Common use of CADILLAC TAX AVOIDANCE Clause in Contracts

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: a. It is agreed that the District and TTA may immediately reopen this Agreement solely for the purpose of negotiating any changes in the health insurance plan that may be necessary to avoid the application of the Cadillac Tax to the District or any plan administrator, insurer, risk pool or plan participant, or to assure that the plan is legally compliant. An initial bargaining session shall be held within ten (10) business days of a request to reopen, unless another schedule is agreed to by the parties. The District shall assist the TTA in obtaining plan design and pricing information from insurance providers. b. If within ninety (90) days of either party’s request to reopen this Agreement, the parties are unable to agree on changes in the health insurance plan necessary to avoid the Cadillac Tax and/or achieve legal compliance, then the issue shall be submitted to expedited binding interest arbitration. The interest arbitration shall proceed as follows: 1. The parties agree that the special nature of this issue may require an arbitrator with specific knowledge of the ACA; therefore, the parties will make every effort to mutually agree on an arbitrator with such specialized knowledge. If the parties cannot agree upon an arbitrator, an arbitrator shall be selected using the procedures described in Section 4.5.4. 2. The interest arbitration hearing shall be held no later than thirty (30) days after either party declares that the reopened negotiations on health insurance are at impasse, unless otherwise agreed to by the parties. 3. The District and the TTA shall each submit to the selected arbitrator a proposal for modifying the negotiated health insurance and such proposals may include a modification to the plan(s), contributions to the premium and/or related health costs. . The District and the TTA shall exchange their proposals not less than ten (10) days prior to the arbitration hearing. 4. The arbitrator shall be empowered to select either the District’s proposal or the TTA’s proposal (“final offer” arbitration) and is expressly not empowered to fashion his or her own modifications to the negotiated health insurance plan. 5. In selecting between the District’s and the TTA’s proposals, the arbitrator shall consider only the following criteria: i. That the modification avoids the application of the Cadillac Tax and to the District or any plan administrator, insurer, risk pool or plan participant, that provides or participates in the health insurance benefits, and/or assures that the plan is legally compliant; ii. That the modification does not increase the employee percentage contribution to health insurance premiums; iii. That the modification does not make material alterations in the scope of coverage. “Material alterations” shall not include changes in office co-pays, deductibles or prescription drug plans. 6. Considering the factors described in paragraphs 5(i)-(iii), the arbitrator shall select, as between the District’s and TTA’s proposal, the alternative that achieves the necessary result while differing the least from the negotiated health insurance benefit. 7. Nothing herein shall be construed as requiring the District or the TTA to submit any other dispute that may arise between them to interest arbitration or binding arbitration.

CADILLAC TAX AVOIDANCE. The District and the TTA 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 TTA Union mutually agree that they will each benefit from assuring that the health insurance benefits described herein do not subject the TTAUnion, 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 Union 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 Union 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: a. It is agreed that the District and TTA Union may immediately reopen this Agreement solely for the purpose of negotiating any changes in the health insurance plan that may be necessary to avoid the application of the Cadillac Tax to the District or any plan administrator, insurer, risk pool or plan participant, or to assure that the plan is legally compliant. An initial bargaining session shall be held within ten (10) business days of a request to reopen, unless another schedule is agreed to by the parties. The District shall assist the TTA Union in obtaining plan design and pricing information from insurance providers. b. If within ninety (90) days of either party’s request to reopen this Agreement, the parties are unable to agree on changes in the health insurance plan necessary to avoid the Cadillac Tax and/or achieve legal compliance, then the issue shall be submitted to expedited binding interest arbitration. The interest arbitration shall proceed as follows: 1. The parties agree that the special nature of this issue may require an arbitrator with specific knowledge of the ACA; therefore, the parties will make every effort to mutually agree on an arbitrator with such specialized special knowledge. If the parties cannot agree upon an arbitrator, an arbitrator shall be selected using the procedures described in Section 4.5.4section 5.5.4. 2. The interest arbitration hearing shall be held no later than thirty (30) days after either party declares that the reopened negotiations on health insurance are at impasse, unless otherwise agreed to by the parties. 3. The District and the TTA Union shall each submit to the selected arbitrator a proposal for modifying the negotiated health insurance and such proposals may include a modification to the plan(s), contributions to the premium and/or related health costs. . The District and the TTA Union shall exchange their proposals not less than ten (10) days prior to the arbitration hearing. 4. The arbitrator shall be empowered to select either the District’s proposal or the TTA’s proposal (“final offer” arbitration) and is expressly not empowered to fashion his or her own modifications to the negotiated health insurance plan. 5. In selecting between the District’s and the TTA’s proposals, the arbitrator shall consider only the following criteria: i. That the modification avoids the application of the Cadillac Tax and to the District or any plan administrator, insurer, risk pool or plan participant, that provides or participates in the health insurance benefits, and/or assures that the plan is legally compliant; ii. That the modification does not increase the employee percentage contribution to health insurance premiums; iii. That the modification does not make material alterations in the scope of coverage. “Material alterations” shall not include changes in office co-pays, deductibles or prescription drug plans. 6. Considering the factors described in paragraphs 5(i)-(iii), the arbitrator shall select, as between the District’s and TTA’s proposal, the alternative that achieves the necessary result while differing the least from the negotiated health insurance benefit. 7. Nothing herein shall be construed as requiring the District or the TTA to submit any other dispute that may arise between them to interest arbitration or binding arbitration.ten

