Common use of DISCONTINUANCE OF MEDICAL PLAN WAIVER Clause in Contracts

DISCONTINUANCE OF MEDICAL PLAN WAIVER. In 1994, the City began deducting $16 per pay period from employees “flex bucket” allocation consistent with the Public Employees’ Medical and Hospital Care Act requirement that employees and retirees receive an equal contribution from the city toward the medical plan. In addition, employees who chose to waive medical coverage (“waivered employees”) were also charged the $16 per pay period for equity reasons as an administrative fee. Over the years, the Government Code (PERS Law) increased the $16 amount and the employees, retirees and “waivered employees” were required to deduct the new amounts from the flex buckets each month. The amount increased to $32.20 in 2004, $48.40 in 2005, $64.60 in 2006, $80.80 in 2007 and will increase to $97 in 2008. The City and CMFA mutually agree that there is no continuing need that waivered employees need to be tied to the PEMHCA deduction. Therefore, effective the pay period including July 1, 2007, employees who have provided proof of other medical insurance in accordance with the City’s requirements, will be eligible to receive the full flex bucket contribution, without a reduction for medical coverage waiver. This provision acknowledges that this issue is resolved in its entirety and no retroactive adjustments will be made regarding the waiver program.