Common use of Medicare Exemption Premium Clause in Contracts

Medicare Exemption Premium. Effective March 2, 1997, the Port will pay an amount equal to 1.45% of the employees’ Taxable Wage Base to employees hired prior to April 1, 1986. This payment represents the money’s formerly paid by the Port for the employees Medicare contribution. This contribution is no longer necessary as a result of the Union’s referendum on February 26, 1997, removing its members from Social Security and Medicare coverage. Such payment will be considered supplemental, and will not be considered part of the employees’ base wage. Resulting from the Firefighters’ February 26, 1997 referendum electing to discontinue participation in Social Security, the parties agree that refunded portions of the Port’s past contributions, on behalf of each employee to Social Security and Medicare, will be disbursed to each employee. Employees hired on or after April 1, 1986 shall be subject to Medicare coverage.