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2000-61Resolution No. 2000- 61 RESOLUTION FOR THE CREATION OF • UNION EMPLOYEE RETIREE MEDICAL EXPENSE REIMBURSEMENT PLAN AND • NON -UNION EMPLOYEE RETIREE MEDICAL EXPENSE REIMBURSEMENT PLAN WHEREAS, the Village has previously established by Resolution No. 2000 -54 on the 20th day of November 2000, a Retiree Health Savings plan ( "RHS Plans ") to be administered by the ICMA Retirement Corporation and /or its affiliates for union and non -union employees; and WHEREAS, under the Internal Revenue Code ( "Code ") employers who establish RHS Plans that wish to maximize tax efficiency of the RHS Plan are required to publish Employee Retiree Medical Expense Reimbursement Plan(s); and WHEREAS, the Village wishes to maximize tax efficiency of the benefits of both its RHS Plans; and NOW, THERFORE BE IT RESOLVED, by the CORPORATE AUTHORITIES, of the Village of Buffalo Grove, Cook and Lake Counties, Illinois, that the Village hereby adopts the Union Employee Retiree Medical Expense Reimbursement Plan (attached hereto as Exhibit "A ") and the Non -Union Employee Retiree Medical Expense Reimbursement Plan (attached hereto as Exhibit "B "). BE IT FURTHER RESOLVED, that the Village Manager shall be given authority to execute, with staff to attest, all documents pertaining to the reporting and administration of these plans. BE IT FURTHER RESOLVED, that both Plans are effective the 18th day of December 2000. AYES: 5 — Marienthal, Braiman, Glvoer, Berman, Johnson NAYES: 0 — None ABSENT: 1 — Hendricks Approved December 11 2000 Passed December 11 ,2000 Village Presided Attest: 0A4 �,M , 3AZ40,v, Vill !erk Exhibit "A" VILLAGE OF BUFFALO GROVE UNION EMPLOYEE RETIREE MEDICAL EXPENSE REIMBURSEMENT PLAN ARTICLE I PREAMBLE This instrument made and published by the Village of Buffalo Grove, Illinois (hereinafter called the "Employer ") as of the 18th day of December, 2000, creates the Village of Buffalo Grove Union Employee Retiree Medical Expense Reimbursement Plan, as follows: 1.01 Establishment of Plan The Employer named above hereby establishes a Retiree Medical Expense Reimbursement Plan (the "Plan ") as of the 18th day of December, 2000. 1.02 Purpose of Plan This Plan has been established to reimburse the eligible Retirees of the Employer for medical expenses incurred by them, their Spouses and Dependents, pursuant to the Employer's VantageCare Retiree Health Savings (RHS) Plan. ARTICLE II DEFINITIONS The following words and phrases as used herein.shall have the following meanings, unless a different meaning is plainly required by the context: 2.01 "Benefits" means any amounts paid to a Participant in the Plan as reimbursement for Eligible Medical Expenses incurred by the Participant during a Plan Year by him, his Spouse, or his Dependents. 2.02 "Code" means the Internal Revenue Code of 1986, as amended. 2.03 "Dependent" means any individual who is a dependent of the Participant within the meaning of the Code Section 152. 2.04 "Eligible Medical Expenses" means those expenses designated by the Employer as eligible for reimbursement in the VantageCare Retiree Health Savings Plan Adoption Agreement, specifically those expenses eligible under Code Section 213. 2.05 "Employer" means the Village of Buffalo Grove, Illinois. 2.06 "Entry Date" means the first day the Participant meets the eligibility requirements of Article III. 2.07 "Participant" means any Retiree who has met the eligibility requirements set forth in Article III. 2.08 "Plan Administrator" means the Employer or other person appointed by the Employer who has the authority and responsibility to manage and direct the operation and administration of the Plan. 2.09 "Plan Year" means the annual accounting period of the Plan, which begins on the 18th day of December, 2000, and ends on the 31st day of December, 2001, with respect to the first Plan Year, and thereafter as long as this Plan remains in effect, the period that begins on January 1st and ends on 1 • December 31st. • 2.10 "Retiree" means any individual who, while in the service of the Employer, was considered to be in a legal employer- employee relationship with the Employer for federal withholding tax purposes, and who was part of the classification of employees designated as covered by the Employer's VantageCare Retiree Health Savings Plan. 2.11 "Spouse" means the Participant's lawful spouse as determined under the laws of the state in which the Participant has his primary place of residence. All other defined terms in this Plan shall have the meanings specified in the various Articles of the Plan in which they appear. ARTICLE III ELIGIBILITY 3.01 General Requirements Each Retiree who meets the eligibility requirements outlined in the Employer's VantageCare Retiree Health Savings Plan shall be eligible to participate in this Plan. 3.02 Termination of Coverage of an Eligible Dependent An Eligible Dependent's coverage shall terminate: (a) after the death of the Retiree, upon the attainment of age 19 (or 24 for a full time student); (b) Notwithstanding (a) above, an Eligible Dependent's coverage shall not cease if the individual is incapable of self- sustaining employment by reason of mental or physical handicap and he or she became handicapped while an Eligible Dependent of the Participant. The account balance may continue to be utilized to pay Benefits of the individual if he or she qualified as a Dependent