Common use of Salary Reduction Contributions Clause in Contracts

Salary Reduction Contributions. As necessary to fund the Benefits elected under the Plan, each Participant will enter into a written Salary Reduction Agreement with the Employer in accordance with procedures established by the Administrator, by which the Participant will agree to a reduction in the Participant’s Salary for the Plan Year, all as specified in the Salary Reduction Agreement. Each Salary Reduction Agreement will be subject to the following terms and conditions: A. The total amount of the reduction in Salary will be equal to that portion of the Benefit costs to be funded by the Participant. B. Except as otherwise permitted in this Plan, the reduction of Salary will apply in all payroll periods within the applicable Plan Year, and to all of the Participant’s periodic payroll checks during the Plan Year. C. A Participant may not amend or revoke the Participant’s election on or after the first day of the Plan Year for which the election is intended to be effective; except that a Participant may prospectively amend or revoke an election on or after the first day of the relevant Plan Year, for the remainder of the Plan Year, if the amendment or revocation is a “permitted election change” as more fully described in Section 4.3 of this Plan. If this Plan includes a Health Savings Account (HSA) Contribution Benefit, then a Participant may amend or revoke the Participant’s election relative to that Benefit as provided in the description of the Health Savings Account (HSA) Contribution Benefit contained in the attached Benefit Schedule (Exhibit A). D. The amount of the reduction in Salary specified in a Participant’s Salary Reduction Agreement may be changed by the Administrator, in its sole discretion, for the purpose of complying with applicable rules against discrimination, as more fully described in Section 4.4, or as permitted under Section 4.3.E.2.a. In addition, the Administrator may make reasonable adjustments in reductions of Salary to accommodate elections by Participations with respect to pay schedules offered Employees by the Employer. E. If, as of the date that any elected coverage under this Plan terminates, a Participant’s year-to-date Salary reductions exceed or are less than the Participant’s required Contributions for the coverage, then the Employer will, as applicable, either return the excess to the Participant as additional taxable wages or recoup the due Salary reduction amounts from any remaining Salary. F. If the Employer receives any rebates attributable to medical insurance options offered by the Employer, such rebates shall be used to (i) reduce Premiums for all medical insurance plan options for Participants covered when the rebate is received, (ii) to reduce Premiums for current Participants covered by the option receiving the rebate, or (iii) as a cash refund to current Participants covered by the option receiving the rebate. In each case, the rebate shall be allocated in proportion to actual contributions to Premiums. Rebates that are distributed as a reduction of Premium cost or in cash to Participants will be subject to federal income and employment taxes in the year of distribution. G. Any Participant who was covered by any Benefit under the Plan prior to the Effective Date of this restatement but who unintentionally fails to timely return a completed election form by the Effective Date shall be deemed to have elected to continue the Benefit coverage in the same amount that was in effect immediately preceding the Effective Date. Any Participant who subsequently unintentionally fails to timely return a new Benefit election form during the designated Election Period for a Plan Year shall be deemed to have elected to continue any Benefit coverage in effect for the preceding Plan Year and to pay the Premium associated with the Benefit coverage.

