CCP 12-13-2004 - Laserfiche WebLink

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. . . Citv of Arden Hills Summarv Plan Description reiJnbursement. The cost of schooling for kindergartell or higher is not eligible for reimbursement under the Plan, but the cost of care provided befQreand afier schoolis eligible. Subject to Plan limits, you will elect your level of dependent care expense coverage during a Plan Year. The maximum level of coverage is $5,000. A pro rata portion of your annual election will be used to fund your account from lime to time. At any point in time during the Plan Year you can claim reimbursement benefits in an amount equal to the remaining balance in your account. Your account for cach Plan Year only covers expenses incurred during your Period of Coverage for that Plan Year. In addition, the Plan will not reimburse you for amounts you pay for services performed by your Dependent or a Dependent of your spouse or by your child, if the child is under the age of nineteen (19). For example, a payment to your fifteen (15) year-old daughter for baby-sitting your son would not be eligible for reimbursement. For more information about the Dependent Care Reimbursement Account. you may contact your local IRS office for a copy of Publication 503. ARE THERE ANY SPECIAL RULES RELATING TO REIMBURSEMENT BENEFITS? 1. Forfeitures. Federal lax laws rcquire that your health carc expense reimbursement account and dependenl care reimbursemenl account for each Plan Y car operate on a "use it or losc it" basis. For this reason, if you do not usc thc entire amount available for reimbursement benefits from these accounts for a Plan Year, you will forfeit the unused amount, and you will havc no furthcr claim to it. Forfeited amounts will bc used by the Employcr to offset administrative costs of the Plan. For example, assumc Jones allocates $2,400 during 2005 to his. 02005 Dependent care reimbursement account. During the 2005 Period of Coverage, however, 0 Jones and his spollse and Dependents incur only $2,200 of expenses eligible for reimbursemeh(under the Plan. Jones will forfeit to the Employer the $200 remaining in his 2005 account after he has been rennbursed o for all of his eligible expenses. 2. The Plan Year and the Period of Coverage. You may use your reimbursement accounts for any Plan Year only to pay for reimbursement benefits for that Plan Year. Your health care reimbursement coverage and dependent care reimbursement account for a particular Plan Year can only be used to provide reimbursement for eligible expenses incurred during your Period of Coverage for that Plan Year. For example, if you become a participant on October 1, 2005, and have elected to receive health care reimbursement coverage for your first Plan Year ending December 31,2005, and you are employed for the full year, you can receive reimbursement only for eligible expenses incurred from October 1, 2005 through December 31, 2005, which is your Period of Coverage for that Plan Year. Expenses incurred in September 2005 or January 2006, are not eligible for reimbursement under your coverage for that Plan Year. SPD-5