HomeMy WebLinkAbout20080721 - VI-08To: Mayor Hicks and City Councilmembers
From: Melanie Mesko Lee, Assistant City Administrator
Date: July 15, 2008
Re: Approve Updates to the City's Flexible Compensation Plan Document
Requested Action
Approve updates to the City's Flexible Compensation Plan Document, with an effective date of August 1,
2008.
Baclc~round
The City offers a flexible compensation plan to employees, which allows employees to set aside a portion
of his/her earnings to pay for qualified expenses for medical care benefits, dependent care benefits, and
coverage under the group medical plan maintained by the City. The plan is intended to qualify under
Section 125 of the Internal Revenue Code, and updates are necessary to retain compliance with legal
regulations. The plan was last updated in 1997. The majority of the changes proposed are clarification in
nature and an updating to the plan document layout and not substantive to change the implementation
impact for employees.
Annually, employees may elect pre-tax salary to be set aside to pay for certain eligible dependent care and
medical expenses. This is an annual allocation. Additionally, pre-tax dollars are used for medical plan
premiums; this is a defaul# option and employees may choose to pay for medical premiums after-tax if
they so choose.
If you have any questions, please let me know.
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The City of Hastings
Flexible Compensation Plan
-City ofHastings-
Flexible Compensation Plan
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Table of Contents
i. The Plan ....................................................••-----------------......................................._..............._...............--•--......._._._........3
a. Establishment.........--• ......................•--•--..__..._.........__...._..........._............_............................._..... ............---._....._.3
b. Purpose ............................................................................................••--••----•-•--........._................. ......__..._......_....3
c. Legal Status .....................................................................•----•--•-•---.........---....__.........---......_._...... ......_.._._.....-.....3
2. D efinitions ............................................................•---•-•--............_...---........................_................._.......... ......._.........._....3
3. Participation ......................................................................................................................................... .......................4
a. Eligibility ................................................................................................................................... .......................4
b_ Participation in Flexible Benefit Account .................................................................................. .......•---............4
c. Application to Participate in Spending Accounts ...................................................................... .......................4
4. Salary Redirection/Allocation.......--• ................................................................................................... ..............•---.....5
a. Qualifying Events ..............................................................................................•---.......__..._.::_:.. .:...:.__:...-._....._5
b. Notification ...............................................................................................................---:....... - -------- -.--......_5
c. Allocation Reduction ....._..--••----... ...............--........._......_..._....................................-......._..-....... ..:__........_:....._..5
d_ Additional Limitations .................................................................................. •---..-...::.......-..-._::: ....__..'.:........_-...5
5. Fl exible Benefit Account .......................................................................................:::........-.'::----- - --- ---..................._5
a. Establishment ........................................................................•---......_......---.:._._...:.--•--.....-......._.. .-•---.................5
b. Separate Written Plan .._.....--• .......................................................................::::`..-...._::....._........ ........_....---•--....5
6. Health Care Flexible Spending Account ............................................................................................ .......................5
b. Maximum Annual AlIocation .......................................................:...::::......-.................:...-•---.... ._..----.........._._..6
c. El igible Reimbursements ..............•--._._.............._..__.-...........-•--•----.::...-........-.-:-:.---•---........-•---.........-- --._...................6
d. Claim Reimbursement ..............................•--•--............._-.-:........:.........----....._:..-.......--•--......-----.. _......._-.............6
e- Verification ................••-----............_.....-._............_...--.-....:.....-.... --------...._...-...;--.._.._.__........---..... ...------.........---•-6
f Paid Claims ...................................•----._.................:--••-----........--...:.:.----._.._.......--•-•----......__......... .---.._...._.._._-._..6
g- Health Care Limits ...............................................:.................•----.-...:.......__............_........_........_.. _.-..........._.......6
h. Forfeitures ..........................•-•--•---..................----._:::........_._..-::....._......:-•-•--•-••---•--._.........---.........- --.........__.........6
i- Separation of Employment ....................................:::~..........._..._..---..._....._.-.........----.......----.._... ......__......----._..7
J- Continuation .............................•--•--._.-...:..'' ......... _...-•--- .::._.._...._-......._.........-----........---...... .._-._.........-•---•.7
tc. Separate Written Plan .....................:.:.....................................................•---•--._......_.........---•--..... .._........--•----....7
