Reso 2006-995 - Laserfiche WebLink

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VI.C. While this is not a requirement of the program, you may do so to ensure that the RHS program does not provide benefits in excess of reasonable benefits normally provided by such a welfare plan. You may wish to speak with your benefits counsel. Recordkeeping of Contribution Types Note that the IRS considers direct employer contributions, mandatory accrued leave and mandatory compensa- tion contributions, irrevocably elected employee compensation and accrued leave contributions, and future leave accrual contributions, to be employer contributions. In other words, all contributions other than voluntary after- tax contributions are considered to be employer contributions. However, ICMA-RC will record keep the direct employer contributions as a distinct source for participant reporting purposes. Voluntary after-tax contributions will also be sourced to a distinct employee after-tax source. All other types of employee contributions -- manda- tory accrued leave, mandatory employee compensation, irrevocably elected employee compensation and accrued leave contributions, and future leave accrual contributions -- will be combined and shown as employee pre-tax contributions on participant statements. See the VantageCare RHS Employer Manual for directions on how to report your contribution detail properly via EZ Link. VII. Vesting - Mandatory unused leave, mandatory employee compensation, irrevocably elected employee com- pensation and accrued leave, future leave accrual and employee voluntary after-tax contributions are always 100% vested. In addition, the RHS Plan default is 100% vesting for direct employer contributions. However, if you desire, you may specify a vesting schedule for your direct employer contributions in this section. Note that a participant's RHS account will automatically become 100% vested upon the death, disability, retire- ment (as you define it in Section VII.C.) and attainment of benefit eligibility by the participant. Note also that the "years of service completed" for a participant that separates from service and is then rehired will start over for vesting purposes upon rehire. VIII. Forfeiture Provisions All RHS plans must contain a forfeiture provision. These instructions will be used in two situations: . Your RHS plan includes direct employer contributions subject to vesting: when a participant separates from service prior to attaining full vesting, the nonvested assets will be forfeited and used as you direct in Section VIII. . Upon the death of a participant: If there are no surviving spouse, dependents, or designated beneficiar- ies, remaining assets will revert to your RHS Trust to be utilized as you direct in Section VIII. Note that as long as there are designated survivors (including a beneficiary of a former beneficiary), no forfeiture will occur. See also Section XI. below. There are four choices: n Forfeited account balances will be used to offset your direct employer contributions for the next and suc- ceeding contribution cycles. o Forfeited account balances will be reallocated on an equal dollar basis among remaining plan partici- pants. o Forfeited account balances will be reallocated among remaining plan participants based on account bal- ances. o Forfei.ted account balances will revert to the employer. (It is anticipated that few employers will choose this option, in order for RHS funds to continue to be used for medical benefits for remaining partici- pants.) Regardless of which option you choose. you must inform ICMA-RC at the time you wish to use the forfeited funds. 8