HomeMy WebLinkAboutCC Res 4452 1996-04-08
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RESOLUTION NUMBER #~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH ADOPTING THE PROTOTYPE FLEXIBLE
BENEFITS PLAN
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
WHEREAS, the City Council (the "Council") of the City of Seal Beach (the "Employer")
desires to provide its eligible Employees with a Cafeteria Plan, as that term
is defined in Section 125(d) of the Internal Revenue code, to contain
Flexible Spending Accounts; and
WHEREAS, the Council has reviewed the draft of such a plan, entitled the Prototype
Flexible Benefits Plan (the "Plan"), such Plan being attached hereto and
made a part hereof as if fully set forth herein; and
WHEREAS, the Council has found such Plan to be in all respects suitable for the
purposes aforesaid.
NOW, THEREFORE, BE IT RESOLVED, effective as of May 1, 1996, that the Plan is
hereby adopted; and
BE IT FURTHER RESOLVED that any officer of the Employer is hereby authorized to
execute the Plan Documents.
AYES:
PASSED, APPROVED AND ADOPT~.iY the City Counci
a meeting thereof eld on the - day of
by the following e:
of Seal Beach, at
,1996,
NOES:
ABSENT, + ~ J
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Joanne M. Yeo, City Clerk of Seal Beach, California, do hereby~that the
foregoing resolution is the original copy of Resolution Number ~ on file in the
office of the City Clerk, passed, approved and adoptedJJ!!e City Cou the City of
Seal Beach, at a regular meeting thereof held on the - day of .
96.
Resolution Number #~d2..
ADOPTION AGREEMENT
FOR THE
FLEXIBLE BENEFITS PLAN
OF
City of Seal Beach
SPONSOR: City of Seal Beach
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Item 1: Plan N_
Plan Title: City of Seal Beach Flexible Benefits Plan
The Sponsor shall:
[X ] establish the above-named Plan.
Item 2: Effective Dale
The Effective Date of this Plan adoption or amendment shall be May I, 1996.
Item 3: Plan Year
[X ] There shall be a short Plan Year the first Plan Year after adoption of May I, 1996 through
December 31, 1996.
Item 4: Plan Number
All welfare plans have a three-digit Internal Revenue Service (IRS) number starting with .5.. Each I
welfare plan of the Employer should be assigned consecutive plan numbers (e.g., 501, 502, 503,
etc.). The IRS Welfare Plan Number for this Flexible Benefits Plan will be: 501.
Item S: Spomor Information
The Sponsor furnishes the following information:
Full Legal Name:
Business Address:
Nature of business:
Phone Number:
City of Seal Beach
211 8th Street, Seal Beach, CA 90740
city government
310-431-2527
Date of Incorporation or
Commencement of Business: 1915
Sponsor's IRS Employer ID Number: 95-6000794
Sponsor's Fiscal Year Ends: June 30
Type of Entity: governmental entity.
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The following plans shall be component plans within the Flexible Benefits Plan:
group medical
group dental
group life group vision
group disability
Item 6: OIlIer Adopting Employers
none
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.Resolution Number 4~.5"..t
Item 7: PIan Benefils
This Plan shall cover the following benefits option:
Flexible Spending Accounts for Dependent Care Expenses, Medical Expenses, and Personal
Premiums, including automatic premium conversions for employee-paid premiums on Group-Term
Life Insurance up to $50,000 of coverage and Medical coverage.
Note: Dental Insurance, Vision Insurance, Cancer Insurance and Intensive Care
Insurance are covered as Medical Care Expense Benefits.
Item 8: Eligibility
The Plan shall cover only Employees of the Employer. The term "Employee" shall mean:
[X ] Full-Time Employees of the Employer only, who work at least nine (9) months in each
calendar year and thirty (30) hours per week.
Each current Employee shall be eligible to participate as follows:
[X ] immediately.
Each new Employee shall be eligible to participate in the Plan as follows:
[X ] immediately.