of the Participant during the Participant's life, and the Plan has received due proof of incapacity within 31 days of when the individual's coverage under the Plan would otherwise terminate. The individual's coverage may be continued as long as the individual remains incapacitated. The Plan may request proof of the continued existence of such incapacity from time to time. ARTICLE IV AMOUNT OF BENEFITS 4.01 Annual Benefits Provided by the Plan Each Participant shall be entitled to reimbursement for his documented, Eligible Medical Expenses incurred during the Plan Year in an annual amount not to exceed the account balance of the Participant in the Employer's VantageCare Retiree Health Savings Plan. 4.02 Cost of Coverage The expense of providing the benefits set out in Section 4.01 shall be contributed as outlined in the Employer's VantageCare Retiree Health Savings Plan. 2 ARTICLE V PAYMENT OF BENEFITS 5.01 Eligibility for Benefits A. Each Participant in the Plan shall be entitled to a benefit hereunder for all Eligible Medical Expenses incurred by the Participant on or after the Entry Date of his or her participation, (and after the effective date of the Plan) subject to the limitations contained in Article V, below, regardless of whether the mental or physical condition for which the Participant makes application for benefits under the Plan was detected, diagnosed, or treated before the Participant became covered by the Plan. B. In order to be eligible for benefits, the Participant must meet the benefit eligibility criteria outlined in the Employer's VantageCare Retiree Health Savings Plan Adoption Agreement. C. A Participant who dies or becomes totally and permanently disabled (as defined by the Social Security Administration) will become immediately eligible to receive medical benefit payments from the Plan. 5.02 Claims for Benefits No benefit shall be paid hereunder unless a Participant has first submitted a written claim for benefits to the Plan Administrator on a form specified by the Plan Administrator, and pursuant to the procedures set out in Article VI below. Upon receipt of a properly documented claim, the Plan Administrator shall pay the Participant the benefits provided under this Plan as soon as is administratively feasible. ARTICLE VI PLAN ADMINISTRATION 6.01 Allocation of Authority The Employer shall control and manage the operation and Administration of the Plan. The Employer shall have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the right to remedy possible ambiguities, inconsistencies, or omissions. All determinations of the Employer with respect to any matter hereunder shall be conclusive and binding on all persons. Without limiting the generality of the foregoing, the Employer shall have the following powers and duties: (a) To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan, in accordance with the provisions of the Plan; (b) To determine the amount of benefits that shall be payable to any person in accordance with the provisions of the Plan; to inform the Employee, as appropriate, of the amount of such Benefits; and to provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in part; and (c) To designate other persons to carry out any duty or power which would otherwise be a fiduciary responsibility of the Plan Administrator, under the terms of the Plan. 3 • (d) To require any person to furnish such reasonable information as it may request for the purpose of the proper administration of the Plan as a condition to receiving any benefits under the Plan; (e) To make and enforce such rules and regulations and prescribe the use of such forms as he shall deem necessary for the efficient administration of the Plan. 6.02 Provision for Third -Party Plan Service Providers The Plan Administrator, subject to approval of the Employer, may employ the services of such persons or entity as it may deem necessary or desirable in connection with the operation of the Plan. The Plan Administrator, the Employer (and any person to whom it may delegate any duty or power in connection with the administration of the Plan), and all persons connected therewith may rely upon all tables, valuations, certifications, reports and opinions furnished by any duly appointed actuary, accountant, (including Employees who are actuaries or accountants), consultants, third party administration service provider, legal counsel, or other specialist, and they shall be fully protected in respect to any action taken or permitted in good faith in reliance thereon. All actions so taken or permitted shall be conclusive and binding as to all persons. 6.03 Several Fiduciary Liability To the extent permitted by law, neither the Plan Administrator nor any other person shall incur any liability for any acts or for failure to act except for its own willful misconduct or willful breach of this Plan. 6.04 Compensation of Plan Administrator Unless otherwise agreed to by the 'Board, the Plan Administrator shall serve without compensation for services rendered in such capacity, but all reasonable expenses incurred in the performance of his duties shall be paid by the Employer. 