HomeMy WebLinkAbout840076.tiff RESOLUTION
RE: APPROVE PREMIUM ONLY PLAN WITH JAMES BENEFITS AND AUTHORIZE
CHAIRMAN TO SIGN SAME
WHEREAS , the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
WHEREAS , on the 1st day of October, 1984 , the Board approved
an Agreement with James Benefits concerning the implementation of
a Premium Only Plan, and
WHEREAS, the Board has now been presented with the final form
of the Premium Only Plan between Weld County, Colorado, and James
Benefits, and
WHEREAS, after review, the Board deems it advisable to
approve said plan, a copy being attached hereto and incorporated
herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Premium Only Plan
between Weld County, Colorado, and James Benefits be, and hereby
is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is , authorized to sign said Plan.
AQUs
/-
8400 ;6
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 21st day of
November, A.D. , 1984 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: a WELD COUNTY, COLORADO
Weld County lerk and Recorder
and Clerk to the Board Norman Carlson, Chairman
/7
BY:, ) b c, e ixie-4-2c J Z ine o son, Pro-Tem
ceputy County C rk
APPROVED AS TO FORM: Gene R. Brantner
EXCUSED
CMC7±4-- Chuck Carlson
County Attorney _ �Jli4f-fitiVA.
T. Martin
WELD COUNTY
PREMIUM ONLY PLAN
SUMMARY PLAN DESCRIPTION
TABLE OF CONTENTS
PAGE
INTRODUCTION 1
THE PLAN IN BRIEF 2
Summary 2
Taxes 2
Definitions 2
ELIGIBILITY AND ENROLLMENT 5
HOW THE PLAN WORKS 6
OTHER FACTS YOU SHOULD KNOW 8
- i -
INTRODUCTION
Benefits. For Both Of Us - A thought that brings visions of the good life.
And that' s exactly what the Premium Only Plan (POP) can mean to eligible
employees.
Benefits are a form of compensation that is tax-free or tax-deferred. A POP
provides you the flexibility and opportunity to purchase the kind of benefit
protection that is most meaningful to your individual life style.
The POP combines the best of two ideas: 1) tax-free compensation, and 2)
flexibility to choose. You can use your plan contribution dollars to
purchase "tax-free" benefit coverages so your compensation can go further.
Now, that's the good life.
This booklet describes the plan in plain language and summarizes the official
legal documents that govern the operation of the plan. If you have any
questions about the information in this booklet or if you would like to review
the official legal documents, please call the Personnel Department. Issues
concerning plan operation will be resolved solely in accordance with the
official legal documents.
- 1 -
•
THE PLAN IN BRIEF
SUMMARY
You are automatically a participant of the Plan as of the first day of the month
following the first full month' s pay as a full-time employee, provided proper
application has been made.
Each year, the county may authorize a specific amount of money you may use to
pay for insurance premiums.
By December 15th of each year, you must decide what insurance coverage you want
and elect to pay your share of that insurance coverage.
TAXES
Under current tax law, you avoid paying taxes on premium-only dollars that are
spent on medical/dental Plan benefits, AD&D insurance up to a total of $50,000
of employee life insurance and any and all Spouse and Dependent life insurance.
DEFINITIONS OF TERMS
Read the following definitions to help you understand the POP provisions:
Committee: An administrative committee composed of the County Commissioners
will handle the general administration of the Plan. This Committee
establishes uniform rules and decides how the Plan operates in accordance
with the official Plan documents.
Covered Dependents: Those who are eligible as provided herein and enrolled
by a Covered Employee. Covered Dependents shall be the spouse of the Covered
Employee; and children from birth to attainment of age 19, provided such
children are unmarried and dependent upon the Covered Employee for support
and maintenance, and for whom the employee is entitled to an exemption for
income tax purposes. The term "children" shall include natural children,
adopted children, foster children, and stepchildren who depend upon the
employee for support and maintenance. Such terms shall also include children
19 years of age to age 23 who are registered students at an accredited
college, vocation-al school , or university on a full-time basis, and are
dependent upon the Covered Employee for support and maintenance.
Covered Dependent shall also include a dependent child age 19 and over, pro-
vided the child is (1) incapable of self-sustaining employment by reason of
mental or physical handicap, (2) chiefly dependent upon the Covered Employee
for support and maintenance, and (3) had been covered under this Plan on the
day immediately preceding his 19th birthday.
