REPRODUCTION OF INFORMATIONAL NOTICES
1152     ADDITIONAL INCOME ALLOWANCE .. MEDICAL AND DENTAL OFFICERS
1153     EMPLOYMENT AND SALARY REDUCTION OF REEMPLOYED ANNUITANTS
1154     RECRUITMENT AND RETENTION INCENTIVES - CHILD AND FAMILY SERVICES AGENCY
1155     OPERATION DESERT SHIELD AND DESERT STORM PAY DIFFERENTIAL
1156 - 1169     RESERVED
1170     DISTRICT OF COLUMBIA PRE-TAX BENEFITS PROGRAM
1171     ADMINISTRATION
1172     COVERAGE
1173     CONTRIBUTIONS
1174     DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
1175     MEDICAL EXPENSE FLEXIBLE SPENDING ACCOUNT
1176     GROUP LEGAL SERVICES PROGRAM
1177     EDUCATIONAL ASSISTANCE PROGRAM
1178     QUALIFIED TRANSPORTATION FRINGE BENEFIT
1199     DEFINITIONS

REPRODUCTION OF INFORMATIONAL NOTICES

27 DCR 1450 (April 4, 1980):

The District of Columbia Government Comprehensive Merit Personnel Act, D.C. Law 2-139 (effective March3, 1979), requires the promulgation of rules and regulations implementing certain provisions of the act. A notice concerning the rules and regulations and the effect of Section 3201 of D.C. Law 2-139 was published in the District of Columbia Register on May11, 1979, 25 D.C.R. 10002, and a more comprehensive notice was published February22, 1980, 27 D.C.R. 803.
This is to provide notice that until such final rules and regulations are adopted and duly published, the pertinent provisions of the District Personnel Manual, as well as the pertinent provisions of the Federal Personnel Manual, Code of Federal Regulations, and other pertinent regulations and laws shall, despite any reference in any previously published notice to the date of March1, 1980, continue in effect as the applicable rules and regulations implementing D.C. Law 2-139 for those employees who were employed by the District on December31, 1979, in the same manner as applied on December31, 1979. For those employees employed by the District Government on or after January1, 1980, the same former existing Joint Regulations personnel rules, regulations, laws and manuals will (except for the new residency requirements) apply to such employees in the same manner as would apply had such employees been employed on December31, 1979, under the provisions of the Joint Regulations, except for employees covered under Title VIII-A or Title X of D.C. Law 2-139.

27 DCR 803 (February22, 1980):

. . . Any references in the Federal Personnel Manual or the Code of Federal Regulations to any officer or agency of the Federal Government, or to specific portions of the United States Code, shall be held and considered to refer to the appropriate officer or agency of the District of Columbia Government or to the applicable provision of D.C. Law 2-139. Whenever necessary, the pertinent provisions of the Federal Personnel Manual and the Code of Federal Regulations shall be interpreted in such manner as to make them consistent and compatible with D.C. Law 2-139.
The District, in administering the personnel system and interpreting the regulations and personnel standards, will continue to be guided by prior interpretation of identical or similar regulations or standards by courts or agencies of the Federal Government....

1152 ADDITIONAL INCOME ALLOWANCE.. MEDICAL AND DENTAL OFFICERS

1152.1 For the purposes of this section, the following term has the meaning ascribed:

Additional income allowance— an authorized rate of additional compensation paid upon execution of a service agreement to a medical or dental officer who is paid under a Special Rate Schedule and who occupies a position for which there is a significant recruitment and retention problem.

1152.2 This section applies to all medical and dental officers in the Career, Excepted or Executive Service paid under a Special Rate Schedule for medical officers and dental officers, occupying positions or categories of medical or dental officer positions for which there is a significant recruitment and retention problem and to applicants to those positions or categories of positions.

1152.3 An additional income allowance under this section may be paid only under the following conditions:

(a) The personnel authority has approved the agency plan to implement the additional income allowance program for a specific position or categories of positions; and

(b) The medical or dental officer occupies a full-time or part-time permanent or term position in a position or category of positions established under §§1152.6 and 1152.7 ; and

(c) A service agreement is executed between the District government and the applicant or employee in accordance with the provisions of §1152.1 8.

1152.4 For the purpose of §1152.3 (b), employment on less than a half-time or intermittent basis is excluded from the additional income allowance provisions of this section.