6.05 Bonding Unless otherwise determined by the Board, or unless required by any Federal or State law, the Plan Administrator shall not be required to give any bond or other security in any jurisdiction in connection with the administration of this Plan. 6.06 Payment of Administrative Expenses All reasonable expenses incurred in administering the Plan, including but not limited to administrative fees and expenses owing to any third party administrative service provider, actuary, consultant, accountant, attorney, specialist, or other person or organization that may be employed by the Plan Administrator in connection with the administration hereof, shall be paid by the Employer, provided, however that each Participant shall bear the monthly cost (if any) charged by a third party administrator for maintenance of his Benefit Account unless otherwise paid by the Employer. 6.07 Timeliness of Payments Payments shall be made as soon as administratively feasible after the required forms and documentation have been received by the Plan 4 • Administrator. 6.08 Annual Statements • The Plan Administrator shall furnish each Participant with an annual statement of his medical expense reimbursement account within ninety (90) days after the close of each Plan Year. ARTICLE VII CLAIMS PROCEDURE 7.01 Procedure if Benefits are Denied Under the Plan Any Participant, Spouse or Eligible Dependent, or his duly authorized representative may file a claim for a plan benefit to which the claimant believes that he is entitled. Such a claim must be in writing on a form provided by the Plan Administrator and delivered to the Plan Administrator, in person or by mail, postage paid. Within thirty (30) days after receipt of such claim, the Plan Administrator shall send to the claimant, by mail, postage prepaid, notice of the granting or denying, in whole or in part, of such claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension exceed ninety (90) days from the end of the initial period. If such extension is necessary, the claimant will be given a written notice to this effect prior to the expiration of the initial 30 -day period. The Plan Administrator shall have full discretion to deny or grant a claim in whole or in part. If notice of the denial of a claim in not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to review pursuant to Sections 7.03 through 7.05. 7.02 Requirement for Written Notice of Claim Denial The Plan Administrator shall provide, to every claimant who is denied a claim for benefits, written notice setting forth in a manner calculated to be understood by the claimant: (a) The specific reason or reasons for the denial; (b) Specific reference to pertinent Plan provisions on which the denial is based; (c) A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material is necessary, and (d) An explanation of the Plan's claim review procedure. 7.03 Right to Request Hearing on Benefit Denial Within sixty (60) days after the receipt by the claimant of written notification of the denial (in whole or in part) of his claim, the claimant or his duly authorized representative, upon written application to the Plan Administrator, in person or by certified mail, postage prepaid, may request a review of such denial, may review pertinent documents, and may submit issues and comments in writing. 7.04 Disposition of Disputed Claims Upon its receipt of notice of a request for review, the Plan Administrator 5 shall make a prompt decision on the review. The decision on review shall be written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision and specific references to the pertinent Plan provisions on which the decision is based. The decision on review shall be made not later than sixty (60) days after the Plan Administrator's receipt of a request for a review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered not later than one hundred - twenty (120) days after receipt of a request for review. If an extension is necessary, the claimant shall be given written notice of the extension prior to the expiration of the initial sixty (60) day period. If notice of the decision on the review is not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to legal remedy pursuant to Section 7.05 7.05 Preservation of Other Remedies After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any person from pursuing any other legal or equitable remedy otherwise available. ARTICLE VIII AMENDMENT OR TERMINATION OF PLAN 8.01 Permanency While the Employer fully expects that this Plan will continue indefinitely, due to unforeseen, future business contingencies, permanency of the Plan will be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 8.02 and 8.03 below. 8.02 Employer's Right to Amend The Employer reserves the right to amend the Plan at any time and from time -to -time, and retroactively if deemed necessary or appropriate to meet the requirements of the Code, or any similar provisions of subsequent revenue or other laws, or the rules and regulations in effect under any of such laws or to conform with governmental regulations or other policies, to modify or amend in whole or in part any of all of the provisions of the Plan. 8.03 Employer's Right to Terminate The Employer reserves the right to discontinue or terminate the Plan at any time without prejudice. ARTICLE IX GENERAL PROVISIONS 9.01 No Employment Rights Conferred Neither this Plan nor any action taken with respect to it shall confer upon any person the right to be continued in the employment of the Employer. 