HAR §14-51-2. Definitions

As used in this chapter, unless a different meaning is clearly intended by the context: "Allocated amount" means the amount of compensation reduction, if any, authorized by the employee which shall equal the eligible expenses associated with the component plan elected by the employee. "Benefit election date" means July 1 of each plan year or such other date as the plan administrator may establish in lieu of this date. For a newly eligible employee, benefit election date also means the first day such employee is eligible for benefits under a component plan. "Benefit election form" means the form provided by the plan administrator or designated parties for the purpose of electing to participate in this plan. "Code" means the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent superseding revenue laws. "Compensation" means all remuneration paid in cash to an employee by the employer during any plan year, including an employee's basic salary, wages, bonus, commissions, overtime pay, shift differentials, any other supplemental compensation, including premium pay and longevity pay. "Compensation reduction" means the reduction of an employee's "compensation" as defined in section 14-51-2 in return for the payment by the employer of "eligible expenses" as defined in section 14-51-2. 51-3 1 §14-51-2 "Component plan" means: (1) Any health benefit plan contracted for by the Hawaii Public Employees Health Fund under chapter 87, HRS, which requires employee contributions; and (2) Any employee organization health benefit plan approved by the Hawaii Public Employees Health Fund Board of Trustees for employer contribution transfers, provided that such plan provides to the plan administrator such information and documentation as the plan administrator may determine to be necessary or desirable, at any time and from time to time, to establish to the plan administrator's satisfaction that each of the following requirements has been met by such plan: (A) The component plan is an "accident or health plan" within the meaning of section 105(e) of the Code; (B) Any other requirements applicable to the determination of whether benefits provided under the plan constitute "qualified benefits" within the meaning of regulations promulgated under section 125 of the Code are satisfied. "Eligible expenses" means the cost of any required employee monthly contributions which are necessary for employees and/or their eligible dependents to be covered pursuant to the terms of any component plan in which the employee has elected to participate. "Employee" means any person who is eligible to enroll in a component plan and who is employed by the State of Hawaii. However, the term employee will not apply to such person if that person is subject to a collective bargaining agreement which specifically prohibits participation in this plan. "Employer" means the State of Hawaii. "Period of coverage" means a plan year, except that in the case of an employee who is newly eligible to participate in a component plan, it shall mean the period commencing on the date the employee is first eligible to participate in such component plan and ending on the last day of such plan year. "Plan" means this Premium Conversion Plan. 51-4