§ 5.29.030. Participation and coverage.

A.

Enrollment.

1.

Initial Enrollment. An individual who first becomes an Eligible Employee after the Effective Date but prior to an Annual Enrollment initially may participate in the Plan by completing the Cafeteria Plan enrollment process within the 60-day period beginning on the date the Employee becomes an Eligible Employee. Coverage for an Eligible Employee who enrolls in accordance with this Section shall be effective on the first day of the calendar month next following the date he completes the Cafeteria Plan enrollment process; provided, however, that an Eligible Employee who completes enrollment during November will not participate until the start of the next Plan Year. Except as provided in section 5.29.030A.3, if an Eligible Employee fails to enroll, he or she will not participate in the Plan for the remainder of the Plan Year.

2.

Annual Enrollment. Prior to the beginning of each Plan Year, the Plan Administrator will conduct an Annual Enrollment, during which Eligible Employees may make new elections or change existing elections effective for the next following Plan Year. An Eligible Employee may become or continue to be a Covered Employee under this Plan by completing the Annual Enrollment process by the end of the Annual Enrollment period established by the Plan Administrator. Coverage elected under this Plan during an Annual Enrollment shall be effective as of the first day of the Plan Year following the Annual Enrollment. If an Eligible Employee fails to enroll, he or she will not participate in the Plan for the next following Plan year.

3.

Change in Employment Classification During Plan Year.

a.

If a participant in the Choices or Options Dependent Care Reimbursement Plan for a Plan Year ceases to be eligible thereunder but becomes an Eligible Employee under this Plan during that Plan Year, he will have the opportunity to enroll in this Plan under Section 5.29.030A.1, provided, however, that his coverage under this Plan will not become effective until the first day of the second month following the date he completes the enrollment process. If he fails to complete the enrollment process within the 60-day period described in Section 5.29.030A.1, he will automatically become a Covered Employee under this Plan effective as of the first day of the second month after the 60-day enrollment period ends, and his election regarding the level of his Employee Contributions under the Choices or Options Dependent Care Reimbursement Plan will continue in effect under this Plan for the remainder of the Plan Year.

b.

If a Covered Employee ceases to be a Covered Employee and becomes eligible to participate in the Choices or Options Dependent Care Reimbursement Plan during a Plan Year, he will have a 60-day period in which to complete the enrollment process for that plan; provided, however that his coverage under the Choices or Options Dependent Care Reimbursement Plan will not become effective until the first day of the second month following the date he completes the enrollment process. If he fails to complete the enrollment process within the 60-day period, he will automatically begin participating in the Choices or Options Dependent Care Reimbursement Plan, as applicable, effective as of the first day of the second month after the 60-day enrollment period, and his election regarding the level of Employee Contributions under this Plan will continue in effect under the Choices or Options Dependent Care Reimbursement Plan, as applicable, for the remainder of the Plan Year.

4.

Enrollment Information and Deadlines. In order to complete the enrollment process during initial enrollment or Annual Enrollment as described in this Section 5.29.030, an Eligible Employee shall specify the amount of Employee Contributions, if any, to be credited to his Dependent Care Account and the corresponding Annual Contribution Credits for the Plan Year, and shall provide any other information required by the Plan Administrator. The form and content of any enrollment materials, and any limitations with respect to the time for completing the enrollment process, shall be determined by the Plan Administrator and communicated to Eligible Employees prior to enrollment.

5.

Limits. The maximum Annual Contribution Credits that may be elected under the Plan for any Plan Year is the Maximum Annual Benefit as defined in Section 5.29.020T. The amount that may be excluded from the gross income of a Covered Employee and his spouse, if any, with regard to Qualifying Dependent Care Expenses reimbursed under this Plan or any other dependent care reimbursement plan in any calendar year shall be limited in accordance with Code Section 129.

B.

Coverage.

1.

Initial Coverage. An Eligible Employee may become a Covered Employee during a Plan Year as of the first day of the calendar month next following the date he completes the Cafeteria Plan enrollment process in accordance with Section 5.29.030A.1. Except as otherwise provided in this Section 5.29.030, coverage shall remain effective for the balance of the Plan Year.

2.

Annual Enrollment. Prior to the beginning of each Plan Year, the Plan Administrator will conduct an Annual Enrollment, during which Eligible Employees may make new elections or change existing elections effective as of the first day of the next following Plan Year. Except as otherwise provided in this Section 5.29.030, benefit elections shall remain effective for the entire Plan Year.

3.

Change in Employment Classification During Plan Year. An Eligible Employee who enrolls or is defaulted into coverage in accordance with Section 5.29.030A.3.a. shall become a Covered Employee as of the first day of the second calendar month after either (a) the date he completes enrollment or, (b) if he is defaulted into the Plan, the end of the 60-day enrollment period. Except as otherwise provided in this Section 5.29.030, coverage shall remain effective for the balance of the Plan Year.

