Common use of Retiree Health Benefit for Employees Clause in Contracts

Retiree Health Benefit for Employees. Hired on or After July 1, 2005 (but before July 1, 2009) a. Employees hired on or after July 1, 2005, but before July 1, 2009, are not entitled to the Retiree Health Benefit as set forth in paragraph A.12. above. b. As stated in the MOU between the City and the Union effective, July 1, 2005, “For employees hired on or after July 1, 2005, the City will establish a defined contribution plan for retiree medical expenses.” The 2005 MOU further provided as follows: “Control and Investment of Contributions Pending Plan Establishment. Until the vehicle for the defined contribution plan is formalized, all contribution amounts will be held in escrow in SDCERS but invested with other funds to achieve the maximum possible return until the escrowed funds can be transferred to the control of the agreed-upon administrator.” While these provisions were not implemented, the parties intend to negotiate a modified retiree medical benefit plan in accordance with Article 8, Section 5. The City presently represents that, under federal tax law, a qualified pension plan like SDCERS cannot hold, control or invest contributions to pay medical benefits, unless a 401(h) trust is established.

Retiree Health Benefit for Employees. Hired on On or After July 1, 2005 (but before July 1, 2009) a. Employees hired on or after July 1, 2005, but before July 1, 2009, are not entitled to the Retiree Health Benefit as set forth in paragraph A.12. aboveA 12.above. b. As stated in the MOU between the City and the Union effective, July 1, 2005, “For employees hired on or after July 1, 2005, the City will establish a defined contribution plan for retiree medical expenses.” The 2005 MOU further provided as follows: “Control and Investment of Contributions Pending Plan Establishment. Until the vehicle for the defined contribution plan is formalized, all contribution amounts will be held in escrow in SDCERS but invested with other funds to achieve the maximum possible return until the escrowed funds can be transferred to the control of the agreed-upon administrator.” While these provisions were not implemented, the parties intend to negotiate a modified retiree medical benefit benefits plan in accordance with Article 8, Section 5. The City presently represents that, under federal tax law, a qualified pension plan like SDCERS cannot hold, control or invest contributions to pay medical benefits, unless a 401(h) trust is established.

Retiree Health Benefit for Employees. Hired on On or After July 1, 2005 (but before July 1, 2009) a. 1. Employees hired on or after July 1, 2005, but before July 1, 2009, are not entitled to the Retiree Health Benefit as set forth in paragraph A.12. I (L) above. b. 2. As stated in the MOU between the City and the Union effective, July 1, 2005, “For employees hired on or after July 1, 2005, the City will establish a defined contribution plan for retiree medical expenses.” The 2005 MOU further provided as follows: “Control and Investment of Contributions Pending Plan Establishment. Until the vehicle for the defined contribution plan is formalized, all contribution amounts will be held in escrow in SDCERS but invested with other funds to achieve the maximum possible return until the escrowed funds can be transferred to the control of the agreed-upon administrator.” While these provisions were not implemented, the parties intend to negotiate a modified retiree medical benefit benefits plan in accordance with Article 8, Section 5. The City presently represents that, under federal tax law, a qualified pension plan like SDCERS cannot hold, control or invest contributions to pay medical benefits, unless a 401(h) trust is established.is