§ 5.41.040. Contributions and funding.

A.

Contributions.

1.

Employee Contributions. During enrollment in accordance with Section 5.41.030, and pursuant to the terms of the Cafeteria Plan, an Employee may elect to have his Employer credit a portion of his Contribution (as defined in the Cafeteria Plan) to his Dependent Care Account. The amount elected may not be less than $10 or more than the amount that, together with any monthly Employer Contribution, would cause his Annual Contribution Credits to exceed the Maximum Annual Benefit. To the extent permitted under Code Sections 125 and 129, Employee Contributions will be treated like non-taxable Employer contributions.

2.

Employer Contributions. Each Employer may contribute up to a designated dollar amount per month to the Plan on behalf of each Covered Employee employed by that Employer who elects to receive an Employer Contribution. Subject to negotiation with the certified bargaining organizations that represent an Employer's Eligible Employees, the Employer shall establish the maximum amount of the monthly Employer Contribution that it will make on behalf of each Covered Employee, as well as any annual cap on total Employer Contributions, for each Plan Year. The Plan Administrator shall disclose to Eligible Employees prior to enrollment the maximum level of Employer Contribution that may be made on behalf of each Covered Employee and the existence of the cap. A Covered Employee does not need to make Employee Contributions to receive an Employer Contribution. An Eligible Employee who does not enroll in the Plan will not be entitled to an Employer Contribution.

In the event an Employer establishes an annual cap on Employer Contributions on behalf of Covered Employees, the Employer may, without prior notice to Covered Employees and at any time during the Plan Year, reduce or terminate the Employer Contribution to be made for some or all Covered Employees in any manner consistent with Code Section 129(d) and the terms negotiated with the Eligible Employees' bargaining unit representative(s) to prevent the cap from being exceeded. The Plan Administrator shall notify affected Covered Employees if their Employer Contributions will be reduced or terminated and their Annual Contribution Credits reduced due to imposition of a cap.

3.

Termination or Suspension of Contributions. An Employer will not make an Employer Contribution or Employee Contribution for a month on behalf of a Covered Employee if he works less than 8 hours or receives less than 8 hours of leave benefits in the prior month. An Employer also will not make an Employer Contribution or Employee Contribution on and after the first day of the second month after the Covered Employee ceases to be an Employee or an Eligible Employee unless the Covered Employee changes employment classifications and plan participation as described in Section 5.41.030A.3.a. If the Covered Employee changes employment classifications and plan participation as described in Section 5.41.030A.3.a, he will not receive an Employer Contribution or Employee Contribution on or after the date his coverage under the Plan terminates in accordance with Section 5.41.030C.1.b.

B.

Plan Funding. The Plan is not required to be and is not funded or insured. Benefits paid to a Covered Employee are paid solely out of the general assets of the Employee's Employer.

(Ord. 2008-0014 § 20 (part), 2008.)