7. Dependent Care Flexible Spending Account ...................................................................................... ...•---............_..7
a. Establishment ..................................._.....::::::..._..---........_........_.-........._....__.......---•---.-.._..------....-- ---.-.........._._.._.7
b. Maximum Annual Allocation .._ ..................:...••---:...........-•--•-•--...............--•---...._.-._.....-----.......-- •---.........._-......7
c_ Eligible Reimbursements< ::.........................•--...--~--•---•----....._......_................._..-........----........-----.. ....----...._........-7
d. Claim Reimbursement ............ .........................•---•---•---........_...-•----•-•--.....-•------••--••----........----.... ..._._..........-•---.7
e- Verification .............................. .................................................••----..._...._..._........-----._......-._...... ..---........._...._..8
f. Claims Paid.......:.::: :..................• -.:::..._...........----................----------..........._._._.....------.......__._._...... ---....._...----._....8
g- Dependent Care Limits .-------~ .....................•-•--._...............---•---............--•--........-----.......-----•-•-••---- --......---._.........8
h. Annual Statement of Benelits :.::: ................................................................................................ ....................10
i. Forfeitures .............. `:.---•--••---.:......................__._......_.........._.-._................._......._.---.......-----......_..- ---......._...........8
j. Separation of Employment ......................................................................................................... ......................8
k. Spouse Attending School Full-Time or Incapable of Self-Care .................................................. ......................8
1. Separate VVrittetrPlan ..............................................................••-__._.........-............_.......••---•-•-•-•• ----........._......_.8
8. Claims ........... ............•---------•--....._.-................_-...---------................_...---......_............_._-............._._.....----- ----------•---........9
a: Fiting Claims_ ....................................................................................................•--.........-----........ ..........._..........9
b. _ Claims Denial....-•---•• ..............•--•-_............__.............................-............................_..._.........__...•--.......... ............_...._....9
c.` Petition for Review ...................................................................................._.........---........._...............................9
d. Petition Response .....................................................................................................................................•--......9
9. Plan Adniinistration ..........................................................................................................................•-- ......................9
a. Compliance ..........................•-•----..................._.....----......_..........................--•---._.......-_............._.... ..._.................9
b. Right of Interpretation .................................................................................................................. ...................10
c. Examination of Records .........................................................:.......•---._.............._.._..----._........_..... ..........._.......10
d. Nondiscrimination ..........................................................................................................................................10
10. Miscellaneous Provisions ..............................................................................•--......_.-.........---...----........................10
b. Applicable Law ...........................................•---....---..._.._....-..............................__.......................... ...................10
c. Finances ........................................................................•-----............................_............__...---........ ...................10
d. Non-Alienation ............................................................................................................................ ...................10
e. Non-Guarantee ofEmployment .........................................................................................•---...... ._............--•--10
f. Plan Termination .......................................................................................................................... ................... ]0
--City of Hastings-
FlexibleCompensation Plan
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1. The Plan
a. Establishment
The City of Hastings has established a flexible compensation plan for eligible employees.
This plan document amends and restates the Plan effective X, 2008.
b. Purpose
The purpose of the plan is to provide Employees with a choice to set aside a portion of his/hear
earnings to pay for qualified expenses for medical care benefits, dependent care benefits, and
coverage under the group medical plan maintained by the Employer.
c. Legal Status
The Plan is intended to qualify as a cafeteria plan under Section 125 of the Internal Revenue
Code, as amended and is to be interpreted in a manner consistent with the requirements of
Section 125. The employer will take whatever steps are necessary to maintain the Plan as non-
discriminatory as defined in IIZC Section 125. Under IRC Section l O5, this Ptan is also
intended to qualify as an uninsured medical reimbursement Plan, to the extent that Participants
use salary reduction to pay for non-insurance health, expenses,. and is intended to qualify as an
insured medical reimbursement Plan, to the extent that Participants use salary reduction to pay
for Employer-sponsored group insurance premiums. In addition;"the Plan is intended to
qualify as a dependent care assistance ptan under IRC Section 129.