Proof of such incapacity and dependency must be furnished the Contract
Administrator by the Covered Employee within the thirty-one (31) days prior
to the child's 19th birthday and at reasonable intervals thereafter. For
newly hired employees, a covered dependent will also include a handicapped
child over age 19 who became handicapped prior to age 19 and who was con-
sidered a Covered Dependent under the plan of the employee's former employer.
Dependents DO NOT include children of a dependent son or daughter.
- 2 -
•
Dependents shall be covered simultaneously with employees covering them
as dependents, provided they are not confined in a hospital on the
effective date. Coverage for newborn children will begin from birth.
However, they need to be formally enrolled and appropriate coverage
arranged within one month from birth to be effective thereafter, if
dependent coverage does not already exist.
Employer: Weld County which shall adopt the Plan according to the legal
documents under which the Plan is established.
Flexible Dollars: The amount and percentage of pay allocated each Plan
Year to a participant's POP.
Plan Year: The plan year begins each January 1 and ends on December 31.
The first Plan Year begins September 1, 1984.
Salary: Gross wages are defined as those wages paid to full-time
employees of Weld County, Colorado for a minimum of 139.2 hours and a
maximum of 174 hours per month. Gross wages are composed of regular
hourly wages (salary does not include tax deferred deposits to the Weld
County deferred compensation or 401k Plans), sick leave, vacation,
emergency, compensatory time used, education, military, next year's
vacation, worker's compensation and personal leave.
Regular Hourly are those wages paid to an employee in the normal course
of work. Minimum hours = 139.2 per month/Maximum hours = 174 per month.
Exceptions to regular hourly wages used to calculate gross wages:
Sick Other: All sick leave paid by the County during a month.
Vacation: All vacation leave paid by the County during a month.
Emergency: A special leave category established by ordinance to pay an
employee during family emergencies, not to exceed three (3) days.
Compensatory Time Used: Hours accrued and substituted for regular
hours.
Education: Time granted for educational purposes and not charged to
regular hourly.
Military: Those hours of military duty not charged to regular hourly.
Next Year 's Vacation: Hours charged to next year ' s vacation.
Worker's Compensation: The first three (3) days of worker's compensa-
tion are charged to this category and paid at full pay.
Personal Leave: Two (2) days per year per employee are charged to this
category.
Sick Leave Bank: Those hours granted to members of the sick leave bank
for use during extended illness.
- 3 -
Substraction from Gross Wages:
Leave Without Pay (LWOP): That category established to subtract hours
from employees who do not have accruals to cover hours used.
PLAN:
The Plan means the Weld County Flexible Benefits Plan, effective
December 16, 1984, and as it may be amended from time to time.
- 4 -
ELIGIBILTY AND ENROLLMENT
If you are a full-time employee of the County, you are eligible to partici-
pate in the Plan. You are automatically a participant on the first of the
month after you meet the eligibility requirements.
You remain a participant until you become ineligible. If you are disabled,
however, you remain a participant until the end of the calendar year in
which your disability began. You are disabled if you are unable to do your
work because of a physical or mental disability that is expected to be per-
manent and that qualifies you for long term disability benefits or retire-
ment benefits.
During enrollment, you will also want to complete a beneficiary designation
form to tell the Plan administrator who should receive the amounts of
unpaid benefits in case of your death. Beneficiary designation forms are
available from your personnel representative.
Elections are irrevocable once the period of coverage has begun. If the
employee has designated a change because of premium increases during the
Plan Year prior to the beginning of benefit coverage, the change will still
qualify.
Exceptions to this include:
Marriage or divorce of a participant
Death of a spouse or dependent
Addition or deletion of dependents
A participant or spouse gains or loses employment
- 5 -
HOW THE PLAN WORKS
The Amount in Your Account
Each year, the County will designate how much you may spend. We call that
amount your Flexible Dollars. The amount announced depends on the types of
benefit plans and options selected but will usually be the same for all
employees.
If you become a participant after January 1, the amount credited to your
POP account will be prorated by the number of months remaining in that
year.
You must designate the coverage you wish under the benefit plans before the
beginning of the year to be able to use your Flexible Dollars to pay for
those plans. If you become a participant during the year, however, you may
enroll in the benefit plans on the date of participation.
