Common use of POST EMPLOYMENT HEALTH PLAN Clause in Contracts

POST EMPLOYMENT HEALTH PLAN. A. By January, 2008, the Town shall establish a post-retirement health insurance trust fund and plan in conformance with recently established Government Accounting Standard Board Principle # 45. The town shall obtain an actuarial analysis annually which shall determine both overall pension and post-retirement health benefit liabilities for the members and retirees eligible for Police and Fire Retirement plans. So long as Police and Fire Retirement Pension fund assets remain at least 120% above the actuarial level of funding required for all such pension liabilities, the actuarial analysis shall also determine whether employee contributions for each subsequent fiscal year are necessary to keep plan assets at or above such a 120% level of funding. Commencing with the July 1, 2007 fiscal year, in any fiscal year that actuarial projections demonstrate that a 120% or above over-funded basis will remain even if reduced firefighter member contributions are made to such pension plan at a level less than the contractually required 4.5% contribution of salary, such firefighter member contributions shall only be made to the pension plan from payroll for that portion of the fiscal year required for such contributions to sustain the 120% over-funded basis. For any such year, the balance of such member s 4.5% payroll deductions for such fiscal year shall be deposited directly into the town s post-retirement health insurance trust fund. Should the amount of pay required to be contributed to the pension plan within this agreement change by mutual consent, the terms above shall reflect any such new per cent. B. Effective July 27, 2015, all covered members of the unit shall contribute 2.5% of member basic annual salary including longevity pay as set forth in Appendix A of this agreement to the post-retirement health trust fund. Effective July 1, 2016, all covered employee members of the unit shall contribute 3.25% of member basic annual salary including longevity pay as set forth in Appendix A of this agreement to the post- retirement health trust fund. These contributions are in lieu of cost-share upon retirement. When the fire unit s OPEB actuary funding level reaches 80%, employee contribution will return to 1.5%. Effective July 1, 2008, the town will contribute at least 2% of all member salaries per annum to the post- retirement health insurance trust fund. Effective July 1, 2009, the town s contribution shall increase to at least 4% of such payroll. Effective at the close of business June 30, 2010, the town s contribution shall increase to at least 6% of such pay. C. The town shall create mutually acceptable governing language for the post-retirement health insurance trust fund, with unit approval, by December 31, 2007. If the parties do not accomplish a final plan on or before December 31, 2007, the provisions in sections A and B above shall not commence until such time a trust fund is created during the term of this contract. D. Only active members of the bargaining unit will be required to make contributions to the post-retirement health insurance trust fund as specified above. The parties agree that for such time as the post-retirement health insurance trust fund remains in effect, with contributions being made by members and the town, the matter of current retiree benefits and obligations shall not be revisited in future contract negotiations unless both the Town and the Union agree to reopen this subject. E. Town may continue to pay for all current retiree health costs from the Town s self- insurance OPEB Trust-Discretionary accounts for the duration of this contract. The Town may elect to pay for health insurance cost payments from the OPEB Retiree/Employee Insurance Fund-Mandatory Account for current retirees who have separated from employment on or after July 1, 2008 for the duration of this contract.

