. PARTICIPATION .......... ............................... 3
3.1. Date of participation ........................... 3
3.2. Cessation of participation ...................... 3
3.3. Reinstatement of former Participant ............. 4
IV. ELECTION TO RECEIVE DEPENDENT CARE ASSISTANCE......... 4
4.1. Election procedure .............................. 4
4.2. Maximum dependent care assistance .....:......... 4
V. DEPENDENT CARE ASSISTANCE ACCOUNTS .................... 5
5.1. Establishment of accounts ....................... 5
5.2. Crediting of accounts ........................... 5
5.3. Debiting of accounts ............................ 5
5.4. Forfeiture of accounts .......................... 5
VI. PAYMENT OF DEPENDENT CARE ASSISTANCE.................. 6
6.1. Claims for reimbursement ........................ 6
6.2. Reimbursement or payment of expenses............ 7
6.3. Report to Participants on or before
January31 of each year ....................... 7
VII. TERMINATION OF PARTICIPATION .......................... 7
VIII. ADMINISTRATION........ ... ............................ 8
8.1. Plan Administrator .............................. 8
8.2. Examination of records .............. 9
8.3. Reliance on tables, etc ......................... 9
8.4. Named fiduciary .. ............................... 9
8.5. Claims and review procedures .................... 9
8.6. Nondiscriminatory exercise of authority......... 11
8.7. Indemnification of Administrator ................ 11
IX. AMENDMENT OR TERMINATION OF PLAN...................... 12
9.1.
Amendment of Plan ...............................
12
9.2.
Termination of Plan .............................
12
X. MISCELLANEOUS .......... ...............................
12
10.1.
Communication to employees .....................
12
10.2.
Limitation of rights ...........................
12
10.3.
Benefits solely from general assets............
12
10.4.
Nonassignability of rights .....................
13
10.5.
No guarantee of tax consequences ...............
13
10.6.
Indemnification of Village by
Participants.... ...............................
13
10.7.
Governing law ... ...............................
14
10.8.
Gender .......... ...............................
14
BAJ07695A2072792
THE VILLAGE OF DEERFIELD
DEPENDENT CARE ASSISTANCE PLAN
ARTICLE I
Introduction
This Plan is intended to qualify as a dependent care
assistance program under Section 129 of the Internal Revenue Code
of 1986, as amended, and is to be interpreted in a manner
consistent with the requirements of Section 129. The purpose of
the Plan is to enable Participants to elect to receive payments
or reimbursements of their dependent care expenses that are
excludable from the Participants' gross income under Section 129
of the Code.
ARTICLE II
Definitions
wherever used herein, the following terms have the following
meanings unless a different meaning is clearly required by the
context:
2.1. "Administrator" means the Village or such other person
or committee as may be appointed from time to time by the Village
to serve at its pleasure.
2.2 "Cafeteria Plan" means The Village of Deerfield
Cafeteria Plan, effective of even date herewith, as amended from
time to time.
2.3. "Code" means the Internal Revenue Code of 1986, as
amended from time to time. Reference to any section or
subsection of the Code includes reference to any comparable or
succeeding provisions of any legislation which amends,
supplements or replaces such section or subsection.
2.4. "Dependent" means any individual who is (a) a
dependent of the Participant who is under the age of 13 and with
respect to whom the Participant is entitled to an exemption under
section 151(e) of the Code, or (b) a dependent or spouse of the
Participant who is physically or mentally incapable of caring for
himself.
2.5. "Dependent Care Assistance Account" means the account
described in Article V hereof.
2.6. "Dependent Care Expenses" mean expenses incurred by a
Participant which (a) are incurred for the care of a Dependent of
the Participant or for related household services, (b) are paid
or payable to a Dependent Care Service Provider, and (c) are
incurred to enable the Participant to be gainfully employed for
any period for which there are one or more Dependents with
0
respect to the Participant. "Dependent Care Expenses" shall not
include expenses incurred for services outside the Participant's
household for the care of a Dependent unless such Dependent is
described in Section 2.5(a) or regularly spends at least eight
hours each day in the Participant's household. Dependent Care
Expenses shall be deemed to be incurred at the time the services
to which the expenses relate are rendered.
