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Safe Harbor is applied only to health premiums and cannot be applied to other <br />insurance. <br />4. The Association shall maintain a medical insurance trust fund for the sole purpose of <br />providing and administering health/dental/long-term disability benefit plans, which may <br />include medical prescriptions, vision care, and/or long-term disability insurance, ("Health <br />Benefit Plans"), for employees in the bargaining unit. Said medical insurance trust fund <br />shall be administered by medical insurance trustee(s) designated by Association. Funds in <br />said medical insurance trust shall not be co -mingled with other Association funds. It is <br />intended that the administration of the Health Benefit Plans by the trust fund shall not <br />survive the expiration of this Agreement without mutual written consent of the Parties. <br />5. Beginning with the calendar year ending December 31, 2023 and every year thereafter, the <br />City shall reduce future monthly contributions towards health benefits for any excess fund <br />balance being held in the Trust as of December 31. `Excess fund balance" shall be defined <br />as any amount that exceeds four (4) times the total insurance premiums minus the <br />employee's share of the premium contribution paid for the month of December for the year <br />just ended. The amount of the "excess fund balance" shall be determined following <br />completion of an annual audit conducted by auditors that are agreed to by the City and the <br />Association of the Association Medical Insurance Trust. Once the "excess fund balance" <br />is determined for the prior calendar year, the City shall reduce its monthly contribution for <br />the next six (6) months by one -sixth (1/6) of the "excess fund balance". The application of <br />these reductions for "excess fund balance" will begin to occur thirty (30) days after completion <br />of the final audit report (e.g., if the determination of the "excess fund balance" occurs in <br />February, then starting in March). <br />6. Health Benefit Plans provided through the medical insurance trust fund shall be made <br />available by the Association to all employees in the bargaining unit. Employees must sign <br />a written authorization for deductions. Annual predetermined rate increases shall be <br />automatically adjusted with the approval of the Association, without a requirement for new <br />payroll deduction forms. <br />7. The level of benefits for each type of plan shall be substantially similar to those provided <br />to employees not represented by the Association under the Public Employees' Medical & <br />Hospital Care Act ("PEMHCA") that governs the California Public Employees' <br />Retirement System ("CalPERS") Health Insurance programs during the twelve (12) month <br />period immediately preceding this Agreement. <br />8. Health Benefit Plans must receive prior approval from the Executive Director of Human <br />Resources or designee whose approval shall not be unreasonably withheld. Group policies <br />must be designated as such in the California Insurance Code and issuance must be lawful <br />in this state. The Association shall offer health plans that constitute minimum essential <br />coverage and provide minimum value under the ACA's employer shared responsibility <br />provisions. The Association shall not offer reimbursement of premiums for health coverage <br />obtained through Covered California, as this constitutes an impermissible employer <br />payment plan under the ACA. <br />79 <br />