(A) Benefits. The town has established a medical benefits and life insurance plan for regular full-time employees and their families who choose to participate. A portion of the cost of this plan is paid by the town, which includes a $20,000 term life insurance policy to each full-time employee. The terms and conditions specified in such plans govern coverages. Information about how to enroll, change or continue coverage may be obtained from the supervisor. Forms may be obtained from, and filed at, the Clerk Treasurer's Office.
(B) Initial enrollment period-new employees. Eligible new employees may enroll in the health benefits plan within 30 days of being hired. Insurance coverage will begin on the first day of the month following 30 days of full-time employment with the town. Employees who do not elect to participate in the plan will be asked to sign a waiver of this benefit.
(C) Newly eligible persons.
(1) Spouse. A new spouse may be enrolled if the application for coverage is received and enrollment fees are paid within 31 days of marriage.
(2) Newborn and adopted children. Newborn and adopted children are eligible for coverage. The child may be enrolled for coverage in the plan if the employee submits an application to the insurance company within 31 days of the date of the child's birth or placement.
(D) Special enrollment. Under some circumstances, a special enrollment may occur if an employee waived coverage for himself or herself or dependants at the time of initial enrollment. Refer to the insurance plan contracts for details for qualifying events.
(E) Dropping dependents or canceling coverage. If an employee participates in a Section 125 TaxSaver Plan, the employee may not drop dependents or cancel coverage until the end of the plan year, unless the employee experiences a qualifying event as determined by the IRS.
(F) Section 125 TaxSaver Plan.
(1) The Section 125 TaxSaver Plan (FlexSystem) can save money for any employee who pays for insurance coverage or establishes a flexible spending account for unreimbursed medical expenses through payroll deductions. Premiums for insurance coverages or flexible spending accounts are deducted from the paycheck before federal, FICA, state and local taxes are calculated. Taxes are computed on the reduced amount. Taxes on the lesser amount result in fewer taxes and more take home pay, but will affect total earnings for Social Security purposes.
(2) To participate in the TaxSaver Plan (flexible spending account), employees must sign a salary redirection agreement each year. Employees cannot change or revoke this agreement with respect to pre-tax deductions before the next anniversary date of the Plan unless a “change of status”, as defined by IRS regulations, occurs.
(G) Supplemental insurance programs. Supplemental medical, disability and life insurance (including policies on family members) programs are available. The costs of such supplemental policies are paid entirely by the participating employee through payroll deductions.
(Ord. 05-04, passed 2-28-2005; Am. Ord. 2012-05, passed 1-9-2012)