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HomeMy WebLinkAboutR90-020 Tax Advantage Plan for Eagle County Employees • • / • C®mmissi®nsr O - 1 2 - -5 moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 90- RESOLUTION ESTABLISHING AND ADOPTING A TAX ADVANTAGE PLAN FOR EAGLE COUNTY EMPLOYEES WHEREAS, the County of Eagle, State of Colorado, by and through its Board of County Commissioners, hereinafter the "Board ", wishes to establish a tax advantage plan for Eagle County employees; and WHEREAS, it is lawful for Eagle County to participate in a "cafeteria plan" pursuant to Section 125 of the Internal Revenue Code of 1986, as amended; and WHEREAS, the Board wished to establish the tax advantage plan as set forth in Exhibit A attached hereto and made a part hereof by this reference. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board hereby adopts and establishes the tax advantage plan for the Employees of Eagle County, as set forth in Exhibit A, effective January 1, 1990. THAT, the Board finds, determines and declares that this Resolution is necessary for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado. MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the cR0 day of p-4:16e4/4,2,y , 1990, nunc pro tunc, January 1, 1990. o= '`r COUNTY OF EAGLE, STATE OF COLORADO, * r By and Through Its BOARD OF COUNTY 4 14_ TEST: COMMISSIONERS /.41111 G • By: • to the Board of Dona • H. We c airman ounty Commissioners George Gates, Commissioner Richard L. Gustafson, Commissioner • 1 Commissioner seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Donald H. Welch _i Commissioner George A. Gates Commissioner Richard L. Gustafson Agbardia This Resolution passed by X d vote of the Board of County Commissioners of the County of Eagle, State of Colorado. -2- • • EXHIBITA EAGLE COUNTY TAX ADVANTAGE PLAN EFFECTIVE JANUARY 1, 1990 . • • EAGLE COUNTY TAX ADVANTAGE PLAN Table of Contents ARTICLE I Establishment and Purpose of The Plan ARTICLE II Definitions ARTICLE III Participation ARTICLE IV Benefits ARTICLE V Miscellaneous Provisions _2_ BEN:EagleTaxAd • • ARTICLE I ESTABLISHMENT AND PURPOSE OF THE PLAN 1.1 Establishment of The Plan. EAGLE COUNTY (the "Company ") hereby establishes a plan, to be known as the EAGLE COUNTY Tax Advantage Plan (the "Plan "), as set forth in this document, which is intended to qualify as a "cafeteria plan" within the meaning of Section 125 of the Internal Revenue Code of 1986, as amended. 1.2 Purpose of the Plan. The purpose of the Plan is to permit Eligible Employees to elect to have a portion of the compensation otherwise payable by their Employer be applied on a pre -tax basis to satisfy the contributions required of participants in the Premium Plans. -3- BEN:EagleTaxAd • • ARTICLE II DEFINITIONS 2.1 Definitions. Unless the context requires otherwise the terms defined in this Article shall have the meanings shown: "Affiliate" shall mean an entity (other than the Company) which is part of a group of entities which includes the Company and which constitutes: (a) a controlled group of corporations (as defined in Section 414(b) of the Code); (b) a group of trades or businesses, whether or not incorporated, under common control (as defined in Section 414 (c) of the Code); or (c) an affiliated service group (within the meaning of Section 414(m) and (o) of the Code). "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time. "Company" shall mean EAGLE COUNTY. "Effective Date" of the Plan shall mean January 1, 1990. "Employer" shall mean the Company and any Affiliate which may adopt the Plan as authorized by the Company. "Eligible Employee" shall mean an Employee who is eligible for coverage under any Premium Plan. "Employee" shall mean each employee who is employed b E er. an Employer. by P Y "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as from ime to time amended. "Participant" shall mean an Eligible Employee who meets the participation requirements of Section 3.1. "Plan" shall mean the EAGLE COUNTY Tax Advantage Plan for Health & Dental, as set forth herein, and as same may be amended from time to time. "Plan Administrator" shall mean the plan administrator and named fiduciary with respect to the Plan. "Plan Year" shall mean the twelve -month period commencing each December 1 and ending on the subsequent November 30. -4- BEN:EagleTaxAd • • "Premium Plans" shall mean the group medical and dental plans, and such other plans as the Company may from time to time designate. 2.2 Gender and Number. Whenever the context requires or permits, the gender and number of words shall be interchangeable. -5- BEN:EagleTaxAd • • ARTICLE III PARTICIPATION 3.1 Eligibility to Participate. Each Eligible Employee shall be eligible to participate in the Plan one calendar month after becoming eligible. 3.2 Enrollment. The failure of an Eligible Employee to properly complete and deliver to the Plan Administrator an election form shall constitute a waiver of participation in the Plan for the balance of the Plan Year unless an event occurs which would permit a Participant to change his election under Section 4.3. 3.3 Duration. A participant shall cease to be a Participant as of the earliest of (a) the date he ceases to be an Eligible Employee; (b) the first day of the Plan year following his election not to participate in the Plan; (c) the day he ceases to be an Employee or (d) the date the Plan terminates. Participation may thereafter be renewed upon satisfaction of the requirements of Section 3.1. -6- BEN:EagleTaxAd • • ARTICLE IV BENEFIT ELECTIONS 4.1 Salary Reduction Election. Each Participant shall complete and file with the Plan Administrator an election form agreeing to have withheld from his compensation otherwise payable by his Employer to the Participant for each Plan Year the amount to cover his required contributions under the Premium Plans (or for any specified Premium Plans). 4.2 Time of Election. In accordance with procedures established by the Plan Administrator, an election for any Plan Year shall be filed with the Plan Administrator prior to the beginning of such Plan Year, except that Eligible Employees who first become eligible to participate during a Plan Year may file their elections at any time prior to the date they first become eligible. 