CADILLAC TAX AVOIDANCE. The District and the TTA 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 TTA Union mutually agree that they will each benefit from assuring that the health insurance benefits described herein do not subject the TTAUnion, 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 Union 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 Union 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: a. It is agreed that the District and TTA Union may immediately reopen this Agreement solely for the purpose of negotiating any changes in the health insurance plan that may be necessary to avoid the application of the Cadillac Tax to the District or any plan administrator, insurer, risk pool or plan participant, or to assure that the plan is id legally compliant. An initial bargaining session shall be held within ten (10) business days of a request to reopen, unless another schedule is agreed to by the parties. The District shall assist the TTA UNION in obtaining plan design and pricing information from insurance providers. b. If within ninety (90) days of either party’s request to reopen this Agreement, the parties are unable to agree on changes in the health insurance plan necessary to avoid the Cadillac Tax and/or achieve legal compliance, then the issue shall be submitted to expedited binding interest arbitration. The interest arbitration shall proceed as follows: 1. The parties agree that the special nature of this issue may require an arbitrator with specific knowledge of the ACA; therefore, the parties will make every effort to mutually agree on an arbitrator with such specialized special knowledge. If the parties cannot agree upon an arbitrator, an arbitrator shall be selected using the procedures described in Section 4.5.4section 5.5. 2. The interest arbitration hearing shall be held no later than thirty (30) days after either party declares that the reopened negotiations on health insurance are at impasse, unless otherwise agreed to by the parties. 3. The District and the TTA Union shall each submit to the selected arbitrator a proposal for modifying the negotiated health insurance and such proposals may include a modification to the plan(s), contributions to the premium and/or related health costs. . The District and the TTA UNION shall exchange their proposals not less than ten (10) days prior to the arbitration hearing. 4. The arbitrator shall be empowered to select either the District’s proposal or the TTAUnion’s proposal (“final offer” arbitration) and is expressly not empowered to fashion his or her own modifications to the negotiated health insurance plan. 5. c. In selecting between the District’s and the TTAUnion’s proposals, the arbitrator shall consider only the following criteria: i. That the modification avoids the application of the Cadillac Tax and to the District or any plan administrator, insurer, risk pool or plan participant, participant that provides or participates in the health insurance benefits, and/or assures that the plan is legally compliant; ii. That the modification does not increase the employee percentage contribution to health insurance premiums; iii. That the modification does not make material alterations in the scope of coverage. “Material alterations” shall not include changes in office co-paysco- payments, deductibles or prescription drug plans. 6. Considering the factors described in paragraphs 5(i)-(iii), the arbitrator shall select, as between the District’s and TTA’s proposal, the alternative that achieves the necessary result while differing the least from the negotiated health insurance benefit. 7. Nothing herein shall be construed as requiring the District or the TTA to submit any other dispute that may arise between them to interest arbitration or binding arbitration.