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Social Security / Medicare Payments Reimbursement Program
ARTICLE VI - Termination of Reimbursement Payments
6.1 All reimbursement payments will terminate in the event of any of the following:
(a) The employee has been reimbursed for the full amount of Social Security/Medicare taxes withheld by LANS during active employment with LANS.
(b) The employee fails to timely provide LANS with required documentation of ineligibility for Social Security benefits, unless such failure is due to reasonable cause (to be determined by LANS).
(c) The employee becomes eligible for Social Security benefits because he/she earns enough credits to qualify for Social Security benefits, based on his/her credits, but not because he/she becomes eligible for Social Security disability benefits, survivor benefits, or other benefits not based on his/her credits. If the employee's eligibility for the reimbursement payments terminates under this paragraph, LANS will not make any further payments that would otherwise be due under this program.
EXAMPLE 3: Same as Example 1, except the employee becomes eligible for Social Security benefits based on his/her earnings credits beginning on May 1, 2011.
LANS will pay the first annual reimbursement payment on August 28, 2009 of $2,000;
The next annual reimbursement payment of $3,000 will be made on August 30, 2010; and
No reimbursement payments will be made in 2011 or thereafter.
ARTICLE VII - Payment of Reimbursement Payments Upon Death of Employee
7.1 If an employee dies after reimbursement payments have begun, but before all reimbursement payments have been paid, any remaining reimbursement amounts will be made to the estate of such employee in one lump sum as soon as administratively possible after the death of the employee.
7.2 If an employee dies before reaching age 65 and a representative of his or her estate provides documentation from the Social Security Administration that the employee had not earned enough credits to be eligible for Social Security benefits at the time of death, reimbursement payments equal to the amount due to such employee under this program if he or she had reached age 65 will be made to the estate of such employee in one lump sum as soon as administratively possible after the death of the employee.
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