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<br />5.4 CHANGE IN STATUS <br /> <br />(a) Change in status defined. Any Participant may change a Benefit <br />election after the Plan Year (to which such election relates) has commenced and <br />make new elections with respect to the remainder of such Plan Year if, under the <br />facts and circumstances, the changes are necessitated by and are consistent with <br />a change in status which is acceptable under rules and regulations adopted by the <br />Department of the Treasury, the provisions of which are incorporated by reference. <br />Notwithstanding anything herein to the contrary, if the rules and regulations <br />conflict, then such rules and regulations shall control. <br /> <br />In general, a change in election is not consistent if the change in status is <br />the Participant's divorce, annulment or legal separation from a spouse, the death <br />of a spouse or dependent, or a dependent ceasing to satisfy the eligibility <br />requirements for coverage, and the Participant's election under the Plan is to <br />cancel accident or health insurance coverage for any individual other than the one <br />involved in such event. In addition, if the Participant, spouse or dependent gains or <br />loses eligibility for coverage, then a Participant's election under the Plan to cease <br />or decrease coverage for that individual under the Plan corresponds with that <br />change in status only if coverage for that individual becomes applicable or is <br />increased under the family member plan. <br /> <br />Regardless of the consistency requirement, if the individual, the individual's <br />spouse, or dependent becomes eligible for continuation coverage under the <br />Employer's group health plan as provided in Code Section 4980B or any similar <br />state law, then the individual may elect to increase payments under this Plan in <br />order to pay for the continuation coverage. However, this does not apply for <br />COBRA eligibility due to divorce, annulment or legal separation. <br /> <br />Any new election shall be effective at such time as the Administrator shall <br />prescribe, but not earlier than the first pay period beginning after the election form <br />is completed and returned to the Administrator. For the purposes of this <br />subsection, a change in status shall only include the following events or other <br />events permitted by Treasury regulations: <br /> <br />(1) Legal Marital Status: events that change a Participant's legal <br />marital status, including marriage, divorce, death of a spouse, legal <br />separation or annulment: <br /> <br />(2) Number of Dependents: Events that change a Participant's number <br />of dependents, including birth, adoption, placement for adoption, or death <br />of a dependent; <br /> <br />(3) Employment Status: Any of the following events that change the <br />employment status of the Participant, spouse or dependent: termination or <br />commencement of employment, a strike or lockout, commencement or <br />return from an unpaid leave of absence, or a change in worksite. In <br />addition, if the eligibility conditions of this Plan or other employee benefit <br />plan of the Employer of the Participant, spouse, or dependent depend on <br />the employment status of that individual and there is a change in that <br />individual's employment status with the consequence that the individual <br />becomes (or ceases to be) eligible under the plan, then that change <br />constitutes a change in employment under this subsection; <br /> <br />9 <br />