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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 ("CaIPERS")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 />