4.

Coverage During Leave of Absence or When Not Receiving Pay. A Covered Employee's coverage under the Plan shall continue while he is on a paid or unpaid leave of absence even if no Employer Contributions or Employee Contributions are credited to his Dependent Care Account during that period; provided, however, that the Covered Employee's Annual Contribution Credits will be reduced to reflect any Employee Contributions and Employer Contributions that are not made during that period.

C.

Termination of Coverage.

1.

Date Coverage Ceases. Plan coverage ceases upon the earliest to occur of:

a.

the first day of the second month immediately following the date the Covered Employee ceases to be an Employee or an Eligible Employee, unless the Covered Employee has changed employment classification and plan participation during the Plan Year as described in Section 5.29.030A.3.b,

b.

in the case of a Covered Employee who changes employment classification and plan participation during the Plan Year as described in Section 5.29.030A.3.b, the first day of the second month following the earlier of (1) the date he completes the enrollment process under the Choices of Options Dependent Care Reimbursement Plan, or (2), the end of the 60-day enrollment period,

c.

the effective date of the Covered Employee's election not to participate, or failure to elect to participate, in the Plan under Section 5.29.030A.1 or 2,

d.

the effective date of any Plan amendment that terminates coverage for the Covered Employee's job category, or

e.

the date of Plan termination.

2.

Effect of Termination of Coverage. No benefits are payable for Qualifying Dependent Care Expenses incurred after Plan coverage terminates (and before the date, if any, that it is reinstated).

D.

Revoking and Changing Elections.

1.

General Rule. Except in extraordinary circumstances described in this subsection D, benefit elections shall be irrevocable for the Plan Year for which they are made. Any new benefit election made under this subsection D must be made within 90 days beginning on the date of the event that is the reason for the new election. Any new benefit election shall be effective on the first day of the month following the correct and timely completion and submission of all required forms. This subsection D shall be interpreted and applied in accordance with applicable Treasury regulations and in a nondiscriminatory manner in accordance with Code Sections 125 and 129.

2.

Revocation of Elections for Status Change; Consistency Rule.

a.

General Rule. The Plan Administrator may, in its discretion, permit (i) a Covered Employee to revoke a benefit election under the Plan and make a new benefit election or (ii) an Eligible Employee who is not participating in the Plan to make a benefit election and commence participation in the Plan, if a Status Change occurs and the election change or new election satisfies the consistency requirements described in subparagraph 2.b below.

b.

Consistency Rules. An election change or new election satisfies the requirements of this paragraph if the election change or new election is on account of and corresponds with a Status Change that affects (i) eligibility for coverage under an Employer's dependent care reimbursement account plan, or (ii) expenses described in Code Section 129.

3.

Cost Changes.

a.

Significant Cost Changes. If the cost of a Covered Employee's Qualifying Dependent Care Expenses significantly increases or significantly decreases during a Plan Year, or if the cost to the Employee (e.g., the necessary level of Employee Contributions) to maintain the elected Annual Contribution Credits for the Plan Year increases due to the reduction or termination of Employer Contributions under Section 5.29.040A.2, the Plan Administrator, in its discretion, may permit any affected Covered Employee to revoke his existing election and make a new election to reflect the increased or decreased cost.

b.

Limitation. Notwithstanding anything to the contrary in this Section 5.29.030D.3, no election changes under the Plan shall be permitted as a result of a change in cost for Qualifying Dependent Care Expenses imposed by a dependent care provider unless such change in cost is imposed by a dependent care provider who is not a qualifying relative (as defined in Code Section 152(d)) of the Covered Employee.

4.

Significant Improvement or Curtailment of Coverage (Services). If the dependent care services being provided to a Covered Employee are significantly improved or curtailed (e.g., if the entity or person providing dependent care services changes or if the hours of services provided change), the Plan Administrator, in its discretion may permit the Covered Employee to revoke his existing election and make a new election to reflect the cost of the modified services.

5.

Change in Coverage Under Another Employer Plan. The Plan Administrator may permit a Covered Employee to prospectively change or revoke an existing benefit election under the Plan if the election change is on account of and corresponds with a change made under another Employer plan (including a plan of the same Employer or of another Employer) that would be permitted under this Section (without regard to this subsection 5). The Plan Administrator also may permit a Covered Employee to make a prospective election to drop coverage under the Plan if dropping such coverage is on account of and consistent with adding coverage under another Employer's plan provided that the period of coverage or plan year under the plan does not correspond with the period of coverage or Plan Year under this Plan.

(Ord. 2008-0014 §§ 9, 10 (part), 2008.)