Common use of Form of Benefits Clause in Contracts

Form of Benefits. 3.1. All persons identified in section 2.2 shall be eligible to purchase health insurance from the City at prices and coverage levels that are identical to those offered to active employees of the City, to the extent required by law or permitted under the applicable insurance policy. 3.2. The dollar value of benefits provided to persons who've met the eligibility criteria in section 2.2 as of October 1, 2008 currently takes the form of a benefit stated as a percentage of the prevailing health insurance premium charged by the City to those retired employees or qualified surviving dependent who have elected to purchase health insurance directly from the City. 3.2.1. The actual benefit percentage awarded to each person as of October 1, 2008 shall remain unchanged thru December 31, 2009. 3.2.2. Effective on January 1, 2010 the stated percentage will be reduced by 50 percent. 3.2.3. Effective January 1, 2011 that benefit will cease in its entirety. 3.3. For persons who meet the eligibility criteria in section 2.2 after October 1, 2008 and before December 31, 2010, the benefit stated as a percentage of the health insurance premium charged by the City, shall be based on the following schedule: 3.3.1. For the calendar year ending December 31, 2009 Year of Service upon Retirement Percentage of Insurance Premium 10-14 15% 15-19 25% 20+ 35% 3.3.2. For the calendar year ending December 31, 2010 Year of Service upon Retirement Percentage of Insurance Premium 10-14 7.5% 15-19 12.5% 20+ 17.5% 3.3.3. For all calendar years after December 31, 2010, the subsidy stated as a percentage of the health insurance premium charged by the City shall cease in its entirety. 3.4. Commencing January 1, 2010, all persons identified in section 2.2 who were originally hired into full-time regular status prior to January 1, 2003 will be eligible to receive a monthly benefit equal to $2.50 per month for each year of service (up to a maximum of $75 per month). Effective January 1, 2011, this amount will be increased to $5.00 per month for each year of service (up to a maximum of $150 per month). This benefit will be paid in addition to any benefit payable as per sections 3.1 and 3.2 above, if any. For purposes of administering this benefit: 3.4.1. Years of service performed while an employee is enrolled in DROP will not be considered in determining the amount of this monthly benefit. 3.4.2. Years of Service will be calculated in monthly increments, with one full month credited for any monthly period in which service was provided to the City as a full- time, regular employee. 3.4.3. Employees who separate from service prior to vesting in a retirement plan sponsored by the City will be refunded their payroll contributed (.5%) to the plan. 3.4.4. To the extent the value of any benefit payable per this section plus the value of any benefit payable per sections 3.2 and 3.3 equals or exceeds the cost of health insurance purchased from the City in conjunction with section 3.1, the benefit is non-taxable. Combined benefit amounts in excess of that cost will be considered taxable income. 3.4.5. In the case of a qualified surviving dependent of deceased city employees, the employment date and years of service criteria used in this section shall be those of the deceased city employee of whom the individual is a qualified surviving dependent. 3.5. All persons identified in section 2.2 who are hired in a fulltime, regular status after January 1, 2003, will be enrolled in a Retiree Health Savings (RHS) account administered by a third party. For purposes of administering this benefit: 3. 5.1. The employee contribution of .5% of payroll will be deposited into directly the account.

Form of Benefits. 3.1. All persons identified in section 2.2 shall be eligible to purchase health insurance from the City at prices and coverage levels that are identical to those offered to active employees of the City, to the extent required by law or permitted under the applicable insurance policy. 3.2. The dollar value of benefits provided to persons who've ’ve met the eligibility criteria in section 2.2 as of October 1, 2008 currently takes the form of a benefit stated as a percentage of the prevailing health insurance premium charged by the City to those retired employees or qualified surviving dependent dependants who have elected to purchase health insurance directly from the City. 3.2.1. The actual benefit percentage awarded to each person as of October 1, 2008 shall remain unchanged thru December 31, 2009. 3.2.2. Effective on January 1, 2010 the stated percentage will be reduced by 50 percent. 3.2.3. Effective January 1, 2011 that benefit will cease in its entirety. 3.3. For persons who meet the eligibility criteria in section 2.2 after October 1, 2008 and before December 31, 2010, the benefit stated as a percentage of the health insurance premium charged by the City, shall be based on the following schedule: 3.3.1. For the calendar year ending December 31, 2009 Year of Service upon Retirement Percentage of Insurance Premium 10-14 15% 15-19 25% 20+ 35% 3.3.2. For the calendar year ending December 31, 2010 Year of Service upon Retirement Percentage of Insurance Premium 10-14 7.5% 15-19 12.5% 20+ 17.5% 3.3.3. For all calendar years after December 31, 2010, the subsidy stated as a percentage of the health insurance premium charged by the City shall cease in its it’s entirety. 3.4. Commencing January 1, 2010, all persons identified in section 2.2 who were originally hired into full-time regular status prior to January 1, 2003 will be eligible to receive a monthly benefit equal to $2.50 per month for each year of service (up to a maximum of $75 per month). Effective January 1, 2011, this amount will be increased to $5.00 per month for each year of service (up to a maximum of $150 per month). This benefit will be paid in addition to any benefit payable as per sections sections 3.1 and 3.2 above, if any. For purposes of administering this benefit: 3.4.1. Years of service performed while an employee is enrolled in DROP will not be considered in determining the amount of this monthly benefit. 3.4.2. Years of Service will be calculated in monthly increments, with one full month credited for any monthly period in which service was provided to the City as a full- full-time, regular employee. 3.4.3. Employees who separate from service prior to vesting in a retirement plan sponsored by the City will be refunded their payroll contributed (.5%) to the plan. 3.4.4. To the extent the value of any benefit payable per this section plus the value of any benefit payable per sections 3.2 and 3.3 equals or exceeds the cost of health insurance purchased from the City in conjunction with section 3.1, the benefit is non-taxable. Combined benefit amounts in excess of that cost will be considered taxable income. 3.4.5. In the case of a qualified surviving dependent dependants of deceased city employees, the employment date and years of service criteria used in this section shall be those of the deceased city employee of whom the individual is a qualified surviving dependent. 3.5. All persons identified in section 2.2 who are hired in a fulltime, regular status after January 1, 2003, will be enrolled in a Retiree Health Savings (RHS) account administered by a an third party. For purposes of administering this benefit: 3.: 5.13.5.1. The employee contribution of .5% of payroll will be deposited directly into directly the account. 3.5.2. At the end of each calendar year commencing with the year ending December 31, 2009, the City will make an annual determination as to the amount (if any) that the employer will contribute to these accounts as a discretionary contribution. 3.5.2.1. The source of funding for this discretionary contribution may be the RHS Trust established by the City. 3.5.3. Benefits will be limited to the balance of the RHS accounts immediately upon separation from service with the City, plus earnings. 3.5.4. Amounts on hand in the account can be used to pay the cost of qualified medical expenses on a pre-tax basis, to the extent allowable under the terms and conditions of the RHS Plan.