9.02 Payments to Beneficiary Any benefits otherwise payable to a Participant following the date of death of such Participant shall be paid as outlined in the Employer's VantageCare Retiree Health Savings Plan Adoption Agreement. ri 9.03 Nonalienation of Benefits No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person. If any person entitled to benefits under the Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt is made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person entitled to any such benefit, except as specifically provided in the Plan, then such benefit shall cease and terminate in the discretion of the Plan Administrator, and it may hold or apply the same or any part thereof to the benefit of any dependent or beneficiary of such person, in such manner and proportion as it may deem proper. 9.04 Mental or Physical Incompetency If the Plan Administrator determines that any person entitled to payments under the Plan is incompetent by reason of phyiscal or mental disability, it may cause all payments thereafter becoming due to such person to be made to any other person for his benefit, without responsibility to follow the application of amounts so paid. Payments made pursuant to this Section shall completely discharge the Plan Administrator and the Employer. 9.05 Inability to Locate Payee If the Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under the Plan because it cannot ascertain the identity or whereabouts of such Participant or other person after reasonable efforts have been made to identify or locate such person (including a notice of the payment so due mailed to the last known address of such Participant or other person as shown on the records of the Employer), such payment and all subsequent payments otherwise due to such Participant or other person shall be escheated under the laws of the State of last known address of the Participant or other persons eligible for benefits. 9.06 Requirement of Proper Forms All communications in connection with the Plan made by a Participant shall become effective only when duly executed on forms provided by and filed with the Plan Administrator. 9.07 Source of Payments The Employer shall be the sole source of benefits under the Plan. No Employee or beneficiary shall have any right to, or interest in, any assets of the Employer upon termination of employment or otherwise, except as provided from time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such Employee or beneficiary. 9.08 Tax Effects Neither the Employer nor the Plan Administrator makes any warranty or other representation as to whether any payments received by a Participant hereunder will be treated as includible in gross income for federal or state income tax purposes. 9.09 Multiple Functions Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan. 9.10 Gender and Number Masculine pronouns include the feminine as well as the neuter gender, and the singular shall include the plural, unless indicated otherwise by the context. 9.11 Headings The Article and Section headings contained herein are for convenience of reference only, and shall not be construed as defining or limiting the matter contained thereunder. 9.12 Applicable Laws The provisions of the Plan shall be construed, administered and enforced according to the laws of the State of Illinois. 9.13 Severability Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the remainder thereof shall be given effect to the maximum extent possible. In Witness Whereof we have executed this Plan Agreement the date and year first written above. For Village of Buffalo Grove, Cook and Lake Counties, Illinois. Union Employee Retiree Medical Expense Reimbursement Plan Buffalo Grove Professional Firefighter /Paramedic Association Local 3177 By: W Attest: 0 Exhibit "B" VILLAGE OF BUFFALO GROVE NON -UNION EMPLOYEE RETIREE MEDICAL EXPENSE REIMBURSEMENT PLAN ARTICLE I PREAMBLE This instrument made and published by the Village of Buffalo Grove, Illinois (hereinafter called the "Employer ") as of the 18th day of December, 2000, creates the Village of Buffalo Grove Non -Union Employee Retiree Medical Expense Reimbursement Plan, as follows: 1.01 Establishment of Plan The Employer named above hereby establishes a Retiree Medical Expense Reimbursement Plan (the "Plan ") as of the 18th day of December, 2000. 1.02 Purpose of Plan This Plan has been established to reimburse the eligible Retirees of the Employer for medical expenses incurred by them, their Spouses and Dependents, pursuant to the Employer's VantageCare Retiree Health Savings (RHS) Plan. ARTICLE II DEFINITIONS The following words and phrases as used herein shall have the following meanings, unless a different meaning is plainly required by the context: 2.01 "Benefits" means any amounts paid to a Participant in the Plan as reimbursement for Eligible Medical Expenses incurred by the Participant during a Plan Year by him, his Spouse, or his Dependents. 2.02 "Code" means the Internal Revenue Code of 1986, as amended. 2.03 "Dependent" means any individual who is a dependent of the Participant within the meaning of the Code Section 152. 2.04 "Eligible Medical Expenses" means those expenses designated by the Employer as eligible for reimbursement in the VantageCare Retiree Health Savings Plan Adoption Agreement, specifically those expenses eligible under Code Section 213. 2.05 "Employer" means the Village of Buffalo Grove, Illinois. 