R-693 - 07/08/1997 - PERSONNEL - Resolutions RESOLUTION 97-AG-IS-EX 1-R-593
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION
OF THE VILLAGE OF OAK BROOK
FLEXIBLE BENEFITS PLAN
WHEREAS, Section I'y of the Internal Revenue Code authorizes employers to sponsor flexible
benefit packages for their eligible employees; and
WHEREAS, the Village of Oak Brook, Illinois, (the"VILLAGE")desires to participate in a
plan of flexible compensation for the eligible mployees of the VILLAGE; and
WHEREAS, the purpose of the Plan is to allow the eligible employees of the Village a method
of funding for: (1)the premium contribution for their Village-sponsored group medical and/or life
coverages; (2)qualified dependent care;and(3)qualified unreimbursed medical/dental claims,using
pre-tax monies rather than after-tax monies; and
WHEREAS, the Village Board of the Village of Oak Brook deems it necessary and in the best
interests of the VILLAGE to participate in the Flexible Benefits Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS,
as follows:
Section 1: That the provisions of the preamble hereinabove set forth are hereby adopted as
though fully set forth herein.
Section 2: That the Flexible Benefit, Master Plan Document, is attached hereto as Exhibit A and
by this reference incorporated herein and made a part hereof, is hereby approved.
Section 3: That the Village President, Village Clerk, Village Manager and other officers or
employers of the VILLAGE are hereby empowered and directed to execute and deliver all documents,
certificates and other instruments necessary to further the intent and purpose of this Resolution.
Section 4: That this Resolution shall be in full force and effect from and after its adoption as
provided by law.
PASSED AND APPROVED this 8th day of July, 1997 by the President and Board of
Trustees of the Village of Oak Brook, DuPage and Cook Counties, Illinois, according to a roll call vote
as follows:
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Resolution 97-AG-IS-EXI-R 693
]Flexible Benefits Plan
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Ayes: Trustees Bartecki, Caleel, Kenny, McInerney, Savino and Shumate
Nays: None
Absent: None
Abstain: None
Village President
ATTEST:
01 GAS
Village k
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FLEXIBLE BENEFIT
MASTER PLAN DOCUMENT
Article 1. Establishment and Purpose.
Section 1.1 Establishment. Village of Oak Brook, (hereinafter called the "Client")
establishes, effective as of September 1, 1997, a}elan of flexible compensation for the
eligible employees of the Client which shall be known as the Village of Oak Brook Flexible
Benefits Plan (hereinafter called the "Plan").
Section 1.2 Purpose. The purpose of the Plan is to allow the eligible employees a method
of funding, (1) The premium charges for their employer-sponsored group medical and/or
life coverages; (2) dependent care; and/or(3) unreimbursed medical/dental claims, using
pre-tax monies rather than after-tax monies. The plan is intended to comply with the
provisions of Section 79, 105, 106 and 129 of the Internal Revenue Code of 1954, as
amended by Tax Reform Act of 1984.
Article 2. Administration and Definitions.
Section 2.1 Administration. The plan shall be administered by the Client, the Plan
Sponsor, who shall bear all administrative costs of the Plan.
Section 2.2 Power of the Administrator. The Administrator of the Plan shall have all
powers necessary to administer the Plan and;
A. Interpret the provisions of the Plan;
B. Be responsible for any necessary changes in accounting procedures created by the
establishment of the Plan;
C. Establish rules for the Administration of the Plan and to prescribe any forms required
to administer the Plan.
D. Hire professional administrator(s) to administer the Plan.
Section 2.3 Actions of the Client. All determinations, interpretations, rules and decisions
of the Client shall be conclusive and binding upon all persons having, or claiming to have,
any interest or rights under the Plan.
Section 2.4 Delegation. The Client shall have the power to delegate specific duties and
responsibilities to officers or other employees of the Client or other individuals or entities.
Any delegation by the Client may allow further delegation by the individual or entity to
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whom the delegation is made. Any delegation may be rescinded by the Client at any time.
