Common use of Salary Reduction Plan Clause in Contracts

Salary Reduction Plan. (This section applies to both teachers and classified personnel) The Board shall maintain a salary reduction plan which meets requirements of Section 125 of the Internal Revenue Code. Such plan shall be developed in consultation with the Union to allow employees to elect, via salary reduction, to pay for: a. The employee’s share of the cost of group medical and/or dental insurance premiums and/or deductibles, b. Reimbursement for medical expenses as allowed by the Internal Revenue Code and Regulations, c. Reimbursement for dependent care assistance as allowed by the Internal Revenue Code, d. Employee paid premiums for group life insurance as allowed by the Internal Revenue Code. The amounts designated may not be changed during the plan year except if there is a change in family status or other circumstance provided for in the Regulations issued by the Internal Revenue Service. Any amounts designated for which valid reimbursements claims are not made on a timely basis shall be forfeited and not otherwise paid to the teacher during that year or carried over to a succeeding plan year. The dollar total of the designated fringe benefits elected pursuant to the plan shall be deducted in equal amounts from the teacher’s salary payments during the plan year unless otherwise specified. Claims for reimbursement may be submitted no more than once per month unless an agreement with a plan administrator provides otherwise. Claims for reimbursement must be for services received during the plan year. The Board shall pay the initial set-up fee to a maximum of four hundred dollars ($400.00). The Union shall pay any additional initial set-up fee to a maximum of four hundred dollars ($400.00), and the Board shall pay any amount of such fee in excess of eight hundred dollars ($800.00). The employee shall pay any required monthly fees.