Common use of City Funding of Retiree Health Benefit Clause in Contracts

City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on June 26, 2000. Funding of this benefit will be set aside in a trust to be established by the City. Effective with the 1998-2002 Memorandum Agreement, the retiree medical benefit was funded by a charge of 0.50% of payroll in the third and fourth years of that Agreement, so that contributions are at 1% of the payroll in the fourth year of that Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of 7% it must achieve to fund the retiree health benefit provided in this Section. The City will conduct an actuarial study by an outside actuary of the retiree medical plan prior to June 30, 2002. After that time, the City will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and City agree that if the Actuary concludes that the City’s funding of this benefit by contribution of 1% of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the City shall not be required to increase its funding for this benefit to more than 1% of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters premiums, the City and the Union agree to meet and confer regarding the City’s distribution of its 1% contribution. 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters TERMS AND CONDITIONS OF EMPLOYMENT

City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on June 26, 2000. Funding of this benefit will be set aside in a trust to be established by the City. Effective with the 1998-2002 Memorandum Agreement, the retiree medical benefit was funded by a charge of 0.50% of payroll in the third and fourth years of that Agreement, so that contributions are at 1% of the payroll in the fourth year of that Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of 7% it must achieve to fund the retiree health benefit provided in this Section. The City will conduct an actuarial study by an outside actuary of the retiree medical plan prior to June 30, 2002. After that time, the City will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and City agree that if the Actuary concludes that the City’s funding of this benefit by contribution of 1% of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the City shall not be required to increase its funding for this benefit to more than 1% of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters premiums, the City and the Union agree to meet and confer regarding the City’s distribution of its 1% contribution. 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters TERMS AND CONDITIONS OF EMPLOYMENTEMPLOYMENT‌

City Funding of Retiree Health Benefit. ‌ City contributions to the retiree medical benefit will begin on June 26, 2000. Funding of this benefit will be set aside in a trust to be established by the City. Effective with the 1998-2002 Memorandum Agreement, the retiree medical benefit was funded by a charge of 0.50% of payroll in the third and fourth years of that Agreement, so that contributions are at 1% of the payroll in the fourth year of that Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of 7% it must achieve to fund the retiree health benefit provided in this Section. The City will conduct an actuarial study by an outside actuary of the retiree medical plan prior to June 30, 2002. After that time, the City will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and City agree that if the Actuary concludes that the City’s funding of this benefit by contribution of 1% of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the City shall not be required to increase its funding for this benefit to more than 1% of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters premiums, the City and the Union agree to meet and confer regarding the City’s distribution of its 1% contribution. 2021 – 2024 Memorandum Agreement City of Berkeley SEIU Local 1021 Maintenance and Clerical Chapters TERMS AND CONDITIONS OF EMPLOYMENTEMPLOYMENT‌