Common use of Coverages and Premiums Clause in Contracts

Coverages and Premiums. 1. The District shall pay the premiums for unit members for Long-Term Disability. 2. On July 1 of each contract year, the District shall recalculate and allocate the Negotiated Health and Welfare Contribution per eligible unit member. The total of all Association member negotiated Health and Welfare contributions will constitute the Health and Welfare Pool (i.e., Benefit Fund). (See Appendix D - Total Compensation Worksheet for the current Negotiated Health and Welfare Contribution). 3. The Health and Welfare Pool shall be used for premiums for eligible unit members and eligible dependents for the following: a. Medical Insurance b. Dental Insurance c. Vision Insurance d. Group Life Insurance of $50,000 4. The District shall pay the premium for an Employee Assistance Program. The program will only be used through unit member self-referral. 5. The District will maintain a Section 125 IRS Code (Fringe Benefit Plan). This plan includes cash-in-lieu of medical benefits, pre-tax premium(s), dependent care, and medical reimbursement accounts. 6. Cash-in-lieu, for those having proof of other group medical coverage, will be no more than the lowest plan’s one (1) party rate. Only those unit members who are currently enrolled in the cash-in-lieu program will continue to receive this benefit. If the Health Benefits Program does not require 100%-member participation (subject to the provisions of the plan and/or health benefit program), cash-in-lieu will become available to members who can provide proof of other group medical coverage. The Association will annually determine the cash-in-lieu rate (not to exceed the lowest plan’s one-party rate) and notify the Vice President of Human Resources by July 1st. 7. All unspent health and welfare contributions shall accumulate in the Association Health and Welfare Pool, the surplus of which will be carried forward in the next fiscal year for use by the Association. As rates become available in the second quarter of the year (April through May), the H&W committee will review rates and plan designs for the next benefit plan year and make recommendations. If health and welfare plan designs, rates, as well as changes in census result in a deficit to the Association H&W Pool Balance, by July 1st, the Association agrees to make effective as of October 1st, one or more of the following options: a) Make health benefit plan changes that would lower the overall premium, b) Initiate and/or modify unit member payroll deductions, and/or c) Increase the Negotiated Health and Welfare Contribution through Total Compensation in order to cover any shortfall. d) Reduce the cash-in-lieu rate. Options selected by the Association will be communicated to the Vice President of Human Resources in writing. If Payroll deductions are selected as an option, the Association must notify the Vice President of Human Resources in writing of the methodology for how these deductions are to be applied to unit members by August 1st, to be implemented with the first regular paycheck in October. If the State budget is not finalized by July 1st, the District may authorize an exception to the implementation of a plan by October 1st for Payroll Deductions. If an exception is authorized, once Total Compensation has been negotiated, and the revised H&W Balance has been computed, the Association must provide the above-mentioned methodology for payroll deductions in time to cover any negative balance prior to the end of the fiscal year. 8. The Health and Welfare pool is intended to provide affordable healthcare, including dental and vision, to all eligible unit members and their eligible dependents. Members who choose higher priced plans may incur increased payroll deductions to offset the price of the plan chosen. In addition to any applicable payroll deductions determined in Section 7 of this Article, unit members selecting to participate in an option that exceeds the cost of the Association’s selected plan will pay the difference in premiums between the two plans for one-party, two-party and family options, respectively. The Association will annually determine the Association’s selected plan and notify the District by August 1st if there are any changes from the previous year.