Group Term Life Insurance
When you elect coverage under the county's Group Term Life Insurance Plan,
the employer pays premiums for that coverage with Flexible Dollars.
Accidental Death and Dismemberment
You may use your Flexible Dollars to pay premiums for AD&D coverage.
Medical/Dental Care Expense
Flexible dollars may be used to pay the premiums for medical/dental care
coverage under the company's comprehensive Medical/Dental Plans. The maxi-
mum for all medical/dental care premiums will be announced each year before
the enrollment period.
Premiums for Medical/Dental, Life, and AD&D Coverage
Each year when you have the opportunity to sign up for these kinds of
coverages the employer will inform you of the applicable premium rates.
The amounts and kinds of coverage you elect will determine your total pre-
mium, which the employer will pay from your POP account.
What is Salary Reduction?
Each year, after you have signed up for the coverage you want, you will
have your compensation reduced to pay for the benefit plans selected.
Because the employer will be paying the premiums on your behalf, it is con-
sidered an Employer contribution. You can avoid paying federal , state,
local , and, currently, FICA tax on the amount elected to be deposited in
the POP account. In many instances, the amount of your take-home pay will
actually increase by electing salary reduction into the POP.
- 6 -
WHAT HAPPENS IF I WANT TO STOP SALARY REDUCTION?
You may have your salary reduction stopped for any of the following reasons:
1 . The Employer terminates the Plan.
2. You incur an unforeseen financial "emergency. "
3. You terminate coverage in the benefit programs at Weld County.
- 7 -
OTHER FACTS YOU SHOULD KNOW
Although Weld County is not considering any changes to the POP, the
Employer does reserve the right to change, terminate, or conform the Plan
to current governmental and IRS regulations.
This description is not legally binding, and discrepancies between this
description and the legal Plan document will be resolved in favor of the
legal Plan document.
- 8 -
WELD COUNTY
FLEXIBLE BENEFITS PLAN
Effective: December 16, 1984
TABLE OF CONTENTS
Section Subsection Page
1 Establishment of the Plan
1.1 Establishment of the Plan 1
1.2 Applicability of Plan 1
2 Definitions
2.1 Definitions 2
2.2 Gender and Number 4
3 Eligibility and Participation
3. 1 Date of Participation 4
3.2 Duration 5
4 Benefits
4.1 Flexible Dollars 5
4.2 Benefits 7
4.3 Substitution 9
4.4 Notification of Employees 9
4.5 Rights Against the County 9
5 Election of Benefits and Application
5. 1 Election of Benefits 9
6 Beneficiary Designation
6. 1 Beneficiary Designation 10
7 Accounts and Records of the Plan
7.1 Accounts and Records 11
8 Incompetency
8. 1 Incompetency 11
9 Contributions and Financing
9.1 Contributions and Financing 12
10 Non-Alienation of Benefits
10. 1 Non-Alienation 12
11 Administration
11. 1 The Committee 12
11.2 Fiduciaries 12
11.3 Administration 13
11.4 Indemnification 13
11.5 Expenses of Administration 14
11.6 Rights of the County to Inspect
the Records of the Plan and
Trust Fund 14
FLEXM/WCO-2
TABLE OF CONTENTS
(continued)
Section Subsection Page
12 Changes in the Plan
12. 1 Amendment and Termination of the Plan
14
12.2 Final Distributions 15
13 Unclaimed Accounts
13.1 Unclaimed Accounts 15
14 Illegality of Particular Provision
14. 1 Illegality of Particular Provision 15
15 Effect of Mistake
15.1 Effect of Mistake 16
16 Applicable Laws
16.1 Applicable Laws 17
FLEXM/WCO-3
(Effective as of December 16, 1984)
Section 1. Establishment of the Plan
1. 1 Establishment of the Plan. Weld County (the "Company") hereby
establishes a flexible benefits plan within the meaning of section 125 of the
Internal Revenue Code of 1954, for its eligible employees effective as of
December 16, 1984, to be known as the "Weld County Flexible Benefits Plan" as
set forth in this document.
