Common use of Section 125 Salary Reduction Plan Clause in Contracts

Section 125 Salary Reduction Plan. 1. The Board shall establish a fringe benefit program which complies with Section 125 of the Internal Revenue Code. The Board shall provide the opportunity for each employee to execute a salary reduction agreement, once annually, when additional benefits are selected. Once the annual allocation is made for each selected benefit, the only change which will be allowed is for a fluctuation in health care premium or marital and/or family status changes. Each teacher executing a salary reduction agreement for benefits shall allocate an annual sum to be used for the purchase of: a. Any benefit which meets the requirements of a Salary Reduction Plan of Section 125 of the Internal Revenue Code and which has been approved for inclusion in this section by the Insurance Committee as established in paragraph 3 below. b. A current listing of approved benefits will be given to each teacher at the beginning of the school year. 2. The deadline for completing the salary reduction agreement will be August 31 of each year. The Board shall provide each employee a description of the benefit coverage provided within ten (10) days of the beginning of the school year, or date of employment, which shall include a clear description of conditions and limits of coverage as provided above. When requested by the employee, the Board shall provide application forms and, when necessary, information about the program. 3. A committee for the selection of insurance companies and policies will be composed of six (6) teachers appointed by ACTA, three (3) administrators, one (1) Board of Education member, two (2) classified employees selected by the classified employees and a retired teacher who is enrolled in the district’s insurance group to be selected by the committee as a non-voting member.