POST EMPLOYMENT HEALTH PLAN. A. By January, 2008, the Town shall establish a post-retirement health insurance trust fund and plan in conformance with recently established Government Accounting Standard Board Principle # 45. The town shall obtain an actuarial analysis annually which shall determine both overall pension and post-retirement health benefit liabilities for the members and retirees eligible for Police and Fire Retirement plans. So long as Police and Fire Retirement Pension fund assets remain at least 120% above the actuarial level of funding required for all such pension liabilities, the actuarial analysis shall also determine whether employee contributions for each subsequent fiscal year are necessary to keep plan assets at or above such a 120% level of funding. Commencing with the July 1, 2007 fiscal year, in any fiscal year that actuarial projections demonstrate that a 120% or above over-funded basis will remain even if reduced firefighter member contributions are made to such pension plan at a level less than the contractually required 4.5% contribution of salary, such firefighter member contributions shall only be made to the pension plan from payroll for that portion of the fiscal year required for such contributions to sustain the 120% over-funded basis. For any such year, the balance of such member s member’s 4.5% payroll deductions for such fiscal year shall be deposited directly into the town s town’s post-retirement health insurance trust fund. Should the amount of pay required to be contributed to the pension plan within this agreement change by mutual consent, the terms above shall reflect any such new per cent. B. Effective July 27, 2015, all covered members of the unit shall contribute 2.5% of member basic annual salary including longevity pay as set forth in Appendix A “A” of this agreement to the post-retirement health trust fund. Effective July 1, 2016, all covered employee members of the unit shall contribute 3.25% of member basic annual salary including longevity pay as set forth in Appendix A “A” of this agreement to the post- retirement health trust fund. These contributions are in lieu of cost-share upon retirement. When the fire unit s unit’s OPEB actuary funding level reaches 80%, employee contribution will return to 1.5%. Effective July 1, 2008, the town will contribute at least 2% of all member salaries per annum to the post- retirement health insurance trust fund. Effective July 1, 2009, the town s town’s contribution shall increase to at least 4% of such payroll. Effective at the close of business June 30, 2010, the town s town’s contribution shall increase to at least 6% of such pay. C. The town shall create mutually acceptable governing language for the post-retirement health insurance trust fund, with unit approval, by December 31, 2007. If the parties do not accomplish a final plan on or before December 31, 2007, the provisions in sections A and B above shall not commence until such time a trust fund is created during the term of this contract. D. Only active members of the bargaining unit will be required to make contributions to the post-retirement health insurance trust fund as specified above. The parties agree that for such time as the post-retirement health insurance trust fund remains in effect, with contributions being made by members and the town, the matter of current retiree benefits and obligations shall not be revisited in future contract negotiations unless both the Town and the Union agree to reopen this subject. E. Town may continue to pay for all current retiree health costs from the Town s Town’s self- insurance OPEB Trust-Discretionary accounts for the duration of this contract. The Town may elect to pay for health insurance cost payments from the OPEB Retiree/Employee Insurance Fund-Mandatory Account for current retirees who have separated from employment on or after July 1, 2008 for the duration of this contract.

POST EMPLOYMENT HEALTH PLAN. A. By January, 2008, the Town shall establish a post-retirement health insurance trust fund and plan in conformance with recently established Government Accounting Standard Board Principle # 45. The town shall obtain an actuarial analysis annually which shall determine both overall pension and post-retirement health benefit liabilities for the members and retirees eligible for Police and Fire Retirement plans. So long as Police and Fire Retirement Pension fund assets remain at least 120% above the actuarial level of funding required for all such pension liabilities, the actuarial analysis shall also determine whether employee contributions for each subsequent fiscal year are necessary to keep plan assets at or above such a 120% level of funding. Commencing with the July 1, 2007 fiscal year, in any fiscal year that actuarial projections demonstrate that a 120% or above over-funded basis will remain even if reduced firefighter member contributions are made to such pension plan at a level less than the contractually required 4.5% contribution of salary, such firefighter member contributions shall only be made to the pension plan from payroll for that portion of the fiscal year required for such contributions to sustain the 120% over-funded basis. For any such year, the balance of such member s member’s 4.5% payroll deductions for such fiscal year shall be deposited directly into the town s town’s post-retirement health insurance trust fund. Should the amount of pay required to be contributed to the pension plan within this agreement change by mutual consent, the terms above shall reflect any such new per cent. B. Effective July 27, 2015, all covered members of the unit shall contribute 2.5% of member basic annual salary including longevity pay as set forth in Appendix A “A” of this agreement to the post-retirement health trust fund. Effective July 1, 2016, all covered employee members of the unit shall contribute 3.25% of member basic annual salary including longevity pay as set forth in Appendix A “A” of this agreement to the post- retirement health trust fund. These contributions are in lieu of cost-share upon retirement. When the fire unit s unit’s OPEB actuary funding level reaches 80%, employee contribution will return to 1.5%. Effective July 1, 2008, the town will contribute at least 2% of all member salaries per annum to the post- post-retirement health insurance trust fund. Effective July 1, 2009, the town s town’s contribution shall increase to at least 4% of such payroll. Effective at the close of business June 30, 2010, the town s town’s contribution shall increase to at least 6% of such pay. C. The town shall create mutually acceptable governing language for the post-retirement health insurance trust fund, with unit approval, by December 31, 2007. If the parties do not accomplish a final plan on or before December 31, 2007, the provisions in sections A and B above shall not commence until such time a trust fund is created during the term of this contract. D. Only active members of the bargaining unit will be required to make contributions to the post-retirement health insurance trust fund as specified above. The parties agree that for such time as the post-retirement health insurance trust fund remains in effect, with contributions being made by members and the town, the matter of current retiree benefits and obligations shall not be revisited in future contract negotiations unless both the Town and the Union agree to reopen this subject. E. Town may continue to pay for all current retiree health costs from the Town s Town’s self- insurance OPEB Trust-Discretionary accounts for the duration of this contract. The Town may elect to pay for health insurance cost payments from the OPEB Retiree/Employee Insurance Fund-Mandatory Account for current retirees who have separated from employment on or after July 1, 2008 for the duration of this contract.