Common use of Section 125 Plan (“Cafeteria Plan”) Clause in Contracts

Section 125 Plan (“Cafeteria Plan”). A. The Board shall establish a “Cafeteria Plan” that is designed to allow employees who must make employee contributions for health care coverage to elect to do so on a pre-tax basis. The “Cafeteria Plan” shall allow employees the option to elect to participate in the dependent care and medical care flexible spending accounts (“FSA’s”) described in paragraph C below. B. The Cafeteria Plan will be designed to meet the requirements of Internal Revenue Code (“IRC”) Section 125 and applicable regulations. Accordingly, each employee will have an opportunity on an annual basis to enroll in the Cafeteria Plan. The election to participate must be submitted during the enrollment period of each school year as determined by the Board Treasurer and may not be revoked during the current plan year unless there is a change in the employee’s circumstances that, in accordance with IRC Section 125, permits the employee to change his/her election under the plan (e.g., divorce, death of spouse, change in employment status including employment status affecting a spouse or dependent, birth or adoption of a child, a child losing eligibility for coverage, a court order requiring coverage, or other enrollment rights consistent with federal law). If revoked, any account balance will be governed by paragraphs C.3. Details of the Cafeteria Plan will be provided on an annual basis at the time of enrollment and will also be available through the Board Treasurer’s office.

Section 125 Plan (“Cafeteria Plan”). A. The Board shall establish a “Cafeteria Plan” that is designed to allow employees who must make employee contributions for health care coverage to elect to do so on a pre-tax basis. The “Cafeteria Plan” shall allow employees the option to elect to participate in the dependent care and medical care flexible spending accounts (“FSA’s”) described in paragraph C below. B. The Cafeteria Plan will be designed to meet the requirements of Internal Revenue Code (“IRC”) Section 125 and applicable regulations. Accordingly, each employee will have an opportunity on an annual basis to enroll in the Cafeteria Plan. The election to participate must be submitted during the enrollment period of each school year as determined by the Board Treasurer and may not be revoked during the current plan year (January 1st through December 31st) unless there is a change in the employee’s circumstances that, in accordance with IRC Section 125, permits the employee to change his/her election under the plan (e.g., divorce, death of spouse, change in employment status including employment status affecting a spouse or dependent, birth or adoption of a child, a child losing eligibility for coverage, a court order requiring coverage, or other enrollment rights consistent with federal law). If revoked, any account balance will be governed by paragraphs C.3. Details of the Cafeteria Plan will be provided on an annual basis at the time of enrollment and will also be available through the Board Treasurer’s office.