The purpose of this Plan is to provide eligible Employees a means of obtaining a
reimbursement of premiums for qualified medical , dental , group term life
insurance and accidental death and dismemberment coverage. Such benefits are
provided in a manner which affords the Employee the discretion to allocate the
Plan funds so that he may utilize those benefits which are best suited to his
needs and obtain them with advantageous tax treatment where possible.
1.2 Applicablility of the Plan. The provisions of this Plan are appliable
only to the Employees of the county in current employment on or after the
Effective Date.
An Employee who retired or separated from employment prior to the Effective
Date, or beneficiaries of such an Employee, shall not be entitled to benefits
after the Effective Date under the provisions of this Plan unless the Employee
is rehired and then becomes eligible for benefits.
The provisions of this Plan for the reimbursement of medical , dental , and acci-
dental death and dismemberment expenses constitute a self-insured medical reim-
bursement plan within the meaning of Code section 105(h).
Amounts which are not utilized for benefits under this Plan are forfeited by the
Participants.
FLEXM/WCO - 1 -
Section 2. Definitions
2. 1 Definitions. Whenever used in the Plan, the following terms shall
have the respective meanings set forth below unless otherwise expressly pro-
vided, and when the defined meaning is intended, the term is capitalized.
(a) The term "Beneficiary" means the person or persons designated by a
Participant pursuant to subsection 6. 1.
(b) The term "Code" means the Internal Revenue Code of 1954, as amended,
and the regulations thereunder.
(c) The term "Committee" means the administrative committee composed of
the County Commissioners as provided in subsection 11.1.
(d) The term "County" means Weld County, and to the extent described
in a supplemental agreement to this plan, an organization which
adopts this plan pursuant to Section 16 of this Plan.
(e) The term "Covered Dependent" means those who are eligible as provided
herein and enrolled by a Covered Employee. Covered Dependents shall
be the spouse of the Covered Employee; and children from birth to
attainment of age 19, provided such children are unmarried, and depen-
dent upon the Covered Employee for support and maintenance, and for
whom the employee is entitled to an exemption for income tax purposes.
The term "children" shall include natural children, adopted children,
foster children, and step children who depend upon the employee for
support and maintenance. Such terms shall also include children 19
years of age to age 23 who are registered students at an accredited
college, vocational school , or university on a full-time basis, and
are dependent upon the Covered Employee for support and maintenance.
FLEXM/WCO - 2 -
Covered Dependent shall also include a dependent child age 19 and
over, provided the child is (1) incapable of self-sustaining employ-
ment by reason of mental or physical handicap, (2) chiefly dependent
upon the Covered Employee for support and maintenance, and (3) had
been covered under this Plan on the day immediately preceding his 19th
birthday.
Proof of such incapacity and dependency must be furnished the Contract
Administrator by the Covered Employee within the thirty one (31) days
prior to the child' s 19th birthday and at reasonable intervals there-
after. For newly hired employees a covered dependent will also
include a handicapped child over age 19 who became handicapped prior
to age 19 and who was considered a Covered Dependent under the plan of
the employee' s former employer.
Dependents DO NOT include children of a dependent son or daughter.
Dependents shall be covered simultaneously with employees covering
them as dependents, provided they are not confined in a hospital on
the effective date. Coverage for newborn children will begin from
birth. However, they need to be formally enrolled and appropriate
coverage arranged within one month from birth to be effective there-
after, if dependent coverage does not already exist.
(f) The term "Effective Date" means December 16, 1984.
(g) The term "Employee" means a common-law employee of the County.
(h) The term "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and the regulations thereunder.
FLEXM/WCO - 3 -
(i ) The term "Flexible Dollars" means those dollar amounts specified in
subsection 4. 1 (a) which a Participant may allocate to obtain benefits
described in subsection 4.2.
(j ) The term "Participant" means an Employee who meets the conditions of
subsection 3. 1.
(k) The term "Plan" means the Weld County Flexible Benefits Plan effective
as of December 16, 1984, and as it may be amended from time to time.
(1 ) The term "Plan Year" means the twelve month period of time designated
and determined by the Company to be January 1 through December 31 .
The first Plan Year begins December 16, 1984.
(m) The term "Salary Reduction Agreement" means an agreement between a
Participant and the County under which the County reduces the Parti-
cipant's current salary and the County contributes the amount of the
reduction Plan on behalf of the Participants, as a before-tax contri-
bution.