Each person or entity to whom a duty or responsibility has been delegated shall be
responsible for the exercise of such duty or responsibility, but shall not be responsible for
any act or the failure to act of any other person or entity.
Section 2.5. General Definitions.
A. "Participant" means a person who is an employee on or after the effective date and
who satisfies the participation condition of Article 3. An individual who becomes a
Participant shall remain a Participant until all benefits due him/her under the
provisions of the Plan have been paid or otherwise have been satisfied.
B. "Period of Coverage" means the Plan Year, except that for any Employee who
becomes a Participant after the start of a Plan Year, the Participant's enrollment will
extend through the remainder of the Plan Year.
C. "Plan" means Village of Oak Brook Flexible Benefits Plan as set forth herein and as
amended or restated from time to time.
D. "First Plan Year" means the four month period from September 1, 1997 to December
31, 1997. Subsequently, "Plan Year" means the twelve (12) month period
commencing January 1 and ending the following December 31 st, with subsequent
Plan Years commencing January 1.
Article 3. Participation/Termination Conditions.
Section 3.1 Participation conditions. As a condition of participation and receipt of benefits
under this Plan, the Participant agrees to:
A. Furnish to the Client the Flexible Benefits Plan Payroll Deduction Authorization
provided for in Section 3.2 below.
B. Observe all Plan rules and regulations.
C. Designate a portion of his/her Compensation as Pay Conversion Contributions in
accordance with the provisions of Article 4.
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Section 3.2 Flexible Benefits Plan Payroll Deduction Authorization. As a condition of
participation, all employees who are eligible and wish to be participants shall (1) execute
and deliver to the Client prior to their first day ofparticipat,on, a signed application to
participate in the Plan; (2) designate the required portic,n of their comaens.-' a for the Plan
Year in question as Pay Conversion Contributions as described i•-, Article- 4; (3) make a
benefit election, and (4) supply any other pertinent information that '-.!e C'iei,t reasonably
requires. Unless otherwise provided by the Client, that application steal: b:! ,_'elivered to the
Client at least thirty (30) days prior to the first day of the Employee's 'Participation. Also, as
of this deadline, those eligible employees who decline participation [ ii5t pr-,vide a signed
statement to this effect.
Section 3.3 Commencement of Participation. Eligible employees may become participants
only on the first day of a Plan Year, or as stated in (A) under Section 2.5. New employees
hired after commencement of the Plan Year will become eligible to participate on the first
day of the month following a 30 day waiting period.
Section 3.4 Provision for Run-Out Period. Expenses with dates of service falling within the
current Plan Year, may be eligible for processing as late as 60 days beyond the end of the
Plan Year.
Section 3.5 Termination of Coverage. A participant who terminates employment during
the Plan Year with a balance remaining in his/her account, may continue to submit eligible
expenses against that balance for a period up to 60 days after the date of termination.
This will be known as the Closing Date which may not exceed the end of the run-out period
described in Section 3.4. Only those expenses incurred prior to the date of the participant's
termination will be considered for reimbursement.
Article 4. Pav Conversion and Benefit Elections.
Section 4.1 Pay Conversion. Each participant shall at the beginning of each Plan Yea-
designate a portion of his/her compensation for each Plan Year as Pay Conversion (to
spending account). Pay Conversion Contributions shall reduce the Participant's
Compensation proportionately on each pay period during the Plan Year following his/her
effective date in the Plan.
