Common use of Definition of Tier 1 Clause in Contracts

Definition of Tier 1. Tier 1 is the Retiree Health Insurance provision for active and retired employees appointed to a regular sworn position prior to July 1, 2012. Employees originally hired prior to July 1, 2012 who then leave City employment and are subsequently re-hired are eligible for Tier 1 benefits provided their re-hire date is within 12 months of the date they separated from the City. Employees re-hired after the 12 month period will receive Tier 2 retiree health insurance benefits even if they are eligible to retain the CalPERS 3% @ 50 retirement formula. A “Tier 1 retiree or employee” is a retiree or employee who is eligible for Tier 1 benefits because they were appointed to a regular sworn position prior to July 1, 2012.

Definition of Tier 1. Tier 1 is the Retiree Health Insurance provision for active and retired employees appointed to a regular sworn position prior to July 1, 2012. Employees originally hired prior to July 1, 2012 who then leave City employment and are subsequently re-hired are eligible for Tier 1 benefits provided their re-hire date is within 12 months of the date they separated from the City. Employees re-re- hired after the 12 month period will receive Tier 2 retiree health insurance benefits even if they are eligible to retain the CalPERS 3% @ 50 retirement formula. A “Tier 1 retiree or employee” is a retiree or employee who is eligible for Tier 1 benefits because they were appointed to a regular sworn position prior to July 1, 2012.