Authority Funding of Retiree Health Benefit Sample Clauses

Authority Funding of Retiree Health Benefit. City of Berkeley contributions to the retiree medical benefit began on June 26, 2000. Funding of this benefit will be set aside in a trust to be established by the Authority. The Authority will fund the benefit at approximately one percent (1%) of the payroll for every year with the intent of achieving a funding level of seventy percent (70%) after 30 years. The funding will be ongoing to maintain a seventy percent (70%) funding level thereafter. For employees in Representation Unit H-2, an additional charge of one quarter percent (0.25%) of payroll will be charged each year in the final four years of the 2002-2008 Agreement so that contributions are at two percent (2%) in the final year of that Agreement. The purpose of this one percent (1%) increase in payroll contribution is to fund post age 65 Medicare supplement plans. As a result of this change, the amount the City contributes toward the post-65 Medicare Supplement coverage under the Retiree Health Premium Assistance Plan is seventy-seven dollars ($77) effective July 7, 2002 for all post 65 retirees formally represented by the union as well as future retirees. The Union understands and acknowledges that the Authority conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of seven percent (7%) it must achieve to fund the retiree health benefit provided in this section. The Authority will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and Authority agree that if the Actuary concludes that the Authority’s funding of this benefit by contribution of one percent (1%) of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the Authority shall not be required to increase its funding for this benefit to more than one percent (1%) of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health premiums, the Authority and the Union agree to meet and confer regarding the Authority’s distribution of its one percent (1%) contribution.

Authority Funding of Retiree Health Benefit. Authority contributions to the retiree medical benefit will begin on July 1, 1998. Funding of this benefit will be set aside in a trust to be established and managed by the City on behalf of Authority employees. The Authority and Union acknowledge that the Authority is providing this benefit via a contract with the City of Berkeley, and that Authority will accept changes implemented by the City. The Authority will fund the benefit at approximately one percent (1%) of the payroll for every year thereafter with the intent of achieving a funding level of seventy percent (70%) after thirty