Section 125 Plan Sample Clauses
A Section 125 Plan, also known as a cafeteria plan, is a benefits arrangement that allows employees to choose between receiving taxable salary or selecting from a variety of pre-tax benefits. Under this plan, employees can allocate a portion of their earnings toward benefits such as health insurance premiums, dependent care assistance, or flexible spending accounts, reducing their taxable income. The core practical function of a Section 125 Plan is to provide tax savings for both employers and employees while offering flexibility in benefits selection.
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Section 125 Plan. The Employer participates in a special program under the provisions of IRS Section 125. Employees may voluntarily elect to participate in the reimbursement program to pay medical or dependent care expenses with pre-tax dollars. The Employer makes no contribution, makes no assurance of ongoing participation and assumes no liability for claims or benefits.
Section 125 Plan. The City of Petaluma has established and shall offer to eligible employees an Internal Revenue Code (IRC) Section 125 plan. The Section 125 plan is subject to federal law and plan provisions. The Section 125 Plan offered by the City provides employees with a tax savings through the following programs:
(A) Pre-Tax Health Insurance Premiums
Section 125 Plan. The Trustees shall continue the Section 125 plan to allow pretax treatment of the employee’s share of health and dental insurance premiums. The plan will be available as soon as practicable, but no later July 1, 1998. The plan will be amended to include a medical reimbursement account and a dependent care reimbursement account to be available for enrollment no earlier than July 1, 2003, but no later than December 31, 2003.
Section 125 Plan. The Employer agrees to continue its current Internal Revenue Service Code Section 125 Plan to provide an opportunity for unit members to voluntarily participate in a flexible spending account, subject to provisions of IRS Code Section 125. Unit members may choose to set aside an amount from their paychecks only, which is not taxed, in a medical or dependent care account for payment of eligible expenses.
Section 125 Plan. The District shall offer the option of participating in a salary reduction program. Participation will enable the qualifying employee to have the cost of dependent coverage under any of the District’s health plans paid with pre-tax dollars.
Section 125 Plan. 1. The District shall continue to provide a "Cafeteria Plan" which will (a) allow employees who make employee contributions for health care coverage to elect to do on a pre- tax basis, (b) allow employees to elect to receive additional cash in lieu of Board paid health care coverage (as set forth herein), and (c) allow employees to elect to participate in the dependent care and medical care flexible spending accounts ("FSAs") described in paragraph 3 below.
2. The Cafeteria Plan will be designed to meet the requirements of Internal Revenue Code ("IRC") Section 125 and applicable regulations. Accordingly, each bargaining unit member will have an opportunity on an annual basis in November to enroll in the Cafeteria Plan. The election to participate may not be revoked during the current plan year unless there is a change in the employee's circumstances that, in accordance with IRC Section 125, permits the employee to change his or her election under the plan (e.g., divorce, death of spouse, change in employment status, a child losing eligibility for coverage, a court order requiring coverage, or other enrollment rights consistent with federal law). Details of the Cafeteria Plan will be provided on an annual basis at the time of enrollment and will also be available through the Human Resources Department.
3. Under the Cafeteria Plan, each employee will be allowed to make a pre- tax "salary reduction" election up to the maximum amount allowable under IRC Section 129 (currently $5000 per year), and receive a corresponding credit under a child care/dependent care FSA. Under the dependent care FSA, reimbursement may be received for dependent care expenses described in IRC Section 129.
4. In addition, each bargaining unit member during open enrollment or other qualifying event, will be allowed to make a separate pre-tax "salary reduction" election up to the established Internal Revenue Service (IRS) limit for that tax year, at the start of open enrollment and receive a corresponding credit under a health care FSA. Under the health care FSA, reimbursement may be received for medical (including dental and vision care) expenses (under IRC Section 213) that are not otherwise reimbursable by the health care plans of the District or of another employer.
Section 125 Plan. Any elections made by the employee that result in an actual monthly premium cost in excess of the Board’s contribution shall be paid by the employee through a section 125 payroll deduction.
Section 125 Plan. The College offers a Section 125 Plan that allows employees to have health care, dental, and vision contributions to be deducted on a pre-tax basis. Employees may select this option for both themselves and their family.
Section 125 Plan. The Hospital will provide a Section 125 plan that will allow the pretax payment of insurance premiums, un-reimbursed medical expenses, and dependent care. An election of the amount to be withheld monthly must occur each year, and unused amounts revert to the Hospital at the end of the calendar year.
Section 125 Plan. The Employer will continue to administer the Section 125 Plan whereby the employees’ contributions to health care, vision, and prescription programs would be excluded from Federal and State taxes.