EXCISE TAX AVOIDANCE. The parties agree that under no circumstances shall the District have an obligation to provide a plan of health benefits that would subject such plan to the Excise or “Cadillac” Tax provisions of the Patient Protection and Affordable Care Act (hereinafter “ACA”.) In the event the District’s actuarial consulting firm determines that the District may be subject to such provisions at a future date, the parties shall meet within thirty (30) days of such determination and negotiate plan design changes to the plan or plans then in effect, so as to avoid application of the Excise Tax. In the event the parties are unable to reach agreement on plan design changes necessary to avoid liability for the Excise Tax, the employees who are receiving health benefits that are subject to the Excise Tax shall bear the cost of such tax via payroll deduction.
EXCISE TAX AVOIDANCE. In the event that a credible third party (insurance carrier and/or actuary) determines that either of the plans referenced above may be subject to the Excise Tax Provisions of the Affordable Care Act (“ACA”), the School District shall provide the Association with notice of such determination, including all necessary information relative to determining plan changes to avoid imposition of the Excise Tax, when it is available but no earlier than the year preceding the imposition of the tax. Within sixty (60) days of receipt of such notice, the Association shall either: (a) determine such changes as may be necessary to avoid imposition of the Excise Tax as of January 1 of the next plan year; or (b) elect to have the full amount of any Excise Tax imposed on the plan selected by any Employee, paid to the School District through payroll deduction, in equal amounts per pay date. Such changes determined by the Association or the decision that Employees shall pay the tax shall be provided to the School District in writing. In the event the Association fails to notify the District of the proposed changes within the sixty (60) day period, the School District shall have the right to determine the changes necessary to avoid imposition of the Excise Tax, within thirty (30) days, and shall notify the Association of these changes in writing. In the event the Excise Tax is repealed following plan design changes being made to address concerns over the Excise Tax, the plan designs for the PPO 600 and QHDP/HSA set forth herein, shall be restored, provided that such plans are not subject to any alternative tax or penalty that may be substituted for the Excise Tax. In the event such alternative tax or penalty is imposed, the same procedure shall be followed in order to avoid the imposition of such tax or penalty. Medical/Hospital – Retired Employees
EXCISE TAX AVOIDANCE