1152.5 The head of each agency employing medical or dental officers is required to determine categories of positions for which there is a significant recruitment and retention problem.

1152.6 In determining categories of positions under §1152.5 , the agency head must, at a minimum, place the medical or dental officer positions for which an additional income allowance may be paid in one of the following categories:

(a) Category A includes positions primarily involving the practice of medicine or direct service to patients, involving the performance of diagnostic, preventive, or therapeutic services to patients in hospitals, clinics, public health programs, diagnostic centers, and similar settings, but not including positions described in paragraph (c) of this section;

(b) Category B includes positions primarily involving the evaluation of physical fitness, or the provision of initial treatment of on-the-job illness or injury, or the performance of pre- employment examinations, preventive health screenings, or fitness-for-duty examinations; and

(c) Category C includes positions not described by (a) of this section, including positions involving disability evaluation and rating, the performance of medicolegal autopsies, training activities, or the administration of patient care or medical research and experimental programs.

1152.7 The agency head may establish as separate categories any additional subdivisions of the categories of positions, authorized under §1152.6 , based on any factors the agency head determines relevant. These may include such factors as the location, grade or level, and medical specialization of the positions, and the level of qualifications sought by the agency for medical or dental officers in the category.

1152.8 A significant recruitment and retention problem shall be considered to exist for each category of position established under §§1152.6 and 1152.7 if all the following conditions are met with respect to the category:

(a) The agency is unable to recruit and retain physicians or dentists for the category of position as documented by such things as the number of vacant positions and the length of time they have been vacant, the number of employees who have resigned including the number resigning for higher paying positions;

(b) The qualification requirements being used as a basis for considering candidates for the vacant positions in the category do not exceed the qualifications that are actually necessary for successful performance of the work of positions in the category;

(c) The agency has made efforts to recruit qualified candidates for any vacant positions in the category, as documented by the number of vacancies the agency tried to fill compared with the number of hires and offers made, and to retain the medical or dental officer presently employed in the category by offering relevant non-pay solutions such as redesigning jobs, establishing training programs, and improving working conditions; and

(d) A sufficient number of qualified candidates is not available to fill the existing vacancies in the category at a rate of pay the agency may offer if no additional income allowance is paid.

1152.9 The amount of the allowance payable for each category of position established under §§1152.6 and 1152.7 must be the minimum amount necessary to address the recruitment and retention problem identified in §1152.8.

1152.10 In determining the amount of the allowance payable under §1152.9 the agency head may compare medical and dental officer positions within and outside the District government with respect to the relative earnings, responsibilities, expenses, workload, working conditions, conditions of employment and personnel benefits.

1152.11 The allowance authorized under §1152.9 for each category of positions shall not exceed fifteen percent (15%) of the maximum rate payable of the grade held by the medical or dental officer.

1152.12 A medical or dental officer who is employed on a regularly scheduled part-time basis of half-time or more, occupying a position for which the allowance is authorized, shall be entitled to the allowance prorated according to the proportion of his or her work schedule to full-time employment.

1152.13 An agency may not enter into any service agreement under §1152.3 (c) until the agency's plan for implementing the allowance program has been submitted to and approved by the personnel authority in accordance with this section.

1152.14 The agency shall submit to the personnel authority a complete description of its plan for implementing the allowance program, including the following:

(a) An identification of the categories of positions that the agency has established under §§1152.6 and 1152.7 ;

(b) An explanation of the determination that a recruitment and retention problem exists for each such category, in accordance with the criteria in §1152.8 ;

(c) The amount of the allowance payable for each category; and
An explanation of the basis for the amount of allowance determined under §1152.9 necessary for each category.

1152.15 The personnel authority shall review each agency's description of its plan for implementing the allowance program and determine if the plan is consistent with the provisions and the requirements of this section, and shall advise the agency within thirty (30) calendar days of receipt of the agency's plan whether the plan is approved, disapproved or requires modification for compliance.

1152.16 When an agency plan for Additional Income Allowance is approved, an agency head shall, within thirty (30) days of the approval date, notify in writing each eligible medical or dental officer of the provisions of the plan and of his or her right to enter into a service agreement.

1152.17 An agency head may initiate action to discontinue, revise, or modify the agency Additional Income Allowance plan.

