Common use of Option No Clause in Contracts

Option No. 1 to Choose $1,000 in Cash in Exchange for Waiver of Medical Insurance with Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain to decline medical coverage under City’s FBP but fails to provide proof of other qualifying coverage for themselves during open enrollment or the City know or has reason to know that the eligible employee and their tax dependents will not be enrolled in minimum essential coverage (other than individual coverage) during the Plan Year, they will not receive any cash payment under the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be madeFBP. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- - - with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. If the City knows or has reason to know that the eligible employee or any of their tax dependents will not be enrolled in other minimum essential coverage (other than individual coverage) during the Plan Year to which the election to participate in the opt-out arrangement applies, it will not make any cash payment. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-employer- sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain to decline medical coverage under City’s FBP but fails to provide proof of other qualifying coverage for themselves during open enrollment or the City know or has reason to know that the eligible employee and their tax dependents will not be enrolled in minimum essential coverage (other than individual coverage) during the Plan Year, they will not receive any cash payment under the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be madeFBP. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-opt- out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. If the City knows or has reason to know that the eligible employee or any of their tax dependents will not be enrolled in other minimum essential coverage (other than individual coverage) during the Plan Year to which the election to participate in the opt-out arrangement applies, it will not make any cash payment. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-employer- sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-opt- out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain to decline medical coverage under City’s FBP but fails to provide proof of other qualifying coverage for themselves during open enrollment or the City know or has reason to know that the eligible employee and their tax dependents will not be enrolled in minimum essential coverage (other than individual coverage) during the Plan Year, they will not receive any cash payment under the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be madeFBP. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. If the City knows or has reason to know that the eligible employee or any of their tax dependents will not be enrolled in other minimum essential coverage (other than individual coverage) during the Plan Year to which the election to participate in the opt-out arrangement applies, it will not make any cash payment. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage Coverage. This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage Coverage. This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if so long as the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-opt- out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.

Option No. 1 to Choose $1,000 in Cash in In Exchange for Waiver of Medical Insurance with With Proof of Alternative Qualifying Medical Coverage This option is an eligible opt-out arrangement under City’s FBP. It is the only means for an eligible employee to have $1,000 in taxable cash paid out to them in increments over 24 pay periods of the fiscal year so long as they remain employed and eligible. However, an employee who chooses this option is also forfeiting the opportunity to have thousands of additional Flex Credits available for other qualifying benefit opportunities under the FBP. During open enrollment, this eligible opt-out arrangement allows an eligible employee to decline medical benefits coverage under the FBP for the upcoming Plan Year and instead receive a $1,000 cash payment. An eligible employee can waive coverage without restriction, but to receive the $1,000 cash payment, the eligible employee must provide during open enrollment reasonable evidence of enrollment in "minimum essential coverage" under another employer-sponsored group medical plan (a spouse’s plan, for example), or under a qualifying government program, which covers the employee and their tax dependents for the upcoming Plan Year. Individual coverage, including insurance purchased through the Affordable Care Act (ACA) Exchange, will not qualify as minimum essential coverage under the eligible opt-out arrangement. If an eligible employee selects the Waiver and certifies that they have and will maintain qualifying coverage for themselves and their tax dependents during the Plan Year, the City will pay the $1,000 “waiver” cash over 24 pay periods if the employee remains employed and eligible. However, the employee’s failure to have or maintain this minimum essential coverage outside the FBP will disqualify the employee from eligibility in City’s opt-out arrangement and no cash payments will be made or continue to be made. To elect and enroll in this opt-out arrangement, an eligible employee must complete and execute an online Election Form and file the completed form -- together with the employee's certification that they and their tax dependents have (or will have) other minimum essential coverage (other than individual coverage) during the Plan Year -- with the City’s Risk Management Department during open enrollment before the Plan Year begins for which the opt-out election is to be effective. Once made, an employee’s election to participate in this opt-out arrangement is irrevocable until the end of the Plan Year unless the employee is entitled to change their election under the FBP due to a mid-year election change event as described under section 3.07 of the City’s FBP. An eligible employee must provide the certification of other minimum essential coverage (other than individual coverage) annually during each open enrollment period. An employee who elected to participate in this $1,000 cash-back opt-out arrangement will no longer be eligible to receive cash payments: (1) after the last day of employment if the employee terminates employment with the City; (2) if the employee is no longer eligible to participate in the FBP; (3) if the employee enrolls in a medical plan offered under City’s FBP; or (4) if the employee ceases to maintain minimum essential coverage for them and their tax dependents under another employer-employer- sponsored group medical plan or qualifying governmental program. An eligible employee who elects the $1,000 cash-back waiver under this opt-opt- out arrangement will have no remaining FBP Credits to “spend” on other FBP component plan offerings. However, the employee may elect benefits offered through these other component plans by paying for the cost of those benefits with pre-tax salary reduction contributions.