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4 . 5 NONDISCRIMINATION REQUIREMENTS <br /> ( a ) It is the intent of this Plan to provide benefits to a classification of <br /> employees which the Secretary of the Treasury finds not to be discriminatory in <br /> favor of the group in whose favor discrimination may not occur under Code <br /> Section 125 . <br /> ( b ) It is the intent of this Plan not to provide qualified benefits as <br /> defined under Code Section 125 to Key Employees in amounts that exceed 25% <br /> of the aggregate of such Benefits provided for all Eligible Employees under the <br /> Plan . For purposes of the preceding sentence , qualified benefits shall not include <br /> benefits which (without regard to this paragraph ) are includible in gross income . <br /> ( c) If the Administrator deems it necessary to avoid discrimination or <br /> possible taxation to Key Employees or a group of employees in whose favor <br /> discrimination may not occur in violation of Code Section 125 , it may require <br /> reduced contributions or non -taxable Benefits in order to assure compliance with <br /> this Section . Any act taken by the Administrator under this Section shall be <br /> carried out in a uniform and nondiscriminatory manner. <br /> ARTICLE V <br /> PARTICIPANT ELECTIONS <br /> 5 . 1 INITIAL ELECTIONS <br /> An Employee who meets the eligibility requirements of Section 2 . 1 on the first <br /> day of, or during , a Plan Year may elect to participate in this Plan for all or the remainder of <br /> such Plan Year, provided he elects to do so before his effective date of participation pursuant to <br /> Section 2 . 2 . However, if such Employee does not complete the benefit election process before <br /> such date , his Election Period may extend 30 calendar days after such date , or for such further <br /> period as the Administrator shall determine and apply on a uniform and nondiscriminatory basis . <br /> However, any election during the extended election period pursuant to this Section 5 . 1 shall not <br /> be effective until the first pay period following the later of such Participant's effective date of <br /> participation pursuant to Section 2 . 2 or the date of the receipt of the election by the <br /> Administrator or Plan Service Provider, and shall be limited to the Benefit expenses incurred for <br /> the balance of the Plan Year for which the election is made . <br /> Notwithstanding the foregoing , an Employee who is eligible to participate in this <br /> Plan and who is covered by the Employer's insured benefits , if offered under this Plan , shall <br /> automatically become a Participant to the extent of the Premiums for such insurance unless the <br /> Employee elects , during the Election Period , not to participate in the Plan . <br /> 5 . 2 SUBSEQUENT ANNUAL ELECTIONS <br /> During the Election Period prior to each subsequent Plan Year, each Participant <br /> shall be given the opportunity to elect which spending account Benefit options he wishes to <br /> select and purchase with his Cafeteria Plan Benefit Dollars . Any such election shall be effective <br /> for any Benefit expenses incurred during the Plan Year which follows the end of the Election <br /> Period . With regard to subsequent annual elections , the following options shall apply : <br /> ( a ) A Participant or Employee who failed to initially elect to participate <br /> may elect different or new Benefits under the Plan during the Election Period ; <br /> 7 <br />