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<br />(b) Your spouse may choose continuation coverage for himself or herself if he <br />or she loses group health coverage for any of the following reasons: (1) your death; (2) <br />your divorce or legal separation; or (3) you become entitled to Medicare. <br /> <br />( c) Your dependent children, including a child born to or placed for adoption <br />with the Participant during the period of COBRA coverage, may choose continuation <br />coverage for themselves if they lose group health coverage for any of the following <br />reasons: (1) death of a parent; (2) your divorce or legal separation; (3) you become <br />entitled to Medicare; or (4) your dependent ceases to be a dependent child under the Plan. <br /> <br />It is your responsibility to notify the Plan Administrator of a divorce, legal separation or <br />other change in marital status, change in a spouse's address, or a child losing dependent status <br />under the plan, within sixty (60) days of the event. It is our responsibility to notify the Plan <br />Administrator of your death, termination of employment or reduction in hours, or Medicare <br />eligibility. <br /> <br />6. Will My Social Security Benefits Be Affected? <br /> <br />Your Social Security benefits may be slightly reduced because when you receive tax-free <br />benefits under our Plan, it reduces the amount of contributions that you make to the Federal <br />Social Security system as well as our contribution to Social Security on your behalf. <br /> <br />VI <br />HIGHLY COMPENSATED AND KEY EMPLOYEES <br /> <br />1. Do Limitations Apply to Highly Compensated Employees? <br /> <br />Under the Internal Revenue Code, "highly compensated employees" and "key employees" <br />generally are Participants who are officers, shareholders or highly paid. You will be notified by <br />the Administrator each Plan Year whether you are a "highly compensated employee" or a "key <br />employee. " <br /> <br />If you are within these categories, the amount of contributions and benefits for you may <br />be limited so that the Plan as a whole does not unfairly favor those who are highly paid, their <br />spouses or their dependents. Federal tax laws state that a plan will be considered to unfairly favor <br />the key employees if they as a group receive more than 25% of all of the nontaxable benefits <br />provided for under our Plan. <br /> <br />Plan experience will dictate whether contribution limitations on "highly compensated <br />employees" or "key employees" will apply. You will be notified of these limitations if you are <br />affected. <br /> <br />9 <br />