Common use of Benefit Structure Clause in Contracts

Benefit Structure. 10.2.1 To those qualifying for The Plan under §10.1 of this Article after December 31, 2013, The Plan will pay up to 100% of the Anthem HMO Select amount for the appropriate tier rate effective July 1, 2014, as well as dental and vision. Those retirees receiving benefits under The Plan on December 31, 2014 will have their District contribution “grandfathered in” as their base rate with annual adjustments applied as detailed in 10.2.2 and 10.2.3 of this Article. 10.2.2 The percentage of the District contribution paid by The Plan for retirees will be determined as follows: Retiring at age 60-64: Plan pays 100% Retiring at age 59: Plan pays 95% Retiree pays 5% Retiring at age 58: Plan pays 90% Retiree pays 10% *Retiring at age 57: Plan pays 85% Retiree pays 15% *Retiring at age 56: Plan pays 80% Retiree pays 20% *Retiring at age 55: Plan pays 75% Retiree pays 25% This concept is the same as the State Teachers Retirement System: Full benefits are available at age 60, lesser benefits with earlier retirement. Those retiring before age 60 will receive benefits for more years than those retiring at age 60 or beyond, thus receiving more actual dollars in benefits, even though they are receiving a lower percentage of compensation. 10.2.3 If the annual premium increase is 10% or less, The Plan will pick up half of that increase and the retiree will pick up the other half. If the annual premium increases by more than 10%, the retiree will also pay the remainder of the premium increase over 10%. For example, consider the base at exactly $4000 for simplicity. If the premium increases 5%, or $200, The Plan will pick up $100 and the retiree will pick up the other $100, the same as it is now. If the premium increases 10%, or $400, The Plan will pick up $200 and the retiree will pick up the other $200, the same as it is now. If the premium increases 15%, or $600, The Plan will pick up $200 and the retiree will pick up the other $400. 10.2.4 The Plan will be reviewed annually in terms of the fund balance, the number of retirees on The Plan, and the number of new retirees joining The Plan. As it becomes necessary, District funds (lottery or other) will be considered in order to keep The Plan solvent. 10.2.5 The level of coverage is to be determined annually by the DTA Council upon the recommendation of the Retiree Health Benefits (Plan) Committee. 10.2.6 The coverage included in The Plan shall be for both the retired employee and spouse. Any additional fees for upgrades or surcharges will be the sole responsibility of the retiree. 10.2.7 The premium for any employee retiring during the school year shall be based on the premium as of retirement date.

Benefit Structure. 10.2.1 To those qualifying for The Plan under §10.1 of this Article after December 31, 2013, The Plan will pay up to 100% of the Anthem HMO Select amount for the appropriate tier rate effective July 1, 2014, as well as dental and vision. Those retirees receiving benefits under The Plan on December 31, 2014 will have their District contribution “grandfathered in” as their base rate with annual adjustments applied as detailed in 10.2.2 and 10.2.3 of this Article. 10.2.2 The percentage of the District contribution paid by The Plan for retirees will be determined as follows: Retiring at age 60-64: Plan pays 100% Retiring at age 59: Plan pays 95% Retiree pays 5% Retiring at age 58: Plan pays 90% Retiree pays 10% *Retiring at age 57: Plan pays 85% Retiree pays 15% *Retiring at age 56: Plan pays 80% Retiree pays 20% *Retiring at age 55: Plan pays 75% Retiree pays 25% This concept is the same as the State Teachers Retirement System: Full benefits are available at age 60, lesser benefits with earlier retirement. Those retiring before age 60 will receive benefits for more years than those retiring at age 60 or beyond, thus receiving more actual dollars in benefits, even though they are receiving a lower percentage of compensation. 10.2.3 If the annual premium increase is 10% or less, The Plan will pick up half of that increase and the retiree will pick up the other half. If the annual premium increases by more than 10%, the retiree will also pay the remainder of the premium increase over 10%. For example, consider the base at exactly $4000 for simplicity. If the premium increases 5%, or $200, The Plan will pick up $100 and the retiree will pick up the other $100, the same as it is now. If the premium increases 10%, or $400, The Plan will pick up $200 and the retiree will pick up the other $200, the same as it is now. If the premium increases 15%, or $600, The Plan will pick up $200 and the retiree will pick up the other $400. 10.2.4 The Plan will be reviewed annually in terms of the fund balance, the number of retirees on The Plan, and the number of new retirees joining The Plan. As it becomes necessary, District funds (lottery or other) will be considered in order to keep The Plan solvent. 10.2.5 The level of coverage is to be determined annually by the DTA Council upon the recommendation of the Retiree Health Benefits (Plan) Committee. 10.2.6 The coverage included in The Plan shall be for both the retired employee and spouse. Any additional fees for upgrades or surcharges will be the sole responsibility of the retiree. 10.2.7 The premium for any employee retiring during the school year shall be based on the premium as of retirement date.