Common use of PAYMENT FOR OPTING OUT OF INSURANCE Clause in Contracts

PAYMENT FOR OPTING OUT OF INSURANCE. 9.071 A full-time bargaining unit member who elects to opt out of all insurance fringe benefits (except life insurance) will receive a payment of $2,500 (family coverage) or $1,500 (single coverage) for each full insurance year (July 1 through June 30) during which such benefits are not taken. It is mutually understood that such payments shall be made through the District’s qualified 125 benefit plan and may constitute taxable income to the affected employee. For the purpose of this provision, an employee will be deemed to have opted out of insurance fringe benefits only if the employee and all of the employee’s eligible dependents are not covered under the Board-provided insurance plans.