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Whether you choose the Dual Income Option or the KPOS Flex Series Plan, the following choices are available to you to deposit your benefit credits. Paid Time-Off Bank You may deposit your benefit credits into a Paid Time-Off "Bank." You may then use the credits to receive pay for any time you could have worked but did not (you simply file a claim with the Fund office.) Any credits remaining in the paid time-off bank at the end o f the year will be cashed out and sent to you automatically. This benefit will be considered taxable income (any amount you receive during the calendar year will be subject to withholding and reported on your W-2 earnings at the end of the year). Retirement 401(k) Plan The Retirement 401(k) Plan offers you an excellent way to save for a secure retirement. Your Retirement 401(k) Plan gives you the opportunity to supplement your Social Security, pension and personal savings. Your Investments You can deposit all or part of your benefit credits into an account set up in your name. These credits are subject to FICA, state and Philadelphia tax (if applicable). Federal tax is deferred until you receive your money from the plan. You choose how to invest your money among several funds where it grows tax-free until your retirement. Your account balance may be invested in one option or divided among several options. Additional Advantages of Your Retirement 401(k) Plan  You may make additional contributions to the
Retirement
401(k) Plan through convenient payroll deductions.
You may rollover amounts from an IRA or another employer's 401(k) plan into this plan.
Beneficiary DesignationWhen you enroll in the Retirement 401(k) plan, you will be asked to name a beneficiary. You may name anyone as your beneficiary. However, if you are married, your full account will be paid to your spouse, unless your spouse consents in writing to another beneficiary being named. When Benefits Are Paid Your balance from this plan may be distributed for any of the following qualifying events:
You leave employment; You become totally and permanently disabled; You retire; or
Upon your death.
Distribution of your account balance before you reach
age 59 1/2 may be subject to a 10% penalty tax. Health Care Spending Account With any benefit plan, there are some items not covered such as plan deductibles and co-payments. By depositing all or a portion of your benefit credits into your Health Care Spending Account, you can set aside money to pay for health care-medical, prescription drug, dental and vision care (expenses that are not reimbursed by any plan). When you submit a receipt for eligible expenses, you're paid tax-free from your account. How the Health Care Spending Account Works You decide how much of your benefit credits you want to contribute based on your estimated expenses for the coming year. You may contribute up to a maximum of $500 each year. When you have an eligible expense, pay for it as you normally would. Then, submit the receipt and a claim form to be reimbursed from your account. Use It or Lose It It's important that you estimate your expenses carefully before contributing your benefit credits to this account, because any balance remaining in this account at the end of the year will be forfeited. Eligible Health Care Expenses Only certain health care expenses are eligible for reimbursement. Eligible expenses include:
Medical or dental plan deductibles;
Coinsurance amounts and co-payments;
Expenses that are not covered, or are partially covered
under your medical or dental plan; and
Expenses beyond maximum medical and/or dental benefit limits,
and/or above usual, customary and reasonable (UCR) charges or plan allowance.Health Care Expenses Not Eligible for Reimbursement You cannot use your health care spending account to reimburse:
Expenses reimbursed by any other medical/dental plan;
Over-the-counter medications;
Health club, spa or exercise class fees;
Cosmetic surgery (unless performed to correct a congenital deformity,
or deformity resulting from injury or disease);
Contributions or premiums for health care coverage for you, your spouse and/or your children;
Expenses not eligible for deduction from the IRS.Increase Your Current Life Insurance Amount The Fund provides Basic Life Insurance. The amount of your current coverage depends on whether you are fulltime or part-time and your length of service* (from date of hire) as shown below: .
*If you're now full-time, but were formerly part-time, each two years of part-time service equals one year of full-time service. If under this "two-for-one" calculation you would receive a lower benefit as a fulltime participant than you would have as a part-time participant, the plan will pay the benefit based on the part-time insurance schedule instead. Amount of Supplemental Life You can elect to increase the amount of your current coverage amounts of $5,000 or $10,000 depending on the amount of benefit credits you allocate to this option. The amount of credits needed depends on your age and the amount of coverage elected as follows:
Note: These amounts are the annual cost to increase your coverage. Your Beneficiary Your beneficiary will be the same as for your Basic Life Insurance. Extended Eligibility Bank You may choose to have all or a portion (minimum $200) of your benefit credits "banked" for future use. In the event of a temporary layoff, termination of your employment, or retirement, you can extend your coverage under the Fund plan by using the amount in your bank to buy coverage for an additional period of time.
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