Salary Reduction Contributions. As necessary to fund the Benefits elected under the PlanPlan that are not subject to Automatic Enrollment, each Participant will enter into a written Salary Reduction Agreement with the Employer in accordance with procedures established by the Administrator, by which the Participant will agree to a reduction in the Participant’s Salary for the Plan Year, all as specified in the Salary Reduction Agreement. Each Salary Reduction Agreement will be subject to the following terms and conditions: A. The total amount of the reduction in Salary will be equal to that portion of the Benefit costs to be funded by the Participant. B. Except as otherwise permitted in this Plan, the reduction of Salary will apply in all payroll periods within the applicable Plan Year, and to all of the Participant’s periodic payroll checks during the Plan Year. C. A Participant may not amend or revoke the Participant’s election on or after the first day of the Plan Year for which the election is intended to be effective; except that a Participant may prospectively amend or revoke an election on or after the first day of the relevant Plan Year, for the remainder of the Plan Year, if the amendment or revocation is a “permitted election change” as more fully described in Section 4.3 of this Plan. If this Plan includes a Health Savings Account (HSA) Contribution Benefit, then a Participant may amend or revoke the Participant’s election relative to that Benefit as provided in the description of the Health Savings Account (HSA) Contribution Benefit contained in the attached Benefit Schedule (Exhibit A). D. The amount of the reduction in Salary specified in a Participant’s Salary Reduction Agreement may be changed by the Administrator, in its sole discretion, for the purpose of complying with applicable rules against discrimination, as more fully described in Section 4.4, or as permitted under Section 4.3.E.2.a. In addition, the Administrator may make reasonable adjustments in reductions of Salary to accommodate elections by Participations with respect to pay schedules offered Employees by the Employer. E. If, as of the date that any elected coverage under this Plan terminates, a Participant’s year-to-date Salary reductions exceed or are less than the Participant’s required Contributions for the coverage, then the Employer will, as applicable, either return the excess to the Participant as additional taxable wages or recoup the due Salary reduction amounts from any remaining Salary. F. If the Employer receives any rebates attributable to medical insurance options offered by the Employer, such rebates shall be used to (i) reduce Premiums for all medical insurance plan options for Participants covered when the rebate is received, (ii) to reduce Premiums for current Participants covered by the option receiving the rebate, or (iii) or as a cash refund to current Participants covered by the option receiving the rebate. In each case, the rebate shall be allocated in proportion to actual contributions to Premiumspremiums. Rebates that are distributed as a reduction of Premium cost or in cash to Participants will be subject to federal income and employment taxes in the year of distribution. G. Any Participant who was covered by any Benefit under the Plan prior to the Effective Date of this restatement but who unintentionally fails to timely return a completed election form by the Effective Date shall be deemed to have elected to continue the Benefit coverage in the same amount that was in effect immediately preceding the Effective Date. Any Participant who subsequently unintentionally fails to timely return a new Benefit election form during the designated Election Period for a Plan Year shall be deemed to have elected to continue any Benefit coverage in effect for the preceding Plan Year and to pay the Premium associated with the Benefit coverage.

Salary Reduction Contributions. As necessary (a) Any Eligible Employee may make Salary Reduction Contributions to fund the Benefits elected under Contract at any time. To participate in the Plancontract, each Participant will an Eligible Employee must complete a written salary reduction agreement with the Employer specifying the portion of his compensation that is to be contributed to this Contract as Salary Reduction Contributions. The salary reduction agreement shall only apply to amounts earned after the agreement becomes effective and shall be irrevocable with respect to compensation earned while the salary reduction agreement is in effect. An Eligible Employee may only enter into one salary reduction agreement with the Employer during each taxable year of the Eligible Employee. An Eligible Employee may terminate a written Salary Reduction Agreement salary reduction agreement for amounts not yet earned at any time. An Eligible Employee's salary reduction agreement shall remain in effect until the Eligible Employee either terminates such agreement or files a new salary reduction agreement with the Employer in a subsequent taxable year. (c) The Contractholder agrees to reduce each Participant's compensation by the amount indicated in the salary reduction agreement and remit such amount as a Salary Reduction Contribution to the Insurance Company. Salary Reduction Contributions shall become due and payable to the Insurance Company within thirty days of deferral. A grace period of sixty days, or the time required by law for the contribution to be made, if less, shall be allowed for such payment. (d) The amount of Elective Deferrals, including Salary Reduction Contributions, for any Participant's taxable year under this Contract and all other plans, contracts, or arrangements of the Employer shall not exceed the dollar limit in effect under Code section 402(g) at the beginning of such taxable year. (e) Notwithstanding any other provision of the Contract, excess deferrals, plus any income and minus any loss allocable thereto, may be distributed to a Participant who requests such distribution in accordance with procedures established this subsection (e): (1) Not later