Section 125 Salary Reduction Plan. 1. The Board shall establish a fringe benefit program which complies with Section 125 of the Internal Revenue Code. The Board shall provide the opportunity for each employee to execute a salary reduction agreement, once annually, when additional benefits are selected. Once the annual allocation is made for each selected benefit, the only change which will be allowed is for a fluctuation in health care premium or marital and/or family status changes. Each teacher executing a salary reduction agreement for benefits shall allocate an annual sum to be used for the purchase of:
a. Any benefit which meets the requirements of a Salary Reduction Plan of Section 125 of the Internal Revenue Code and which has been approved for inclusion in this section by the Insurance Committee as established in paragraph 3 below.
b. A current listing of approved benefits will be given to each teacher at the beginning of the school year.
2. The deadline for completing the salary reduction agreement will be August 31 of each year. The Board shall provide each employee a description of the benefit coverage provided within ten (10) days of the beginning of the school year, or date of employment, which shall include a clear description of conditions and limits of coverage as provided above. When requested by the employee, the Board shall provide application forms and, when necessary, information about the program.
3. A committee for the selection of insurance companies and policies will be composed of six (6) teachers appointed by ACTA, three (3) administrators, one
(1) Board of Education member, two (2) classified employees selected by the classified employees and a retired teacher who is enrolled in the district’s insurance group to be selected by the committee as a non-voting member.
Section 125 Salary Reduction Plan. The district hereby adopts the Section 125 Flexible Benefit Plan for those employees who shall qualify as participants. Each participant may authorize the district to reduce his/her compensation by the amount needed for the purpose of benefits elected, less the amount of non-elective contributions. An election for salary reduction will be made on the benefit election form. The maximum amount available to each participant for the purchase of elected benefits through salary protection will be $8,000.00 per plan year or a prorated amount for a short plan year. Available Benefits will include Group Hospital and Surgery Insurance, Disability Income Insurance, Medical Reimbursement (Flex spending), Dental Insurance, Cancer Coverage, Group Life Insurance and Annuity. The Board offers payment of $510 per month toward the USD #284 group health plan for those who chose to enroll in the group health insurance program.
Section 125 Salary Reduction Plan.
1. The Board shall establish a fringe benefit program, which complies with Section 125 of the Internal Revenue Code. The Board shall provide the opportunity for each employee to execute a Benefit Selection Agreement, each year prior to plan anniversary date. Once the annual allocation is made for each selected benefit, the only change, which will be allowed, is for health insurance premium or status changes. Employees may change selected benefits, 30 days prior to the plan anniversary date to make adjustments in premium changes to health insurance or status changes.
2. A. Each Employee executing a Benefit Selection Agreement shall allocate an amount not to exceed the maximum amount of benefits for the following options:
1) Group Term Life and Accidental Death and Dismemberment (not to exceed $50,000.00 face value)
2) Approved Health Insurance
3) Cancer Insurance
Section 125 Salary Reduction Plan
