Common use of Annual Allocation Clause in Contracts

Annual Allocation. On January first (1st) of each year (commencing on January 1, 2019), a sum of seven hundred and fifty dollars ($750.00), per each benefits eligible Full-Time Employee shall be provided by the Employer for the Employee to allocate to one or both of the Spending Accounts noted above. The Spending Account allocation shall be provided to benefits eligible Part-Time Employees on a pro-rated basis. In order to facilitate enough time for the administrative process, the amount of the allocation for Part-Time Employees will be based on their Full-Time equivalency as of October fifteenth (15th) of each calendar year, rounded to the next higher dollar ($1.00). The Employee may allocate funds by December 1st of each year, in whole or in part to the non-taxable Health Care Spending Account (HCSA) and/or to the taxable Personal Spending Account (PSA). Towards the end of each year Employees will be required to allocate their next year’s Spending Account into one or both of the accounts (whole dollar amounts only). Once Employees provide their allocation instructions, they will be unable to change their allocation until the following plan year. Each Plan year runs from January first (1st) to December thirty- first (31st). Employees who are laid off after January f i r s t ( 1st) in the year in which the funds are available, as long as they remain Employees of ▇▇▇▇▇▇▇ and on the recall list, shall maintain access to the funds for the balance of that Spending Account year (January first [1st] to December thirty first [31st]) while on layoff.