Common use of Sponsorship of an Internal Revenue Code Section 125 Premium Only Plan Clause in Contracts

Sponsorship of an Internal Revenue Code Section 125 Premium Only Plan. As a method to permit Bargaining Unit Members to pay for their share of health benefit plan premiums through pre-federal income tax instead of after-federal income tax contributions, the District agrees to sponsor an Internal Revenue Code Section 125 cafeteria plan, which will be the sole method through which Bargaining Unit Members will have access to the benefits provided under the health benefit plans sponsored by the District. This sponsorship is contingent upon the same being permitted pursuant to law. A group enrollment period shall be held annually, from May 1 through May 31, unless otherwise agreed. During this period, employees may elect to enroll/disenroll and/or add/delete eligible dependents in the medical, prescription, dental, and/or vision plan(s). Coverage will start on the first day of July that next follows the date of enrollment. Newly hired employees must enroll in the benefit plans in accordance with the benefit plan requirements. Otherwise, enrollment is subject to the group enrollment period or change in life event, as defined by the carrier.