Program to Augment Retirement Benefit Sample Clauses

Program to Augment Retirement Benefit. Recognizing the previous intent of employees and the City, as reflected in Article 8 Section 2 of the FY2008- FY2011 collective bargaining agreement, to allow employees to participate in an I.R.C. § 125 plan whereby employees can contribute toward the purchase of health/dental/vision/prescription insurance on a pre-tax basis, and seeking to clarify the employees options under such plan, Article H8 Section 2 of the collective bargaining agreement is hereby retroactively amended to July 1, 1996 as follows: Effective July 1, 1996, the Employer contribution toward employee’s health/dental/vision/prescription insurance will be added to the employee’s gross pay. This portion of the employee's gross pay is hereinafter referred to as the "Contribution." As part of this collective bargaining agreement, employees are required to participate in the Employer health/dental/vision/prescription insurance plan on either a pre-tax or post-tax basis. If an employee elects to participate on a pre-tax basis, the employee shall authorize a pay- roll deduction from the employee’s gross pay equal to the Contribution toward employee’s health/dental/vision/prescription insurance. This deduction from the employee’s gross pay will be paid into a fund maintained to provide health/dental/vision/prescription insurance benefits for employees. If an employee elects to participate on a post-tax basis, the Contribution shall be taxable in- come to the employee and the employee shall authorize the payment of the Contribution value, after its deemed receipt, toward the employee/s health/dental/vision/prescription insurance. Including the Employer contribution toward employee’s health/dental/vision/prescription insurance in the employee’s gross pay serves the purpose of augmenting the employee’s eventual retirement benefit. It is hereby acknowledged that both employee and employer retirement contributions will be required on this additional gross income--causing a de- crease to the net income of the employee. It is also the intent of the employees and the Employer that the Contribution be excluded from the determination of the employee's regular rate of compensation as that phrase is defined under 29 U.S.C. § 207(e) (4). In the event that any subsequent law, court, arbitrator, or other lawful authority determines that the inclusion of the Employers health/dental/vision/prescription insurance contribution in the employee’s gross pay should be included in overtime compensation calculations, the...