2.2 Gender and Number. Except when otherwise indicated by the context,
any masculine terminology shall also include the feminine and the definition of
any term in the singular also include the plural.
Section 3. Eligibility and Participation
3. 1 Eligibility and Date of Participation. A person who is:
A permanent full-time employee of the Employer who is eligible and who has been
enrolled in the Plan. To be considered a full-time employee, you must work an
average of 32 hours or more per week. In addition, you will not be covered
unless on the "date of eligibility" you are actually working a full day on that
date; otherwise, your effective date will be deferred until return to actual
service for a full day's work.
FLEXM/WC0 - 4 -
•
Coverage shall become effective on the first day of the month
following the first full month 's pay, provided the employee has made proper
application to the employer for coverage and proper contribution has been
deducted from his/her pay.
An employee previously covered under this Plan whose coverage was ter-
minated during leave of absence or temporary lay-off is again eligible for
coverage on the date of his re-employment if he returns to work within three (3)
months after the commencement of leave of absence or lay-off, otherwise on the
date he would become eligible under the previous paragraph if his service has
commenced on the date of re-employment.
3.2 Duration. A Participant shall cease to be a Participant when the
conditions of subsection 3. 1 are no longer satisfied. Notwithstanding the pre-
ceding sentence, a Participant who suffers a Disability shall remain a
Participant until the end of the Plan Year in which such Disability commences.
"Disability" means a physical or mental inability to perform work, resulting
from injury or disease, which is expected to be permanent and which entitles the
Employee to a disability benefit under the Company's long-term disability plan
or under its qualified pension plan.
Section 4. Benefits
4. 1 Flexible Dollars.
(a) General . Subject to paragraphs (b) and (c), a Participant' s Flexible
Dollars with respect to a Plan Year shall be:
the amount of the contribution a Participant elects to have the
Employer make on his behalf to the plan pursuant to a Salary
FLEXM/WC0 - 5 -
Reduction Agreement, which amount shall not be less than 0, nor
more than $5,000.00, of the Participant's annualized salary as
of December 16 of a Plan Year, or the date participation in the
Plan commences, if later. These Flexible Dollars shall be used
for benefits provided during the Plan Year.
A Participant' s rate of salary shall not include any bonus payments,
fringe benefits, or other special compensation. The County reserves
the right to reduce the amount of the Participant's Salary Reduction
Agreement in order to assure compliance with the requirements of the
Internal Revenue Code for favorable tax treatment.
(b) New Participants. If an Employee becomes a Participant in the Plan
after December 16 and elects to reduce his salary by an exact amount
of dollars each year, his Flexible Dollars for the Plan Year shall be
equal to the product of the amount specified in Paragraph (a) and a
fraction with the numerator equal to the number of completed calendar
months of participation of the Plan Year and a denominator equal to
12.
(c) Terminating Participants. If a Participant who has elected to reduce
his salary by an exact amount of dollars each year terminates
employment prior to December 31 and is not reemployed by such date,
his Flexible Dollars for the Plan Year of termination shall equal the
product of the amount specified in paragraph (a) and a fraction with a
numerator equal to the number of completed calendar months of par-
ticipation for the Plan Year and a denominator equal to 12. Any
amounts left over which have not been used to provide benefits are
forfeited by the Participant.
FLEXM/WCO - 6 -
•
(d) Form of Salary Reduction Agreement. The Salary Reduction Agreement
shall be in a form which permits the County to reduce the
Participant's current salary and contribute the amount of the reduc-
tion to the Plan on behalf of the Participant. The Salary Reduction
Agreement shall apply only to amounts of the Participant' s pay that
have not been actually or constructively received as of the date of
the Salary Reduction Agreement. Any amounts so elected shall not
become currently available to the Participant. Each Participant may
make a Salary Reduction Agreement which will reduce his salary by an
amount equal to that necessary to provide for the type of coverage
elected under this Plan. The amount of the Salary Reduction elected
by the Participant shall be deemed to be a County contribution for
purposes of the Code.
(e) Changes in Election. If a Participant has a qualified change in
status due to his spouse losing or gaining employment, addition or
deletion of a Dependent, divorce or marriage of the Participant,
or death of a spouse or dependent, he may change the Salary Reduction
Agreement with respect to the Plan Year.
