Agenda 07/23/2002 - Laserfiche WebLink

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4.6. Failure to Elect. (a) Initial Year. A Participant failing to return a completed election form to the Administrator on or before the specified due date for the initial Plan Year of the Plan, or for the Plan Year in which he became a Participant, shall be deemed to have elected to have the cost of coverage under all Underlying Plans in which he is enrolled to be paid in pre-tax dollars under this Plan, and otherwise to receive his full Compensation in cash. (b) Subsequent Years. If a Participant fails to return a completed election form to the Administrator on or before the specified due date for any subsequent Plan Year, then, that Participant shall be deemed to have made the same elections as was in effect for him just prior to the end of the preceding Plan Year with respect both to the Underlying Plan coverage applicable for him and his dependents and whether he will use this Plan to have the cost of coverage for Underlying Plan be paid with pre-tax dollars. Such a Participant also shall be deemed to have agreed to a reduction in his Compensation for the subsequent Plan Year equal to the Participant's share of the cost from time to time during such Plan Year of each such optional benefit he is deemed to have elected for such Plan Year 4.7 Nondiscrimination and Changes by Administrator. This Plan is intended to comply with the non-discrimination requirements of Code Section 125. Under such Code Section, the Plan will be discriminatory if the nontaxable benefits provided to key employees exceed 25% of the aggregate of such benefits provided for all employees under the Plan or the Plan otherwise discriminates in favor of Highly Compensated Individuals as to eligibility to participant or as to contributions or benefits. (See also Section 5.7.) If the Administrator determines, before or during any Plan Year, that the Plan (or any of the Underlying Plans) may fail to satisfy for such Plan Year any nondiscrimination requirement imposed by the Code or any limitation on the benefits of Participants, Highly Compensated Employees, or Key Employees, then the Administrator shall take such action as the Administrator deems appropriate, under rules uniformly applicable to similarly situated participants, to assure compliance with such requirement or limitation. Such action may include, without limitation, a modification of elections by Participants, Highly Compensated Employees or Key Employees with or without the consent of such Employees. In the event the Plan remains discriminatory, benefits provided to Highly Compensated Employees and/or Key Employees will become taxable in accordance with Code Section 125. 4.8 Irrevocability of Election by the Participant During the Plan Year. Elections made under the Plan (or deemed to be made under section 4.6) shall be irrevocable by the Participant during the Plan Year. Notwithstanding the foregoing, a Participant may revoke a benefit election for the balance of a Plan Year and file a new election if both the revocation and the new election are on account of and consistent with: a change in family status (as described below); a significant cost increase or coverage curtailment in a health plan provided by an independent third party provided (but only to the extent similar coverage is received prospectively under another health plan): or due to such other events that the Administrator determines will permit a change or revocation of an election during a Plan Year under regulations and rulings of the Internal Revenue Service. A change in family status for this purpose includes marriage, divorce, death of a spouse or child, birth or adoption of a child, other change in,the number of dependents; termination or commencement of employment of a spouse, switch from part-time to full-time or employment or full-time to part-time by the employee or spouse, unpaid leave of absence by employee or spouse, and significant change in health coverage of employee 6