Los Angeles County Municipal Code Ch. 5.28 County of Los Angeles Nonpensionable Flexible Benefit Plan

A.

The provisions of this Subdivision 1 of Chapter 5.28 shall be applicable to any Eligible Employee who:

Is a participant under the provisions of Subdivision 1 of Chapter 5.27 on December 31, 1994 and who, during the election period for the 1995 Plan Year, or any subsequent Plan Year, makes an irrevocable election to be covered by the provisions of this Subdivision 1; or

Is a participant under the provisions of Subdivision 2 of Chapter 5.27 on December 31, 1994 and who, during the election period for the 1995 or 1996 Plan Year, makes an irrevocable election to be covered by the provisions of this Subdivision 1; or

Is not a Participant under Subdivision 1 or Subdivision 2 of Chapter 5.27 on December 31, 1994, but who, as of that date, is an Eligible Employee who, within a time frame specified in the Election Information, makes an irrevocable election to be covered by this Subdivision 1 during the 1995 or 1996 Plan Year.

B.

The benefits provided by this Subdivision 1 shall be in lieu of the benefits provided by Subdivision 2 of this Chapter and Subdivisions 1 and 2 of Chapter 5.27; provided, however, that the determination of a Participant's continuous service for

purposes of this Chapter 5.28 and the interrelationship of benefits provided for elsewhere in Titles 5 and 6 of this Code with benefits provided for in this Chapter 5.28 shall be as if the Participant were covered by the provisions of Subdivision 1 of Chapter 5.27.

C.

Where specifically authorized by the Board, any Participant or any Eligible Employee may elect to be governed by the provisions of this chapter in accordance with the limitations established by the Board.

D.

The Nonelective Contribution provided for in Section 5.28.040 shall first be reflected on County pay warrants issued on or about:

January 13, 1995 in any case where an employee who is covered by the provisions of Subdivision 1 or Subdivision 2 of Chapter 5.27 on December 31, 1994 elects, during the election period for the 1995 Plan Year, to be covered by the provisions of this Subdivision 1; or

January 15, 1996 in any case where an employee who is covered by the provisions of Subdivision 1 or Subdivision 2 of Chapter 5.27 on December 31, 1994 elects, during the election period for the 1996 Plan Year, to be covered by the provisions of this Subdivision 1; or

On the fifteenth of January in any subsequent Plan Year in any case where an employee who is covered by the provisions of Subdivision 1 of Chapter 5.27 elects, during the election period for such Plan Year, to be covered by the provisions of this Subdivision 1.

(Ord. 94-0079 § 8 (part), 1994.)

This Nonpensionable Flexible Benefit Plan is designed to permit certain employees of Los Angeles County to select from among the health and welfare benefits provided by the County in a manner calculated to best meet their particular needs, and to choose to the greatest extent permitted by applicable law between taxable and nontaxable compensation with respect to the health and welfare benefits available to them.

(Ord. 94-0079 § 8 (part), 1994.)

The following terms when used herein with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:

A.

"Benefit" means cash or one or more Nontaxable Benefits.

B.

"Board" means the Los Angeles County Board of Supervisors.

C.

"CEO" means the Chief Executive Officer of the County appointed by the Board pursuant to the Los Angeles County Code.

D.

"Code" means the Internal Revenue Code of 1986, as amended.

E.

"Compensation" means base rate, as established in Title 6 of the Los Angeles County Code, as amended, plus any monthly bonus established as a designated percentage of the base rate in the Level Percentage Conversion Table contained in such Title 6 or established as a percentage of base rate pursuant to Part 3 of Chapter 6.08, Management Appraisal and Performance Plan, of Title 6. Compensation shall not include any of the following:

Overtime compensation;

Any lump-sum payoff or reimbursement for unused, accumulated overtime, vacation, holiday time, or sick leave benefits;

Compensation pursuant to Section 6.16.010 of the Los Angeles County Code;

Any hourly bonus;

Any monthly bonus established as a flat dollar amount or as a percentage of base rate except that compensation shall include any monthly bonus paid as a percentage of base rate for employees compensated pursuant to Part 3 of Chapter 6.08 entitled Management Appraisal and Performance Plan of the Los Angeles County Code.

