Common use of Funding Determination Clause in Contracts

Funding Determination. To ensure proper financing of the City Healthcare Plan it is necessary to provide for an annual funding review. This document shall set Annual Funding increases at a minimum of 5% and a maximum of 14% as determined by the Fund needs to finance the Expected Plan Costs for the forthcoming year; plus or minus the Fund needs to move towards meeting or maintaining the Ideal Fund Balance Target for the forthcoming year. If the above Funding concept is more than adequate to meet the expected plan cost and also produces dollars in excess of the Ideal Fund Balance Target the excess dollars must first be used to repay any loans due the City of Rapid City, secondly these dollars may be used to offset the forthcoming years funding need by carrying the dollars forward to subsequent years. If the Annual funding adjustment is inadequate to meet the actual Plan Cost, the benefits provided by the Plan shall be adjusted to reduce the expected expenses to fit within the funding expectation. Unless agreed by a 2/3 vote of the Healthcare Plan Committee, a rate change must occur each January 1 between the minimum 5% and maximum of 14%. Planning for the above application shall be completed in June of each year for the subsequent January 1 rate change and/or benefit modification implementation. Any recommendation for an increase in premium above 14% must be submitted to the City Council and to each bargaining unit for approval. The approval of the City and at least two of the four bargaining units shall be adequate to implement such an increase for all of the bargaining units.

Funding Determination. To ensure proper financing of the City Healthcare Plan it is necessary to provide for an annual funding review. This document shall set Annual Funding increases at a minimum of 5% and a maximum of 14% as determined by the Fund needs to finance the Expected Plan Costs for the forthcoming year; plus or minus the Fund needs to move towards meeting or maintaining the Ideal Fund Balance Target for the forthcoming year. If the above Funding concept is more than adequate to meet the expected plan cost and also produces dollars in excess of the Ideal Fund Balance Target the excess dollars must first be used to repay any loans due the City of Rapid City, secondly these dollars may be used to offset the forthcoming years funding need by carrying the dollars forward to subsequent years. If the Annual funding Funding adjustment is inadequate to meet the actual Plan Cost, the benefits provided by the Plan shall be adjusted to reduce the expected expenses to fit within the funding expectation. Unless agreed by a 2/3 vote of the Healthcare Plan Committee, a rate change must occur each January 1 between the minimum 5% and maximum of 14%. Planning for the above application shall be completed in June of each year for the subsequent January 1 rate change and/or benefit modification implementation. Any recommendation for an increase in premium above 14% must be submitted to the City Council and to each bargaining unit for approval. The approval of the City and at least two of the four bargaining units shall be adequate to implement such an increase for all of the bargaining units.