2.7. "Dependent Care Service Provider" means a person who
provides care or other services described in Section 2.7(a)
- 2 -
above, but shall not include (a) a dependent care center (as
defined in section 21(b)(2)(D) of the Code), unless the
requirements of Code section 21(b)(2)(C) are satisfied, or (b) a
related individual described in section 129(c) of the Code.
2.8. "Effective Date" means September 1, 1992.
2.9. "Employee" means any individual employed by the
Village and also includes "leased employees" as defined in
Section 414(n)(2) of the Code.
2.10. "Participant" means each Employee who participates in
the Plan.in accordance with Article III.
2.11. "Plan" means The Village of Deerfield Dependent Care
Assistance Plan as set forth herein, together with any and all
amendments and supplements hereto.
2.12. "Plan Year" means the period beginning on the
Effective Date and ending on April 30, 1993, and the 12 -month
period ending on April 30, thereafter.
2.13. "Village" means the Village of Deerfield, an Illinois
municipal corporation.
ARTICLE III
Participation
3.1. Commencement of Participation. Each full -time Employee
whose customary employment with the Village is at .least 30 hours
per week excluding overtime work will be eligible to participate
in the Plan. An Employee will become a Participant on the later
- 3 -
of (a) the Effective Date or (b) the day immediately following
the completion of 30 days of employment by the Village.
3.2. Cessation of Participation. A Participant will cease
to be a Participant as of the earlier of: (a) the date on which
the Plan terminates; (b) the date on which he elects to revoke an
election after he separates from service with the Village; (c)
the date he fails to make any required deferral under an
irrevocable election; (d) the date he revokes any election as
permitted in this Plan; or (e) the date he ceases to be an
Employee eligible to participate under Section 3.1.
3.3 Reinstatement of Former Participant. A former
Participant will become a Participant again if and when he meets
the eligibility requirements of Section 3.1.
ARTICLE IV
Election to Receive Dependent Care Assistance
4.1. Election procedure. A Participant may elect to
receive dependent care assistance under this Plan by filing an
election and compensation reduction agreement in accordance with
the procedures established under the Cafeteria Plan. An election
to receive dependent care assistance shall be irrevocable during
the Plan Year, subject to a change in family status or such other
event, as provided in the Cafeteria Plan.
4.2. Maximum dependent care assistance. The maximum amount
which the Participant may receive in any Plan Year in the form of
dependent care assistance under this Plan shall be the least of
- 4 -
(a) the Participant's earned income for the Plan Year (after all
reductions in compensation including the reduction related to
dependent care assistance), (b) the actual or deemed earned
income of the Participant's spouse for the Plan Year, or (c)
$5,000 ($2,500 in the case of a separate return filed by a
married participant). In the case of a spouse who is a full -
time student at an educational institution or is physically or
mentally incapable of caring for himself, such spouse shall be
deemed to have earned income of not less than $200 per month if
the Participant has one Dependent and $400 per month if the
Participant has two or more Dependents.
ARTICLE V
Dependent Care Assistance Accounts
5.1. Establishment of accounts. The Village will establish
and maintain on its books a Dependent Care Assistance Account for
each Plan Year with respect to each Participant who has elected
to receive dependent care assistance for the Plan Year.
5.2. Crediting of accounts. There shall be credited to a
Participant's Dependent Care Assistance Account for each Plan
Year, as of each date compensation is paid to the Participant in
such Plan Year, an amount equal to the reduction, if any, to be
made in such compensation in accordance with the Participant's
election and compensation reduction agreement under the Cafeteria
Plan. All amounts credited to each such Dependent Care
- 5 -
Assistance Account shall be property of the Village until paid
out pursuant to Article'VI.