2.06 "Entry Date" means the first day the Participant meets the eligibility requirements of Article III. 2.07 "Participant" means any Retiree who has met the eligibility requirements set forth in Article III. 2.08 "Plan Administrator" means the Employer or other person appointed by the Employer who has the authority and responsibility to manage and direct the operation and administration of the Plan. 2.09 "Plan Year" means the annual accounting period of the Plan, which begins on the 18th day of December, 2000, and ends on the 31st day of December, 2001, with respect to the first Plan Year, and thereafter as long as this Plan remains in effect, the period that begins on January 1st and ends on 1 December 31st. 2.10 "Retiree" means any individual who, while in the service of the Employer, was considered to be in a legal employer- employee relationship with the Employer for federal withholding tax purposes, and who was part of the classification of employees designated as covered by the Employer's VantageCare Retiree Health Savings Plan. 2.11 "Spouse" means the Participant's lawful spouse as determined under the laws of the state in which the Participant has his primary place of residence. All other defined terms in this Plan shall have the meanings specified in the various Articles of the Plan in which they appear. ARTICLE III ELIGIBILITY 3.01 General Requirements Each Retiree who meets the eligibility requirements outlined in the Employer's VantageCare Retiree Health Savings Plan shall be eligible to participate in this Plan. 3.02 Termination of Coverage of an Eligible Dependent An Eligible Dependent's coverage shall terminate: (a) after the death of the Retiree, upon the attainment of age 19 (or 24 for a full time student); (b) Notwithstanding (a) above, an Eligible Dependent's coverage shall not cease if the individual is incapable of self - sustaining employment by reason of mental or physical handicap and he or she became handicapped while an Eligible Dependent of the Participant. The account balance may continue to be utilized to pay Benefits of the individual if he or she qualified as a Dependent of the Participant during the Participant's life, and the Plan has received due proof of incapacity within 31 days of when the individual's coverage under the Plan would otherwise terminate. The individual's coverage may be continued as long as the individual remains incapacitated. The Plan may request proof of the continued existence of such incapacity from time to time. ARTICLE IV AMOUNT OF BENEFITS 4.01 Annual Benefits Provided by the Plan Each Participant shall be entitled to reimbursement for his documented, Eligible Medical Expenses incurred during the Plan Year in an annual amount not to exceed the account balance of the Participant in the Employer's VantageCare Retiree Health Savings Plan. 4.02 Cost of Coverage The expense of providing the benefits set out in Section 4.01 shall be contributed as outlined in the Employer's VantageCare Retiree Health Savings Plan. F • ARTICLE V PAYMENT OF BENEFITS 5.01 Eligibility for Benefits n A. Each Participant in the Plan shall be entitled to a benefit hereunder for all Eligible Medical Expenses incurred by the Participant on or after the Entry Date of his or her participation, (and after the effective date of the Plan) subject to the limitations contained in Article V, below, regardless of whether the mental or physical condition for which the Participant makes application for benefits under the Plan was detected, diagnosed, or treated before the Participant became covered by the Plan. B. In order to be eligible for benefits, the Participant must meet the benefit eligibility criteria outlined in the Employer's VantageCare Retiree Health Savings Plan Adoption Agreement. C. A Participant who dies or becomes totally and permanently disabled (as defined by the Social Security Administration) will become immediately eligible to receive medical benefit payments from the Plan. 5.02 Claims for Benefits No benefit shall be paid hereunder unless a Participant has first submitted a written claim for benefits to the Plan Administrator on a form specified by the Plan Administrator, and pursuant to the procedures set out in Article VI below. Upon receipt of a properly documented claim, the Plan Administrator shall pay the Participant the benefits provided under this Plan as soon as is administratively feasible. ARTICLE VI PLAN ADMINISTRATION 6.01 Allocation of Authority The Employer shall control and manage the operation and Administration of the Plan. The Employer shall have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the right to remedy possible ambiguities, inconsistencies, or omissions. All determinations of the Employer with respect to any matter hereunder shall be conclusive and binding on all persons. Without limiting the generality of the foregoing, the Employer shall have the following powers and duties: (a) To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan, in accordance with the provisions of the Plan; (b) To determine the amount of benefits that shall be payable to any person in accordance with the provisions of the Plan; to inform the Employee, as appropriate, of the amount of such Benefits; and to provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in part; and (c) To designate other persons to carry out any duty or power which would otherwise be a fiduciary responsibility of the Plan Administrator, under the terms of the Plan. 3 • (d) To require any person to furnish such reasonable information as it may request for the purpose of the proper administration of the Plan as a condition to