4.2 Benefits. A Participant may apply his Flexible Dollars toward any of
the following benefits:
(a) Group-Term Life Insurance. Flexible Dollars may be used to
obtain group term life insurance coverage on the life of the
Participant. A Participant may elect to receive County provided
insurance coverage not in excess of $50,000. Any amounts in
excess of $50,000 must be purchased with after-tax money outside
of this plan. Death benefits shall be paid pursuant to the terms
FLEXM/WCO - 7 -
of the life insurance policy. The amount of coverage shall be
elected by the Participant on a form provided by the Committee.
Premium payments shall be made directly by the County to the
insurer.
(b) Accidental Death and Dismemberment Insurance. Subject to sub-
paragraph (d), Flexible Dollars may be used to reimburse the
Participant for accidental death and dismemberment insurance with
the Participant as the insured. Coverage shall be available in
increments with a maximum amount of $1,000,000. The amount of
coverage shall be elected by the Participant on a form provided
by the Committee. Premium payments shall be made on the Parti-
cipant' s behalf directly by the County to the insurer. Death and
dismemberment benefits shall be payable pursuant to the terms of
the insurance policy.
(c) Medical and Dental Expenses. Subject to subparagraph (d), Flexi-
ble Dollars may be used to reimburse the Participant for premium
payments for coverage under the County's comprehensive medical
plan, dental plan and any other Plan(s) sponsored by the County
providing health benefits described in section 213(d) of the
Code. Premium payments shall be made on the Participant's behalf
directly by the County to the County Insurance Trust Fund.
Medical and dental benefits shall be payable pursuant to the
terms of the insurance policies and plans maintained by the
County.
(d) The total Flexible Dollars which may be used by a Participant
pursuant to paragraphs (c) and (d) shall be determined by the
FLEXM/WC0 - 8 -
County prior to the commencement of each Plan Year, shall be a
uniform amount for all similarly situated Participants, and shall
not exceed the amount resulting from the division of the amount
determined for the Plan Year for subsection 4. 1(a) by .75 or
$5,000.00, whichever is less.
4.3 Substitution. The County shall be substituted for all rights of
a Participant to recover attorney fees against any adverse party. Participants
shall do nothing to prejudice such rights of the County and further they agree
to do all acts necessary to preserve and take advantage of such rights. If
payment has been made by the County in such instances and if the adverse party
reimburses the Participant directly, the County shall have the right to recover
such payment from any Participant.
4.4 Notification of Employees. The County shall communicate in writ-
ing to all eligible Employees the terms and conditions of the Plan.
4.5 Rights Against the County. Neither the establishment of the
Plan, nor any modification thereof, nor any distributions hereunder, shall be
construed as giving to any Participant or any person whomsoever any legal or
equitable rights against the County, its agents, or officers, as such, or as
giving any person the right to be retained in the employ of the County.
Section 5. Election of Benefits
5. 1 Election of Benefits.
(a) Election of Insurance Coverage. Prior to the commencement of a Plan
Year, or upon the commencement of participation in the Plan, if later,
an Employee who is eligible to participate in the Plan shall designate
on a form provided by the Committee the life insurance benefits
described in subsection 4.2 (if any) which he elects for the Plan
Year.
FLEXM/WC0 - 9 -
The Employee shall provide the Committee with all information required
by an insurer of such benefits. If the Employee fails to file the
form and required information on or before a date prescribed by the
Committee, he shall receive no insurance benefits under this plan for
the Plan Year.
Section 6. Beneficiary Designation
6. 1 Beneficiary Designation. Each Participant shall designate upon such
forms as may be provided for that purpose by the Committee, a Beneficiary or
Beneficiaries who are to receive, in the event of his death, payment of a reim-
bursement to which he is entitled under the Plan or the proceeds of life
insurance policies. The designation of a Beneficiary shall not be effective for
any purpose unless and until it has been filed with the Committee. In the event
that a Participant fails to designate a Beneficiary in the specified manner, or
if for any reason such designation shall be legally ineffective, or if such
Beneficiary shall either predecease the Participant or die simultaneously with
him, then, for purposes of the Plan, distribution shall be made by the Committee
to the Participant' s spouse (if any). If there is no spouse, at the discretion
of the Committee, the benefits shall be paid to either (1 ) any one or more of
the persons comprising the group consisting of the Participant's descendants,
the Participant' s parents, or the Participant's heirs-at-law, and the Committee
may pay the entire benefit to any member of such group or apportion such benefit
among any two or more of them in such shares as the Committee, determine, or (2)
the estate. If the Committee does not so direct any of such payments, the
Committee may elect to have a court of applicable jurisdiction determine to whom
a payment shall be paid.
