Common use of Calculating Tiered Employee Contribution Rates Clause in Contracts

Calculating Tiered Employee Contribution Rates. At the end of each fiscal year the District will calculate the Base-Employee-Contribution for the next plan year which begins on January 1. An employee’s contribution for Plan Option A will be based on a negotiated formula applied to the tiered structure as follows: Employee Only 75% of the Base-Employee-Contribution Employee + Spouse or Employee + Child(ren) 100% of the Base-Employee-Contribution Employee + Family 125% of the Base-Employee-Contribution For the 2017, 2018 & 2019 year the employee’s annual contribution for Plan Option B and Option C will be $0.00. The dollar amount of the District contribution in 2019 will become a hard cap of District contribution for ensuing years. For part-time employees, the contribution rate is two (2) times the full-time employee rate. Health plan costs are composed of claims paid, the costs of administering the health care plan by the third party administrator or its successor(s), aggregate and specific stop-loss premiums, utilization review fees, case management costs, health program audit rewards, PA Clinic, wellness initiative costs, COBRA premium receipts, refunds, consultant fees, and any added costs resulting from changes in the administration of the health benefits plan agreed to by the parties during the term of the collective bargaining agreement or due to any requirement imposed by state or federal law. A Joint Committee on Health Benefits (Joint Committee) shall be composed of three (3) representatives selected by the Fairbanks Education Association, three (3) representatives selected by the Education Support Staff Association, one (1) representative selected by the Fairbanks Principals' Association, the Fairbanks North Star Borough Risk Manager as a non-voting member, and three (3) representatives selected by the Superintendent. The Joint Committee shall select a chairperson from its membership. A quorum for the meetings shall require no fewer than seven (7) committee members. The Joint Committee will conduct a formal vote on any proposed changes in benefits. Passage of motions requires a super majority vote of seventy-five percent (75%). Minutes shall be taken of the meetings. The Joint Committee shall be empowered to determine health care benefits to be provided, which shall be formalized through a memorandum of agreement between the District and a designated representative of each affected employee group. "Health care benefits" shall include dates of eligibility for coverage, benefit schedules, deductibles, co-payment provisions, preferred provider programs, wellness programs, and other options designed to contain costs while enhancing benefit options. The District shall not be required to adopt changes made by this committee which would: a. Result in violations of established laws or regulations; b. Alter the administration or management of health care benefits; c. Result in a cost increase to the Plan of more than five percent (5%); or d. Be detrimental to the financial interests of the District, as determined by the Superintendent. The District agrees to work with the Joint Committee to provide reasonable time for meetings and provide adequate support, including an expert health care consultant for plan design. Administrative leave will be provided for all participants. Plan B will be a qualified High Deductible plan eligible for Health Savings Account (HSA) and Plan C will be a qualified high Deductible plan eligible for Health Reimbursement Arrangements (HRA).

