Common use of Cash-in-Lieu Option Clause in Contracts

Cash-in-Lieu Option. An employee who qualifies for health coverage may have the choice of accepting said plan or accepting a taxable cash benefit of twenty percent (20%) of the District premium share for the Gold CDHP family plan in lieu of coverage. 1. An employee must provide written certification annually, by January 1, or within thirty (30) days of hire, that the employee and his/her “tax family”* are covered under other permissible health plan coverage. *a tax-family includes the employee and dependents who would be eligible for enrollment in the employer plan and who the employee reasonably expects to claim as a tax dependent for the calendar year. 2. The cash-in-lieu option must be selected annually by January 1st or within 30 days of hire. 3. This cash-in-lieu option shall not apply to the dental or life insurance benefits. 4. If the employee accepts cash-in-lieu of health coverage, then he/she shall forego health coverage for the school year, unless he/she becomes eligible for enrollment under a qualifying event, as determined by health carrier regulations or during the open enrollment period. 5. Payments for cash-in-lieu option will be made in each payroll based on the payroll schedule for the District.