11-13-1990 Council Packet - Laserfiche WebLink

Home Browse Search

I. PURPOSE We have adopted this flexible non-deferred compensation plan, the "Plan”, to provide our employees and their beneficiaries with options regarding different types of benefits based on their goals, desires, and needs. The Plan also provides alternative methods for contributions toward these benefits, including an option to receive certain tax free benefits in lieu of taxable compensation. Our intention is that the Plan qualify as a "Cafeteria Plan** within the meaning of Section 125(c) of the Internal Revenue Code of 1986, as amended. Further, the benefits which our employees elect to receive under the Plan are to be excluded from their income under Section 125(a) and other applicable sections of the Inte„ al Revenue Code of 1986, as amended. They may exclude from income, benefits received under the Plan to the extent nontaxable benefits are selected. The Plan will be "nondiscriminatory" as such term is used in the applicable provisions of the Internal Revenue Code and we shall take whatever steps are necessary to maintain the Plan as "nondiscriminatory". II. DEFINITIONS Unless a different meaning is clearly indicated in this Document, following words have the following meanings; the 2.1. Administrator. The company. A Representative may be named by us in the Adoption Agreement, to Keoo records and perform certain other functions, but the representative will not be the administrator. 2.2. Adoption Agreement. The document in which we adopt the Plan and select the options available under the Plan. 2.3. Agreement. T.iis Document together with the Adoption Agreement, appendices or supplements thereto, shall constitute the entire document and shall govern the rights, liabilities, and obligations of the Plan, except as they may be modified. 2.4. Election. The portion of an employee's Annual Compensation he/she has committed to a particular benefit of the plan. 2.4a. Election Agreement. The agreement the employee signs autho rizing the allocation of a portion of his/her annual compensation to the Plan, also referred to as an Enrollment Form. 2.5. Beneficiary. Any one or more primary or contingent bene ficiaries designated by the employee to receive any benefits payable under the Plan.