2. Def nitions
The following words appearing in the Plan have. the meanings set forth below, unless the context
clearly denotes otherwise:
a. "Compensation" means an employee's total salary, wages, incentive pay, overtime pay,
bonuses, and other cash compensation before any salary redirection allocation under this Plan
or any other plan; but'exctuding expense reimbursements, severance pay, contributions to a
qualified or non-qualifed`retirement or other deferred compensation plan, and any non-cash
compensation.
b. "De endent" means an individual who qualifies as a dependent under IRC Section 152.
c. "Dependent Care Flexible Spending Account (DCFSA~" means the amount of expenses paid
by a Participant for household or dependent care services for the care of a Dependent under the
age of thirteen (13) or of a Dependent or spouse of the Participant physically or mentally
incapable of caring for himself/herself, to the extent that such expenses are incurred to enable
the Participant to be gainfully employed.
d. ``Effective Date" means November 1, 1993, as amended and restated on January 1, 1997, and
as ;amended and restated on X, 2008.
e ' ``Employ" is a regular full-time employee of the City, scheduled to work 40 hours a week as
defined by the City's Employee Handbook.
f. "Employer" is the City of Hastings.
g. "Grace Period" means a period of 2 '/~ months following the end of each plan year whereby
participants can continue to use allocated funds from the previous plan year for eligible health
expenses and still receive reimbursement.
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Flexible Compensation Plan
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h. "Health Care" means the amount paid for medical care as defined in the IRC Section 213(d)(I).
i. "Highly Compensated Employee" means any Employee who is:
i. an officer;
ii. A shareholder owning more than five percent of the stock of the Employer;
iii. Among the highest paid 25% of all employees; or
iv. Highly compensated as determined by the IRS
j. "Code" means the Internal Revenue Code of 1986, as amended.
k. "Participant" means an eligible employee who satisfies the plan participation requirements.
1. "Plan" means the Flexible Compensation Plan.
m. "Plan Administrator" is the person and/or Department appointed by the City to administer and
manage the PIan and its assets for the exclusive benefit of the Participants.''
n. "Plan Sponsor" is the City of Hastings.
o. "Plan Year" begins on January 1 and end on the next followin~',December 31. In the case of a
newly hired employee, the employee's initial PIan Year is the period beginning on the date the
employee is first eligible to participate and ending on the following December 31.
p. "Salary Redirection/Allocation" means the Participant's designation of compensation to
his/her Flexible Benefit Account; Health Care Spending Account, Dependent Care Spending
Account, or to any combination of these accotints.=
3. Participation
a. Eligibility.
A regular, full-time employee is eligible to participate in any component of the Flexible
Compensation Plan as of he first of the month coinciding with or next following 30 days of
continuous employment. An employee must meet the participation requirements for the
Employer-sponsored medical plan to be able to redirect compensation for any premium for
such plan.
b. Participation in Flexible Benefit Account.
Each eligible employee will be automatically enrolled in the plan to redirect the compensation
necessary to,pay for the Employee's share of the premium for any Employer-sponsored
medical coverage. An employee may waive participation in the plan by submitting a
completed waiver prior to the date he/she is eligible to participate_
c. Application to Participate in Spending Accounts.
To enroll, each eligible employee must affirmatively elect participation in the Plan prior to the
date he/she is eligible to participate and each subsequent plan year. Such election will
designate the annual election to be redirected to the Participant's HCFSA and/or DCFSA_ If
an Employee does not affirmatively elect an annual salary redirection, he/she will not become
a participant in the HCSFA or DCFSA until the first day of the next plan year following
affirmative election or unless application is made as a result of a qualifying change in family
status.
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Ftexible Compensation Plan
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4. Satary Redirection/Allocation
a. Qualifying Events
Subject to plan limits, a participant may affirmatively allocate a portion of his/her
compensation to be redirected to the Employee's Flexible Benefit Account, Health Care
Flexible Spending Account and/or Dependent Care Flexible Spending Account each plan year.
Such designation must be made during the designated enrollment period and/or eligibility
period. An allocation designation for any given plan year cannot be changed or revoked once
the plan year has begun, with the following exceptions:
i. A change in marital status, such as marriage, death of a spouse, divorce, legal
separation or annulment,
ii. Change in the covered employee's number of dependents, such as by birtli, adoption,
death, or placement for adoption,
iii. Change in the covered employees employment status that alters the employee's
eligibility for medical coverage;
iv. A significant change in the coverage of a spouse or dependent under a plan of the
spouse or dependent;
v. Any other qualifying events as defined by IRS rulings.
b. Notification
A Participant must make any new electionwithin 30 days of the qualifying event. Any such
change will be effective no earlier than the first pay period beginning after the election form is
completed and returned to the Plan Adnunistrator.
c. Allocation Reduction
A Participant may not reduce an annual salary allocation for a Health Care Flexible Spending
Account or Dependent Care Flexible Spending Account to a point where the total yearly
allocation would be below the amount already reimbursed in that year.
d. Additional Limitations
i. No redirection will be allowed under this Plan for any insurance coverage premiums
that'=are not sponsored~by the Employer.
ii. Minimum contribution will be $10 per pay period.