Item 9: Limitation on Benefils
With respect to each Participant there shall be a limit on Medical Care Benefits incurred in a
Period of Coverage (i.e., Plan Year under the Plan) equal to his or her Pay Conversion
Contributions the Participant elects to make to the Plan during the Period of Coverage in his or her
enrollment form, subject to an overall limit of:
[ ] an amount described as follows: minimum of $30 per month and maximum of $200 per month.
Item 10: Person to Handle Communications
The person who should be contacted by employees regarding questions about the Plan is
Ginger Bennington, whose telephone number is 310-431-2527.
Item 11: Plan Administration Expenses
Plan administration expenses shall be:
[X ] paid by the Employer.
Item 12: Special Provisions
The following special provisions shall apply to this Plan:. none
IN WITNESS WHEREOF, the undersigned have adopted this Flexible Benefits Plan as
described by this Adoption Agreement and its associated documents as of U/JM.. A , 19~
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By:
Title: Ci tv Manaqer
Resolution Number #~
City 01 Seal Beach
SUMMARY PLAN DESCRIPTION
FDR YDUR
FLEXIBLE BENEFITS PLAN
Employee benelits ere important because you ere important to the City. This compeny's greatest strengths are the talents. skills and energy you bring
to work. Recognizing this, we have adopted a new kind of employee benem plan. called a flexible benelits plan, In order to provide you with unique overall
protection and tax savings.
This is how the Plan works to save you taxes: Tax laws will permit you to pay certain expenses with dollars thet are nottexed. The dollars that you I
~ use to pey these expenses have already been taxed. end In lact, they are generally subject to two taxes: ledaral and state income tax and Social
Security tax.
To save on these taxes, you simply direct the company to pey your shere 01 medical premiums with belore-tex income and/or put a part 01 your pay in
a Flexible Spending Account belore you get it and belore your pay is taxed. You will be reimbursed lor covered expenses out 01 our Account with your
pay dollars which have not been subject to income tax and Social Security tax. In this way the Rexible Spending Account lets you pay your covered
expenses belore taxes are withheld. with belore-tax dollars.
Ws that simplel The result is that you save on taxes. You will actually see the tax savings because you may be able to buy other special benelits with
this savings. The tex laws will probably change in the luture. but WI want to make the benelits 01 these tax savings aveilable to you while they lasl.
The document by which your Rexible Benelijs Plan was adopted is celled an "Adoption Agreement". The Adoption Agreement is ettached to this Summery
Plan Description and is an important part 01 this Summary. Please reler to the Adoption Agreement when it is relerred to in this Summary.
1. When does the Plan stert?
It starts on the date set out in "em 2 01 the Adoption Agreement and will be ellective the lirstlull peyroll period starting on or alter that date. Expenses
incurred or paid prior to that date will not be covered.
2. Can enyone loin?
First 01 all, you have to be working lor the Plen Sponsor dascribed in "em 5 or an Adopting Employer described in "em 8. You will also heve to meet
the delinition 01 "Employee" sat out in lIem 8. (Both the Sponsor and Adopting Employers are simply called the "Employer" in the Summary Plen
Description.) II you currently pay en insurance premium oUl 01 your own pocket, you may sign up lor the premium conversion benelit so that instead 01 I
heving to pey the premium with eller.tex dollars, you can pay the premium with belore-tax dollars and seve yoursell money. This payment 01 an insurence
premium with belore-tex dollars is called a "Premium Conversion" leature.
For coverege under a Medical Rexible Spending Account or a Dependent Care Rexible Spending Account (see also Question 4 regarding how Rexible
Spending Accounts work~ you will indicate the amount 01 payroll deduction on the enrollmentlorm. A Rexible Spending Account is called "Rexible" because
you decide how much is to be pUl in and whet your maximum benefit will be. Upon lilling oUl an enrollmentlorm, you begin to participate in the Plan
during the next lull peyroll period. Your enrollmentlorm must be given to the Plan Administrator etleast14 days in edvance 01 the next payroll period
so that the system can be modified to rellect your participation in the Plen. Otherwise, you will not begin to perticipete until the loll owing payroll period.