1152.18 Each service agreement executed as required under §1152.3 (c) shall provide for all of the following:

(a) The specified period of service in return for the allowance;

(b) The amount of the allowance as determined by the agency head in accordance with §1152.9 ;

(c) The terms under which the agreement may be terminated; and

(d) The requirement to refund the allowance as provided in §1152.2 0.

1152.19 An employee shall receive the allowance authorized under this section until:

(a) His or her position is determined to no longer be one to which the provisions of §1152.6 or 1152.7 apply;

(b) He or she no longer occupies the position for which the allowance was authorized; or

(c) Expiration of the service agreement.

1152.20 Upon termination of the agreement for any of the reasons set forth in §1152.21, an employee shall be required to refund the amount of the allowance he or she has actually received under the agreement, not to exceed the amount paid for a period of twenty-six (26) weeks.

1152.21 Refund of the allowance as provided in §1152.2 0 shall be required under the following conditions:

(a) Removal or change to lower grade for cause;

(b) Resignation, except a resignation for inability to return to duty due to injury or illness, or a resignation following receipt of a specific notice of reduction in force;

(c) Retirement, other than for disability, or following receipt of a specific notice of reduction in force;

(d) Change to a lower grade at the employee's request; or

(e) Separation for failure to comply with residency requirements.

1152.22 The refund required under §1152.2 0 may be waived in whole or in part under the provisions of Chapter 29 of these regulations.

1152.23 The allowance authorized by this section shall not be considered basic pay for any purpose.

1152.24 The allowance authorized under this section shall be paid in the same manner and at the same time intervals as basic pay is paid.

1152.25 The allowance authorized under this section shall not be subject to the biweekly aggregate pay limitation.

1152.26 A service agreement may be terminated at any time at the convenience of the government.

1152.27 Any agreement entered into by a medical or dental officer under the provisions of this section shall be for a period of one (1) year of service or a maximum period of two (2) years.

1152.28 An employee shall be notified, in writing by the agency head, thirty (30) days in advance of the expiration date of the service agreement of his or her option to renew the service agreement.

1152.29 Termination of a service agreement pursuant to §1152.2 6 shall not be grievable or appealable.

1153 EMPLOYMENT AND SALARY REDUCTION OF REEMPLOYED ANNUITANTS

1153.1 For the purposes of this section, the following terms shall have the meaning ascribed:

Annuitant— An individual who is receiving or who has made application for an annuity under any District or Federal Government retirement system.

Annuity offset— A reduction in the basic pay of a reemployed annuitant, prior to any deductions, which is equal to the amount of the annuity allocable to the period of reemployment.

Covered position— A position that entitles the incumbent to coverage under the Civil Service Retirement System (CSRS).

District government retirement system— Any of the following retirement systems: Teachers' Retirement System, Police and Fire Retirement System, and Teachers' Insurance and Annuity Association programs.

Reemployed annuitant— A former employee who is receiving or who has made application for an annuity under any District government retirement system or an individual who was first hired by the District government prior to October 1, 1987 in a covered position and who retires and is subsequently rehired.

1153.2 Each personnel authority is required to offset the salary of certain reemployed annuitants, as provided in this section.

1153.3 Except as provided in §1153.6 , annuity offset shall be applicable to any employee who meets either of the following criteria:

(a) An individual who is receiving or who has made application for an annuity under any District government retirement system and who is selected for employment in the District government on or after January1, 1980; or

(b) An individual who is hired by the District government for the first time prior to October1, 1987, in a position covered by the Civil Service Retirement System (CSRS) and who retires under that system and is subsequently rehired.

1153.4 Each appointee shall notify the servicing personnel office in writing, on or before the date of appointment, if he or she has applied for or is receiving an annuity from any District government retirement system or from the CSRS.

1153.5 Upon a determination that an appointee is subject to annuity offset, the personnel authority shall notify the appointee in writing that, pursuant to D.C. Law 2-139, as amended by D.C. Law 10-172, if he or she accepts the appointment, the basic pay for the position will be reduced in an amount equal to the annuity allocable to the period of reemployment.

1153.6 An annuitant who is reemployed by the District government under either the Retired Police Officer Redeployment Amendment Act of 1992 or the Retired Police Officer Public Schools Security Personnel Department Amendment Act of 1994 shall not be subject to annuity offset.

1153.7 Any individual who was first hired by the District government on or after January1, 1980, who was receiving an annuity under any retirement system of the uniformed services of the United States and whose salary plus annuity exceeded step 1 of a DS-15, shall cease to be subject to any reduction in salary because of the annuity, effective with the pay period which began on October 2, 1994.