5.3. Debiting of accounts. A Participant's Dependent Care
Assistance Account for each Plan Year shall be debited from time
to time in the amount of any payment under Article VI to or for
the benefit of the Participant for Dependent Care Expenses
incurred during such Plan Year. Amounts debited to each such
Dependent Care Assistance Account shall be.treated as payments of
the earlier amounts credited to the Account and not yet treat as
paid under this sentence, under a "first -in /first -out" approach.
5.4. Forfeiture of accounts. The amount credited
Participant's Dependent Care Assistance Account for any Year
shall be used only to reimburse the Participant for Dependent
Care Expenses incurred during such Plan Year, and only if the
Participant applies for reimbursement on or before the 90th day
following the close of the Plan Year. If any balance remains in
the Participant's Dependent Care Assistance Account for any Plan
Year after all reimbursements hereunder, such balance shall not
be carried over to reimburse the Participant for Dependent Care
Expenses incurred during a subsequent Plan Year, and shall not be
available to the Participant in any other form or manner, but
shall remain the property of the Village, and the Participant
shall forfeit all rights with respect to such balance.
- 6 -
ARTICLE VI
Payment of Dependent Care Assistance
6.1. Claims for reimbursement. A Participant who has
elected to receive dependent care assistance for a Plan Year may
apply to the Village for reimbursement of Dependent Care Expenses
incurred by the Participant during the Plan Year by submitting an
application in writing to the Village, in such form as the.
Village may prescribe, setting forth:
(a) the amount, date and nature of the expense with
respect to which a benefit is requested;
(b) the name of the person, organization or entity to
which the expense was or is to be paid; and
(c) such other information as the Village may from
time to time require.
Such application shall be accompanied by bills, invoices,
receipts, cancelled checks or other statements showing the
amounts of such expenses, together with any additional
documentation which the Village may request.
6.2. Reimbursement or payment of expenses. The Village
shall reimburse the Participant from the Participant's Dependent
Care Assistance Account for Dependent Care Expenses incurred
during the Plan Year for which the Participant submits
documentation in accordance with Section 6.1. The Village may,
at its option, pay any such Dependent Care Expenses directly to
the Dependent Care Service Provider in lieu of reimbursing the
- 7 -
Participant. No reimbursement or payment under this Section 6.2
of expenses incurred during a Plan Year shall at any time exceed
the balance of the Participant's Dependent Care Assistance
Account for the Plan Year at the time of the reimbursement or
payment. The amount of any Dependent Care Expenses not
reimbursed or paid as a result of the preceding sentence shall be
carried over and reimbursed or paid only if and when the balance
in such Account permits such reimbursement or payment.
Reimbursement or payment of claims shall be made only once a
month.
6.3. Report to Participants on or before January 31 of each
year. On or before January 31 of each year, the Administrator
shall furnish to each Participant who has received dependent care
assistance during the prior calendar year a written statement
showing the amount of such assistance paid during such year with
respect to the Participant.
ARTICLE VII
Termination of Participation
In the event that'a Participant ceases to be a Participant
in this Plan for any reason, the Participant's compensation
reduction agreement relating to dependent care assistance shall
terminate. The Participant (or his estate) shall be entitled to
reimbursement only for Dependent Care Expenses incurred within .
the same Plan Year and prior to the 90th day after the date
participation is. terminated, and only if the Participant (or his
M
sM
estate) applies for such reimbursement in accordance with Section
6.1 on or before the earlier of (1) 180th day following the date
participation is terminated, and (2) the 90th day after the close
of the Plan Year. No such reimbursement shall exceed the
remaining balance, if any, in the Participant's Dependent Care
Assistance Account for the Plan Year in which the expenses were
incurred.
