Cafeteria Plan Allotment Clause Samples
The Cafeteria Plan Allotment clause establishes the rules and procedures for employees to allocate a portion of their compensation to a flexible benefits plan, often on a pre-tax basis. Under this clause, employees can choose from a menu of benefit options—such as health insurance, dependent care, or retirement contributions—and designate specific amounts to be deducted from their paychecks for these purposes. This arrangement allows employees to customize their benefits package to suit their individual needs while also providing potential tax advantages, thereby enhancing employee satisfaction and cost-effectiveness for both the employer and the employee.
Cafeteria Plan Allotment. 1. The Flex Benefit amount for Employee Only, those with coverage outside of the City, and those employees covered by another City employee is fixed at the amount provided in the calendar year 2015 ($13,024). The flex amount for Employee + 1 and Employee + Family will be adjusted under the current 50/50 cost sharing formula, utilizing the average cost increase of the full-family, non- indemnity, health plan premiums. Eligible part-time employees will receive an allotment in the proportion that such part-time employment bears to full-time employment.
2. [ACA Reopener] The City provides medical benefits (via a cafeteria plan as set forth in Article 2.19) to ASSOCIATION represented employees. These benefits are subject to the Federal Affordable Care Act (“ACA”). The City, upon notice to ASSOCIATION, may reopen this MOU when the City has been informed of or is aware of non-compliance with the ACA, including a “Cadillac” tax. The City shall provide notice to ASSOCIATION of the nature of the act or omission that forms the basis of ACA non-compliance. The City and ASSOCIATION shall thereafter promptly meet and confer to the extent required by the MMBA.
Cafeteria Plan Allotment. The Flex Benefit amount for Employee Only, those that opt out of City coverage, and those employees covered by another Chula Vista City employee shall be fixed at $13, 024. The flex amount for Employee + 1 and Employee + Family will be adjusted under the current 50/50 cost sharing formula, utilizing the average cost increase of the full-family, non-indemnity, health plan premiums. Eligible part-time benefited employees will receive an allotment in the proportion that such part-time employment bears to full-time employment. [ACA Reopener] The City provides medical benefits (via a cafeteria plan as set forth in Article 2.11) to WCE represented employees. These benefits are subject to the Federal Affordable Care Act (“ACA”). The City, upon notice to WCE, may reopen this MOU when the City has been informed of or is aware of non-compliance with the ACA, including a “Cadillac” tax. The City shall provide notice to WCE of the nature of the act or omission that forms the basis of ACA non-compliance. The City and WCE shall thereafter promptly meet and confer to the extent required by the MMBA. The City provides a Cafeteria Plan Allotment amount (“Allotment”) to WCE represented employees to purchase benefits qualified under Section 125 of the IRC as set forth in Article 2.11 of the MOU. The Allotment for 2017 is $14,136, but may increase on a yearly basis. The City shall provide a comparable or replacement benefit to any benefit lost as a result of compliance with the ACA, including a “Cadillac Tax.” The aforementioned comparable or replacement benefit shall be up to, but not exceed the Allotment amount, as provided for in Article 2.19(I)(B) above (currently $14,136 for 2017), less any remaining or non-impacted Allotment amounts. The aforementioned Allotment amount shall also not be increased to account for taxation benefits. The City shall also, to the extent necessary, earmark and set aside the impacted Allotment amounts (provided for in Article 2.11(I)(B) above [Cafeteria Plan]) so that they may be used to provide the aforementioned comparable or replacement benefit. The City shall endeavor to ensure that any plan design changes will have the least impact on employees as possible and still comply with the ACA. This re-opener shall be used only to ensure ACA compliance, including a “Cadillac” tax.
Cafeteria Plan Allotment. The CITY will provide to each full-time represented employee a Cafeteria Plan allotment to purchase benefits qualified under Section 125 of the Internal Revenue Code. The Cafeteria Plan allotment may only be used to purchase City provided medical, dental, and vision coverages. Employees will not be able to purchase flexible spending accounts utilizing the Cafeteria Plan allotment. Effective January 1, 2020, the CITY will provide a Cafeteria Plan allotment of $1,800 a month for a city provided medical, dental, and vision plans for all employees and their eligible dependents on a pre-tax basis to meet IRS regulations. Effective January 1, 2021, the CITY will provide a Cafeteria Plan allotment of $1,850 a month for a city provided medical, dental, and vision plans for all employees and their eligible dependents on a pre-tax basis to meet IRS regulations. The employee will pay for any premiums in excess of the Cafeteria Plan allotment through payroll deductions. The CITY and the ASSOCIATION agree to a re-opener to meet and confer over potential impacts of future medical premium costs. Health benefits are effective the first of the month following hire date. The Cafeteria Plan allotment terminates the last day of the month upon separation. Dental election is optional for EMPLOYEE and their eligible dependents. Vision election is optional for EMPLOYEE and their eligible dependents. Those EMPLOYEES who elect not to be covered under the CITY’s medical health insurance plan must demonstrate proof of alternative medical insurance (i.e. spouse or independent insurance coverage). Employees shall not be permitted to cash out any amount as a taxable cash benefit.