Please note. howaver, that il you don't join the Rexible Benelits Plan when you are first able to, you cen't just join anytime alterwards.
You may join the Plan only once each year - during the enrollment period prior to the lirst day 01 the Plan Year. Your enrollment then would be lor
participation starting the first peyroll period bBllinning on or alter the first dey 01 the Plan Year.
II your employment terminates. your participetion in the Plen will end. However, as explained later, you will be eligible to receive reimbursementlrom
axisting balances, il any, for expenses incurred during your period 01 coverage under the Plan. You may be eligible lor continued CQverage under the Plan
under COBRA by continuing to remij monthly amounts (plus a two percent administretion charge). This will be lully explained at the time you become
ehgible. II you leave the Compeny but return to work, you can join the Plan egein. unless you raturn to work the same Plan Year you lelt. In that cese,
you must wait until the next Plan Year to rejoin.
3. What benelits are orovided undar the Plan?
The Plan permits you to pay lor certain benelits coverege with belore-tax dollars. The coverege permitted is set out in lIem 7 01 the Adoption Agreemant.
This Plan permits you to pay lor medicel expenses, dependent care expenses, and personal premiums lor medical coverage on a belore-tax basis Irom Rexible
Spendino Accounts in eddition to Premium !:Goversions 01 your group-term lile or medical insurance premiums, il any. -
This Summery Plen Description is designed to provide you with inlormation ebout how the Rexible Benefits Plan works. This Summary Plan Oescription
is not intended to dascribe those insured or employer sellinsured benelits (such as medical or health plan benelits) offered under this Rexibla Benelits Plen.
Thpse benefits are described in the summary plan descriptions lor those programs. For instance, they are prepared by the insurence companies which
provide insurance coverage. The summery plan descriptions lor those plans should be con suited about the benelijs provided under those programs.
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This Rexible Benefits Plan merely changes how you pey for cpverage under those other plans by making it easier lor you to pay on e belora-tax basis.
The Medical Rexible Spending Account, the Dependent Care Rexible Spending Account, end the Personal Premium Rexible Spending Account a18 ~ provided
under other programs pr plans. so they are described in this Summary Plen Description.
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4. How does the before-tax payment work?
II works in two different ways, dapanding on whBlher insurance premiums are being covered by .Premium Conversion. or whathar a banafit is being paid
from your Medical Aexible Spending Account, Depandant Care Aaxible Spanding Account, or Personal Premium Aaxible Spending Account.
Premium Conversions. R you elect a benefit that is paid for by an insurance premium, and the premium is one which can be paid with before-tax doUars,
the payroll system will pay for the premium with before-tax dollars by adjusting the laxes you pay. The taxable portion of your paycheck will be adjusted
by the amount of your premium payment for coverage. This adjustment bacomas a contribution you direct your Employar to make to the Plan on your
behalf to fund your benefit. Since_your taxable pay is adjusted downwerd, your taxes ere lowered. Since your laxes ere lowerad, there is tax
savings-which l!!! get to use for other purposes.
I The insurence premiums that can be peid for with before-tax dollars are medicel, dantel, vision, cencer end intansive care insurance premiums you pay.
Also, the premiums you pey for up to the first $50,000 in group-tarm lifa insurance coverege can be peid for with before-tax dollars. Premiums for
coverage of more than $50,000 of group-term IRe are not payable with before-tax dollars. Whole life or universal life insurance premiums also are ~
eligible for before-tax paymant.