1153.8 Any employee who is an annuitant under the CSRS, who was first hired by the District government after September30, 1987, shall not be subject to annuity offset for any period of employment, effective with the pay period which began on October2, 1994.

1154 RECRUITMENT AND RETENTION INCENTIVES - CHILD AND FAMILY SERVICES AGENCY

1154.1 For the purposes of this section, the following terms have the meanings ascribed:

Additional Income Allowance— an authorized amount or rate of additional compensation paid upon execution of a service agreement to an employee who occupies a position in the agency for which there is a significant recruitment and retention problem.

Agency— the Child and Family Services Agency.

Employee— an employee of the Child and Family Services Agency.

Hiring Bonus— a one-time supplemental payment provided upon execution of a service agreement to an individual newly hired by the Child and Family Services Agency to a position for which there is a significant recruitment problem.

Personnel Authority— an individual or entity authorized by D.C. Code § 1-604.6 (1999 Repl.) to implement personnel rules and regulations for employees of an agency or group of agencies of the District; or persons delegated that authority by such an individual or entity.

1154.2 This section applies to all employees of the agency in the Career Service, the Excepted Service and the Management Supervisory Service.

1154.3 An additional income allowance or hiring bonus under this section may be paid
only under the following conditions:

(a) The personnel authority determines that the agency is experiencing difficulty in recruiting or retaining qualified applicants or employees for a specific position or category of positions;

(b) The employee occupies an indefinite, permanent or term position with a full time or part-time tour of duty; and

(c) A service agreement is executed between the agency and the applicant or employee in accordance with the provisions of §§ 1154.1 1 and 1154.23.

1154.4 For the purpose of § 1154.3 (b), employment in less than a half-time basis and intermittent employment are excluded from the provisions of this section.

1154.5 The personnel authority shall determine the categories of positions authorized to receive the additional income allowance or the hiring bonus based on any factors determined relevant. These may include such factors as the location, grade, level of difficulty, and working conditions.

1154.6 A significant recruitment and retention problem shall be considered to exist for each category of positions established under § 1154.5 if all the following conditions are met with respect to the category:

(a) The agency is unable to recruit and retain employees for the category of position as documented by such things as the number of vacant positions and the length of time they have been vacant, the number of employees who have resigned including the number resigning for higher paying positions

(b) The agency has made efforts to recruit qualified candidates for any vacant positions in the category, as documented by the number of vacancies the agency tried to fill compared to the number of hires and offers made, and to retain the employees presently employed in the category by offering relevant non-pay solutions such as establishing training programs and improving working conditions; and

(c) A sufficient number of qualified candidates is not available to fill the existing vacancies in the category at a rate of pay the agency may offer if no additional income allowance or hiring bonus is paid.

1154.7 The amount of the additional income allowance or hiring bonus payable under this section must be the minimum amount necessary to address the recruitment and retention problem identified in § 1154.6.

1154.8 In determining the amount of the additional income allowance or hiring bonus payable under § 1154.7 the personnel authority may compare positions within and outside the District government with respect to the relative earnings, responsibilities, expenses, workload, working conditions, conditions of employment and personnel benefits.

1154.9 The additional income allowance or the hiring bonus authorized under § 1154.7 for each category of positions shall not exceed fifteen percent (15%) of the maximum rate payable of the grade held by the employee.

1154.10 An employee who is employed on a regularly scheduled part-time basis of half-time or more, occupying a position for which the additional income allowance is authorized, shall be entitled to the additional income allowance prorated according to the proportion of his or her work schedule to full-time employment.

1154.11 Each service agreement executed for the additional income allowance as required under § 1154.3 (c) shall provide for all of the following:

(a)The specified period of service in return for the allowance;

(b)The amount of the allowance as determined by the personnel authority in

(c)The terms under which the agreement may be terminated; and

(d)The requirement to refund the allowance as provided in § 1154.13.

1154.12 An employee shall receive the additional income allowance authorized under this section until:

(a)His or her position is determined to no longer be one to which the provisions of § 1154.5 apply;

(b) He or she no longer occupies the position for which the allowance was authorized; or

(c) Expiration of the service agreement.