F.

"Contribution" means any Nonelective Contribution or Elective Contribution made on behalf of a Participant pursuant to Section 5.28.040.

G.

"County" means the County of Los Angeles and (1) any governmental entity of which the Board is the governing body; and (2) the Los Angeles County Municipal Courts and the Los Angeles County Superior Court to the extent the operation of this Plan in said courts is otherwise authorized by state law or rules of court.

H.

"Domestic Partner" means a qualified person pursuant to the provisions of Chapter 2.210 of the Los Angeles County Code or Section 298.5 of the California Family Code, as applicable, unless specified otherwise in this County Code.

I.

"Election Information" means the information and rules relating to the general administration of the Plan. The CEO shall develop and issue such information and rules, except as otherwise provided by the Board. Such information shall include, but not be limited to the following:

The cost to be charged to Participants for elective coverage, including the manner and timing of payment;

Rules relating to election procedures and deadlines, including rules relating to the disposition of benefits for Eligible Employees and Participants who fail to meet election deadlines;

Rules relating to the disposition of benefits for Participants who enter or exit the plan during a Plan Year, or who experience an interruption of active service;

Rules relating to the administration of the various benefits contained within the Plan, including rules relating to the year-to- year availability of such benefits. Such rules may place restrictions on Participant access to nonelective or elective coverage if such restrictions are necessary to protect the financial well-being of the Plan, to comply with restrictions imposed by insurance carriers, or to preserve the status of the Plan as a cafeteria plan within the meaning of Section 125 of the Code.

J.

"Elective Contribution" means the amount allocated to specific Taxable Benefits and/or Nontaxable Benefits at the election of a Participant equal to a reduction in his Eligible Earnings pursuant to Section 5.28.040 B.

K.

"Eligible Dependent" means a family member who is eligible to enroll in a Participant's group health coverage under the Plan as set forth in the Summary Plan Description. Eligible Dependents include a Participant's current spouse or Domestic Partner and a Participant's children through age 25 (or past age 25, if disabled), all as further defined, or limited, as set forth in the Summary Plan Description and/or Health Plan Agreements.

L.

"Eligible Earnings" means any compensation paid to an Eligible Employee for service performed for the County which is currently includible in gross income under the Code.

M.

"Eligible Employee" means a full-time permanent employee of the County who is not in an Excluded Bargaining Unit and who is designated by the Board as eligible to participate in the Plan. For purposes hereof, "full-time permanent" means any employee appointed to an "A," "L," "N," or "Z" item pursuant to Title 6 of the Los Angeles County Code, or any employee appointed to a "D" item pursuant to said Title 6 who is required to possess a California license to practice as a Registered Nurse. However, the County and representatives of an Excluded Bargaining Unit may, subject to approval by the Los Angeles County Board of Supervisors, agree that any employee who would otherwise cease to be an Eligible Employee because of certification or accretion of the employee's employment classification into an Excluded Bargaining Unit may continue as an Eligible Employee for such period as may be established in such agreement.

N.

"Excluded Bargaining Unit" means an employee representation unit, unless the representative of such unit and the County agree that the employees in such unit shall be covered hereunder.

O.

"Ineligible Dependent" means anyone, including a Participant's family member, who is not an Eligible Dependent. Ineligible Dependents include, but are not limited to, a former spouse, a former Domestic Partner, a child who no longer meets the age or other eligibility requirements described in the Summary Plan Description, parents, siblings, and in-laws.

P.

"Materials" means the booklets, manuals, handbooks, contracts, plan documents or sections thereof and other provisions of the Los Angeles County Code relating to the County-sponsored or County-approved employee benefit plans approved for inclusion in Subdivision 1 of the Plan by the Board.

Q.

"Non-elective Contribution" means the amount available for allocation to particular Taxable Benefits and/or Non-taxable Benefits or for receipt as additional Eligible Earnings by a Participant pursuant to Section 5.28.040 A.

