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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 6 (4) an event causing a dependent to satisfy or cease to satisfy the eligibility requirements applicable under a plan provided or paid for through this Cafeteria Plan; or (5) a change in place of residence for you, your spouse or your dependent. A change or revocation shall be allowed in these circumstances only if such change or revocation is made on account of, and corresponds with, the change in status and the change in status affects eligibility for coverage under a plan sponsored by the Employer or another employer (referred to as the general consistency requirement). The Plan Administrator (in its sole discretion) shall determine, based on prevailing IRS guidance, whether a requested change or revocation satisfies the general consistency requirement. Example 1: An employee enrolls in single coverage under the Employer’s Group Medical Plan and elects to pay the cost of that coverage through the Cafeteria Plan. The employee also elects to participate in the Health Flexible Spending Account. During the Plan Year, the employee gets married. If the employee enrolls his or her new spouse in the Group Medical Plan, the employee may change his or her election to pay the increased cost of that coverage through the Cafeteria Plan. In addition, the employee may increase his or her election under the Health Flexible Spending Account. Example 2: Employer has three medical plan options: an indemnity option, an HMO option with a service area covering the location of on e of Employer’s operations, and an HMO option with a service are covering the location of the other operation. An employee enrolls in the HMO option with a service area covering the area in which employee works and makes an election to pay the cost of the coverage through the Cafeteria Plan. Employee also elects to participate in the Health Flexible Spending Account. If employee is transferred to the other location, the employee may switch to the other HMO option or the indemnity option and change his or her election to pay the cost of the new option. The employee may also drop medical coverage and terminate his or h er election under the Cafeteria Plan to pay the cost of medical coverage. The employee cannot change his or her election under the Health Flexible Spending Account because the change in work location does not affect his or her eligibility under the Health Flexible Spending Account. A requested change or revocation must also satisfy the following specific consistency requirements in order for you to be able to alter your election based on the change in status: (1) Loss of Dependent Eligibility. For a change in status involving your divorce, annulment or legal separation from your spouse, the death of your spouse or dependent, or your dependent ceasing to satisfy the eligibility requirements for coverage, you may elect to change your election only to reflect the cancellation of group health plan coverage for the affected spouse or dependent. Canceling coverage for any other individual under these circumstances fails to correspond with that change in status. For example, if you have elected group medical coverage for you, your spouse, and your child, and you divorce during the Plan Year, you may drop your ex-spouse from the coverage and make an election change under this Cafeteria Plan to reflect the reduced cost of coverage. However, you would not be allowed to change your election to reflect the reduced cost attributable to dropping coverage for yourself or your child. (2) Gain of Coverage Eligibility Under Another Employer's Plan. If you, your spouse, or your dependent gains eligibility for coverage under another employer's