1154.13 Upon termination of the agreement for any of the reasons set forth in § 1154.1 4, an employee shall be required to refund the amount of the additional income allowance he or she has actually received under the agreement, not to exceed the amount paid for a period of twenty- six (26) weeks.

1154.14 Refund of the additional income allowance as provided in § 1154.1 3 shall be required under
the following conditions:

(a)Removal or reduction in grade for cause;

(b)Resignation, except a resignation for inability to return to duty due to injury or illness, or resignation following receipt of a notice of reduction in force;

(c)Retirement, other than for disability, or following receipt of a notice of reduction in force;

(d) Change to a lower grade at the employee's request;

(e) Separation for failure to comply with residency requirements; or

(f) Separation during probationary period.

1154.15 The refund required under § 1154.1 4 may be waived in whole or part under the provisions of Chapter 29 of these regulations.

1154.16 The additional income allowance authorized by this section shall not be considered basic pay for any purpose.

1154.17The additional income allowance authorized under this section shall be paid in the same manner and at the same time intervals as basic pay is paid.

1154.18 The additional income allowance authorized under this section shall be subject to federal, and state or District of Columbia taxes.

1154.19 A service agreement for the additional income allowance may be terminated at any time at the convenience of the personnel authority.

1154.20Any agreement for the additional income allowance entered into by an employee under the provisions of this section shall be for a period of one (1) year of service or a maximum period of two (2) years.

1154.21 An employee shall be notified in writing by the personnel authority fifteen (15) days in advance of the expiration date of the service agreement for the additional income allowance of his or her option to renew the service agreement.

1154.22 Termination of a service agreement for the additional income allowance pursuant to § 1154.19 shall not be grievable or appealable.

1154.23 Each service agreement executed for the hiring bonus as required under § 1154.3 (c) shall provide for all of the following:

(a) The specified period of one (1) year but not to exceed two (2) years of service in f.11 return for the bonus;

(b) The amount of the bonus payment as determined by the personnel authority in accordance with § 1154.7 ; and

(c) The requirement to refund the bonus as provided in § 1154.24.

1154.24 Refund of the hiring bonus as provided in § 1154.2 3(c) shall be required under the following
conditions:

(a)Separation during probationary period;

(b)Removal for cause;

(c)Resignation prior to the end of the specified period under § 1154.23(a); and

(d)Separation for failure to comply with the residency requirements.

1154.25 The refund required under § 1154.24 may be waived in whole or in part under the provisions of Chapter 29 of these regulations.

1154.26 The hiring bonus shall be paid on a date to be determined by the personnel authority.

1154.27 The hiring bonus shall be subject to federal, and state or District of Columbia taxes.

1154.28 The hiring bonus shall be subject to court ordered garnishments depending upon the specific provisions of the court order.

1154.29 The hiring bonus shall be in addition to basic pay and shall not constitute an increase to an employee's basic pay or rate of basic pay, nor shall it be construed to constitute any portion of an employee's rate of basic pay.

1154.30 A former employee of the agency who separated within three (3) years of the new appointment date shall not be eligible to receive a hiring bonus pursuant to this section.

1154.31 Failure by the agency to offer the hiring bonus to an applicant or employee shall not be grievable or appealable.

1154.32 The personnel authority shall develop and publish appropriate procedures to implement the provisions of this section.

1155 OPERATION DESERT SHIELD AND DESERT STORM PAY DIFFERENTIAL

1155.1 When used in this section, the terms below shall have the meaning ascribed:

Employee— any full-time permanent, term or TAPER District government employee who serves in a reserve component of the United States Armed Forces and who was or will be called to active duty as a result of the Operation Desert Shield and Desert Storm conflict.

Active duty— full-time duty in the active military service of the United States for the Operation Desert Shield and Desert Storm conflict.

Operation Desert Shield and Desert Storm Conflict— the period beginning on August 7, 1990 and ending on the date the employee is released from active duty or until September 30, 1992, whichever occurs sooner.

Reserve component— has the meaning prescribed in §101(24) of title 37, United States Code.

Armed forces— has the meaning prescribed in §101(4) of title 10, United States Code.

Basic pay— the employee's scheduled rate of pay plus any additional pay that is defined as basic pay for annuity computation purposes in the retirement system in which the employee is a participant.

Basic military pay— the basic pay under §204 of title 37, United States Code.