R.

"Non-taxable Benefit" means participation in any health or welfare program provided or sponsored by the County, insured or uninsured, now existing or hereafter adopted, described in the Materials, the cost of which is excludible from the gross income of the Participant pursuant to Sections 79, 105, 106 or 129 of the Code or any other applicable Code section as the same may be amended.

S.

"Participant" means any Eligible Employee or former Eligible Employee who meets the requirements for participation in the Plan set forth in Section 5.28.030.

T.

"Plan" means the County of Los Angeles Non-pensionable Flexible Benefit Plan, as set forth in this Subdivision 1, as the same may be amended or restated from time to time.

U.

"Plan Year" means the calendar year.

V.

"Taxable Benefit" means participation in certain health or welfare programs provided or sponsored by the County, insured or uninsured, now existing or hereafter adopted, described in the Materials, the cost of which will be treated by the County as includible in the gross income of the Participant pursuant to the Code as the same may be amended.

W.

"Years of Service" means the number of years of County service that an employee has acquired for Nonelective Annual Leave accrual purposes. Years of Service are determined by taking the difference between the employee's Leave Progression start date as defined in Section 6.04.047 and the current date, and then rounding down to the nearest full year.

(Ord. 2016-0045 § 5, 2016; Ord. 2016-0004 § 5, 2016; Ord. 2015-0063 § 8, 2015; Ord. 2015-0011 § 5, 2015; Ord. 2014-0033 § 8, 2014; Ord. 2006-0084 § 8, 2006; Ord. 2005-0019 § 6, 2005; Ord. 2004-0001 § 13, 2004: Ord. 96-0052 § 9 (part), 1996; Ord. 94-0102 § 9, 1994: Ord. 94-0079 § 8 (part), 1994.)

A.

Commencement of Participation. Each person employed by the County who is an Eligible Employee shall become a Participant on the first day of the calendar month next following the first date he becomes an Eligible Employee and completes the election procedure set forth in Section 5.28.060A. In no event shall an Eligible Employee become a Participant prior to January 1, 1995. Notwithstanding any other provision of this Code, any employee who participates in the Plan shall, as a condition of participation, irrevocably waive all entitlement to have any portion of the Nonelective Contribution included in the calculation of retirement benefits under the County Employees Retirement Law of 1937. This limitation shall apply only with respect to any Nonelective Contribution made to the Plan with respect to a Participant's Compensation earned on or after January 1, 1995.

B.

Effect of Participation. Eligibility to participate in the Plan shall entitle all Eligible Employees and Participants to select Benefits before such Benefits become currently available to them during the whole or part of a Plan Year, from among the Benefits included under the Plan for such Plan Year, and then only to the extent provided herein. Participation in the Plan shall not be deemed or construed in any manner whatsoever as entitling any Participant to receive any Benefit now existing or hereafter adopted by the Board absent such Participant meeting the eligibility and participation requirements of such Benefit.

C.

Termination of Participation. Participation in the Plan shall terminate when the Participant ceases to be an Eligible Employee; provided, however, that any provisions relating to a particular Benefit, as set forth herein or in the Election Information or the Materials, which continue the right of the Participant to receive such Benefit shall apply although he is no longer an Eligible Employee.

D.

Participation Following Previous Termination. After a termination of participation in the Plan pursuant to subsection C of this section, the subsequent participation of any person who again becomes an Eligible Employee shall occur at the time and in the manner set forth in the Election Information.

(Ord. 94-0079 § 8 (part), 1994.)

A.

