1.        Purpose

The Fringe Benefit Incentive Plan is offered as a means of cost containment. Any employee who is eligible and enrolled in the Family Plan or Two Person Plan of medical coverage may voluntarily choose to have his/her medical plan changed to individual coverage for the employee only and thus become eligible to receive a monthly payment in lieu of dependent(s) medical coverage.

2.        Guidelines

Should circumstances change at any time for an employee voluntarily electing this option, that employee may request his/her medical plan to be adjusted to include eligible dependents. This change may be requested on a specific date in accordance with the provisions of the insurance carrier with no questions asked as long as the request is made prior to any incurred medical expense on the part of the dependent(s).

Eligibility to participate in this plan will be determined by the medical plan in which the employee is enrolled on the effective date of the policy. A person enrolled in an individual plan may not elect to increase coverage to include dependents and then reduce the plan once again to individual coverage in order to receive the incentive payment.

Medical fringe benefits referred to in this policy include the Blue Cross, Blue Shield and Major Medical currently in effect or equal to or better than the coverage currently in effect.

The incentive plan is strictly voluntary in nature.