Berkeley Municipal Code Art. 3 Optional Benefits

A participant may choose under this plan to receive their full compensation for any plan year in cash or to have a portion of it applied by the City toward the cost of the optional benefits available to the participant under the dependent care reimbursement plan. (Ord. 5850-NS § 1 (part), 1988)

While the election to receive the optional benefit described in Section 4.40.301 may be made under this plan, the benefit will be provided not by this plan but by the dependent care assistance plan. The type and amount of benefits available under this option, the requirements for participating in such option, and the other terms and conditions of coverage and benefits of such option are set forth in the dependent care assistance plan. The benefit descriptions in that plan, as in effect from time to time, are hereby incorporated by reference into this plan. (Ord. 5850-NS § 1 (part), 1988)

A participant may elect under this plan to receive the optional benefit described in Section 4.40.301 in accordance with the procedure in Section 4.40.304. If a participant elects the optional benefit described in Section 4.40.301, the participant’s cash compensation will be reduced, and an amount equal to the reduction will be credited by the City to a reimbursement account in accordance with the dependent care assistance plan. (Ord. 5850-NS § 1 (part), 1988)

Approximately thirty days prior to the beginning of each plan year, the administrator shall provide a written election form and compensation reduction agreement to each participant and to each other employee who is expected to become a participant at the beginning of the plan year. The election form shall be effective as of the first day of the plan year. Each participant who desires the optional benefit coverage described in Section 4.40.301 for the plan year shall so specify on the appropriate election form and shall agree to a reduction in their compensation. The amount of the reduction in the participant’s compensation for the plan year shall be the amount elected by the participant, subject to the limitations of the dependent care assistance plan. Such election form must be completed and returned to the administrator on or before such date as the administrator shall specify, which date shall be no later than the beginning of the first pay period for which the participant’s compensation reduction agreement will apply. (Ord. 5850-NS § 1 (part), 1988)

A participant failing to return a completed election form to the administrator on or before the specified due date for the initial plan year of the plan, or for the plan year in which they became a participant, shall be deemed to have elected to receive their full compensation in cash. A participant failing to return a completed section form to the administrator relating to the optional benefit described in Section 4.40.301 on or before the specified due date for any plan year shall be deemed to have elected cash compensation in lieu of such optional benefit, regardless of the election in effect during the preceding plan year. (Ord. 5850-NS § 1 (part), 1988)

If the administrator determines, before or during any plan year, that the plan may fail to satisfy for such plan year any nondiscrimination requirement imposed by the code or any limitation on benefits provided to highly compensated employees, the administrator shall take such action as the administrator deems appropriate, under rules uniformly applicable to similarly situated participants, to assure compliance with such requirement or limitation. Such action may include, without limitation, a modification of elections by highly compensated employees with or without the consent of such employee. (Ord. 5850-NS § 1 (part), 1988)

Elections made under the plan shall be irrevocable by the participant during the plan year. Notwithstanding the foregoing, however, if during the plan year the participant marries, if the participant’s dependent dies, or if the participant’s spouse terminates their employment, the participant may revoke their benefit election for the remainder of such plan year. Any revocation under this provision shall be effective at such time as the administrator shall prescribe, but not earlier than the first pay period beginning after the election form is completed and returned to the administrator. (Ord. 5850-NS § 1 (part), 1988)

Elections made under this plan shall automatically terminate on the date on which the participant ceases to be participant in the plan, although coverage under the dependent care assistance plan may continue if and to the extent provided by such plan. (Ord. 5850-NS § 1 (part), 1988)

The maximum amount of employer contributions under the plan for any participant shall be the maximum amount which the participant may receive in the form of dependent care assistance under the dependent care assistance plan, as set forth in such plan. (Ord. 5850-NS § 1 (part), 1988)