Nonelective Contributions. Except as otherwise provided herein, each month the County shall contribute to the Plan on behalf of each Participant an amount equal to the greater of $859.00 or 10 percent of such Participant's Compensation for the preceding month beginning the 2015 Plan Year; provided, however, that no Nonelective Contribution shall be contributed for any Participant if he has not been in a pay status for at least eight hours during the prior month. Nonelective Contributions shall be reflected in County payroll warrants issued on or about the fifteenth day of the month following the month in which the requisite pay status was completed. Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, an advance of approximately one-half the monthly Nonelective Contributions received as additional Eligible Earnings in accordance with Section 5.28.050E shall be reflected in County payroll warrants issued on or about the thirtieth day of the month in which the requisite pay status was completed and the remainder of such additional Eligible Earnings shall be reflected in County payroll warrants issued on or about the fifteenth day of the month following the month in which the requisite pay status was completed.

B.

Elective Contributions. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may irrevocably elect to have an additional dollar amount contributed by the County during a Plan Year for each month that he participates in the Plan as an Elective Contribution, not to exceed his Eligible Earnings for such month, and to have his Eligible Earnings reduced each month by an amount equal to such Elective Contribution; provided, however, that no Elective Contribution shall be contributed for any Participant if he has not been in a pay status for at least eight hours during the prior month. Such Elective Contribution on behalf of a Participant each month shall equal the amount necessary to fund the Taxable Benefits and/or Nontaxable Benefits chosen by such Participant pursuant to the election procedure set forth in Section 5.28.060, after first applying the Nonelective Contribution for such month to the cost of such Taxable Benefits and/or Nontaxable Benefits. In the event of contractual renegotiation, change in method of funding, or substitution of a Taxable Benefit and/or Nontaxable Benefit during a Plan Year, the County, without prior notice to Participants, may automatically adjust the Elective Contributions made for, and/or the Eligible Earnings paid to, Participants who have selected such Taxable Benefits and/or Nontaxable Benefits in accordance with increases or decreases in the cost of the Taxable Benefits and/or Nontaxable Benefits. Effective beginning on and after April 1, 2010, or such later date as may

be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, monthly Elective Contributions shall be apportioned over semi-monthly pay periods so that approximately one- half the monthly Elective Contributions shall be deducted from the Participant's Eligible Earnings as reflected in County payroll warrants issued on or about the thirtieth day of the month to which the Eligible Earnings relate and the remainder of the monthly Elective Contributions shall be deducted from the Participant's Eligible Earnings reflected in County payroll warrants issued on or about the fifteenth day of the following month.

(Ord. 2014-0045 § 6, 2014; Ord. 2010-0014, § 23, 2010; Ord. 2008-0073 § 5, 2008; Ord. 2008-0014 § 5, 2008; Ord. 2006- 0074 § 6, 2006; Ord. 2005-0072 § 1 (part), 2005; Ord. 2004-0058 § 3, 2004: Ord. 2004-0001 § 14, 2004; Ord. 2002-0070 § 3, 2002: Ord. 98-0076 § 8, 1998: Ord. 94-0102 § 10, 1994: Ord. 94-0079 § 8 (part), 1994.)

A.

Nontaxable Benefits. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may allocate Contributions to be made on his behalf to any or all of the Nontaxable Benefits approved for inclusion in Subdivision 1 of the Plan by the Board. Eligibility to receive or waive any particular Nontaxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements and other requirements and conditions which are set forth in the Election Information or the Materials and which are applicable to him and his employment and relate to such Nontaxable Benefit.

B.

Taxable Benefits. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year may allocate Contributions to be made on his behalf to any or all of the Taxable Benefits approved for inclusion in Subdivision 1 of the Plan by the Board. The cost of a Taxable Benefit shall be treated as being paid to the Participant as cash and then deducted from his earnings and contributed to the Plan on an after-tax basis in an amount equal to the cost of that Taxable Benefit as determined pursuant to Section 5.28.050D. Eligibility to receive or waive any particular Taxable Benefit by a Participant shall require satisfaction of all waiting periods, eligibility rules, election requirements and other requirements and conditions which are set forth in the Election Information or the Materials and which are applicable to him and his employment and relate to such Taxable Benefit.

C.

