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

Cash-in-Lieu Option. An Eligible Employee will be eligible to receive cash-in-lieu of $390.00 per month instead of enrolling in a City offered medical insurance plan only if the following conditions are satisfied: 1. The employee signs a form attesting that the employee and the employee's Tax Family have the Alternative Required Coverage for the Opt-Out Period. a. Tax Family means all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City's plan year to which the opt-out applies. b. Alternative Required Coverage required means minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California). c. Opt-Out Period means the plan year to which the opt-out arrangement applies. 2. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year for each plan year the employee would like to receive cash-in-lieu. 3. The cash-in-lieu payment cannot be made and the City will not in fact make payment if the City knows or has reason to know that the employee or a Tax Family member does not have such alternative coverage, or if the conditions in this Section 6.02(C) are not otherwise satisfied.