Aexible Spending Accounts. Medicel Aexible Spending Accounts, Depandent Care Expense Accounts, and Personel Premium Expense Accounts work like
this: Alollfl with your eJection to participate, you decide how much money lup to the limits described later) you want to go into either your Medical Flexible
Spending Account, your Dependent Care Expense Account, or your Personal Premium Expense Account, or all (depanding on the Benefit Coverage Option
selected by your employer in Item 7 of the Adoption Agreement). The contributions are made by an adjustmant to your pay so that the contributions are
mede before texesto your Account by your Employar. After the contributions ere in your Account, you may submit receipts listing your covered expenses
to the Plan Administrator together with a Certification Form for benefits covered by the Accounts. (The Certificetion Form is aYBilable from the Plan
Administrator.) The Plan Administrator will reimburse you for your covered expenses from your Account(s). Because your contributions want into your
Account on e before-tex basis, upon reimbursement your benefits will have likewise been paid to you on a before-lax basis.
5. What expenses ere covered under my Medicel Aexible Spending Account?
Almost all of your medical expenses not covered by insurance cen be covered under the Medical Aexible Spending Account. This includes the diagnosis,
cure, mitigation, treatment or prevention of sickness, injury or defect. Therefore, among covered medical expenses are payments for the purpose of effecting
any structure or function of the body, for eny hospital or nursing charges, optometrical, opthalmalogical or auditory care, dental care, psychiatric care,
prescription drugs, insulin, ayeglasses, hearing aids and simnar prosthetic devices, and related madical travel expenses.
However, because under the law the balance in your Medical Aaxibla Spending Account at the end of the Plan Year consisting of contributions of your
pay made to the Plan will be forfeited (that is, lost forever; not returnable to you) if not used, you are urged to limit contributions from your pay to your
Account to that amount you think you will haYB as covered expenses during the Plan Year. (The Plan Year is set forth in Item 3 of the Adoption
Agreement.) This is very important: this .use it or lose it. rule is required by law.
IThe amount you may wish to contribute to your Account might be limited for instence, to the emount of your deductible paymants-that is, the amDunt
you pay before your insurance begins to pay-under the medical insuranca program you elect under the Plen. (Your Plan Administrator can tell you what
your deductibles are.) II may be a lesser or greater amount which l!!! elact. For instance, aller the deductibla is peid by you, you and your insuranca
company may share in paying medical costs. You might elact to put money into your Account for these medical cOllaymants. But remembar, you 1088
what yOU don~ use in the Account by the end of the Plan Yeer, So unless you know you are going to. have medical expenses, don~ contribute to cover
expenses that you may not incur. On the other hand, don~ forget to contribute for expenses you can be pretty sure about, like dental checkups, braces
or eyeglasses.
Raimbursemants of covered expenses under your Medical Aexible Spending Account will be mede etleast querterly.
6. Are there eny limits to covered expenses under, or contributions to, my Medical Flexible Spending Account?
First, no injury or sickness resulting from engegement in a criminalenlarprise is covered, nor is a self-inflicted injury or sieleness expense covered. As of
January 1, lB91, the cost of cosmetic surgery not required by illness or injury cannot be covered. Also, you 'will not be reimbursed for expenses covered
by eny insurence program which reimburses you or directly peys such expenses. In other words, you cannot be reimbursed twica, and trying to do so may
be a crima undar tha law. Also, you cannot be reimbursed for expanses which should properly be submittad to your Dependent Care Aexible Spending
Account. You will be reimbursed from your Account for covered expenses at any time throughout the Plan Year, up to the maximum amount you elected
to contribute to your Account. The company will be reimbursed by you out of future payroll contributions you maka to the Plen, or will offset other
amounts it owes to you as permitted by law. lIem 9 of the Adoption Agreement shows other limill for Medicel Aexible Spanding Accounllln your Plan.
7. What eQenses are covered under my Personal Premium Reimbursement Account?
You may elect pre.tax premium contributions for health, dental, or vision insurance paid directly, not through the company group insuranca program, but
for the banefit of you or your dependents. You may also elect pre.tax pramium contributions for disability insuranca providing benefill to you.
Iha amount of personal insurance pramiums elected will ba redirected from your pay pro-rata each pay period and credited to a Personal Premium
eimbursemant Account. A claim form must be submitted along with any other documentation raquired by the Company or Administrator showing proof
at the expense was incurred and not reimbursed from any other source.