Deletions, Additions and Changes in Taxable Benefits and Nontaxable Benefits. The Board in its sole discretion shall designate the Taxable Benefits and Nontaxable Benefits available under the Plan in respect of any Plan Year. The Board shall have the right during any Plan Year to (1) renegotiate the terms of any group insurance contract providing a Taxable Benefit or Nontaxable Benefit for such Plan Year; (2) substitute a new Taxable Benefit or Nontaxable Benefit comparable to one available at the beginning of such Plan Year; or (3) change the method of funding any Taxable Benefit or Nontaxable Benefit for such Plan Year without affecting Participant's elections thereof. The County shall notify Participants in writing prior to the commencement of a Plan Year as to any (a) Taxable Benefit or Nontaxable Benefit deletions or additions under the Plan; (b) changes in the amount of Contributions required in payment of any Taxable Benefit or Nontaxable Benefit or changes in the method of funding or payment of any Taxable Benefit or Nontaxable Benefit to the extent such changes are known prior to the commencement of a Plan Year; and (c) modifications in the terms and provisions of any Taxable Benefit or Nontaxable Benefit.

D.

Benefit Cost Determination. The CAO shall determine the cost, in dollars, to be charged to a Participant to receive a Taxable Benefit or Nontaxable Benefit. In determining the cost of a particular Taxable Benefit or Nontaxable Benefit for each Plan Year, the CAO shall consider such factors as it determines to be appropriate, including but not limited to, the cost of purchasing insurance, if applicable, to provide such Taxable Benefit or Nontaxable Benefit or the out-of-pocket expenses likely to be incurred by the County to provide the same, together with an appropriate amount of administrative expenses incurred in providing such Taxable Benefit or Nontaxable Benefit. The cost of receiving a particular Taxable Benefit or

Nontaxable Benefit available in the Plan Year may vary among different classes of Participants who are similarly situated with respect to such factors as number of dependents, age, salary level and length of service and may be increased or decreased during a Plan Year pursuant to the renegotiation of the group insurance contract providing such Taxable Benefit or Nontaxable Benefit, the substitution of a comparable Taxable Benefit or Nontaxable Benefit, or a change in the method of funding such Taxable Benefit or Nontaxable Benefit. Such costs shall be disclosed to Eligible Employees and Participants in writing prior to or contemporaneously with the distribution of election forms for the Plan Year as provided by Section 5.28.060A and any increase or decrease during the Plan Year in the cost of a Taxable Benefit or Nontaxable Benefit shall be disclosed to Participants as soon as reasonably possible.

E.

Cash Benefit. Any portion of a Nonelective Contribution made on behalf of a Participant which is not necessary to fund the Taxable Benefits and Nontaxable Benefits selected by the Participant shall be received by the Participant in the form of an increase in his Eligible Earnings for that month, with such amount to be reflected in County payroll warrants as described in Section 5.28.040A.

(Ord. 2010-0014, § 24, 2010; Ord. 94-0102 § 11, 1994: Ord. 94-0079 § 8 (part), 1994.)

A.

General Elections Procedure. Prior to the commencement of each Plan Year, or in the case of employees who become Eligible Employees during a Plan Year, prior to the first day of their participation in the Plan pursuant to Section 5.28.030A, the County shall provide an election form to each Eligible Employee and Participant who will be entitled to begin or continue participation in the Plan for such Plan Year. Each Eligible Employee prior to commencing his participation in the Plan and each Participant prior to the beginning of a Plan Year shall elect the types of Taxable Benefits and Nontaxable Benefits to be received under the Plan during the course of such Plan Year. Each Eligible Employee prior to commencing his participation in the Plan shall irrevocably waive all entitlement to have any portion of the Nonelective Contribution included in the calculation of retirement benefits under the County Employees Retirement Law of 1937. The form and content of the election form shall be such as the County shall from time to time determine to be appropriate. All election forms shall be due and returnable to the County on or before such date as the County may specify, which date shall be no later than the day prior to the commencement of the Plan Year to which such forms relate, or in the case of Eligible Employees the day prior to the commencement of participation.

B.

Deemed Elections.