receiving any benefits under the Plan; (e) To make and enforce such rules and regulations and prescribe the use of such forms as he shall deem necessary for the efficient administration of the Plan. 6.02 Provision for Third -Party Plan Service Providers The Plan Administrator, subject to approval of the Employer, may employ the services of such persons or entity as it may deem necessary or desirable in connection with the operation of the Plan. The Plan Administrator, the Employer (and any person to whom it may delegate any duty or power in connection with the administration of the Plan), and all persons connected therewith may rely upon all tables, valuations, certifications, reports and opinions furnished by any duly appointed actuary, accountant, (including Employees who are actuaries or accountants), consultants, third party administration service provider, legal counsel, or other specialist, and they shall be fully protected in respect to any action taken or permitted in good faith in reliance thereon. All actions so taken or permitted shall be conclusive and binding as to all persons. 6.03 Several Fiduciary Liability To the extent permitted by law, neither the Plan Administrator nor any other person shall incur any liability for any acts or for failure to act except for its own willful misconduct or willful breach of this Plan. 6.04 Compensation of Plan Administrator Unless otherwise agreed to by the Board, the Plan Administrator shall serve without compensation for services rendered in such capacity, but all reasonable expenses incurred in the performance of his duties shall be paid by the Employer. 6.05 Bonding Unless otherwise determined by the Board, or unless required by any Federal or State law, the Plan Administrator shall not be required to give any bond or other security in any jurisdiction in connection with the administration of this Plan. 6.06 Payment of Administrative Expenses All reasonable expenses incurred in administering the Plan, including but not limited to administrative fees and expenses owing to any third party administrative service provider, actuary, consultant, accountant, attorney, specialist, or other person or organization that may be employed by the Plan Administrator in connection with the administration hereof, shall be paid by the Employer, provided, however that each Participant shall bear the monthly cost (if any) charged by a third party administrator for maintenance of his Benefit Account unless otherwise paid by the Employer. 6.07 Timeliness of Payments Payments shall be made as soon as administratively feasible after the required forms and documentation have been received by the Plan 4 • Administrator. 6.08 Annual Statements • The Plan Administrator shall furnish each Participant with an annual statement of his medical expense reimbursement account within ninety (90) days after the close of each Plan Year. ARTICLE VII CLAIMS PROCEDURE 7.01 Procedure if Benefits are Denied Under the Plan Any Participant, Spouse or Eligible Dependent, or his duly authorized representative may file a claim for a plan benefit to which the claimant believes that he is entitled. Such a claim must be in writing on a form provided by the Plan Administrator and delivered to the Plan Administrator, in person or by mail, postage paid. Within thirty (30) days after receipt of such claim, the Plan Administrator shall send to the claimant, by mail, postage prepaid, notice of the granting or denying, in whole or in part, of such claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension exceed ninety (90) days from the end of the initial period. If such extension is necessary, the claimant will be given a written notice to this effect prior to the expiration of the initial 30 -day period. The Plan Administrator shall have full discretion to deny or grant a claim in whole or in part. If notice of the denial of a claim in not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to review pursuant to Sections 7.03 through 7.05. 7.02 Requirement for Written Notice of Claim Denial The Plan Administrator shall provide, to every claimant who is denied a claim for benefits, written notice setting forth in a manner calculated to be understood by the claimant: (a) The specific reason or reasons for the denial; (b) Specific reference to pertinent Plan provisions on which the denial is based; (c) A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material is necessary, and (d) An explanation of the Plan's claim review procedure. 7.03 Right to Request Hearing on Benefit Denial Within sixty (60) days after the receipt by the claimant of written notification of the denial (in whole or in part) of his claim, the claimant or his duly authorized representative, upon written application to the Plan Administrator, in person or by certified mail, postage prepaid, may request a review of such denial, may review pertinent documents, and may submit issues and comments in writing. 