1155.2 Each employee who is or has been ordered to active duty, or is retained for duty, as a result of Operation Desert Shield and Desert Storm as a member of a reserve component of the armed forces shall be entitled to apply for and receive a pay differential to compensate the employee for any difference between the employee's District government basic pay and basic military pay.

1155.3 An employee shall not be required to be released from active duty before making application for and receiving the pay differential. However, if the employee has not been released from active duty when he or she makes application for the pay differential, the employee shall provide all documentation required in §1155.9, except that in lieu of providing a copy of the military orders releasing the employee from active duty, the employee shall provide a letter from his or her commanding officer attesting to the fact that the employee, as of the date of application for the pay differential, is still in an active duty status.

1155.4 A pay differential received pursuant to this section shall not be considered basic pay for any purpose.

1155.5 Any employee, upon making application for the pay differential and upon approval of the application by his or her department or agency head, shall receive a pay differential that equals the difference between the employee's District government basic pay reduced by the employee's basic military pay.

1155.6 The estate of any employee who has been killed while in active duty or who is missing in action as a result of active duty shall be eligible to collect any pay differential to which the employee would have been entitled upon making application on behalf of the employee and upon approval of the application by the employee's department or agency head.

1155.7 The period of entitlement to the pay differential shall not exceed the period that begins on the date the employee was called to active duty for Operation Desert Shield and Desert Storm through the date the employee is released from active duty or September30, 1992, whichever occurs sooner. The pay differential shall not be payable for any period following the employee's release from active duty and the employee's return to his or her District government position.

1155.8 The pay differential shall not be payable for any days for which the employee received pay by reason of any annual leave, military leave, compensatory time, or any other form of paid leave taken by the employee.

1155.9 In making application for the pay differential, the employee shall:

(a) Provide a copy of his or her military orders activating the employee for full-time active military service for the Operation Desert Shield and Desert Storm conflict;

(b) Provide a copy of his or her military orders releasing the employee from full-time active military service for the Operation Desert Shield and Desert Storm conflict;

(c) Provide all military pay documentation required to calculate the differential amount; and

(d)Indicate on the application form whether additional applications for financial support have been filed, the amount of any such support received, and from whom such support was received.

1155.10 A pay differential under this section shall be paid by, and out of the funds or appropriations then currently available for salaries and expenses of, the agency that last employed the employee before the employee was ordered to active duty for Operation Desert Shield and Desert Storm.

1156-1169 RESERVED

1170 DISTRICT OF COLUMBIA PRE-TAX BENEFITS PROGRAM

1170.1 The District of Columbia tax-favored and pre-tax benefits program, hereinafter the D.C. Pre- Tax Plan, is hereby established pursuant to the provisions of the District of Columbia Government Comprehensive Personnel Act of 1978, effective March 3, 1979, as added by the District of Columbia Government Comprehensive Merit Personnel Act of 1978 Employee Benefits Amendment Act of 1992 (the “CMPA”), effective March 16, 1993 (D.C. Law 9-198; D.C. Code § 1-612.1 9 (1999 Repl.)).

1170.2 The D.C. Pre-Tax Plan shall comply with the requirements of the Internal Revenue Code of 2000 and any future amendments, and its regulations and interpretations.

1170.3 The D.C. Pre-Tax Plan shall include the following:

(a) Dependent Care Flexible Spending Accounts;

(b) Medical Expense Flexible Spending Accounts; and

(c) Pre-Tax Health Insurance Premium Conversion.

1170.4 The Dependent Care Flexible Spending Account shall provide a pre-tax benefit to participants that will allow recovery of certain dependent care costs as permitted under the Internal Revenue Code.

1170.5 The Medical Expense Flexible Spending Account shall be designed to be a self-insured medical reimbursement account under § 105 of the Internal Revenue Code and shall provide a pre-tax benefit to participants that will enable them to recover certain unreimbursed health care costs.

1170.6 The Pre-Tax Health Insurance Premium Conversion shall provide a pre-tax benefit to participants that will enable them to pay their health insurance coverage premium on a pre- tax basis to the extent permitted under the Internal Revenue Code.

1171 ADMINISTRATION

1171.1 The Director of the Office of Personnel (Director) shall be the Plan Administrator for the D.C. Pre-Tax Plan. The Director may, at his or her discretion, designate a third party administrator for the plan.

1171.2 The Plan Administrator shall notify all participants in the event of an amendment or termination of the D.C. Pre-Tax Plan. All decisions of the Plan Administrator in the administration of this plan shall be final and binding on all parties.