Except as provided in subsection (B)(2) of this section, any Eligible Employee who is enrolled in an insured health or welfare benefit program incorporated into the Plan as a Taxable Benefit or Non-taxable Benefit on the date his election form is due to be filed pursuant to subsection A of this section, or any Participant who in the current Plan Year receives one or more Taxable Benefits or Non-taxable Benefits who fails to make a timely election of Benefits for continued participation in the Plan, shall be deemed to have elected to receive the same type, and if applicable, the same amount, of Taxable Benefits and Non- taxable Benefits elected for the previous Plan Year except as otherwise provided in the Election Information. To the extent that the dollar value of the Non-elective Contribution made on behalf of such Participant exceeds the cost of such Taxable Benefits and/or Non-taxable Benefits, the Participant shall receive the difference in additional monthly Eligible Earnings during the Plan Year except as otherwise provided in the Election Information. To the extent that the cost of such Non-taxable Benefits exceeds the Non-elective Contributions, the Participant shall be deemed to have authorized the County to reduce his Eligible Earnings by such amount each month as may be necessary to cover the excess cost of such Taxable Benefits and/or Non-taxable Benefits, in accordance with the limit set forth in Section 5.28.040B. Any Eligible Employee or Participant who fails to submit the election form on or before the due date who was not so enrolled in an insured health or welfare benefit program shall be deemed to have elected to receive the entire amount of the Non-elective Contributions made on his behalf

during the next Plan Year as additions to his Eligible Earnings each month during such Plan Year, except as otherwise provided in the Election Information. Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented:

1. any additional monthly Eligible Earnings received due to a Participant's deemed election under this Section 5.28.060B shall be reflected in County payroll warrants as described in Section 5.28.040A, and 2) a Participant's deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.28.040B.

No Eligible Employee may participate in the Plan unless he satisfies all conditions of participation under the Plan and positively elects to participate during the election period for the 1995 Plan Year. No Eligible Employee who fails to make a timely election of benefits under the Plan shall be deemed to have elected initial participation under this Subdivision 1 of Chapter 5.28, but shall rather be deemed to have elected initial participation under Subdivision 2 of Chapter 5.27.

C.

Irrevocability of Elections. Except as provided in subsection D of this section, all elections made by or on behalf of Participants pursuant to subsections A and B of this section shall be irrevocable for the Plan Year for which made or deemed to be made.

D.

Election Changes During the Plan Year. In the event of an extraordinary change in a Participant's circumstances, in accordance with any applicable regulations, rulings, or other guidance issued pursuant to Section 125 of the Code and as set forth in the Election Information and Materials, the County, in its sole discretion, may permit such Participant during the Plan Year to change the type and/or amount of Benefits to be received under the Plan for the remainder of such Plan Year. Additionally, solely during the 2020 and 2021 Plan Years, in accordance with IRS Notice 2020-29 and the Consolidated Appropriations Act 2021, a Participant is permitted to increase or decrease his or her contributions to his or her Health Care Reimbursement Account and Dependent Care Account (and related coverage level thereunder) prospectively for the remainder of the Plan Year, provided, however, that he or she may not reduce his or her total contribution amount for the Plan Year below the amount that already has been reimbursed to him or her from such account.

E.

Amnesty for Ineligible Dependents. Notwithstanding any other provision of this Code, the County shall provide amnesty from discipline and payment recovery to any employee whose Ineligible Dependent(s) are removed from County-sponsored or County-approved health plan coverage as a consequence of a dependent eligibility verification process authorized by the CEO; provided, however, that no such amnesty shall be extended to any employee who obtains such coverage through willful misrepresentation or other fraudulent means.

F.