Reimbursement from this account will be made only for the amount of pramiums paid and allributableto coverage providad for the current plan year.
8. What expenses ere covered under my Dapendant Cara Aexible Spending Account?
Dependent care services performed either in your home or outside your home for your children under aga 13 which are naC8ssary in order for you to
maintain your job ara expenses covered by your Dependant Care Flexible Spending Account. However, it does not cover services provided by another of
Resolution Number ~~
your dependents, your spouse, or one of your children under 19 years of age. H the services ere performed by a day care center which provides care to
six or more individuals who are not residents there, ~ must be licensed and must be foUowing all state regulations. Just as under the Medical Flexible
Spending Account. in order to draw against your credited balance in your Dapendent Care Flexible Spending Account, you must first submit to the Plan
Administrator a receipt and a certijication form detailing your expenses. Your dependent care expenses will then be reimbursed to you from your Dependent
Care Flexible Spending Account and this will perm~ you to pay your dependent care expenses with before-tax dollars.
Please note that if you select dependent care expense coverage, you must be careful when specifying the amount that you want your pay adjusted to
provide this coverage for you-just as in the Medical Flexible Spending Account. You alone make this decision, but it should reflect 2!!!Y. the dependent
care expenses you expect to have during a plan year. H you overestimate your expenses, you cannot get the money back under the law after the end I
of the Plan Yaar.
The lew requires thet you use the emount in your Account or YOU will lose it at the end of the Plan Year. Be careful about deciding how much of your
pay should be adjusted to pay dependent care expenses.
9. Are there eny limits to my covered eXllen"S under, or conUibutions to, my Dependent Care Account1
Yes. there are soma rasUictions on tha amount of your pay which may be adjusted to provide benefits under your Dedpendent Cere Account. For instance,
your benefit is limited to the earned income of either you or your spouse. whichever is less. Consequently, your pay adjustments should not exceed this
amount. H your spouse is incapac~eted or a student in a bona fide college or university for five or more months each calendar year, then, even if your
spouse actually had no earned income, your spouse will be deemed by law to have earned income of $200.00 a month if only one dependent is eligible
for dey care assistance, and $400.00 a month if more than one dependent is eligible for day care assistance. Furthermore, there Is a $5.000.00 overall
maximum on your pay edjustments under the law and $2,500 if you are married, but ere filing a separate fedaral income tex return. There is also an
overelllegallim~ which applies to people who own more than five percent of the company. If this epplies to you, you should ask the Plan AdminisUator
about this limitation. Finelly, you cannot take another deduction or tax credit with respect to expenses you raceive reimbursement for on a before-tax basis
as a dependent care expense benefit under the Plan.
10. Would I be better off taking the tax credit 'nsteed of paying my dependent cere expenses under the Flexible Benefits Plan?
You cannot take both. You!!!!y be better off taking the tax credit, but it depends on your income level (considering the income of your spouse) and the
number of dependents you have. Generally you will find that the Flexible Benefits Plan generates more tax savings where family income exceeds $28,000
per year. However, we urge you to seek competent tax advice before you make the decision.
11. Can I change my election under the Plan?
Your benefit election is fixed for the remainder of the Plan Yeer after you make ~ and cannot be changed under the law. However, if your mar~al status I
changes due to a divorce or marriage, or if your number of depandents changes, or your spouse.s insurence protection changes because his or her
employment, begins, changes or terminates, you can make a change in your election consistent with your change in marital status, change in number of
dependents or spouse's change in coverage. You must give written notice of the change to the office. Any chenge will ba effective as soon as the payroll
system can be adjusted. You may also chenge your benefit elections for the next Plen Year by giving the Plan Administrator a naw Enrollment Form at
leest fourteen (14) days before the first day of that Plan Year. You may obtain new Enrollment Forms. from your Plan Adminismtor.