7.04 Disposition of Disputed Claims Upon its receipt of notice of a request for review, the Plan Administrator 5 shall make a prompt decision on the review. The decision on review shall be written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision and specific references to the pertinent Plan provisions on which the decision is based. The decision on review shall be made not later than sixty (60) days after the Plan Administrator's receipt of a request for a review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered not later than one hundred - twenty (120) days after receipt of a request for review. If an extension is necessary, the claimant shall be given written notice of the extension prior to the expiration of the initial sixty (60) day period. If notice of the decision on the review is not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to legal remedy pursuant to Section 7.05 7.05 Preservation of Other Remedies After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any person from pursuing any other legal or equitable remedy otherwise available. ARTICLE VIII AMENDMENT OR TERMINATION OF PLAN 8.01 Permanency While the Employer fully expects that this Plan will continue indefinitely, due to unforeseen, future business contingencies, permanency of the Plan will be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 8.02 and 8.03 below. 8.02 Employer's Right to Amend The Employer reserves the right to amend the Plan at any time and from time -to -time, and retroactively if deemed necessary or appropriate to meet the requirements of the Code, or any similar provisions of subsequent revenue or other laws, or the rules and regulations in effect under any of such laws or to conform with governmental regulations or other policies, to modify or amend in whole or in part any of all of the provisions of the Plan. 8.03 Employer's Right to Terminate The Employer reserves the right to discontinue or terminate the Plan at any time without prejudice. ARTICLE IX GENERAL PROVISIONS 9.01 No Employment Rights Conferred Neither this Plan nor any action taken with respect to it shall confer upon any person the right to be continued in the employment of the Employer. 9.02 Payments to Beneficiary Any benefits otherwise payable to a Participant following the date of death of such Participant shall be paid as outlined in the Employer's VantageCare Retiree Health Savings Plan Adoption Agreement. 0 9.03 Nonalienation of Benefits No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person. If any person entitled to benefits under the Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt is made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person entitled to any such benefit, except as specifically provided in the Plan, then such benefit shall cease and terminate in the discretion of the Plan Administrator, and it may hold or apply the same or any part thereof to the benefit of any dependent or beneficiary of such person, in such manner and proportion as it may deem proper. 9.04 Mental or Physical Incompetency If the Plan Administrator determines that any person entitled to payments under the Plan is incompetent by reason of phyiscal or mental disability, it may cause all payments thereafter becoming due to such person to be made to any other person for his benefit, without responsibility to follow the application of amounts so paid. Payments made pursuant to this Section shall completely discharge the Plan Administrator and the Employer. 9.05 Inability to Locate Payee If the Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under the Plan because it cannot ascertain the identity or whereabouts of such Participant or other person after reasonable efforts have been made to identify or locate such person (including a notice of the payment so due mailed to the last known address of such Participant or other person as shown on the records of the Employer), such payment and all subsequent payments otherwise due to such Participant or other person shall be escheated under the laws of the State of last known address of the Participant or other persons eligible for benefits. 9.06 Requirement of Proper Forms All communications in connection with the Plan made by a Participant shall become effective only when duly executed on forms provided by and filed with the Plan Administrator. 9.07 Source of Payments The Employer shall be the sole source of benefits under the Plan. No Employee or beneficiary shall have any right to, or interest in, any assets of the Employer upon termination of employment or otherwise, except as provided from time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such Employee or beneficiary. 9.08 Tax Effects Neither the Employer nor the Plan Administrator makes any warranty or other representation as to whether any payments received by a Participant hereunder will be treated as includible in gross income for federal or state income tax purposes. 9.09 Multiple Functions Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan. 9.10 Gender and Number Masculine pronouns include the feminine as well as the neuter gender, and the singular shall include the plural, unless indicated otherwise by the context. 9.11 Headings The Article and Section headings contained herein are for convenience of reference only, and shall not be construed as defining or limiting the matter contained thereunder. 9.12 Applicable Laws The provisions of the Plan shall be construed, administered and enforced according to the laws of the State of Illinois. 9.13 Severability Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the remainder thereof shall be given effect to the maximum extent possible. In Witness Whereof we have executed this Plan Agreement the date and year first written above. For Village of Buffalo Grove, Cook and Lake Counties, Illinois. Non -Union Employee Retiree Medical Expense Reimbursement Plan By: Attest: A��' 0