Reso 2006-995 - Laserfiche WebLink

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If you do not check this box, all employees in the covered group (current employees and future hires) will be required to participate in the RHS program. Note that the RHS plan upon which the VantageCare RHS IRS private letter ruling was based did not include elective employee participation (see shaded portion of the Adoption Agreement). However, ICMA-RC has obtained the opinion of counsel that this feature should be allowed as long as the requirements outlined in the RHS Declaration of Trust and this Adoption Agreement are met. You may wish to discuss this feature with your own benefits counsel. Any questions regarding this feature of the RHS program can be directed to your ICMA- RC Retirement Plans Specialist. B. Participant Eligibility: If desired, you may specify a minimum period of service (e.g. 6 months) and/or mini- mum age (e.g. age 21) requirement. VI. Contribution Sources and Amounts - This section defines the amount and types of contributions to your RHS Plan. A. Direct Employer Contributions and Mandatory Employee Contributions You, as the employer, may choose to make "f{) -'" direct employer contributions of a specific amount or percentage of earnings (as defined by you in this section), . . / I mandatory contributions of accumulated unused leave, v / I mandatory contributions of employee compensation, or I a combination of the above. Your selection is made in Section VI.A. of the Adoption Agreement. Use Section VI.A.1. to define your direct employer contribution formula. Use Sections VI.A.2. and 3. to define your mandatory accrued leave or compen- sation contribution requirements. Direct employer contributions Direct employer contributions can be made as either a specific dollar amount or a percentage of earnings. Please note that this definition of earnings is referred to in other sections of the Adoption Agreement. You may need to complete the definition of earnings even if you do not choose to make direct employer contributions. Mandatory contributions of employee compensation and accumulated leave Mandatory contributions can be used as a way to share responsibility for funding your retirement health plan with your employees. Mandatory compensation contributions may take the form of either a reduction in salary (e.g., 1 % of compensation is contributed to the Trust) or a decrease in the annual pay plan or merit increase (e.g., 1 % of a 3% pay plan adjustment is contributed to the Trust). Earnings must be defined in Section VI.A.1. The employer can establish an unused leave or compensation contribution formula that best fits the needs of its covered employees. For example, the employer might require all accumulated leave in excess of a certain num- ber of hours to be contributed to the RHS Plan on an annual basis. For mandatory contributions of both compen- sation and leave, no FICA or income tax are payable at the time of contribution, and, if used for medical expens- es of the participant. spouse or dependent. no FICA or income tax are payable at distribution. Mandatory contributions of employee compensation or accrued leave are established by the employer - employ- ees may not choose whether or not to make these contributions and they may not revise the contribution amount. 5