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CITY OF ST. ANTHONY VILLAGE <br />SECTION 125 CAFETERIA PLAN <br />INTRODUCTION <br />The Employer has adopted this Plan effective January 1, 2025, to recognize the contribution made to the Employer by its <br />Employees. Its purpose is to reward them by providing benefits for those Employees who shall qualify hereunder and their <br />Dependents and beneficiaries. The concept of this Plan is to allow Employees to choose among different types of benefits based on <br />their own particular goals, desires and needs. The Plan shall be known as City Of St. Anthony Village Section 125 Cafeteria Plan (the <br />"Plan"). <br />The intention of the Employer is that the Plan qualify as a "Cafeteria Plan" within the meaning of Section 125 of the Internal <br />Revenue Code of 1986, as amended, and that the benefits which an Employee elects to receive under the Plan be excludable from <br />the Employee's income under Section 125(a) and other applicable sections of the Internal Revenue Code of 1986, as amended. <br />ARTICLE I <br />DEFINITIONS <br />1.1 "Administrator" means the Employer unless another person or entity has been designated by the Employer <br />pursuant to Section 9.1 to administer the Plan on behalf of the Employer. If the Employer is the Administrator, the Employer may <br />appoint any person, including, but not limited to, the Employees of the Employer, to perform the duties of the Administrator. Any <br />person so appointed shall signify acceptance by filing written acceptance with the Employer. Upon the resignation or removal of any <br />individual performing the duties of the Administrator, the Employer may designate a successor. <br />1.2 "Affiliated Employer" means the Employer and any corporation which is a member of a controlled group of <br />corporations (as defined in Code Section 414(b)) which includes the Employer; any trade or business (whether or not incorporated) <br />which is under common control (as defined in Code Section 414(c)) with the Employer; any organization (whether or not incorporated) <br />which is a member of an affiliated service group (as defined in Code Section 414(m)) which includes the Employer; and any other <br />entity required to be aggregated with the Employer pursuant to Treasury regulations under Code Section 414(o). <br />1.3 "Benefit" or "Benefit Options" means any of the optional benefit choices available to a Participant as outlined in <br />Section 4.1. <br />1.4 "Cafeteria Plan Benefit Dollars" means the amount available to Participants to purchase Benefit Options as <br />provided under Section 4.1. Each dollar contributed to this Plan shall be converted into one Cafeteria Plan Benefit Dollar. <br />1.5 "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time. <br />1.6 "Compensation" means the amounts received by the Participant from the Employer during a Plan Year. <br />1.7 "Dependent" means any individual who qualifies as a dependent under an Insurance Contract for purposes of <br />coverage under that Contract only or under Code Section 152 (as modified by Code Section 105(b)). <br />"Dependent" shall include any Child of a Participant who is covered under an Insurance Contract, as defined in <br />the Contract, or under the Health Flexible Spending Account or as allowed by reason of the Affordable Care Act. <br />For purposes of the Health Flexible Spending Account, a Participant's "Child" includes his/her natural child, <br />stepchild, foster child, adopted child, or a child placed with the Participant for adoption. A Participant's Child will be an eligible <br />Dependent until reaching the limiting age of 26, without regard to student status, marital status, financial dependency or residency <br />status with the Employee or any other person. When the child reaches the applicable limiting age, coverage will end at the end of the <br />calendar year. <br />The phrase "placed for adoption" refers to a child whom the Participant intends to adopt, whether or not the adoption has become <br />final, who has not attained the age of 18 as of the date of such placement for adoption. The term "placed" means the assumption and <br />retention by such Employee of a legal obligation for total or partial support of the child in anticipation of adoption of the child. The child <br />must be available for adoption and the legal process must have commenced. <br />1.8 "Effective Date" means January 1, 2025. <br />1.9 "Election Period" means the period immediately preceding the beginning of each Plan Year established by the <br />Administrator, such period to be applied on a uniform and nondiscriminatory basis for all Employees and Participants. However, an <br />Employee's initial Election Period shall be determined pursuant to Section 5.1. <br />1.10 "Eligible Employee" means any Employee who has satisfied the provisions of Section 2.1. <br />An individual shall not be an "Eligible Employee" if such individual is not reported on the payroll records of the <br />Employer as a common law employee. In particular, it is expressly intended that individuals not treated as common law employees by <br />the Employer on its payroll records are not "Eligible Employees" and are excluded from Plan participation even if a court or <br />administrative agency determines that such individuals are common law employees and not independent contractors. <br />