Calculating Tiered Employee Contribution Rates. At the end of each fiscal year the District will calculate the Base-Employee-Contribution for the next plan year which begins on January 11st. An employee’s contribution for Plan Option A will be based on a negotiated formula applied to the tiered structure as follows: Employee Only 75% of the Base-Employee-Contribution Employee + Spouse or Employee + Child(ren) 100% of the Base-Employee-Contribution Employee + Family 125% of the Base-Employee-Contribution • For the 2017, 2018 & 2018, and 2019 year year, the employee’s annual contribution for Plan Option Options B and Option C will be $0.00. The dollar amount of the District contribution Contribution in 2019 will become a hard cap of District contribution for ensuing years. • For part-time employees, the contribution rate is two (2) times the full-time employee rate. Employee-Dollar Share Adjustment – An important cost sharing feature of the plan concerns over or under collections of expected contributions. If the actual employee contributions collected are below the expected contribution at the end of a given fiscal year, the underpayment will be added to the Employee-Dollar-Share in the next plan year. If the actual employee contributions collected are above the expected contribution, the overpayment will be deducted from the Employee-Dollar-Share in the next plan year. Health plan costs are composed of claims paid, the costs of administering the health care plan by the third party administrator or its successor(s), aggregate and specific stop-loss premiums, utilization review fees, case management costs, health program audit rewards, PA Clinic, wellness initiative costs, COBRA premium receipts, refunds, consultant fees, and any added costs resulting from changes in the administration of the health benefits plan agreed to by the parties during the term of the collective bargaining agreement or due to any requirement imposed by state or federal law. A Joint Committee on Health Benefits (Joint Committee) shall be composed of three (3) representatives selected by the Fairbanks Education Association, three (3) representatives selected by the Education Support Staff Association, one (1) representative selected by the Fairbanks Principals' Association, the Fairbanks North Star Borough Risk Manager as a non-voting member, and three (3) representatives selected by the Superintendent. The Joint Committee shall select a chairperson from its membership. A quorum for the meetings shall require no fewer than seven (7) committee members. The Joint Committee will conduct a formal vote on any proposed changes in benefits. Passage of motions requires a super majority vote of seventy-five percent (75%). Minutes shall be taken of the meetings. The Joint Committee shall be empowered to determine health care benefits to be provided, which shall be formalized through a memorandum of agreement between the District and a designated representative of each affected employee group. "Health care benefits" shall include dates of eligibility for coverage, benefit schedules, deductibles, co-payment provisions, preferred provider programs, wellness programs, and other options designed to contain costs while enhancing benefit options. The District shall not be required to adopt changes made by this committee which would: a. a) Result in violations of established laws always or regulations; b. b) Alter the administration or management of health care benefits; c. c) Result in a cost increase to the Plan of more than five percent (5%); or d. d) Be detrimental to the financial interests of the District, as determined by the Superintendent. The District agrees to work with the Joint Committee to provide reasonable time for meetings and provide adequate support, including an expert health care consultant for plan design. Administrative leave will be provided for all participants. Plan B will be a qualified High Deductible plan eligible for Health Savings Account (HSA) and Plan C will be a qualified high High Deductible plan eligible for Health Reimbursement Arrangements (HRA).

Calculating Tiered Employee Contribution Rates. At the end of each fiscal year the District will calculate the Base-Employee-Contribution for the next plan year which begins on January 1. An employee’s contribution for Plan Option A will be based on a negotiated formula applied to the tiered structure as follows: Employee Only 75% of the Base-Employee-Contribution Employee + Spouse or Employee + Child(ren) 100% of the Base-Employee-Contribution Employee + Family 125% of the Base-Employee-Contribution For the 2017, 2018 & 2019 year the employee’s annual contribution for Plan Option B and Option C will be $0.00. The dollar amount of the District contribution in 2019 will become a hard cap of District contribution for ensuing years. For part-time employees, the contribution rate is two (2) times the full-time employee rate. Health plan costs are composed of claims paid, the costs of administering the health care plan by the third party administrator or its successor(s), aggregate and specific stop-loss premiums, utilization review fees, case management costs, health program audit rewards, PA Clinic, wellness initiative costs, COBRA premium receipts, refunds, consultant fees, and any added costs resulting from changes in the administration of the health benefits plan agreed to by the parties during the term of the collective bargaining agreement or due to any requirement imposed by state or federal law. A Joint Committee on Health Benefits (Joint Committee) shall be composed of three (3) representatives selected by the Fairbanks Education Association, three (3) representatives selected by the Education Support Staff Association, one (1) representative selected by the Fairbanks Principals' Association, the Fairbanks North Star Borough Risk Manager as a non-non- voting member, and three (3) representatives selected by the Superintendent. The Joint Committee shall select a chairperson from its membership. A quorum for the meetings shall require no fewer than seven (7) committee members. The Joint Committee will conduct a formal vote on any proposed changes in benefits. Passage of motions requires a super majority vote of seventy-five percent (75%). Minutes shall be taken of the meetings. The Joint Committee shall be empowered to determine health care benefits to be provided, which shall be formalized through a memorandum of agreement between the District and a designated representative of each affected employee group. "Health care benefits" shall include dates of eligibility for coverage, benefit schedules, deductibles, co-payment provisions, preferred provider programs, wellness programs, and other options designed to contain costs while enhancing benefit options. The District shall not be required to adopt changes made by this committee which would: a. Result in violations of established laws or regulations; b. Alter the administration or management of health care benefits; c. Result in a cost increase to the Plan of more than five percent (5%); or d. Be detrimental to the financial interests of the District, as determined by the Superintendent. The District agrees to work with the Joint Committee to provide reasonable time for meetings and provide adequate support, including an expert health care consultant for plan design. Administrative leave will be provided for all participants. Plan B will be a qualified High Deductible plan eligible for Health Savings Account (HSA) and Plan C will be a qualified high Deductible plan eligible for Health Reimbursement Arrangements (HRA).