FLEXM/WCO - 10 -
Section 7. Accounts and Records of the Plan
7. 1 Accounts and Records. The Committee shall establish and maintain
accounts in the name of each Participant at the time he first becomes a
Participant of the Plan.
Section 8. Incompetency
8. 1 Incompetency. Every person receiving or claiming benefits under the
Plan shall be presumed to be mentally and physically competent and of age until
the Committee receives a written notice, in a form and manner acceptable to the
Committee, that such person is mentally or physically incompetent or a minor,
and that a guardian, conservator or other person legally vested with the care of
his estate has been appointed. If, however, the Committee shall find that any
person to whom a benefit is payable under the Plan is unable to care for his
affairs because of any mental or physical incompetency or because he is a minor,
any payment due (unless a prior claim therefor shall have been made by a duly
appointed legal representative of his estate) may be paid to the spouse, a
child, a parent, or a brother or sister, or beneficiary or to any person with
whom he is residing, or to any other person or institution deemed by the Commit-
tee to have incurred expense for such person otherwise entitled to payment.
In the event a guardian, conservator or other person legally vested with the
care of the estate of any person receiving or claiming benefits under the Plan
shall be appointed by a court of competent jurisdiction, payments shall be made
to such guardian or conservator or other person, provided that proper proof of
appointment is furnished in a form and manner suitable to the Committee. To
the extent permitted by law, any such payment so made shall be a complete
discharge of any liability therefor under the Plan.
FLEXM/WC0 - 11 -
Section 9. Contributions and Financing
9. 1 Contributions and Financing. Participants are not required to contri-
bute to this Plan. All payments will be made directly by the County to the
insurer or from the County Insurance Trust Fund in accordance with 4. 1 (a) for
qualified medical and dental expenses.
Section 10. Non-Alienation of Benefits
10. 1 Non-Alienation. No benefit payable under the provisions of the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, and any attempt so to anticipate,
alienate, sell , transfer, assign, pledge, encumber, or charge shall be void; nor
shall such benefits be in any manner liable for or subject to the debts,
contracts, liabilities, engagements, or torts of, or claims against, any par-
ticipant, Covered Dependent or Beneficiary, including claims of creditors,
claims for alimony or support, and any like or unlike claims.
Section 11. Administration
11 . 1 The Committee. The Committee shall be comprised of the Weld County
Board of Commissioners. The members of the Committee may act with a meeting or
without a meeting, by a majority of the members of the Committee at the time in
office. The Committee shall appoint the Chairman of the Board of Commissioners
as having the powers and responsibilities of the Committee relating to the admi-
nistration of benefits under the Plan.
11 .2 Fiduciaries. The Committee shall be the administrator of the Plan and
the Committee shall be named fiduciary under the Plan. As a fiduciary, the
Committee shall discharge its duties under the Plan solely in the interests of
the Participants in the Plan and their Beneficiaries, and for the exclusive pur-
FLEXM/WCO - 12 -
pose of providing benefits to Participants and their Beneficiaries, and
defraying the reasonable expenses of administering the Plan.
11 .3 Administration. The Committee shall administer the Plan and shall
have the authority to exercise the powers and discretion conferred on it by the
Plan and shall have such other powers and authorities necessary or proper for
the administration of the Plan as shall be determined from time to time by
Weld County.
The Committee shall keep complete records and accounts necessary or proper to
administer the Plan and shall render such statements to the County as the County
may request.
The Committee may adopt such rules and regulations for the administration of the
Plan as it shall consider advisable and shall have full power and authority to
enforce, construe, interpret and administer the Plan. All interpretations under
this Plan and all determination of fact made in good faith by the Committee
shall be binding on the Participants, their Beneficiaries, and all other persons
interested.
