§ 5.27.050. Benefits.

A.

Nontaxable Benefits. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may allocate Contributions to be made on his behalf to any or all of the Nontaxable Benefits approved for inclusion in Subdivision 1 of the Plan by the Board. Eligibility to receive or waive any particular Nontaxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements and other requirements and conditions which are set forth in the Election Information or the Materials and which are applicable to him and his employment and relate to such Nontaxable Benefit.

B.

Taxable Benefits. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may allocate Contributions to be made on his behalf to any or all of the Taxable Benefits approved for inclusion in Subdivision 1 of the Plan by the Board. The cost of a Taxable Benefit shall be treated as being paid to the Participant as cash and then deducted from his earnings and contributed to the Plan on an after-tax basis in an amount equal to the cost of that Taxable Benefit as determined pursuant to Section 5.27.050 D. Eligibility to receive or waive any particular Taxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements and other requirements and conditions which are set forth in the Election Information or the Materials and which are applicable to him and his employment and relate to such Taxable Benefit.

C.

Deletions, Additions and Changes in Taxable Benefits and Nontaxable Benefits. The Board in its sole discretion shall designate the Taxable Benefits and Nontaxable Benefits available under the Plan in respect of any Plan Year. The Board shall have the right during any Plan Year to (1) renegotiate the terms of any group insurance contract providing a Taxable Benefit or Nontaxable Benefit for such Plan Year; (2) substitute a new Taxable Benefit or Nontaxable Benefit comparable to one available at the beginning of such Plan Year; or (3) change the method of funding any Taxable Benefit or Nontaxable Benefit for such Plan Year without affecting Participant's elections thereof. The County shall notify Participants in writing prior to the commencement of a Plan Year as to any (a) Taxable Benefit or Nontaxable Benefit deletions or additions under the Plan; (b) changes in the amount of Contributions required in payment of any Taxable Benefit or Nontaxable Benefit or changes in the method of funding or payment of any Taxable Benefit or Nontaxable Benefit to the extent such changes are known prior to the commencement of a Plan Year; and (c) modifications in the terms and provisions of any Taxable Benefit or Nontaxable Benefit.

D.

Benefit Cost Determination. The CAO shall determine the cost, in dollars, to be charged to a Participant to receive a Taxable Benefit or Nontaxable Benefit. In determining the cost of a particular Taxable Benefit or Nontaxable Benefit for each Plan Year, the CAO shall consider such factors as it determines to be appropriate, including but not limited to, the cost of purchasing insurance, if applicable, to provide such Taxable Benefit or Nontaxable Benefit or the out-of-pocket expenses likely to be incurred by the County to provide the same, together with an appropriate amount of administrative expenses incurred in providing such Taxable Benefit or Nontaxable Benefit. The cost of receiving a particular Taxable Benefit or Nontaxable Benefit available in the Plan Year may vary among different classes of Participants who are similarly situated with respect to such factors as number of dependents, age, salary level and length of service and may be increased or decreased during a Plan Year pursuant to the renegotiation of the group insurance contract providing such Taxable Benefit or Nontaxable Benefit, the substitution of a comparable Taxable Benefit or Nontaxable Benefit, or a change in the method of funding such Taxable Benefit or Nontaxable Benefit. Such costs shall be disclosed to Eligible Employees and Participants in writing prior to or contemporaneously with the distribution of election forms for the Plan Year as provided by Section 5.27.060 A and any increase or decrease during the Plan Year in the cost of a Taxable Benefit or Nontaxable Benefit shall be disclosed to Participants as soon as reasonably possible.

E.

Cash Benefit. Any portion of a Nonelective Contribution made on behalf of a Participant which is not necessary to fund the Taxable Benefits and Nontaxable Benefits selected by the Participant shall be received by the Participant in the form of an increase in his Eligible Earnings for that month, with such amounts to be reflected in County payroll warrants as described in Section 5.27.040A; provided, however, that the total cash benefit provided by this Subdivision 1 shall not exceed the lesser of the following, whichever is applicable:

1.

Except as provided in subsection E3 of this section, in the case of an employee who is a Participant under the provisions of this Subdivision 1 on December 31, 1994 and who continues to be a Participant under this Subdivision 1 on and after January 1, 1995, the total cash benefit shall not exceed the Nonelective Contribution to which said Participant was entitled based on his Compensation as of December 31, 1994.

2.

Except as provided in subsection E3 of this section, in the case of an employee who is either a participant under the provisions of Subdivision 2 of this Chapter 5.27 on December 31, 1994, or who, as of that date, is eligible to become a participant under said Subdivision 2, and who elects to be covered by the provisions of this Subdivision 1 beginning on or after January 1, 1995, the total cash benefit shall not exceed the Nonelective Contribution to which said Participant would have been entitled based on his Compensation as of December 31, 1994 if he had been a Participant under this Subdivision 1 on that date.

3.

The limits on taxable cash set forth in subsections E1 and 2 of this section shall not apply to any Participant who has waived all rights to have taxable cash in excess of such limits included in his "compensation" and "compensation earnable" within the meaning of Sections 31460 and 31461 of the California Government Code. Such waiver shall be made in writing pursuant to Section 31461.4 of the California Government Code. A waiver executed on or before the fifteenth day of a month shall take effect on the first day of that month. A waiver executed after the fifteenth day of a month, but prior to the end of the month shall take effect on the first day of the following month. The provisions of this subsection E3 shall only affect taxable cash earned after the effective date of the waiver described herein. Said waiver shall not be "executed" within the meaning of this subsection until it is received by the County officer, employee, or agent designated by the CAO.

(Ord. 2010-0014, § 16, 2010; Ord. 99-0028 § 1, 1999: Ord. 94-0102 § 3, 1994: Ord. 94-0079 § 3, 1994: Ord. 92-0103 § 1(a)(part), 1992; Ord. 90-0164 § 1 (part), 1990: Ord. 84-0220 § 1(b) (Ch. 5.27 § 5), 1984.)