5. Flexible Benefit Account
a. Establishment
Each ,eligible employee will have a Flexible Benefit Account established, which will be
increased by the amount of the Participant's redirected compensation necessary to pay
premiums for eligible group medical coverage offered by the City. The redirection cannot
exceed the amount necessary to pay premiums for eligible group medical coverage.
b. Separate Written Plan
For purposes of the Code, this section will constitute a separate written plan providing for
redirection of employee premium contributions for eligible group plans. To the extent
necessary, other provisions of the Plan are incorporated by reference in this Section 5.
6. Health Care Flexible Spending Account
a_ Establishment
Each eligible employee will have a Health Care Flexible Spending Account established, which
will be increased by the amount of the Participant's affirmative election for that plan year.
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b. Maximum Annual Allocation.
A Participant may elect up to a maximum of $3,000 to the HCFSA per plan year.
c. Eligible Reimbursements
Upon election, a participant will be entitled to be reimbursed for eligible health care expenses
incurred by the participant or eligible Dependents, up to the participant's annual allocation
election, and provided the Health Care expense was:
i. incurred after the Employee became a Participant in the Plan;
ii. incurred within the current Plan Year;
iii. not in excess of the amount elected far the current plan year; and
iv. eligible under provisions specified
d. Claim Reimbursement
Eligible expenses will be reimbursed through payroll, on a form provided, by the City,
provided the following is submitted in a timely manner.
i. Written evidence from an independent third party stating the services rendered and the
costs incurred;
ii. The employee's certification that the claimed expenses are eligible for reimbursement
under the definitions of the plan;
iii. Any other documentation the Administrator may deem necessary.
e. Verification
The City of Hastings reserves the right to verify all claimed expenses prior to reimbursement
and to reimburse only those amounts that are determined to be Eligible Health Care Expenses.
f. Paid Claims
Claims will be paid for eligible health care expenses incurred up to the full annual elected
amount, without regard to the amount of contributions made through the date of
reimbursement
g_ Health Care Limits
No benefits will be paid under this Plan:
i. for expenses reimbursed under any insurance policy, or any other plan of
reimbursement for health care expenses;
ii. in an amount greater than the total amount of a Participant's allocation for that plan
year;
iii. for any premium for health or life insurance plans;
iv. for claims submitted more than 90 days after the end of the plan year in which the
claims were incurred.
h. Forfeitures
if the total eligible expenses incurred and reimbursed during a plan year are less than the total
allocation, the remaining unused balance will be forfeited and retained by the Employer.
i. Grace Period
The HCFSA will have a grace period whereby participants can continue to use allocated funds
from the previous plan year for eligible health expenses and still receive reimbursement period
for a period of up to 2 %2 months following the end of each plan year. The plan year is from
January 1-December 31; if allocated funds are not exhausted by December 31 of one plan
year, participants can use the balance of allocated funds through March 15 of the following
year without penalty.
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j. Separation of Employment
If a Participant separates employment, participation in the Health Care Flexible Spending
Account component of the Plan will end. The Employer will continue to reimburse the
Participant, or his/her spouse or dependents if the Participant dies, for any remaining eligible
Health Care expenses incurred prior to the Participant's separation, to the extent that sufficient
funds exist in the Participant's Health Care Spending Account. A Participant who has
separated employment with the Employer may continue participation in the Plan by making
monthly after-tax contributions or contributing the remaining balance of his/her annual
election from his/her last paycheck(s) on a pre-tax basis. If that is done, the ("ity will continue
to reimburse the Participant, or his/her spouse of dependents if the Empl<~yrr dies, for any
remaining eligible Health Care expenses incurred prior to the Participant's ser~aratir~n, or prior
to the end of the current Plan Year if after-tax of pre-tax monthly contributicu~s arc made, to
the extent sufficient funds exist in the Participant's Health Care Spending Account:
k. Continuation
If a Participant's eligibility under the plan ends due to a reduction of hours of employment or
termination of employment for reasons other than the Participant's gross misconduct,
continued participation in the Health Care Spending Account portion of the Plan is available
under state and federal Iaw_ The City's medical. plan booklet describes relevant eligibility
provisions, notification requirements, and length of participation.