12. What happens ij my employment terminates?
If your employment terminates, you will become ineligible to receive any further pay adjustments for insurance premiums peid after the pay period in which
your employment ends. However, you may continue to draw against your Medical Flexible Spending Account or Dependent Care Flexible Spending Account
for expenses incurred prior to your termination. H you ara eligible under COBRA, you may continue in the Plan until the end of the Plan Year by continuing
to pey monthly contributions into your Flexible Spending Account. If desired. you mey heve the balance of the year's contributions deducted from your
final paycheck with before-tax dollars. H you continue in the Plan under COBRA. you may continue to incur cleims against your Flexible Spending Account
to the end of the Plan Year.
13. Ooes reducing my Social Security taxes reduce my Social Security benefits?
Yes, ~ does very slightly. But these Social Security tax savings provide you with benefits~. At least you'll know that whet you would have lost in
Social Security teses will actuelly be used for ~ benefit.
14. What if I do not want to DIY eny pert of my benefits before taxes?
You may still choose the coverage you went, but it will be paid in aftar-tax dollars, and will result in your heving no tax advantages from the Plan such
as by paying expenses with before-tex dollars. The choice is totelly up to you, however.
15. Can I also deduct my covered expenses for which I have received payroll deductions when I prepare my Income tax return at year end?
No, you should not deduct any of these covered expenses if you have been reimbursed under the Plan, since you will already have receivad the "tax
benefits" at the time your pay was adjusted to pay the covered expenses. In effect, a tex deduction has alleedy been taken. Actuelly, in all ceses you
are better off from a tax view-point under the Plan when you get a dollar for a dollar "tex benefit" under the Plan for medical expenses,
because you get only a deduction for medical expenses lather than drugs) in excess of seven and one-balf percent of your adjusted gross income when
you itemize deductions on your tax return.
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16. Who has the finel say about how the Plan is run?
The Plan is administered by your Employer, which is officially the Plan AdminisUator. The Plan AdminisUator, however, may appoint a person or committee
to handle the day-to1Iay operations of the Plan. This \I8Ison or committee's job is to maka sura that the Plan works smoothly and fairly. The Plan
AdminisUator has final say about how the Plan is run. To get in touch with the Plan AdminisUetor, just go to your company's business office.
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17. Can the Plan be amendad or terminatad?
This Aaxibla Benefits Plan is intended to ba 01 indalinita duration, but tha company must rasarYe the right to amend or tarminate the Plan at any time
for any reason. II tha Plan is tarminated, no insurance pramiums will be paid on a balore-tex basis alter the pay pariod in which Plan tarmination occurs.
With respact to the Medical Aexibla Spending Account and the Depandent Cara Rexible Spending Account, you may continue to drew against your Accounts
for the 8III0oots in the Accounts as of tha date 01 Plan 8IIIandment or terminalion througll tha remainder of that Plan YBlr, unless !ha law is challlled to
prevent this. Your company must retain these rights under tha Plan in case, for Instance, the Plan is difficull to administer, or II there is a change in the
law.
18. Can my election be amanded?
les, the Plan Administrator must reserve the right to change elections 01 highly-eompansated paople il their e1actions may result in Plan discrimination.
ou will be contacted by the Plan Administrator If fhls is necessary and you are involved.
19. Are there eny special provisions to our Plan?
See Item 12 for eny special provisions to the Aexible Benefits Plan.
20. " I heve any auestions, who should I contect?
Just call or go see the person set out in Item 10 of the Adoption Agreement.
GENERAL INFORMATION ABOUT THE PLAN
The sponsor of the Plan is set out in Item 5 of the Adoption Agreement. It is also the agent for sarvice ol/agal process under the law. Other Adopting
Employars ara set out in Item 6 01 the Adoption Agreement. Some ganeral information about your Plan and the Item of tha Adoption Agreemant whera
it may ba lound lollows:
Plan Nama: Itam 1
Plan Administrator: The Sponsor
Sponsor's Address: Item 5
Plan Number: Itam 4
Talephone Numbar: Same as tha Sponsor
Sponsor's identification Number: Item 5
Plan Year: Itam 3
Address: Same as !ha Sponsor
Sponsor's T alephone Number: Itam 5
Iou believe you have a claim for benefits undar the Plan which has baen overlookad or denied, your claim should be submitted to tha Plan Administrator
Ich administers the Plan. You cen contact the Plan Administrator through the person set out in Item 10 of the Adoption Agreement. Paymant 01 claims
der tha Plan will ba made by tha Plan Administrator. "your claim for banafits undar the Plan is danied, tha Plan Administrator will provide notica to
you in writing of the denial within a rnsonable time, satting lorth the specific raasons lor such denial. You may than request a review of the decision
denying the claim.
