CC PACKET 01142003 - Laserfiche WebLink

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37 2. You can pay for your benefits for the duration of the leave on an after-tax basis by a single lump-sum payment at the beginning of the leave. 3. You can pay for your benefits on an after-tax basis during the leave by sending your payment to City of St Anthony on or before the first of each month. If you receive taxable pay from the Employer during your leave, you can pay for.your benefits on a pre-tax basis through Pre-tax Contributions from that pay. If you fail to make arrangements to pay for your benefits during a family or medical leave, the Employer reserves the right to recover the cost of such coverage from you at the end of the family or medical leave to the fullest extent authorized by the Family and Medical Leave Act of 1993. If you are on a family or medical leave under the Family and Medical Leave Act of 1993 at any point during a Plan Year, you will be entitled to revoke your election with respect to health coverage, dental coverage, life coverage and any health care expense reimbursement benefits under the Plan. Following your return from the family or medical leave you will be entitled to reinstate those coverages for the remainder of the Plan Year, on the terms that applied prior to family or medical leave. However, if you reinstate health care reimbursement coverage following a family or medical leave, (a) your Period of Coverage for the Plan Year will exclude periods for which your coverage had lapsed because of the revocation or termination, (b) no expenses incurred during the excluded period will be eligible for reimbursement under the Plan, (c) your level of coverage for the Plan Year of the reinstatement will equal your coverage level in effect at the time of your revocation or termination, reduced on a pro rata basis to reflect excluded periods for which your coverage had lapsed, (d) all previously paid benefits will be charged against your revised coverage level, and (e) your revised coverage level can be (i) your coverage level in effect for the Plan Year of the Reinstatement reduced on a pro rata basis or(ii) your original coverage level for the period of coverage with higher post- leave salary reductions to make up the difference,if you so elect. For example, assume that Louise elected $1,200 of health care reimbursement coverage for the Plan Year and was paying for this benefit on a pre-tax basis at a rate of$50 each semi-monthly pay period. On November 1 she began a family/medical leave that ,extended through December. Through October 31 she had incurred$400 of reimbursable health care expenses. She revoked her election on November 1 and reinstated the coverage on January 1. Because Louise revoked her election rather than continuing it and paying for the coverage using one of the methods described above, any health care expenses she incurred from November 1 through December 31 will not be eligible for reimbursement_ Upon reinstatement, her Period of Coverage for the Plan Year will be August 1 'through October 31and January 1 through July 31 of that Plan Year, unless there is an earlier termination under the rules that apply to all participants. Because of this two-month lapse period, upon reinstatement Louise's election for the Plan Year.will be adjusted from $1,200 to $1,000 (10/12). Because she has already received $400 of benefits, Louise will be eligible for up to $600 of additional reimbursement for the Plan Year. If Louise elects the higher level ($1,200), her post leave salary reductions will be $128.57 and her additional available reimbursement amount for the Plan Year will be $800.