The Committee may adopt such rules and regulations for the conduct of its busi-
ness as it deems advisable and may employ such agents, attorneys, accountants,
investment advisers or other persons (who also may be employed by the County)
as in its opinion may be desirable for the administration of the Plan, and may
pay any such person reasonable compensation. The Committee may delegate to any
agent, attorney, accountant or other person selected by it, any power or duty
vested in, imposed upon, or granted to it by the Plan.
11 .4 Indemnification.
The County, the Committee and all agents and representatives of the Committee,
shall be indemnified by the County and saved harmless against any claims, and
FLEXM/WCO - 13 -
the expenses of defending against such claims, resulting from any action or con-
duct relating to the administration of the Plan except claims arising from gross
negligence, willful neglect, or willful misconduct. Weld County reserves the
right to select and approve counsel and also the right to take the lead in any
action in which it may be liable as an indemnitor.
11 .5 Expenses of Administration. Any expense incurred by the County or
the Committee relative to the administration of the Plan shall be paid by the
County.
11 .6 Rights of the County to Inspect the Records of the Plan and County
Insurance Trust Fund. The County may at its own expense at any time or from
time to time cause an examination of the books and records of the Plan to be
made by such attorneys, accountants, auditors or other agents as it shall select
for that purpose and may cause a report of such examination to be made.
Section 12. Changes in the Plan
12. 1 Amendment and Termination of the Plan. The County expects the Plan
to be permanent, but since future conditions affecting the County cannot be
anticipated or foreseen, the County must necessarily and does hereby reserve
the right to amend, modify or terminate the Plan at any time. The County may
make any modifications or amendments to the Plan that are necessary or
appropriate to qualify or maintain the Plan as a plan meeting the requirements
of the applicable sections of the Code. The Plan shall not at any time be used
for or diverted to purposes other than for the exclusive benefit of Participants
or their Beneficiaries, and no amendment shall divest any person of his interest
therein, except as may be required by the Internal Revenue Service or other
governmental authority, or give any person any assignable or exchangeable
FLEXM/Wro - 14 -
interest or any right or thing of exchangeable value in advance of the time
distribution is to be made to such person.
12.2 Final Distribution. Upon termination of the Plan, the interest of
Participants shall be determined as of the date of termination, and thereafter
final distributions shall be made pursuant to the provisions of the Plan to such
persons.
Section 13. Unclaimed Accounts
13. 1 Unclaimed Accounts. If the Committee shall be unable, within two
years after any amount becomes due and payable from the Plan to a Participant or
Beneficiary, to make payment because the identity or whereabouts of such person
cannot be ascertained, the Committee may mail a notice by registered mail to the
last known address of such person outlining the action described in this section
to be taken unless such person makes written reply to the Committee within 60
days from the mailing of such notice. The Committee may direct that such amount
and all further benefits with respect to such person shall be discontinued and
all liability for the payment shall terminate; however, in the event of the
subsequent reappearance of the Participant or Beneficiary prior to termination
of the Plan, the benefits which were due and payable and which such person
missed shall be paid in a single sum, and the future benefits due such person
shall be reinstated in full .
Section 14. Illegality of Particular Provision
14. 1 Illegality of Particular Provision. The illegality of any particular
provision of this Plan shall not affect the other provisions, but the Plan shall
be construed in all respect as if such invalid provision were omitted.
FLEXM/WCO - 15 -
Section 15. Effect of Mistake
15. 1 Effect of Mistake. In the event of a mistake as to the eligibility or
participation of an Employee, or the allocations made to the account of any
Participant, or the amount of distributions made or to be made to a Participant
or other person, the Committee shall , to the extent it deems possible, cause to
be allocated or cause to be withheld or accelerated, or otherwise make adjust-
ment of, such amounts as will in its judgment accord to such Participant or
other person the credits to the account or distributions to which he is properly
entitled under the Plan.
FLEXM/WCO - 16 -
Section 16. Applicable Laws
16. 1 Applicable Laws. The Plan shall be governed by one construed
according to the laws of the State of Colorado.
* * * * * * * * * * * * * * *
IN WITNESS WHEREOF, Weld County has caused this instrument to be executed,
effective as of December 16, 1984.
WELD COUNTY
By
Title Chairman, Board of County Comnissioners
ATTEST:
Weld County Clerk and Recorder
ri
De�7llty (1 l�r 4).J?: I)2✓�•
FLEXM/WCO - 17
Hello