Common use of Flexible Benefit Section 125 Program and Benefit Stipend Clause in Contracts

Flexible Benefit Section 125 Program and Benefit Stipend. The Town will contract with CaIPERS for health insurance for the period of this Agreement. The Town will maintain a flexible benefit program. a. Employees and their dependents shall be able to participate in the CaIPERS Health Program. b. The Town shall contribute the minimum amount required by state law per month per employee as the “employer contribution” to the cost of the premium for the health program, should the employee elect to participate in the plan. This is otherwise known as the PEMCHA minimum. c. The Town will provide a monthly contribution to each employee in an amount equal to the cost of coverage under the CalPERS Health Insurance Plan based upon the employee’s dependent status definition under the PERS Health Benefit Program as “employee,” “employee plus one,” or “employee plus two” for the employee’s flexible (cafeteria) account. This amount is inclusive of the “employer contribution” for the CalPERS Health Program premium. d. Employees hired before September 1, 2016 may elect to receive cash in lieu of all or a portion of the Town’s monthly contribution to the employee’s flexible benefit (cafeteria) account (with the exception of the employer contribution for employee health insurance premiums provided to employees electing to participate in the CalPERS Health Program). Monthly contributions shall be defined as the 2007 monthly premium rate established by PERS for “employee and two dependents” for the PERSChoice plan from CalPERS. This monthly contribution amount shall reflect either the “Other Northern California” or “Other Southern California” 2007 premium rate for the PERSChoice plan from Ca1PERS depending on the employee’s zip code on file with the Human Resources Department. Payments from the Town that the employee receives in lieu of the contribution to the flexible spending (cafeteria) account shall not be considered an increase in base compensation for purposes of retirement calculations, and shall be taxable pursuant to IRS regulations (the 2007 rate is $1,230.32). Employees who have a change in qualifying status for health coverage purposes shall be subject to the same benefit stipend options as employees hired after September 1, 2016. e. Employees hired after September 1, 2016 shall not be eligible to receive a partial benefit stipend. f. Employees who do not elect to take the Town’s health insurance must provide proof of health coverage provided by their spouse or domestic partner’s employer (or other group coverage other than Covered California). Employees hired after September 1, 2016 who have another health coverage plan shall be eligible to receive a benefit stipend of $500 per month.