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© Hitesman & Wold, P.A. 2019 <br />Cafeteria Plan <br />Summary Description (3-11) <br />13 <br />change must be on account of and consistent with the status change that has occurred. <br />In general, that means the event must result in a change in coverage that changes the <br />cost. Subject to the provisions of the underlying group health plan, an election made to <br />pay the cost of medical coverage for a newborn or newly adopted dependent child pursuant <br />to a HIPAA special enrollment right may be retroactive for up to thirty (30) days , provided <br />it applies to compensation not yet currently available. All other new elections shall be <br />effective prospectively immediately following the date the Participant files the new election <br />with the Plan Administrator. Elections made pursuant to this Section shall be effective for <br />the balance of the Plan Year in which the election is made unless a subsequent event <br />(described above) allows a further election change. <br />1.9 Who holds the funds I have set aside under the Cafeteria Plan? <br />Your salary reduction contributions are held as part of the Employer’s general assets until they are <br />used to pay for your benefits. There is no separate trust. <br />1.10 What if I terminate my employment during the Plan Year? <br />If your employment with the Employer terminates during the Plan Year, your active participation <br />with this Cafeteria Plan ceases and your elections are terminated. You will not be able to make any more <br />contributions under this Cafeteria Plan. You may, however, be entitled to continuation coverage with <br />respect to the underlying benefit plan. See the discussions of continuation coverage later in this summary <br />for additional information. <br />If you are rehired after thirty (30) days following a termination of employment and again become <br />a Participant, you will have two “periods of coverage” – that period prior to the termination of employment <br />and that period following the re-employment. Expenses incurred prior to the termination of employment <br />shall be subject to the election in effect upon termination. Upon re-employment, you shall have an <br />opportunity to make a new election and expenses incurred after re -employment shall be subject to the <br />election made upon re-employment. <br />If you are rehired within thirty (30) days following a termination o f employment, your election in <br />effect prior to the termination of employment will be reinstated upon re -employment. <br />1.11 Will I have any administrative costs under the Cafeteria Plan? <br />No. The entire cost of administering the Cafeteria Plan is paid by the Employer, from Plan <br />forfeitures, or a combination of both. <br />1.12 How long will the Cafeteria Plan remain in effect? <br />Although the Employer expects to maintain the Cafeteria Plan (including each of the Optional <br />Benefits) indefinitely, it has the right to amend or terminate the Cafeteria Plan in whole or in part at any <br />time. It is also possible that future changes in state or federal tax laws may require that the Cafeteria Plan <br />be amended or terminated accordingly. You will be informed if any changes are made to the Cafeteria Plan. <br />1.13 Are my benefits taxable? <br />Because the Cafeteria Plan is intended to meet certain requirements of the federal tax laws, many <br />of the benefits you receive under the Cafeteria Plan will not be currently taxable to you. However, neither <br />the Employer nor the Plan Administrator can guarantee the tax treatment of benefits with respect to any <br />Participant, as individual circumstances may produce differing results. If you are uncertain, you sh ould <br />consult your own tax adviser.