Cafeteria Plan Allotment. 1. The Flex Benefit amount for Employee Only, those with coverage outside of the City, and those employees covered by another City employee is fixed at $13,024. The flex amount for Employee + 1 and Employee + Family will be adjusted under the current 50/50 cost sharing formula, utilizing the average cost increase of the full-family, non-indemnity, health plan premiums, which is currently set at $15,564 for calendar year 2023. Eligible part-time employees will receive an allotment in the proportion that such part-time employment bears to full-time employment.
Cafeteria Plan Allotment. The CITY will provide to each full-time represented employee a Cafeteria Plan allotment to purchase benefits qualified under Section 125 of the Internal Revenue Code.
Cafeteria Plan Allotment. The CITY will provide to each full-time represented employee a Cafeteria Plan allotment to purchase benefits qualified under Section 125 of the Internal Revenue Code. Effective July 1, 2017 through December 31, 2017, the City will continue to provide the following cafeteria plan allotment: Employee Only enrolled in City medical plan- $900 per month Employee +1 enrolled in City medical plan- $1,100 per month Employee + Family enrolled in City medical plan- $1,420 per month Effective January 1, 2018, the CITY will provide a Cafeteria Plan allotment of $1,650 a month for a city provided medical, dental, and vision plans for all employees and their eligible dependents on a pre-tax basis to meet IRS regulations. Effective January 1, 2019, the CITY will provide a Cafeteria Plan allotment of $1,700 a month for a city provided medical, dental, and vision plans for all employees and their eligible dependents on a pre-tax basis to meet IRS regulations. The Cafeteria Plan allotment may only be used to purchase City provided medical, dental, and vision coverages. Employees will not be able to purchase flexible spending accounts utilizing the Cafeteria Plan allotment, except in 2019. Effective January 1, 2019, employees hired prior to July 1, 2015 may contribute up to $41.66 per month from the remaining Cafeteria Plan Allotment to a Health Care FSA. A City medical plan must be elected in order to participate in the Health Care FSA in 2019 using remaining Cafeteria Plan Allotment. Utilizing the remaining of the Cafeteria Plan Allotment, up to $41.66 per month, will terminate December 31, 2019. The employee will pay for any premiums in excess of the Cafeteria Plan allotment through payroll deductions. The CITY and the ASSOCIATION agree to a re-opener to meet and confer over potential impacts of future medical premium costs. Health benefits are effective the first of the month following hire date. The Cafeteria Plan allotment terminates the last day of the month upon separation. Dental election is optional for EMPLOYEE and their eligible dependents. Vision election is optional for EMPLOYEE and their eligible dependents. Those EMPLOYEES who elect not to be covered under the CITY’s medical health insurance plan must demonstrate proof of alternative medical insurance (i.e. spouse or independent insurance coverage). Effective January 1, 2018, employee who elect to be covered under the City’s medical, dental, and vision insurance plans or who elect not to be covered under the ...
Cafeteria Plan Allotment. Effective January 1, 2022, the CITY will provide a Cafeteria Plan allotment of $1,875 a month for a city provided medical, dental and vision plan for all full-time employees and their eligible dependents on a pre-tax basis to meet IRS regulations. Effective January 1, 2023, the CITY will provide a Cafeteria Plan allotment of $1,900 a month for a city provided medical, dental and vision- plan for all full-time employees and their eligible dependents on a pre-tax basis to meet IRS regulations. The employee will pay for any premiums in excess of the monthly Cafeteria Plan allotment through payroll deductions. Employees that elect a plan that is less than the Cafeteria Plan allotment will not receive any taxable credit. Employees that waive insurance will not receive any taxable credit. The Cafeteria Plan allotment may be used to purchase City provided medical, dental and vision coverage. Employees will not be able to purchase flexible spending accounts utilizing the Cafeteria Plan allotment. The CITY and the ASSOCIATION agree to a re-opener to meet and confer over potential impacts of future medical premium costs. Health benefits are effective the first of the month following hire date. The Cafeteria Plan allotment terminates the last day of the month upon separation. Dental election is optional for EMPLOYEE and their eligible dependents. Vision election is optional for EMPLOYEE and their eligible dependents. Effective January 1, 2017, there will be no taxable cash out benefit. Those EMPLOYEES who elect not to be covered under the CITY’s medical health insurance plan must demonstrate proof of alternative medical insurance (i.e. spouse or independent insurance coverage). The CITY shall pay any applicable mandatory minimum employer contribution for retiree health as required by law.