Common use of Section 125 Cafeteria Plan Clause in Contracts

Section 125 Cafeteria Plan. The Board shall maintain a Flexible Benefits Plan (the “Plan”) intended to qualify as a “cafeteria plan” under Section 125 of the Internal Revenue Code (the “Code”). A full-time or regular part-time employee may participate in the Plan by filing an election form and all applicable insurance forms with the Board Treasurer. As set forth above, certain insurance coverage is provided without cost to participants, while other coverage involves a monthly charge to participants. The Plan will provide an employee with an option to pay the employee portion of such costs with pre-tax (federal income tax) dollars, which will reduce the compensation otherwise payable to the employee, or to receive such compensation. An employee who does not elect to reduce his/her compensation would have to pay such costs with after-tax (federal income tax) dollars. The cost of the employee’s share of insurance benefits will be determined at the applicable monthly rates in effect from time to time. The benefits of the Plan will be provided only to those employees who are properly enrolled as participants. The exact terms of the Plan will be subject to the requirements of Section 125 of the Code and the regulations and interpretations thereunder.