10-10-2022 Council Packet - Laserfiche WebLink

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© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 50 coverage ceases, reimbursements for eligible Limited Scope Medical Expenses incurred before participation stopped will continue as provided in the Adoption Agreement. 14.10 Participant’s Death. In the event a Participant dies having incurred an eligible Limited Scope Medical Expense (a) which would have been reimbursable out of the Participant’s Account had the Participant not died, and (b) for which a person or the Participant’s estate has paid for or assumed liability for the expense, reimbursement may be made to that person or the estate for that payment or assumption. The remainder of the Participant’s Account shall be forfeited in accordance with Section 5.7. 14.11 Nondiscrimination. The Limited Scope Health Flexible Spending Account shall not discriminate in favor of Highly Compensated Individuals as to eligibility to participate or benefits. If the Plan Administrator determines that the Limited Scope Health Flexible Spending Account is or may be discriminatory, the Plan Administrator may take action permitted by law to avoid such result as provided in Section 6.16. 14.12 Account Forfeitures. (a) Grace Period. If selected in the Adoption Agreement, the Grace Period shall apply to this Optional Benefit as described herein. (1) Length. For purposes of determining whether an expense may be reimbursed from a Participant’s Account, an expense incurred prior to the fifteenth day of the third calendar month following the close of the Plan Year (unless a different date is provided in the Adoption Agreement) shall be deemed to have been incurred for purposes of both the preceding Plan Year and the current Plan Year. Such period of time shall be referred to as the “Grace Period.” (2) Processing of Claims. Claims incurred during the Grace Period, and submitted prior to the close of the Claims Run-out Period, shall be first allocated to and reimbursed from the Participant's Account for the preceding Plan Year until such Account is exhausted. Thereafter, any such claims shall be allocated to and reimbursed from the Participant’s Account for the current Plan Year. Claims incurred during the Grace Period will be allocated based upon the date the claim is received. Once a claim is allocated, there shall be no changes, modifi cations, or adjustments to the allocation of the account. In accordance with this part (1), a claim incurred during the preceding Plan Year and submitted during the Claims Run-Out Period will be processed subsequent to a previously submitted claim incurred during the Grace Period, even if the account from the preceding Plan Year is exhausted by reimbursement of the claim incurred during the Grace Period. (3) Elections. No adjustment to a Participant’s election for the current Plan Year shall be made or allowed based upon the amount of claims reimbursed from the prior Plan Year’s account in accordance with part (1) hereof. (b) Carryover. If selected in the Adoption Agreement, a limited carryover of Account balances from Plan Year to Plan Year will be provided in accordance with the following conditions and restrictions: (1) The amount that may be carried over is limited to the lesser of (i) the amount specified in the Adoption Agreement, or (ii) the balance of the Participant’s Account. The balance of a Participant’s Account shall be determined upon expiration of the Claims Run-out Period.