Salary Reduction Plan. The Board shall maintain a salary reduction plan which meets the requirements of Section 125 of the Internal Revenue Code of 1986, as amended (Code"). If at any time Code Section 125 or its related regulations are amended, the parties shall promptly revise the plan to comply with the amendment(s). An employee may elect to participate by choosing to receive benefits for the purposes set forth below, and in the amounts specified. The total amount elected shall be deducted from each employee’s compensation along with the deduction of contributions to the Illinois Municipal Retirement Fund which may be required on such salary reduction plan payments. Prior to the beginning of the plan year (which begins January 1 of each year), each employee shall, in writing, designate the dollar amount(s) elected for that year for each of the following benefits:
A. Premiums for group health insurance.
B. Reimbursement for the amount of medical care expenses not covered by insurance or otherwise, as defined in Code Section 213, up to a maximum of five thousand dollars ($5,000.00).
C. Reimbursement for dependent care assistance as defined in Code Section 129, up to a maximum of five thousand dollars ($5,000.00) or two thousand, five hundred dollars ($2,500.00) if a married participant files a separate return. The amounts designated may not be changed during the plan year except on account of a change in the participant's family status or other circumstance provided in Code Section 125 or its related regulations. Any amount designated for reimbursement which remains unused at the end of a plan year shall be forfeited and not otherwise paid to the employee during that year, or carried over to a succeeding plan year. The total amount(s) of the benefits elected pursuant to the plan shall be deducted in equal amounts from the employee's salary payments during the plan year, unless otherwise specified. Claims for reimbursement may be submitted no more than once per month, unless an agreement with a plan administrator provides otherwise. Claims for reimbursement must be for services received during the plan year.
Salary Reduction Plan. The Board proposes the establishment of a Section 125 Salary Reduction Plan with the provisions contained therein as follows:
Salary Reduction Plan. The Board establishes an IRC Section 125 Cafeteria Salary Reduction Plan (Plan) whereby each eligible Professional Employee has the right to reduce his/her compensation in the amount necessary to purchase from those nontaxable benefits contained in the Plan and selected by the Professional Employee. Plan benefits and participation regulations are contained in the Plan, and are subject to Federal laws and regulations.
Salary Reduction Plan. The Board will establish an IRS Section 125C Salary Reduction Plan or Health Savings Account to afford VEA employees the opportunity to pay qualified amounts for health insurance, premiums, co-pay and deductibles, child care, etc., with pre-tax dollars, thus accruing net savings to employees for qualified out-of- pocket expenses.
Salary Reduction Plan. Each licensed teacher may enter into a salary reduction agreement with the board for the purpose of allocating an annual amount not to exceed $9,500 to the USD 358 Section 125 Salary Reduction Flexible Benefit Plan. The board shall determine the benefits to be included in the flexible benefit plan. (The board further reserves the right to determine the vendor and the individual benefits of each insurance benefit included in the plan.) The board shall make reasonable efforts to include a family medical insurance program together with a cancer insurance and dental insurance plan as options.
Salary Reduction Plan. The Board of Education shall provide a Salary Reduction Plan (under the guidelines of IRS Section 125) for those employees who qualify to pay insurance premiums with pre- tax dollars, defer dependent care and/or medical care expenses.
Salary Reduction Plan. The Board of Education shall establish and administer a salary reduction plan under Internal Revenue Code Section 125. The amount of salary to be reduced shall not exceed the sum authorized by Internal Revenue Code Section 125. Licensed employees may select any combination of health insurance, salary protection insurance, cancer insurance, unreimbursed medical expenses, and day care expenses as non-taxable fringe benefits. The dollar amount not designated as fringe benefits will be paid in cash, less taxes as required by IRS regulations and USD 417 obligations for FICA, Medicare, and unemployment insurance.
Salary Reduction Plan. 8.9.1 Payroll deductions for a health insurance plan may be paid from an employee's earnings on which there will be no federal income tax withholding. Reports of earnings to MERF/XXXX and pension deductions will be based on gross earnings.
8.9.2 An employee may designate an amount per year, from earnings on which there will be no federal income tax withholding, for dependent care assistance (as defined in Section 29 of the Internal Revenue Code as amended from time to time) to allow the employee to work. Any unused balance shall not be refunded.
Salary Reduction Plan. The school district shall establish a salary reduction plan in compliance with Section 125 of the Internal Revenue Code of 1954, as amended, and applicable rules and regulations. A plan participant will be allowed to change health care insurance status if the change is due to a change in family status (e.g., marriage, divorce, death of a spouse or child, or birth or adoption of a child, spouse’s employer open enrollment, and termination or commencement of employment including covered family members). Any money set aside by the employee for any one of the benefits that remains unexpended at the end of the plan year shall revert back to the school district. Any employee may reduce his/her salary by an amount up to the statutory limit on taxable on non-taxable benefits as set forth in the plan. Once the insurance company has been selected by the Board of Education for salary reduction options, the Board shall, not later than ten (10) days prior to September 1 of the contract year, furnish each employee information regarding the benefit coverage. The employee shall make any salary reduction requests on or before the date set by the Section 125 Administrator (which is August 11, 2020) of each school year or ten (10) days after commencing work in USD 379, whichever shall last occur. That reduction shall remain in force throughout the twelve (12) ensuing months or through the August or September pay periods or upon termination of employment with the district, whichever occurs first. Once the reduction request is made for each non-taxable benefit, the only change allowed in the reduction amount shall be for a change in the health insurance premium. Items by which the employee may reduce his/her contract are as follows:
1. Health Insurance
2. Cancer Insurance
3. Salary Protection Insurance
4. Group Life Insurance up to $50,000.00
5. Medical Reimbursement/Dependent Childcare 6. Dental Insurance
Salary Reduction Plan. The Board of Education agrees to use a Salary Reduction Plan as a method to pick-up the bargaining unit member’s percentage share of the retirement contribution to the State Teachers Retirement System on behalf of the bargaining unit members under the following terms and conditions:
1. The amount to be "picked-up" on behalf of each bargaining unit member shall be equal to the percentage of the salary that the employee is required to pay for his/her retirement contribution. The bargaining unit member's annual compensation shall be reduced by an amount equal to the amount "picked-up" by the Board for the purpose of State and Federal Tax.
2. The pick-up percentage shall apply uniformly to all bargaining unit members.
3. The pick-up shall apply to all compensation including supplemental earnings.
4. Payment for sick leave, personal leave, severance, etc., including unemployment and worker's compensation, shall be based on the bargaining unit member's gross or daily gross pay prior to the reduction as basis (e.g. gross pay divided by the number of days in a bargaining unit member's contract).
5. The parties agree that should the rules and regulation of the IRS or retirement system change, making this procedure unworkable, the parties agree to return, without penalty, to the former method of employer/bargaining unit member contributions.