than the March 1 following the close of the the Participant's taxable year, the Participant may notify the Insurance Company of the amount of excess deferrals received by the AdministratorContract during the taxable year. The notification shall be in writing, by which shall specify the Participant will agree to a reduction in the Participant’s Salary for the Plan Year, all as specified in the Salary Reduction Agreement. Each Salary Reduction Agreement will be subject to the following terms and conditions: A. The total amount of the reduction in Salary will Participant's excess deferrals, and shall be equal to that portion of the Benefit costs to be funded accompanied by the Participant's written statement that if such amounts are not distributed, these amounts, when added to all other Elective Deferrals made on behalf of the Participant during the taxable year, shall exceed the dollar limitation specified in section 402 (g) of the Code. B. Except as otherwise permitted in (2) If the Participant provides the Insurance Company with satisfactory evidence and written notice to demonstrate that all Elective Deferrals by the Participant to this PlanContract and any other qualified plan exceed the applicable limit under section 402(g) of the Code for such individual's taxable year, then the reduction Insurance Company may (but is not required to) distribute a sufficient amount attributable to the Participant's Salary Reduction Contributions (not to exceed the amount of Salary will apply in all payroll periods within Reduction Contributions actually contributed to the Contract on behalf of the Participant during the taxable year) from the Contract to allow the Participant to comply with the applicable Plan Year, and to all of limit. The evidence provided by the Participant’s periodic payroll checks during Participant must establish clearly the Plan Year. C. A Participant may not amend or revoke the Participant’s election on or after the first day of the Plan Year for which the election is intended to be effective; except that a Participant may prospectively amend or revoke an election on or after the first day of the relevant Plan Year, for the remainder of the Plan Year, if the amendment or revocation is a “permitted election change” as more fully described in Section 4.3 of this Plan. If this Plan includes a Health Savings Account (HSA) Contribution Benefit, then a Participant may amend or revoke the Participant’s election relative to that Benefit as provided in the description of the Health Savings Account (HSA) Contribution Benefit contained in the attached Benefit Schedule (Exhibit A). D. The amount of the reduction in Salary specified in a Participant’s Salary Reduction Agreement may be changed by the Administrator, in its sole discretion, for the purpose of complying with applicable rules against discrimination, as more fully described in Section 4.4, or as permitted under Section 4.3.E.2.a. In addition, the Administrator may make reasonable adjustments in reductions of Salary to accommodate elections by Participations with respect to pay schedules offered Employees by the Employerexcess deferral. E. If, as of the date that any elected coverage under this Plan terminates, a Participant’s year-to-date Salary reductions exceed or are less than the Participant’s required Contributions for the coverage, then the Employer will, as applicable, either return the excess to the Participant as additional taxable wages or recoup the due Salary reduction amounts from any remaining Salary. F. If the Employer receives any rebates attributable to medical insurance options offered by the Employer, such rebates shall be used to (i) reduce Premiums for all medical insurance plan options for Participants covered when the rebate is received, (ii) to reduce Premiums for current Participants covered by the option receiving the rebate, or (iii) as a cash refund to current Participants covered by the option receiving the rebate. In each case, the rebate shall be allocated in proportion to actual contributions to Premiums. Rebates that are distributed as a reduction of Premium cost or in cash to Participants will be subject to federal income and employment taxes in the year of distribution. G. Any Participant who was covered by any Benefit under the Plan prior to the Effective Date of this restatement but who unintentionally fails to timely return a completed election form by the Effective Date shall be deemed to have elected to continue the Benefit coverage in the same amount that was in effect immediately preceding the Effective Date. Any Participant who subsequently unintentionally fails to timely return a new Benefit election form during the designated Election Period for a Plan Year shall be deemed to have elected to continue any Benefit coverage in effect for the preceding Plan Year and to pay the Premium associated with the Benefit coverage.

Salary Reduction Contributions. As necessary (a) Any Eligible Employee may make Salary Reduction Contributions to fund the Benefits elected under Contract at any time. To participate in the Plancontract, each Participant will an Eligible Employee must complete a written salary reduction agreement with the Employer specifying the portion of his compensation that is to be contributed to this Contract as Salary Reduction Contributions. The salary reduction agreement shall only apply to amounts earned after the agreement becomes effective and shall be irrevocable with respect to compensation earned while the salary reduction agreement is in effect. An Eligible Employee may only enter into one salary reduction agreement with the Employer during each taxable year of the Eligible Employee. An Eligible Employee may terminate a written Salary Reduction Agreement salary reduction agreement for amounts not yet earned at any time. An Eligible Employee's salary reduction agreement shall remain in effect until the Eligible Employee either terminates such agreement or files a new salary reduction agreement with the Employer in a subsequent taxable year. (c) The Contractholder agrees to reduce