1. Separate Written Plan.
For purposes of the code, this section' will constitute a separate written plan providing for
reimbursement of Health Care expenses. To the extent necessary, other provisions of the Plan
are incorporated by reference in this section;.
7. Dependent Care Flexible Spending Account
a. Establishment
Each eligible employee will have a Dependent Care Flexible Spending Account established,
which will be increased ny the amouitt of the Participant's affirmative election for that plan
year.
b. Maximum Annual Allocation
A Participant witl'be limited in the amount of Compensation that may be redirected to his/her
Dependent Care Spending Account to a maximum of $5,000 per Plan Year.
c. 'Eligible Reimbursements
Upon election, a participant will be entitled to be reimbursed for eligible dependent care
expenses incurred by the participant or his/her spouse, up to the participant's annual allocation
election; and provided the Dependent Care expense was:
i. incurred after the Employee became a Participant in the Plan;
ii. incurred within the current Plan Year;
iii. not in excess of the amount elected for the current plan year; and
iv. eligible under provisions specified.
d. Claim Reimbursement
Eligible expenses will be reimbursed through payroll, on a form provided by the City,
provided the following is submitted in a timely manner:
i. the Qualifying Dependent(s) for whom the Eligible Dependent Care Expenses were
incurred;
ii. information necessary to substantiate that the dependent or dependents are Qualifying
Dependent(s), such as the age of the dependent or a statement as to the physical or
mental capacity of the dependent;
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iii. written evidence from an independent third party stating that the expenses have been
incurred, a description of the services and where the services were performed, the
amount of the expense;
iv. the relationship to the Covered Employee, if any, of the person performing the
services;
v. if the services are to be performed in a dependent care center, a statement that the
dependent care center meets the requirements of Code Section 21.
e. Verification
The City of Hastings reserves the right to verify all claimed expenses prior to reimbursement
and to reimburse only those amounts that are deternuned to be Eligible Health Care Expenses.
f. Claims Paid
Claims will be paid for eligible health care expenses incurred, up to: the full annual elected
amount, without regard to the amount of contributions made through 'the date of
reimbursement.
g. Dependent Care Limits
No benefits will be paid:
i. in an amount greater than the total amount of a Participant's allocation for that plan
year;
ii. for claims submitted more than 90 :days after the end of the Plan Year in which the
claims were incurred.
iii. in an amount greater than the Participant's Compensation in any calendar year. If the
Participant is marred, Dependent Care benefits also cannot be greater than the earned
income of the spouse-.
h. Forfeitures
If the total eligible expenses incurred and reimbursed during a plan year are less than the total
allocation, the remaining unused balance will be forfeited and retained by the Employer.
i. Separation of Employment
If a Participant. separates employment, participation in the Dependent Care Flexible Spending
Account component: of the Plan will continue until the end of the current plan year. The
Employer will cantitiue to reimburse the Participant, for any remaining eligible Dependent
Care expenses incurred prior to the Participant's separation, to the extent that sufficient funds
exist in` he Participant's Dependent Care Spending Account.
j. Spouse Attending School Full-Time or Incapable of Self-Care.
If a Participant's spouse is a full-time student or is incapable of taking care of himself or
herself, `the spouse will be regarded as having income of $200 per month if there is one
dependent, or $400 per month if there are two or more dependents, for each month that the
spouse qualifies for this exception.
k. Separate Written Plan.
For purposes of the IRC, this Section 7 will constitute a separate written plan providing for the
reimbursement of Dependent Care expenses. To the extent necessary, other provisions of the
PIan are incorporated by reference in this Section.
