18A.227 Flexible benefits plan for employees and retirees.
407 words·~2 min read·
/ky/chapter-18a/18a-227A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)For purposes of this section, the following definitions shall apply:
(a)"Cafeteria plan" shall mean a flexible benefits plan which meets the
requirements of Section 125 of the Federal Internal Revenue Code;
(b)"Employee" shall mean a person, including an elected public official, who is
regularly employed by any department, board, agency, or branch of state
government, and who is a contributing member to any one
(1)of the
retirement systems administered by the state;
(c)"Cabinet" shall mean the Personnel Cabinet;
(d)"Change in family status" shall have the same meaning as used in Section 125
of the Internal Revenue Code and regulations promulgated thereunder; and
(e)"Salary reduction contribution" means all employer contributions that are
excludable from gross income under the Internal Revenue Code.
(2)As part of the employee benefits provided to state employees under this chapter, the
cabinet may develop and make available to eligible employees a flexible benefits
plan which meets the requirements for treatment as a cafeteria plan under Section
125 of the Internal Revenue Code. The plan shall be in writing and shall be
available on an equal basis to all eligible employees within each county.
(3)Options available under the plan may include, but are not limited to:
(a)Health insurance coverage;
(b)Managed health care coverage;
(c)Catastrophic illness coverage;
(d)Dental insurance;
(e)Term life insurance-accidental, death, or dismemberment;
(f)Vision insurance;
(g)Long term disability insurance;
(h)Long term medical care; and
(i)Any other benefits which may be offered under the provisions of the Internal
Revenue Code and which the cabinet determines to be in the best interests of
state employees.
(4)Any employee who desires to participate in options offered under the plan, may
direct that any options elected shall be funded through payroll deduction. Once an
option is chosen, it shall not be changed until the end of the period for which
election is made unless the employee experiences a change in family status, other
change of status, or special enrollment rights under the Federal Health Insurance
Portability and Accountability Act of 1996 which necessitates a revision of his
benefit election.
(5)Any employee contributions required toward the purchase of the selected options
shall be made by a salary reduction contribution, to the extent the benefits would be
considered to be tax-free under Chapter 1 of the Internal Revenue Code, and by
after-tax salary deduction where the elected option is not tax-free.