Compensation Reduction Agreement. If, in respect of any month during a Plan Year, the cost of the Taxable Benefits and/or Non-taxable Benefits elected by a Participant for such Plan Year exceeds the amount of Non-elective Contributions made on his behalf for such month, the Participant shall be deemed to have authorized the County in accordance with the limit set forth in Section 5.28.040B hereof, to reduce his Eligible Earnings by such amount each month as is necessary to cover the excess cost of the Taxable Benefits and/or Non-taxable Benefits elected by such Participant and to make corresponding Elective Contributions to the Plan on his behalf. Effective beginning on and after April 1, 2010, or such later date as may be determined by the Chief Administrative Officer when the human resources management system reflecting this provision is implemented, a Participant's deemed authorization to have his monthly Eligible Earnings reduced shall include an authorization to have such reduction apportioned over County payroll periods and warrants as described in Section 5.28.040B.

G.

Participant Accounts. The County shall establish and maintain appropriate procedures and records with respect to Benefit elections and Contributions made by and on behalf of Participants pursuant to subsections A and B of this section. The County may establish one or more accounts for each Participant for the purpose of recording such Participant's utilization of particular Non-taxable Benefits, such as uninsured health care or dependent care reimbursement benefits if available, to which specific dollar amounts of Non-elective and/or Elective Contributions have been credited. In no event, however, shall such accounts represent actual deposits of Contributions into any fund, nor shall any interest be credited with respect to such accounts.

H.

Forfeiture of Unused Benefits. Any amount which a Participant has elected to receive during the Plan Year as a specific Taxable Benefit or Non-taxable Benefit pursuant to the election procedure set forth in subsections A and B of this section which remains unused by the Participant at the close of the Plan Year shall be forfeited to the County; provided, however, that payments of such amount may be made to the Participant up to six months beyond the close of a Plan Year so long as such payments are made under the provisions of such specific Taxable Benefits or Non-taxable Benefits for expenses incurred by the Participants during the Plan Year; provided further that unused amounts may be carried over to later Plan Years in accordance with the rules set forth in Sections 5.29.050 and 5.30.030.

(Ord. 2021-0020U § 3, 2021; Ord. 2020-0036U § 3, 2020; Ord. 2015-0011 § 6, 2015; Ord. 2014-0008 § 9, 2014; Ord. 2010- 0014, § 25, 2010; Ord. 94-0102 § 12, 1994: Ord. 94-0079 § 8 (part), 1994.)

A.

Compliance with Law. The County intends to administer the Plan under the direction of the Board in compliance with Section 125 of the Code and the regulations promulgated pursuant thereto.

B.

Contracted Services. The County may contract with one or more private firms for services related to the administration of the Plan.

C.

Administrative Fee. The County may charge Participants an administrative fee to defray the costs of administering the Plan. The amount of such fee shall be determined by the County and may be adjusted from time to time by the County.

(Ord. 94-0079 § 8 (part), 1994.)

The Plan may be amended or terminated by the County at any time or the County may, without amending or terminating the Plan, cease to make Nonelective Contributions under the Plan. No amendment or termination of the Plan, and no cessation of the making of Nonelective Contributions, shall reduce or impair the rights of any Participant which have already accrued prior to such amendment or termination.

(Ord. 94-0079 § 8 (part), 1994.)

To the extent permitted by law and except as otherwise provided in the Plan, no right or interest of any kind of a Participant hereunder shall be transferable or assignable by him, nor shall any such right or interest be subject to alienation, anticipation, encumbrance, garnishment, attachment, execution or levy of any kind, voluntary or involuntary.

(Ord. 94-0079 § 8 (part), 1994.)

Subject to the approval of the Board, the CAO may construe any ambiguous provisions of the Plan, correct any defect, supply any omission, or reconcile any inconsistency, in such manner and to such extent as the CAO in his discretion may determine; and any such action of the CAO shall be binding and conclusive upon all Participants, except that the CAO shall obtain Board approval before implementing any such action. Wherever appropriate in the Plan, the masculine gender shall include the feminine, and the feminine gender the masculine, unless the context clearly indicates otherwise.

(Ord. 94-0079 § 8 (part), 1994.)

Nothing herein contained is intended to be, or shall be construed as constituting, a contract or other arrangement between any Participant and the County to the effect that he will be employed for any specific period of time.

(Ord. 94-0079 § 8 (part), 1994.)

Subdivision 2 - ALTERNATE PROVISIONS