--City of Hastings--
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8. Claims
a. Filing Claims
If a participant has a claim for any benefits under this Plan, a claim must be filed on a form
provided by the Administrator. if a participant fails for file a claim, the Pian Sponsor shall not
be required to take further steps to secure the Participant's potential benefits under the Plan.
b. Claims Denial
The Plan Administrator will make all determinations as to the right of any,. person to the
payment of a claim for benefits. Any denial by the Plan Administrator of the claim for
benefits by a Participant will be stated in writing by the Plan Administrator and delivered or
mailed to the Participant. Such notice will set forth the specific reasons for the dt~ni.tl, written
to the best of the Plan Administrator's ability, in a manner that may be understood without
legal counsel. Such notice will be given within 94 days after the claim is received by the Plan
Administrator. If notification is not given within this periods the claim. will be considered
denied as of the last day of the period, and the Participant may request a review =of the claim.
c. Petition for Review
if a person deemed not eligible, or if a person believes that he/she is entitled to greater or
different benefits, he/she will have the opportunity to have his/her claim reviewed by the Plan
Administrator by filing a petition for review with the Plan Administrator within sixty (60)
days after receipt by him/her of the notice issued by the Plan Administrator. The petition will
state the specific reasons the person .believes: he/she is entitled to benefits, or greater or
different benefits.
d. Petition Response
Within sixty (60) days after'`i-eceipt of the petition, the Administrator will allow the person
(and his/her counsel, if any) a hearing to present his/her position to the Plan Administrator
orally or in writing. The person or his/her counsel will have the right to review pertinent
documents. Within thirty:. (30) days after the hearing, or after the date the Administrator
receives the written petition for review (if a hearing is waived), the person will be notified in
writing of the final decision.
9. Plan Administration
a. Compliance
The Plan Administrator has the duty to ensure compliance with plan implementation and
adminstration. The Plan Administrator has all powers necessary to administer the Plan,
including, without Iimitation, powers:
i. to construe and interpret the Plan, decide all questions of eligibility, and determine the
amount, manner, and time of payment of any benefits.
ii. ao prescribe uniform procedures to be followed by Participants in making elections,
filing applications for benefits, and other tasks necessary to properly administer the
Plan;
iii. to prepare and distribute information explaining the Plan;
iv. to receive from Participants all information necessary for the proper administration of
the Plan;
v. to prepare and file reports and returns for the Plan as required under applicable law;
vi. to receive, review, and keep on file (in compliance with records retention
requirements) reports of benefit payments by the Employer and reports of
disbursements for expenses; and
vii. to appoint experts, including actuaries, accountants, consultants, and legal counsel, to
assist in the administration of the PIan, to perform services required by regulatory
bodies, and to render advice upon request regarding matters arising under the Plan.
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b. Annnal Statement of Benefits
The Employer will provide to each Participant, on or before January 31 of each calendar year
and on the 1RS W-2 form, a statement of all salary redirection amounts during the prior plan
year.
c. Right of Interpretation.
Ail determinations, interpretations, rules, and decisions of the Plan Administrator will be
conclusive and binding upon all persons having or claiming to have any interest of right under
the Plan.
d. Examination of Records.
The Plan Administrator will make records available to Participants for _exatnination at
reasonable times during normal business hours.
e. Nondiscrimination.
Whenever any discretionary action is required of the Plan Administrator, the Plan
Administrator will exercise its authority in a nondiscriminatory manner so that all persons
similarly situated will receive substantially the same treatmc~t.
10. Miscellaneous Provisions
a. Amendments
The Plan Sponsor reserves the right at-any time and from time to time, and retroactively if
deemed necessary or appropriate to meet the requirements of Code Sections 105, 125 and/or
129, to modify or amend in whole or in; part any or all of the provisions of the Plan by
execution of a resolution to that `effect. Any such amendment will be filed with the Plan
documents.
b. Applicable Law.
The Plan will be governed Eby the lawsof the State of Minnesota, except to the extent that such
laws are preempted by-the laws of the United States of America.
c. Finances.
The costs of the Plan ~~~i1Lbe borne by the Plan Sponsor. For purposes of this Plan, annual
allocations-will be deemed contributions by the Employer.
d. Non-Alienation..
No beneft payable at any time under this Plan will be subject in any manner to alienation,
sale; transfer, assignment, pledge, attachment, or encumbrance of any kind.
e. Non-Guarantee of Employment.
Nothing contained in this Plan will be construed as a contract of employment between the
Employer and any Employee,. or as a right of any Employee to continue working for the
Employer, or as a limitation of the right of the Employer to discharge any of its Employees,
with or without cause.
f. Plan Termination.
While the Plan Sponsor intends to continue the Plan indefinitely, it assumes no contractual
obligation as to its continuance and the Plan Sponsor may terminate the Plan at any time
through a resolution by the City Council to that effect. Neither the Employer, nor any of its
Employees, will have any further financial obligation after the Plan termination, except such
that have accrued up to the date of termination and have not been satisfied.
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