Common use of Pre-funding Retiree Health Benefits Costs Clause in Contracts

Pre-funding Retiree Health Benefits Costs. The District has established and will maintain a Trust with the California Public Employee's Retirement System (CalPERS) to prefund retiree health benefit costs for all eligible fulltime employees. The Trust is funded with annual contributions to the trust of 1.92% of the total full time salary expenditures in the district. Additionally the District will direct an amount equivalent to the entire Federal Medicare Part D subsidy returned to the District each year into the trust fund. Funding from both of these sources commenced with fiscal year 2006-07 and the initial contribution will be the accumulated amount of $12,245,929.16 for fiscal years 2006-07 and 2007-08. An annual report of the status of the Trust will be made each year. Annual funding of the Trust from both these sources shall continue until/unless the parties agree otherwise due to changes in the healthcare landscape which make prefunding no longer necessary. Should that prove to be the case the 1.92% of the total full time salary expenditures will be placed on the salary schedules of all full time employees, effective the end of the payroll month that the decision is made to no longer fund the trust.

Pre-funding Retiree Health Benefits Costs. The District has established and will maintain a Trust with the California Public Employee's Employees’ Retirement System (CalPERS) to prefund retiree health benefit costs for all eligible fulltime employees. The Trust is funded with annual contributions to the trust of 1.92% of the total full time salary expenditures in the district. Additionally the District will direct an amount equivalent to the entire Federal Medicare Part D subsidy returned to the District each year into the trust fund. Funding from both of these sources commenced with fiscal year 2006-07 and the initial contribution will be the accumulated amount of $12,245,929.16 for fiscal years 2006-07 and 2007-08. An annual report of the status of the Trust will be made each year. Annual funding of the Trust from both these sources shall continue until/unless the parties agree otherwise due to changes in the healthcare landscape which make prefunding no longer necessary. Should that prove to be the case the 1.92% of the total full time salary expenditures will be placed on the salary schedules of all full time employees, effective the end of the payroll month that the decision is made to no longer fund the trust.