each Participant's compensation by the amount indicated in the salary reduction agreement and remit such amount as a Salary Reduction Contribution to the Insurance Company. Salary Reduction Contributions shall become due and payable to the Insurance Company within thirty days of deferral. A grace period of sixty days, or the time required by law for the contribution to be made, if less, shall be allowed for such payment. (d) The amount of Elective Deferrals, including Salary Reduction Contributions, for any Participant's taxable year under this Contract and all other plans, contracts, or arrangements of the Employer shall not exceed the dollar limit in effect under Code section 402(g) at the beginning of such taxable year. (e) Notwithstanding any other provision of the Contract, excess deferrals, plus any income and minus any loss allocable thereto, may be distributed to a Participant who requests such distribution in accordance with procedures established this subsection (e): (1) Not later than the March 1 following the close of the the Participant's taxable year, the Participant may notify the Insurance Company of the amount of excess deferrals received by the AdministratorContract during the taxable year. The notification shall be in writing, by which shall specify the Participant will agree to a reduction in the Participant’s Salary for the Plan Year, all as specified in the Salary Reduction Agreement. Each Salary Reduction Agreement will be subject to the following terms and conditions: A. The total amount of the reduction in Salary will Participant's excess deferrals, and shall be equal to that portion of the Benefit costs to be funded accompanied by the Participant's written statement that if such amounts are not distributed, these amounts, when added to all other Elective Deferrals made on behalf of the Participant during the taxable year, shall exceed the dollar limitation specified in section 402(g) of the Code. B. Except as otherwise permitted in (2) If the Participant provides the Insurance Company with satisfactory evidence and written notice to demonstrate that all Elective Deferrals by the Participant to this PlanContract and any other qualified plan exceed the applicable limit under section 402(g) of the Code for such individual's taxable year, then the reduction Insurance Company may (but is not required to) distribute a sufficient amount attributable to the Participant's Salary Reduction Contributions (not to exceed the amount of Salary will apply in all payroll periods within Reduction Contributions actually contributed to the Contract on behalf of the Participant during the taxable year) from the Contract to allow the Participant to comply with the applicable Plan Year, and to all of limit. The evidence provided by the Participant’s periodic payroll checks during Participant must establish clearly the Plan Year. C. A Participant may not amend or revoke the Participant’s election on or after the first day of the Plan Year for which the election is intended to be effective; except that a Participant may prospectively amend or revoke an election on or after the first day of the relevant Plan Year, for the remainder of the Plan Year, if the amendment or revocation is a “permitted election change” as more fully described in Section 4.3 of this Plan. If this Plan includes a Health Savings Account (HSA) Contribution Benefit, then a Participant may amend or revoke the Participant’s election relative to that Benefit as provided in the description of the Health Savings Account (HSA) Contribution Benefit contained in the attached Benefit Schedule (Exhibit A). D. The amount of the reduction in Salary specified excess deferral. (3) The term "excess deferral" means those Elective Deferrals that are includible in a Participant’s Salary Reduction Agreement may be changed by the Administrator, in its sole discretion, for the purpose of complying with applicable rules against discrimination, as more fully described in Section 4.4, or as permitted 's gross income under Section 4.3.E.2.a. In addition, the Administrator may make reasonable adjustments in reductions of Salary to accommodate elections by Participations with respect to pay schedules offered Employees by the Employer. E. If, as section 402(g) of the date that any elected coverage Code because they exceed the applicable dollar limit under this Plan terminates, a Participant’s year-to-date Salary reductions exceed or are less than section 402(g) of the Participant’s required Contributions for the coverage, then the Employer will, as applicable, either return the excess to the Participant as additional taxable wages or recoup the due Salary reduction amounts from any remaining SalaryCode. F. If the Employer receives any rebates attributable to medical insurance options offered by the Employer, such rebates shall be used to (i) reduce Premiums for all medical insurance plan options for Participants covered when the rebate is received, (ii) to reduce Premiums for current Participants covered by the option receiving the rebate, or (iii) as a cash refund to current Participants covered by the option receiving the rebate. In each case, the rebate shall be allocated in proportion to actual contributions to Premiums. Rebates that are distributed as a reduction of Premium cost or in cash to Participants will be subject to federal income and employment taxes in the year of distribution. G. Any Participant who was covered by any Benefit under the Plan prior to the Effective Date of this restatement but who unintentionally fails to timely return a completed election form by the Effective Date shall be deemed to have elected to continue the Benefit coverage in the same amount that was in effect immediately preceding the Effective Date. Any Participant who subsequently unintentionally fails to timely return a new Benefit election form during the designated Election Period for a Plan Year shall be deemed to have elected to continue any Benefit coverage in effect for the preceding Plan Year and to pay the Premium associated with the Benefit coverage.