ARTICLE VIII
Administration
8.1. Plan Administrator. The administration of the Plan
shall be under the supervision of the Administrator. It shall be
a principal duty of the Administrator to see that the Plan is
carried out, in accordance with its terms, for the exclusive
benefit of persons entitled to participate in the Plan without
discrimination among them. The Administrator will have full
power to administer the Plan in all of its details, subject to
applicable requirements of law. For this purpose, the
Administrator's powers will include, but will not be limited to,
the following authority, in addition to all other powers provided
by this Plan:
(a) To make and enforce such rules and regulations as
it deems necessary or proper for the efficient
administration of the Plan, including the establishment of
any claims procedures that may be required by applicable
provisions of law:
- 9 -
(b) To interpret the Plan, its interpretation thereof
in good faith to be final and conclusive on all persons
claiming benefits under the Plan;
(c) To decide all questions concerning the Plan and
the eligibility of any person to participate in the Plan;
(d) To appoint such agents, counsel, accountants,
consultants and other persons as may be required to assist
in administering the Plan; and
(e) To allocate and delegate its responsibilities
under the Plan and to designate other persons to carry out
any of its responsibilities under the Plan, any such
allocation, delegation
or designation to be by written instrument and in accordance
with applicable requirements of law.
8.2. Examination of records. The Administrator will make
available to each Participant such of its records under the Plan
as pertain to him, for examination at reasonable times during
normal business hours.
8.3. Reliance on tables, etc. In administering the Plan,
the Administrator will be entitled to the extent permitted by law
to rely conclusively on all tables, valuations, certificates,
opinions and reports which are furnished by accountants, counsel
or other experts employed or engaged by the Administrator.
8.4. Named fiduciary. The Administrator will be a "named
fiduciary" for purposes of Section 402(a)(1) of ERISA with
- 10 -
authority to control and manage the operation and administration
of the Plan, and will be responsible for complying with all of
the reporting and disclosure requirements of Part 1 of Subtitle B
of Title I of ERISA.
8.5. Claims and review procedures.
(a) Claims procedure. If any person believes he is
being denied any rights or benefits under the Plan, such
person may file a claim in writing with the Administrator.
If any such claim is wholly or partially denied, the
Administrator will notify such person of its decision in
writing. Such notification will be written in a manner
calculated to be understood by such person and will contain
(i) specific reasons for the denial, (ii) specific reference
to pertinent Plan provisions, (iii) a description of any
additional material or information necessary for such person
to perfect such claim and an explanation of why such
material or information is necessary and (iv) information as
to the steps to be taken if the person wishes to submit a
request for review. Such notification will be given within
90 days after the claim is received by the Administrator (or
within 180 days, if special circumstances require an
extension of time for processing the claim, and if written
notice of such extension and circumstances is given to such
person within the initial 90 day period). If such
notification is not given within such period, the claim will
be considered denied as of the last day of such period and
such person may request a review of his claim.
(b) Review procedure. Within 60 days after the date
on which a person receives a written notice of a denied
claim (or, if applicable, within 60 days after the date on
which such denial is considered to have occurred) such
person (or his duly authorized representative) may (i) file
a written request with the Administrator for a review of his
denied claim and of pertinent documents and (ii) submit
written issues and comments to the Administrator. The
Administrator will notify such person of its decision in
writing. Such notification will be written in a manner
calculated to be understood by such person and will contain
specific reasons for.the decision as well as specific
references to pertinent Plan provisions. The decision on
review will be made within 60 days after the request for
review is received by the Administrator (or within 120 days,
if special circumstance require an extension of time for
processing the request, such as an election by the
Administrator to hold a hearing, and if written notice of
such extension and circumstances is given such person within
the initial 60 day period). If the decision on review is
not made within such period, the claim will be considered
denied.
- 12 -
8.6. Nondiscriminatory exercise of authority. Whenever, in
the administration of the Plan, any discretionary action by the
Administrator is required, the Administrator shall exercise its
authority in a non - discriminatory manner so that all persons
similarly situated will receive substantially the same treatment.