Una of fhe purposes 01 fhe Employee Retiremanllncome Security Act of 1974 '"ERISA"/ is 10 provide participanls with betIer information concerning their
benelit plans. It also granted additional rights to plan members and thair beneficiaries. This report summarizes tha information, protaction and rights
available to participants and beneficiaries of the Plan.
You may axemine, without charge, at the Plan Administrator's oflica, all Plan documents Iiled with the U.s. Department 01 Labor, such as annualreporls
and Plan descriptions. You may obtain copies 01 all the above materials upon written request to the Plan Administrator, which will make a reasonable
charge lor copies. You are also entitled to receive a summary 01 tha Plan's annuallinancial report. The Plan Administretor is required by law to lurnish
uoo participant with a copy of this summary aMual report.
In addition to creating rights lor Plan Participants, ERISA imposes duties upon the people who are responsible lor the operation 01 the employee banefrt
plan. The people who operate your Plan, celled "fiduciaries" 01 the Plan. have a duty to do so prudently and in the interest of you and other Plan
participants and beneficiarias. No one at your company will or may fira you or otherwise discriminata against you In any way to prevent you Irom obtaining
a benefit or exercising your rights under ERISA. "your claim lor a benetit is denied, in whole or in part, you must receive a written explanation of the
reason lor the denial. You have the right to hava the Plan Administrator review and reconsider your claim.
Whila almost any disagreement over tha Plan and its operation should be able to be sattled honestly and lairly, on rare occasions disputes may exist. Under
ERISA, there are steps you can take to anforce the above rights. For instance, if you request materiels from the Plan and do not receive them within thirty
(30) days, you may file suit in a lederal court. In such a case. the court may require the Plan Administrator to provide the materials and pay you up to
$100.00 a day until you receive the materials. unless ths matarials were not sent because 01 reasons beyond the control of the Administrator. If you have
Ilaim lor banefits which is denied or ignored, in whole or in par!, you may file suit in a stata or lederal court. "it should happen that Plan fiducierias
suse tha Plan's money, or If you are discriminatad against lor asserting your rights, you may seek assistancelrom the U.S. Department 01 Labor, or you
y file suit in a federal court. The court will decide who should pay court costs and lees. "you are successlul, the court may order the person you
have sued to pay these costs and fees. "you lose, tha court may order you to pay these costs and lees. An example 01 this would be it it finds your
ciaim is frivolous. "you hava any questions about this statement or abolJt your rights under ERISA, you should contact the nearest Area Ollice 01 tha
U.S. Labor-Management Services Administration, Dapartment 01 Labor.
This Summary Plan Oescription is intanded to prOvide you with 88Sy-tO understand general explanations 01 the more significant provisions of your Plan.
It is already quite long, and if every technical point were to be covered. it would be longer stiD, and that would decrease the chance of your reading this
Summary and being abla generally to understand the plan provisions. Every effort has been made to make the general explanation as accurate as possible.
However. the Plan is legally very complex and if any conllict should arise between this Summary Plan Description and the Provisions of the Plan document
itsell, or of any insurance policy or other employee benefit program providing a covered benefit under the Plan, or 01 tha insuranc, carrill" or Irther
program's summary plan description of that covered benetit, or if any provision is not covered or only partially coverad, the terms 01 the sctual Plan
document or insurance policy or benefit progrem will govern in all cases and the Plan Administrator will have exclusive and final authority to int8/Jlret the
actual Plan document. .