Common use of Payment of Health and Welfare Benefits Clause in Contracts

Payment of Health and Welfare Benefits. 9.2.1 For the 2017-18 school year, the District’s total contribution to a full-time faculty member for health and welfare benefits, including, but not limited to, health, dental, vision, and life insurance, shall not exceed $ 1,641.58 per month ($19,699 annually) per faculty member on a twelve-month basis (the “District Maximum Annual Contribution”). This amount includes a one-time annual increase effective July 1, 2017 in the amount of $125. In addition effective July 1, 2018 the Districts Maximum Annual Contribution shall have a one-time annual increase applied in the amount of $50. Any sums in excess of the Districts Maximum Annual Contribution shall be paid, in advance, by the faculty member through monthly payroll deductions. 9.2.2 Commencing with the 2013-14 school year, the District Maximum Annual Contribution shall be benchmarked to CVT Plan 1A on the composite rate structure, (the “Benchmarked Plan”). The District Maximum Annual Contribution shall annually increase or decrease as set forth below depending upon the premium cost of the Benchmarked Plan. To reduce health benefit costs, the parties may agree to use a lower cost Benchmark Plan at any time upon mutual agreement. 9.2.3 Commencing with the 2013-14 school year, any increase in health and welfare benefit premiums over the cost of the Benchmarked Plan ($ 1,457 per month) shall be shared equally between the District and faculty member, with the District paying 50% of the increased premium cost and the faculty member paying 50% of the increased premium cost. All faculty member payments shall be made through monthly payroll deductions. 9.2.4 Commencing with the 2013-14 school year, any decrease in health and welfare benefit premiums for the Benchmarked Plan shall be shared equally between the District and faculty members, with the District receiving 50% of the decreased premium cost and faculty members who select the Benchmarked Plan receiving 50% of the decreased premium cost. Faculty members shall receive their portion of any savings resulting from decreased premium costs only in the form of taxable cash compensation. Faculty member compensation resulting from benefit plan selections shall not count for calculation of the faculty member’s defined contribution retirement plan under CalPERS or CalSTRS unless otherwise allowed by law.

Payment of Health and Welfare Benefits. 9.2.1 8.2.1 For the 20172022-18 2023 school year, the District’s total contribution to a full-time faculty member employee for all health and welfare benefits, including, but not limited to, health, dental, vision, and life insurance, shall not exceed $ 1,641.58 1,715 per month ($19,699 $ 20,580 annually) per faculty member employee on a twelve-month basis (the “District Maximum Annual Contribution”). This amount includes a one-time annual increase effective July 1, 2017 in the amount of $125. In addition effective July 1, 2018 the Districts Maximum Annual Contribution shall have a one-time annual increase applied in the amount of $50. Any sums in excess of the Districts District Maximum Annual Contribution shall be paid, in advance, by the faculty member employee through monthly payroll deductions. 9.2.2 8.2.2 Commencing with the 2013-14 school year, the District Maximum Annual Contribution shall be benchmarked to CVT Plan 1A on the composite rate structure, (the “Benchmarked Plan”). The District Maximum Annual Contribution shall annually increase or decrease as set forth below depending upon the premium cost of the Benchmarked Plan. To reduce health benefit costs, the parties may agree to use a lower cost Benchmark Plan at any time upon mutual agreement. 9.2.3 8.2.3 Commencing with the 2013-14 school year, any increase in health and welfare benefit premiums over the cost of the Benchmarked Plan ($ 1,457 per month) shall be shared equally between the District and faculty memberemployee, with the District paying 50% of the increased premium cost and the faculty member employee paying 50% of the increased premium cost. All faculty member employee payments shall be made through monthly payroll deductions. 9.2.4 8.2.4 Commencing with the 2013-14 school year, any decrease in health and welfare benefit premiums for the Benchmarked Plan shall be shared equally between the District and faculty membersemployees, with the District receiving 50% of the decreased premium cost and faculty members employees who select the Benchmarked Plan receiving 50% of the decreased premium cost. Faculty members Employees shall receive their portion of any savings resulting from decreased premium costs only in the form of taxable cash compensation. Faculty member Employee compensation resulting from benefit plan selections shall not count for calculation of the faculty memberemployee’s defined contribution retirement plan under CalPERS or CalSTRS unless otherwise allowed by law. 8.2.4.1 Example of District Maximum Annual Contribution increases and decreases: Year 1: Benchmark Plan cost = $17,460 (District Maximum Annual Contribution) Year 2: Benchmark Plan cost = $18,460 (+$1,000) [In year 2, the District Maximum Annual Contribution would be increased by $500 to $17,960 and employee contributions for employees on the Benchmark Plan would be implemented at the rate of $500 per year for employees selecting the Benchmark Plan]. Year 3: Benchmark Plan cost = $17,960 (-$500) [In year 3, the District Maximum Annual Contribution would be decreased by $250 to $17,710 and employee contributions would be decreased by $250 to a total of $250 per year for employees selecting the Benchmark Plan] Year 4: Benchmark Plan cost = $16,960 (-$1,000) [In year 4, the District Maximum Annual Contribution would be decreased by $500 to $17,210. ($17,693 - $500 = $17,210). Since the District Maximum Annual Contribution exceeds the plan cost, no employee contributions would be required for employees selecting the Benchmark Plan]. Year 5: Benchmark Plan cost = $17,960 (+$1,000) [In year 5, the District Maximum Annual Contribution would increase by $500 to $17,710 and employee contributions would be decreased to $250 per year for employees selecting the Benchmark Plan]. 8.2.5 Commencing with the 2022-23 school year, if an employee chooses an insurance plan with a premium cost less than the District Maximum Annual Contribution, sixty percent (60%) of the difference between the District Maximum Annual Contribution and the premium cost of the plan selected by the employee will be paid on a monthly basis to the employee as cash compensation in lieu of greater health benefits. The other forty percent (40%) will be retained by the District. For the 2017-18 school year, this provision shall only be implemented on a prospective basis in accordance with all requirements imposed by CVT and the law. Part-time employee must participate in the District health and welfare program in order to be eligible for this provision. The District will not make any retroactive payments to any employee.