8.7. Indemnification of Administrator. The Village agrees
to indemnify and to defend to the fullest extent permitted by law
any Employee.serving as the Administrator or as a member of a
committee designated as Administrator (including any Employee or
former Employee who formerly served as Administrator or as a
member of such committee) against all liabilities, damages, costs
and expenses (including attorneys' fees and amounts paid in
settlement of any claims approved by the Village) occasioned by
any act or omission to act in connection with the Plan, if such
act or omission is in good faith.
ARTICLE IX
Amendment or Termination of Plan
9.1. Amendment of Plan. The Village reserves the power at
any time or times to amend the provisions of the Plan to any
extent and in any manner that it may deem advisable, by.a written
instrument signed by the president of the Village.
9.2. Termination of Plan. The Village has established the
Plan with the bona fide intention and expectation that it will be
continued indefinitely, but the Village will have no obligation
whatsoever to maintain the Plan for any given length of time and
- 13 -
may discontinue or terminate the Plan at any time without
liability. Upon termination or discontinuance of the Plan, all
elections and reductions in compensation relating to the Plan
shall terminate, and reimbursements shall be made only in
accordance with Article VII.
ARTICLE X
Miscellaneous
a
10.1. Communication to Employees. Promptly after the Plan
is adopted, the Village will notify all Employees of the
availability and terms of the Plan.
10.2. Limitation of rights. Neither the establishment of
the Plan nor any amendment thereof will b
any Participant or other person any legal
against the Administrator or the Village,
provided herein, and in no event will the
service of any Participant be modified or
hereby.
e construed as giving to
or equitable right
except as expressly
terms of employment or
in any way be affected
10.3. Benefits solely from general assets. The benefits
provided hereunder will be paid solely from the general assets of
the Village. Nothing herein will be construed to require the
Village or the Administrator to maintain any fund or segregate
any amount for the benefit of any Participant, and no Participant
or other person shall have any claim against, right.to, or
security or other interest in, any fund, account or asset of the
Village from which any payment under the Plan may be made.
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10.4. Nonassignability of rights. The right of any
Participant to receive any reimbursement under.the Plan shall not
be alienable by the Participant by assignment or any other
method, and will not be subject to be taken by his creditors by
any process whatsoever, and any attempt to cause such right to be
so subjected will not be recognized, except to such extent as may
be required by law.
10.5. No guarantee of tax consequences. Neither the
Administrator nor the Village makes any commitment or guarantee
that any amounts paid to or for the benefit of a,Participant
under Article VI will be excludable from the Participant's gross
income for federal or state income tax purposes, or that any
other federal or state tax treatment will apply to or be
available to any Participant. It shall be the obligation of each
Participant to determine whether each payment under Article VI is
excludable from the Participant's gross income for federal and
state income tax purposes, and to notify the Village if the
Participant has reason to believe that any such payment is not so
excludable.
10.6. Indemnification of Village by Participants. If any
Participant receives one or more payments or reimbursements under
Article VI that are not for Dependent Care Expenses, such
Participant shall indemnify and reimburse the Village for any
liability it may incur for failure to withhold federal or state
income tax or Social security tax from such payments or
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reimbursements. However, such indemnification and reimbursement
shall not exceed the amount of additional federal and state
income tax that the Participant would have owed if the payments
or reimbursements had been made to the Participant as regular
cash compensation, plus the Participant's share of any Social
Security tax that would have been paid on such compensation, less
any such additional income and Social Security tax actually paid
by the Participant.
10.7. Governing law. -The Plan will be construed,
administered and enforced according to the laws of Illinois.
10.8. Gender. A pronoun or adjective in the masculine
gender includes the feminine gender and the singular includes the
plural, unless the context clearly indicates otherwise.
IN WITNESS WHEREOF, the Village has caused this Plan to be
executed in its name and on its behalf by its officers thereunto
duly authorized this day ofT_ 1992.
THE VILLAGE OF DEERFIELD
By
Its yi 44,15cE AF_S ;ALAI tf P.QD 7��rl
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