Section 4.2 Benefit Elections. Each Participant shall make a benefit election, in the manner
provided herein, to apply his/her Pay Conversion Contributions during each Plan Year in
such proportions as he/she chooses, to the following:
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A. To pay the Participant's premium or contributions for Client Sponsored medical
insurance or coverage as set forth in Article 5:
and/or
B. To reimburse the participant for properly documented dependent care charges:
and/or
C. To reimburse the Participant for properly documented unreimbursed medical/dental
care charges. A participant's initial benefit election shall be made as part of his/her
Flexible Benefits Plan Payroll Deduction Authorization Form. Thereafter, a
Participant may change his/her benefit election for a subsequent Plan Year by
completing a new Flexible Benefits Plan Payroll Deduction Authorization form at
least thirty (30) days prior the first day of the Plan Year for which such change is to
be effective. A Participant's benefit election for any Plan Year shall be irrevocable
during the Plan Year, except for the automatic adjustment provided in Article 5 and
except that (a) the Client, in its capacity as Plan Administrator, may arbitrarily limit a
Participant's zontribution, and (b) in the event that there is a Life Event occurrence, a
Participant shall be entitled to change his/her benefit election in a manner that is
consistent with such Life Event occurrence by providing the Client a new Flexible
Benefit Plan Payroll Deduction Authorization Form and a written letter of
explanation for the change. Any such change shall be effective the first day of the
first calendar month beginning not less than thirty (30) days after the date of such
Participant's written notice is received by the Client.
Article -,; Medical Insurance or Coverage Benefits
Section 5.1 Medical Insurance or Coverage Benefits. To the extent - Participant so elects,
a portion of the Participant's Pay Conversion Contributions shall be used to pay the
Participant's share of the cost of coverage for himself/herself or his/her eligible dependents
under any existing Client sponsored health, medical, dental or hospitalization insurance (or
plan) or other similar health and accident plan for Employees' child or dependent care or
unreir:Zbursed medical/dental claims. If there is a change in the cost of a particular type of
coverage selected by a Participant, the Participant's election shall automatically be adjusted
to reflect such chance.
Article 6 Amendments and Termination
Section 6.1 Amendments. The Client may amend the Plan, in full or in part, at any time
and as often as it deems necessary. Any such amendment shall be filed with the Plan
Document.
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Section 6.2 Benefits Provided Through Third Parties. In the case of any benefits provided
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pursuant to any insurance policy or other contract with a third party, the Client may amend
the Plan by changing insurers, policies or contracts without changing the Ianguage of their
Plan Document, provided that copies of the contracts or policies are filed with the Plan
Documents and the Participants are informed as to the effects, if any, of such changes. j
Section 6.3 Termination. The Client expects the Plan to be permanent, but necessarily
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must, and hereby does, reserve the right to terminate the Plan at any time. In the event of a
Plan termination, Pay Conversion Contributions will cease. Thereafter neither the Client
nor any of its employees shall have any further financial obligations hereunder except such
that have accrued up to the date of termination and have not been satisfied. The Client must
provide the employees notification of such Plan Termination at least thirty (30) days in
advance of such actual action being taken.
Article 7 Miscellaneous
Section 7.1 No Guarantee of Employment. The adoption and maintenance of the Plan shall
not be deemed to be a contract of employment between the Client and any employee.
Nothing contained herein shall give any employee the right to be retained in the
employment of the Client or to interfere with the right of the Client to discharge any
employee at any time, nor shall it give the Client the right to require any employee to
remain in its employment or to interfere with the employee's right to terminate his/her
employment at any time.
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Section 7.2 Limitation of Liability. The Client does not guarantee benefits payable under
any policy or contract of insurance, or coverage, described herein, and any benefit payable
thereunder shall be the exclusive right of the insurer or entity that issued such contract or
policy.
Section 7.3 Non-:alienation. No benefit payable at any time under this Plan shall be subject
in ally manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance
of any kind.
Section 7.4 Applicable Law. The Plan and all rights hereunder shall be governed by and
construed according to the laws of the State of Illinois except to the extent such laws are
preempted by the laws of the United States of America.
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Section 7.5 Benefits Provided through Third Parties. In the case of any benefit through a
third party, such as an insurance company, or another Third Party Administrator, pursuant
to a contract or policy with such third party, if there is any conflict or inconsistency between
the description of benefits contained in this Plan and such contract or policy,the terms of
!such contract po all
Signs re - Administrator Date
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