4.3 Irrevocability of Election. An election for any Plan Year shall be revocable at any time prior to the last date on which such election may be filed pursuant to Section 4.2 Once in effect an election for any Plan Year shall be deemed to continue in effect for all subsequent Plan Years unless the Participant timely files a revised election for any such Plan Year. As of the first day of a Plan Year, any election shall be irrevocable for that Plan Year; provided, that a Participant may revoke his election during the Plan Year and make a new election on account of, and consistent with, a change in family status. For purposes of this preceding sentence, "change in family status" shall include the marriage or divorce of the Participant, the death of the Participant's spouse or dependent, the birth or adoption of a child of the Participant, the termination of employment (or the commencement of employment) of the Participant's spouse, the switching from part -time to full -time employment status or from full -time to part -time status by the participant or the Participant's spouse, and the taking of an unpaid leave of absence by the Participant or the Participant's spouse, and such other circumstances as the Plan Administrator may in its sole discretion determine consistent with applicable regulations and general participation eligibility standards. Election changes are also permitted where there has been a significant change in the health coverage of the participant or spouse attributable to the spouse's employment. 4.4 Reversion Prohibited. In no event shall the amount of salary reduction elected by a Participant for any Plan Year be refunded or otherwise paid to the Participant, carried over or applied to provide benefits in any subsequent Plan Year or used to purchase or provide benefits to the Participant under any other plan of the Company. -7- BEN:EagleTaxAd • • ARTICLE V MISCELLANEOUS PROVISIONS 5.1 Administration of Plan. The Plan shall be administered by the Plan Administrator. The Board of County Commissioners shall be the Plan Administrator. Such other party shall acknowledge in writing that it is a fiduciary with respect to the Plan. The Plan Administrator shall have authority to control and manage the operation and administration of the Plan including all rights and powers necessary or convenient to the carrying out of its functions hereunder, whether or not such rights and powers are specifically enumerated herein. Without limiting the generality of the foregoing, and in addition to the other powers set forth in the Plan, the Plan Administrator shall have the following express authorities: (a) To construe and interpret the Plan, decide all questions of eligibility and determine the amount, manner and time of payment of any benefits hereunder. (b) To prescribe procedures to be followed by Participants for filing requests and elections under the Plan. (c) To prepare and distribute, in such manner as determined to be appropriate, information explaining the Plan. (d) To receive from the Employers and Participants such information as shall be necessary for the proper administration of the Plan. (e) To furnish the Employers upon request such annual and other reports with respect to the administration of the Plan as are reasonable and appropriate. 5.2 Non - guarantee of Employment. Nothing contained in the Plan shall be construed as an agreement of employment, or as giving or conferring as an agreement of employment, or as giving or conferring on any Employee the right to continued employment, or as a limitation on the right of an Employer to terminate the employment of an Employee, with or without cause. Nor shall anything contained in the Plan affect the eligibility requirements under the Premium Plans, nor give any Employee a right to coverage under the Premium Plans. 5.3 Non - alienation of Assets and Benefits. Except as may be required by applicable law, neither the assets of, nor the benefits payable under the Plan, shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary, including any such liability which is for alimony or other payments for the support of a spouse of former spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the benefit under the terms -8- BEN:EagleTaxAd • • of the Plan; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any right to benefits payable hereunder shall be void. 5.4 Key Employees. If more than 25% of the benefits paid under the Plan during any Plan Year are paid to Participants who are "key employees" (within the meaning of Code Section 416 (i) (1), the benefits paid under the Plan to all "key employees" during that Plan Year shall be taxable income. 5.5 Payment of Benefits and Expenses. All payments under the Plan will be made directly by the Participant's Employer from its respective general assets. All expenses incurred by an Employer relative to the administration of the Plan shall be paid by an Employer. 5.6 Amendment. The Company reserves the right at any time, and from time to time, to amend the Plan. The Company shall also have the right to make any amendment retroactively which is necessary to bring the Plan into conformity with the Code or ERISA, or which is otherwise permitted by such Acts. 5.7 Termination. The Company reserves the right to terminate the Plan at any time. Thereafter, neither any Employer nor any of its Employees shall have any further financial obligations hereunder except such that have accrued up to the date of termination and have not been satisfied. 5.8 Benefits Provided Through Third Parties. In the case of any benefit provided pursuant to an insurance policy or other contract with a third party, the Company may amend the Plan by changing insurers, policies, or contracts without changing the language of this Plan document, provided that copies of the contracts or policies are filed with the Plan documents and the Participants are informed as to the effects of any such changes. 5.9 Exclusive Benefit of Participants. This Plan is for the exclusive benefit of Participants and their beneficiaries and shall be administered in a manner consistent with the requirements of law which govern cafeteria plans. 5.10 Agent for Service of Process. The County Attorney shall be the agent for service of process. 5.11 Facility of Payment. Whenever, in the opinion of the Plan Administrator, a person entitled to receive any payment, or installment thereof, is under a legal disability or is unable to manage his financial affairs, the Plan Administrator may direct payments to his benefit, or may apply the payment for the benefit of such person in such manner as the Plan Administrator considers advisable. Any payment or application in accordance with the provisions of this section shall be a complete discharge of any liability for the making of such payment. -9- BEN:EagleTaxAd 5.12 Governing Law. The Plan shall be construed according to the laws of the State in which the Company is incorporated, except to the extent preempted by Federal law. IN WITNESS WHEREOF, this Tax Advantage Plan is executed on behalf of the Company, as of January 1, 1990. COUNTY OF EAGLE, STATE OF COLORADO by and through its Board of County Commissioners 4,1 By: — Siva\ \ o - *wao • Attest: 1 ". . _Ai -10- BEN:EagleTaxAd