§ 5.37.060. Benefit election procedures and allocations of contributions.

A.

General Elections Procedure. Prior to the commencement of each Plan Year, or in the case of employees who become Eligible Employees during a Plan Year, prior to the first day if their participation in the Plan pursuant to Section 5.37.030A, the County shall provide an election form to each Eligible Employee and Participant who will be entitled to begin or continue participation in the Plan for such Plan Year. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of the Plan Year shall elect the types of Taxable Benefits and/or Nontaxable Benefits to be received under the Plan during the course of such Plan Year. The form and content of the election form shall be such as the County shall from time to time determine to be appropriate. All election forms shall be due and returnable to the County on or before such date as the County may specify, which date shall be no later than the day prior to the commencement of the Plan Year to which such forms relate, or in the case of Eligible Employees, the day prior to the commencement of participation.

B.

Deemed Elections. Any Eligible Employee who is enrolled in a Medical Insurance Plan on the date his election form is due to be filed pursuant to subsection A of this section, or any Participant who in the current Plan Year receives one or more Taxable Benefits and/or Nontaxable Benefits who fails to make a timely election of Benefits for either initial participation or continued participation in the Plan, whichever is relevant, shall be deemed to have elected to receive the same type, and if applicable, the same amount, of Taxable Benefits and/or Nontaxable Benefits elected for the period preceding Plan participation or for the previous Plan Year. To the extent that the dollar value of the Nonelective Contribution made on behalf of such Participant exceeds the cost of such Taxable Benefits and/or Nontaxable Benefits, the Participant shall receive the difference in additional monthly Eligible Earnings during the Plan Year. To the extent that the cost of such Nontaxable Benefits exceeds the Nonelective Contribution, the Participant shall be deemed to have authorized the County to reduce his Eligible Earnings by such amount each month as may be necessary to cover the excess cost of such Taxable Benefits and/or Nontaxable Benefits in accordance with the limit set forth in Section 5.37.040B. Any Participant who fails to submit the election form on or before the due date who was not enrolled in an insured health or welfare benefit program incorporated into the Plan as a Taxable Benefit and/or Nontaxable Benefit shall be deemed to have elected to receive the entire amount of the Nonelective Contributions made on his behalf during the next Plan Year as additions to his Eligible Earnings each month during such Plan Year. Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented: 1) any additional monthly Eligible Earnings received due to a Participant's deemed election under this Section 5.37.060B shall be reflected in County payroll warrants as described in Section 5.37.040A, and 2) a Participant's deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.37.040B.

C.

Irrevocability of Elections. Except as provided in subsection D of this section, all elections made by or on behalf of Participants pursuant to subsections A and B of this section shall be irrevocable for the Plan Year for which made or deemed to be made.

D.

Elections Changes During the Plan Year. In the event of an extraordinary change in a Participant's circumstances, and in accordance with any applicable regulations promulgated pursuant to Section 125 of the Code, the County, in its sole discretion, may permit such Participant during the Plan Year to change the type and/or amount of Benefits to be received under the Plan for the remainder of such Plan Year.

E.

Amnesty for Ineligible Dependents. Notwithstanding any other provision of this Code, the County shall provide amnesty from discipline and payment recovery to any employee whose Ineligible Dependent(s) are removed from County-sponsored or County-approved health plan coverage as a consequence of a dependent eligibility verification process authorized by the CEO; provided, however, that no such amnesty shall be extended to any employee who obtains such coverage through willful misrepresentation or other fraudulent means.

F.

Compensation Reduction Agreement. If, in respect of any month during a Plan Year, the cost of the Taxable Benefits and/or Non-taxable Benefits elected by a Participant for such Plan Year exceeds the amount of Non-elective Contributions made on his behalf for such month, the Participant shall be deemed to have authorized the County, in accordance with Section 5.37.040B, to reduce his Eligible Earnings by such amount each month as is necessary to cover the excess cost of the Taxable Benefits and/or Non-taxable Benefits elected by such Participant and to make corresponding Elective Contributions to the Plan on his behalf. Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, a Participant's deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.37.040B.

G.

Participant Accounts. The County shall establish and maintain appropriate procedures and records with respect to Benefit elections and Contributions made by and on behalf of Participants pursuant to subsections A and B of this section. The County may establish one or more accounts for each Participant for the purpose of recording such Participant's utilization of particular Taxable Benefits and/or Non-taxable Benefits such as uninsured health care or dependent care reimbursement benefits if available, to which specific dollar amounts of Non-elective and/or Elective Contributions have been credited. In no event, however, shall such accounts represent actual deposits of Contributions to be credited with respect to such accounts.

H.

Forfeiture of Unused Benefits. Any amount which a Participant has elected to receive during the Plan Year as a specific Taxable Benefit or Non-taxable Benefit pursuant to the election procedure set forth in subsections A and B of this section which remains unused by the Participant at the close of the Plan Year shall be forfeited to the County; provided, however, that payments of such amount may be made to the Participant up to six months beyond the close of a Plan Year so long as such payments are made under the provisions of such specific Taxable Benefit or Non-taxable Benefit for expenses incurred by the Participant during the Plan Year; provided further that up to $500 of unused amounts credited to a Participant's Health Care Spending Account may be carried over to the next Plan Year in accordance with the rules set forth in Section 5.37.160.

(Ord. 2015-0011 § 13, 2015; Ord. 2014-0008 § 27, 2014; Ord. 2010-0014, § 36, 2010; Ord. 94-0102 § 26, 1994: Ord. 92-0013 § 5 (part), 1992.)