1171.3 The Plan Administrator shall develop documents to implement the D.C. Pre-Tax Plan which include all of the following terms, conditions, and provisions:

(a)Purpose of the D.C. Pre-Tax Plan;

(b)Definitions;

(c)Eligibility;

(d)Election process and benefits;

(e)Plan administration;

(f)Amendments to, or termination of the plan; and

(g)Miscellaneous provisions.

1171.4 The Plan Administrator shall develop an enrollment form containing time limits, as applicable.

1171.5 The Plan documents shall be provided to participants prior to any election period.

1171.6 Any communication, statement, or notice shall be mailed to each participant at his or her home address on file with the Plan Administrator at the time of the mailing. This shall be deemed sufficient for all purposes of this chapter.

1171.7 The Plan Administrator shall rely on representations made by the participant with respect to age, marital status and other personal facts, and shall require proof to support any change in the representation made by the participant.

1171.8 The Plan Administrator shall determine the frequency of reimbursements for each plan option and the minimum employee elections that may be withheld from an employee's pay, and shall make this information available to participants prior to any open enrollment period.

1171.9 The Plan Administrator shall maintain a Flexible Spending Account or Accounts for each participant and shall record the amounts credited to each such account and the amount and type of expense charged against each account.

1171.10 A Flexible Spending Account is a plan that permits employees to reduce their salary to purchase certain employee benefits not reimbursed by the employer's benefit programs. The Plan Administrator shall keep accurate records of amounts credited to each participant's Flexible Spending Account(s).

1171.11 A participant's Flexible Spending Account(s) maintained for any plan year shall be used only to reimburse expenses incurred during that portion of the plan year in which the participant was in the D.C. Pre-Tax Plan.

1172 COVERAGE

1172.1 An eligible employee may elect to participate in the Dependent Care Flexible Spending Account and the Medical Expense Flexible Spending Account by completing and signing an enrollment form for that benefit as prescribed by the Plan Administrator.

1172.2 An employee shall be automatically enrolled to participate in the Pre-Tax Health Insurance Premium Conversion. The employee may elect to opt out or cancel the Pre-Tax Health Insurance Premium Conversion by completing and signing a waiver form within the time limits prescribed by Plan Administrator.

1172.3 Any payment of, or the right to, benefits shall be non-assignable and non-transferable.

1172.4 The following persons shall not be eligible for coverage under the D.C. Pre-Tax Plan:

(a) An employee serving under an appointment of one (1) year or less, unless such an appointment follows an appointment of one (1) year or more with a break in service of three (3) days or less.

(b) An employee serving under a temporary appointment, or who is employed for brief periods at intervals;

(c) An employee who is expected to work less than six (6) months in each year, except for an employee of a D.C. Office of Personnel approved career-related work-study program of at least one (1) year's duration and who is expected to be in a pay status for at least one-third (1/3) of the total period of time from the date of initial appointment to the completion of the work-study program;

(d)An intermittent employee;

(e) A patient or resident in a hospital, group/halfway home, or correctional or mental institution of the District government who is employed in that facility but who is paid according to a District pay schedule;

(f) An employee of an Advisory Neighborhood Commission;

(g) An individual paid on a contract or fee basis;

(h) An annuitant or retiree; and

(i) An individual receiving disability compensation.

1172.5 An eligible employee who is a participant in the D.C. Pre-Tax Plan shall remain in the plan until one (1) of the following occurs:

(a) The participant ceases to be a District employee;

(b) The participant elects to revoke an election for coverage during the initial election period or subsequent election periods;

(c) The participant elects to revoke an election for coverage due to change in family status (e.g., marriage, divorce, change of employment, etc.), within thirty (30) days following such change in family status.

1172.6 For the first plan year, the initial election period for the Dependent Care and Medical Expense Flexible Spending Accounts shall be the period from December 1, 2000 through December 15, 2000.

1172.7 The Plan Administrator shall make the final determination of the applicability of this chapter to specific persons or groups of persons.

1173 CONTRIBUTIONS

1173.1 Employee contributions to the D.C. Pre-Tax Plan shall be made in accordance with the requirements of the Internal Revenue Code. Such pre-tax contributions shall not reduce the employee's rate of basic pay upon which retirement, pension, or other benefits by law are computed.

