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<br />ARTleu~ III <br />CONTRIBUTIONS TO THE PLAN <br /> <br />3.1 EMPLOYER CONTRIBUTION <br /> <br />The Employer shall make available to each Participant an Employer Contribution <br />to be used for any Benefit under the Plan in an amount to be determined by the Employer prior <br />to the beginning of each Plan Year.E ach Participant's Employer Contribution shall be converted <br />to Cafeteria Plan Benefit Dollars and be available to purchase Benefits as set forth above. The <br />Employer's Contribution shall be made on a pro rata basis for each pay period of the <br />Participant. If no Benefits are selected, there shall be no Employer Contribution. <br /> <br />3.2 SALARY REDIRECTION <br /> <br />If a Participant's Employer Contribution is not sufficient to cover the cost of <br />Benefits or Premium Expenses he elects pursuant to Section 4.1, his Compensation will be <br />reduced in an amount equal to the difference between the cost of Benefits he elected and the <br />amount of Employer Contribution available to him. Such reduction shall be his Salary <br />Redirection, which the Employer will use on his behalf, together with his Employer Contribution, <br />to pay for the Benefits he elected. The amount of such Salary Redirection shall be specified in <br />the Salary Redirection Agreement and shall be applicable for a Plan Year. Notwithstanding the <br />above, for new Participants, the Salary Redirection Agreement shall only be applicable from the <br />first day of the pay period following the Employee's entry date up to and including the last day of <br />the Plan Year. These contributions shall be converted to Cafeteria Plan Benefit Dollars and <br />allocated to the funds or accounts established under the Plan pursuant to the Participants' <br />elections made under Article V and as set forth in Section 3.1. <br /> <br />Any Salary Redirection shall be determined prior to the beginning of a Plan Year <br />(subject to initial elections pursuant to Section 5.1) and prior to the end of the Election Period <br />and shall be irrevocable for such Plan Year. However, a Participant may revoke a Benefit <br />election or a Salary Redirection Agreement after the Plan Year has commenced and make a <br />new election with respect to the remainder of the Plan Year, if both the revocation and the new <br />election are on account of and consistent with a change in status and such other permitted <br />events as determined under Article V of the Plan and consistent with the rules and regulations <br />of the Department of the Treasury. Salary Redirection amounts shall be contributed on a <br />pro rata basis for each pay period during the Plan Year. All individual Salary Redirection <br />Agreements are deemed to be part of this Plan and incorporated by reference hereunder. <br /> <br />3.3 APPLICATION OF CONTRIBUTIONS <br /> <br />As soon as reasonably practical after each payroll period, the Employer shall <br />apply the Employer Contribution and Salary Redirection to provide the Benefits elected by the <br />affected Participants. Any contribution made or withheld for the Health Flexible Spending <br />Account or Dependent Care Flexible Spending Account shall be credited to such fund or <br />account. Amounts designated for the Participant's Premium Expense Reimbursement Account <br />shall likewise be credited to such account for the purpose of paying Premium Expenses. <br /> <br />5 <br />