Payment of Health and Welfare Benefits. 9.2.1 8.2.1 For the 20172021-18 2022 school year, the District’s total contribution to a full-time faculty member employee for all health and welfare benefits, including, but not limited to, health, dental, vision, and life insurance, shall not exceed $ 1,641.58 1,715 per month ($19,699 $ 20,580 annually) per faculty member employee on a twelve-month basis (the “District Maximum Annual Contribution”). This amount includes a one-time annual increase effective July 1, 2017 in the amount of $125. In addition effective July 1, 2018 the Districts Maximum Annual Contribution shall have a one-time annual increase applied in the amount of $50. Any sums in excess of the Districts District Maximum Annual Contribution shall be paid, in advance, by the faculty member employee through monthly payroll deductions. 9.2.2 8.2.2 Commencing with the 2013-14 school year, the District Maximum Annual Contribution shall be benchmarked to CVT Plan 1A on the composite rate structure, (the “Benchmarked Plan”). The District Maximum Annual Contribution shall annually increase or decrease as set forth below depending upon the premium cost of the Benchmarked Plan. To reduce health benefit costs, the parties may agree to use a lower cost Benchmark Plan at any time upon mutual agreement. 9.2.3 8.2.3 Commencing with the 2013-14 school year, any increase in health and welfare benefit premiums over the cost of the Benchmarked Plan ($ 1,457 per month) shall be shared equally between the District and faculty memberemployee, with the District paying 50% of the increased premium cost and the faculty member employee paying 50% of the increased premium cost. All faculty member employee payments shall be made through monthly payroll deductions. 9.2.4 8.2.4 Commencing with the 2013-14 school year, any decrease in health and welfare benefit premiums for the Benchmarked Plan shall be shared equally between the District and faculty membersemployees, with the District receiving 50% of the decreased premium cost and faculty members employees who select the Benchmarked Plan receiving 50% of the decreased premium cost. Faculty members Employees shall receive their portion of any savings resulting from decreased premium costs only in the form of taxable cash compensation. Faculty member Employee compensation resulting from benefit plan selections shall not count for calculation of the faculty memberemployee’s defined contribution retirement plan under CalPERS or CalSTRS unless otherwise allowed by law. 8.2.4.1 Example of District Maximum Annual Contribution increases and decreases: Year 1: Benchmark Plan cost = $17,460 (District Maximum Annual Contribution) Year 2: Benchmark Plan cost = $18,460 (+$1,000) [In year 2, the District Maximum Annual Contribution would be increased by $500 to $17,960 and employee contributions for employees on the Benchmark Plan would be implemented at the rate of $500 per year for employees selecting the Benchmark Plan]. Year 3: Benchmark Plan cost = $17,960 (-$500) [In year 3, the District Maximum Annual Contribution would be decreased by $250 to $17,710 and employee contributions would be decreased by $250 to a total of $250 per year for employees selecting the Benchmark Plan] Year 4: Benchmark Plan cost = $16,960 (-$1,000) [In year 4, the District Maximum Annual Contribution would be decreased by $500 to $17,210. ($17,693 - $500 = $17,210). Since the District Maximum Annual Contribution exceeds the plan cost, no employee contributions would be required for employees selecting the Benchmark Plan]. Year 5: Benchmark Plan cost = $17,960 (+$1,000) [In year 5, the District Maximum Annual Contribution would increase by $500 to $17,710 and employee contributions would be decreased to $250 per year for employees selecting the Benchmark Plan]. 8.2.5 Commencing with the 2021-22 school year, if an employee chooses an insurance plan with a premium cost less than the District Maximum Annual Contribution, sixty percent (60%) of the difference between the District Maximum Annual Contribution and the premium cost of the plan selected by the employee will be paid on a monthly basis to the employee as cash compensation in lieu of greater health benefits. The other forty percent (40%) will be retained by the District. For the 2017-18 school year, this provision shall only be implemented on a prospective basis in accordance with all requirements imposed by CVT and the law. Part-time employee must participate in the District health and welfare program in order to be eligible for this provision. The District will not make any retroactive payments to any employee.