1173.2 Pursuant to the CMPA, and to the extent permitted by the Internal Revenue Code, any amount of contributions made on a pre-tax basis shall not affect an employee's contributions to life insurance, retirement, or any other benefits computed on an employee's rate of basic pay. Any amount of contributions made on a pre-tax basis shall not be included to compute federal or District of Columbia income tax withholdings, including Federal Insurance Contributions Act (FICA), to the extent permitted, on behalf of any participant.

1173.3 The salary otherwise payable each pay period to an employee who participates in the D.C. Pre-Tax Program shall be reduced so that contributions may be made to pay for insurance premiums or to the employee's Flexible Spending Account(s).

1173.4 An employee may request an exception to the time limits for enrolling when the employee was unable, for causes beyond his or her control, to elect to participate within the time limits prescribed. The Plan Administrator shall determine whether a request for an exception to the time limits shall be granted.

1174 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT

1174.1 A dependent care plan within the meaning of ' 129 of the Internal Revenue Code provides a pre-tax benefit to participants that enables them to recover certain dependent care costs. A participant in a Dependent Care Flexible Spending Account may elect to reduce his or her salary by an annual amount of up to $5,000 for a single taxpayer or a married taxpayer filing jointly, or $2,500 for a married taxpayer filing separately (or such other amount as permitted by the Internal Revenue Code). These pre-tax salary reductions shall be reduced in equal installments based on the number of pay periods in the plan year.

1174.2 The maximum amount elected by the participant shall be prorated for a plan year of less than twelve (12) months for an employee who participates in a Dependent Care Flexible Spending Account for less than a full twelve (12) months.

1174.3 A person who elects to participate in a Dependent Care Flexible Spending Account shall be entitled to reimbursement for dependent care expenses incurred during a plan year which are considered eligible employment related expenses under the child and dependent provisions of the Internal Revenue Code.

1175 MEDICAL EXPENSE FLEXIBLE SPENDING ACCOUNT

1175.1 A self-insured medical reimbursement plan within the meaning of ' 105 of the Internal Revenue Code provides a pre-tax benefit to participants that will enable them to recover certain unreimbursed health care costs. A participant in the Medical Expense Flexible Spending Account may elect to reduce his or her salary by a maximum annual amount of up to $2,500, to be reduced in equal installments based on the number of pay periods in the plan year. This maximum amount will be prorated for a participant who enrolls in the Medical Expense Flexible Spending Account for less than a full twelve (12) months.

1175.2 A participant in a Medical Expense Flexible Spending Account shall be entitled to reimbursements for eligible expenses incurred during the plan year for the health care of the participant, and the participant's spouse and dependents.

1175.3 Claims for reimbursement for eligible medical expenses shall be made on the appropriate form or forms furnished by the Plan Administrator for purposes of Medical Expense Flexible Spending Account and shall be submitted to the Plan Administrator.

1175.4 Medical expenses reimbursed under the D.C. Employees' Health Benefits Program (DCEHB) and the Federal Employees' Health Benefits Program (FEHB) which cover the participant and eligible family members shall not be reimbursable under a MEFSA.

1176 Group Legal Services Program (Internal Revenue Code of 2000, § 120) (Reserved)

1177 Educational Assistance Programs (Internal Revenue Code of 2000, § 127) (Reserved)

1178 Qualified Transportation Fringe Benefit (Internal Revenue Code of 2000, § 132(f)) (Reserved)

1199 DEFINITIONS

Cafeteria plan— common name (sometimes also called “flexplan”) for a plan offered under § 125 of the Internal Revenue Code, under which an employee chooses benefits from a “menu” of choices.

Dependent— an individual as defined in § 152 of the Internal Revenue Code.

Flexible spending account— an account provided as part of a cafeteria plan which allows an employee to fund medical care expenses on a pre-tax basis which are not covered under other medical benefits coverage and dependent care expenses. The employee claims reimbursement for such expenses from funds in the account, up to the total contributed to the account for that year.

Health care expense— an expense related to the diagnosis, cure, mitigation, treatment or prevention of disease consisting of expenses for medical care within the meaning of § 213 of the Internal Revenue Code.

Participant— an employee who is eligible and elects to participate in the D.C. Pre-Tax Plan.

Pre-tax salary reductions— amount of an employee's salary which is not paid to the employee in cash but used for some other purpose. Such contributions are pre-taxed if they reduce income before taxes and FICA taxes are computed.