CADILLAC TAX AVOIDANCE. The District and the TTA recognize that the federal Affordable Care Act (ACA) contains provisions that will impose a tax on health insurance benefits that exceed certain parameters defined in the ACA. The District and the TTA mutually agree that they will each benefit from assuring that the health insurance benefits described herein do not subject the TTA, any plan administrator, insurer, risk pool or plan participant, that provide or participate in the health insurance benefits, to the so-called “Cadillac Tax.” Accordingly, the District and the TTA agree that in the event that either becomes aware that application of the ACA or any amendments thereto, will subject the District, or any plan administrator, insurer, risk pool or plan participant to the so-called “Cadillac Tax” in a current or in the following plan year, they shall follow the procedure described below. The District and the TTA further agree that if any portion of the parties’ negotiated health insurance plan will not be in compliance with any provisions of the ACA, as it may be amended, during a current or the following plan year, shall also follow the procedure below:
CADILLAC TAX AVOIDANCE. The District and the Union recognize that the federal Affordable Care Act (ACA) contains provisions that will impose a tax on health insurance benefits that exceed certain parameters defined in the ACA. The District and the Union mutually agree that they will each benefit from assuring that the health insurance benefits described herein do not subject the Union, any plan administrator, insurer, risk pool or plan participant, that provide or participate in the health insurance benefits, to the so-called “Cadillac Tax.” Accordingly, the District and the Union agree that in the event either becomes aware that application of the ACA or any amendments thereto, will subject the District, or any plan administrator, insurer, risk pool or plan participant to the so-called “Cadillac Tax” in a current or in the following plan year, they shall follow the procedure described below. The District and the Union further agree that if any provisions of the ACA, as it may be amended, during a current or following plan year, shall also follow the procedure below:
