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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 1 INTRODUCTION Your employer, City of Orono ("Employer"), is pleased to sponsor an employee benefit program known as the City of Orono Cafeteria Plan (the " Cafeteria Plan") for its employees. Under federal tax laws, it is also known as a "cafeteria plan." The Employer provides you with the opportunity to use pre -tax dollars to pay certain benefit costs by entering into a salary reduction arrangement. This arrangement helps you because many of the benefits you elect are nontaxable; you should save social security and income taxes on the amount of your salary reduction. This summary describes the basic features of the Cafeteria Plan, how it operates, and how you can get the maximum advantage from it. To make use of this Cafeteria Plan, be sure to proceed through this booklet carefully so that you can make informed decisions that are right for you. This document is only a summary of the key parts of the Cafeteria Plan and a brief description of your rights as a Participant. If there is a conflict between the underlying plan document and this summary, the intention is for the plan document to govern. If you have any questions after reading this summary, please contact the Plan Administrator at the number listed in the Administrative Information section of this summary.