125 BENEFIT PLAN. 081 The Board agrees that it will establish a cafeteria plan under Internal Revenue Code ("IRC") Section 125. The plan will be designed to permit employees to pay on a pre-tax basis their required employee contributions toward the cost of the premiums or other payments that are required under the medical plan of the District. The plan also will have two (2) flexible spending account ("FSA") features. The FSAs will be designed to permit employees to elect to make pre-tax employee contributions to one or both of the accounts; and, therefore, to have the opportunity of receiving reimbursement of (1) medical or other health expenses of an employee, employee's spouse or dependents which are not covered by the medical plan of the District or other insurance, and/or (2) dependent care expenses qualified under IRC Section 129. The terms of the cafeteria plan will be determined by the Board and the Board will interpret and administer the plan as the Board deems necessary for compliance with the IRC Section 125, other IRC provisions, and applicable regulations (including proposed regulations) and rulings thereunder. To the extent required for compliance with IRC Section 125, the Board may also provide for additional restrictions on the timing of employee elections of coverage under the medical plan of the District. The Board and its Treasurer will prepare IRS Form W-2s and withhold taxes as it reasonably believes is required by law.
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Samples: Collective Bargaining Agreement, Collective Bargaining Agreement, Collective Bargaining Agreement
