2006-041-RES-Health Reimbursement

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DEFiNITIONS Dependent - A Participant's Spouse or an individual who is a dependent within the meaning of Section 152(a) of the Internal Revenue Code of a Participant or a former Participant in the Plan. 1. a child (including adopted children and eligible foster children) or a descendant of a child; 2. a brother, sister, stepbrother, or stepsister 3. the father or mother, or an ancestor of either; 4. a stepfather or stepmother; 5. a son or daughter of a brother or sister of the plan participant; 6. a brother or sister of the father or mother of the plan participant 7. a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law 8. an individual, who is not the plan participant's spouse, who lives with the plan participant and is a member of the plan participant's household A relative described above is a qualifying relative only ifhe or she receives more than one-half of his or her support from the plan participant. Special roles apply in cases of multiple support agreements, in which no one person contributes over one-half of the individual's support. The individual also must have gross income less that the exemption amount ($3200 for 2005), not including certain income earned by disabled individuals. A Dependent for whom expenses can be reimbursed from the Dependent Care Reimbursement Account must meet the following criteria: 1. Can be claimed as a dependent for Federal income tax purposes; and 2. Is under the age of 13; or 3. If over the age of 13, requires full time care because of physical or mental incapacity; or 4. Is the spouse of the employee and is physically or mentally incapable of caring for himself or herself. If you are divorced, you can generally have your child's dependent care expenses reimbursed if you are the custodial parent, i.e., if you have custody of the child for a longer period of time during the Plan Year than the other parent. However, the following exceptions would override the custodial parent role and permit you, as a non-custodial parent, to have your child's dependent care expenses eligible for the reimbursement account: 1. The custodial parent formally releases claim to the Federal income tax dependent exemption for the tax year; 2. You provide over half of the support of the child under a multiple support agreement; or 3. You are entitled to the dependent exemption for Federal income tax as a result of an agreement executed prior to 1985. Payments made directly to a child or any other person that you can claim as a dependent cannot be reimbursed by this Plan. Employee - An individual employed by the Plan Sponsor who regularly works at least 20 hours per week, and at least 5 months per year, except for: 1. Employees covered by a collective bargaining agreement; 2. Employees who are non-resident aliens who receive no earned income from the Employer which constitutes income from sources within the United States; 3. Employees who are self-employed individuals as defined in Section 401 (c) of the Internal Revenue Code (including sole proprietors and partners in a partnership); and 4. Employees who own (or are considered to own within the meaning of Section 318 of the Internal Revenue Code) more than 2 percent of the outstanding stock of an S corporation or stock possessing more than 2 percent of the total combined voting power of all stock of such corporation. Grace Period - The 2-month and 15-day period that begins the day following the end of the Plan Year. Participant - Any Employee who has met the eligibility requirements of the Plan and has elected to participate in the Plan by providing the Plan Sponsor with an executed Benefits Enrollment Form. Plan Year - The l2-consecutive month period beginning the first day of the plan year. Page 21