Common use of Retiree Insurance Funding Clause in Contracts

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (RHBT) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (GASB) compliant Annual Required Contribution (ARC) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ($1,000,000), the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ($1,000,000) and the ARC percentage is fourteen percent (14%), the District will contribute one hundred forty thousand dollars ($140,000) to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 above to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows: 7. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) 30 year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ([$1,000,000)], the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-one- hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidanceyear. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” up percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” up period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% one and six hundred twenty-seven one-thousandths percent (1. 627%) of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 B2, above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 above contribution, to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ employees‟ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ employees‟ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows:: 07/1/13 11.88% 07/1/14 11.94% 07/1/15 12.00% 07/1/16 12.06% 07/1/17 12.12% 07/1/18 12.18% 07/1/19 12.24% 07/1/20 12.30% 07/1/21 12.36% 07/1/22 12.42% 07/1/23 12.48% 07/1/24 12.54% 07/1/25 12.60% 07/1/26 12.66% 07/1/27 12.72% 07/1/28 12.78% 07/1/29/ 12.84% 07/1/30 12.90% 07/1/31 12.96% 07/1/32 13.02% 07/1/33 13.08% 7. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ([$1,000,000)], the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution contributions referred to in subsection D.5 subsections B.2 and B.3 above and implement the base salary reductions provided for in B.3 above, to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contributioncontributions and salary reductions provided for in B.2 and B.3, the District shall pay make appropriate adjustments to the base salaries of sworn personnel first and then appropriate portion contributions to the MPPP’s of the 1.627% into the employees’ MPPP accountssworn and non-sworn personnel, but only to the extent that the difference between amount the actual ARC and exceeds the baseline ARC is less than the dollar value the salary reduction and of the retained MPPP 1.627%% of payroll. For sworn personnel, the District shall first adjust base salary up to the amount it was reduced for the period provided in B.3, before reinstatement of any portion of the MPPP contribution retained pursuant to B. 3. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a distribute the total excess of five hundred thousand dollars ($500,000) into the employees’ collective as adjustments to base salary an MPPP accounts. These payments would be contributions prorated in the same manner as would result from full payment of the 1.627% into the employee accountsreductions provided in B.2 and B.3 were determined. The baseline ARC is as follows:: 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 76. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ($1,000,000), the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27%an 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-one- hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution contributions referred to in subsection D.5 subsections B.2 and B.3 above and implement the base salary reductions provided for in B.3 above, to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contributioncontributions and salary reductions provided for in B.2 and B.3, the District shall pay make appropriate adjustments to the base salaries of sworn personnel first and then appropriate portion contributions to the MPPP’s of the 1.627% into the employees’ MPPP accountssworn and non-sworn personnel, but only to the extent that the difference between amount the actual ARC and exceeds the baseline ARC is less than the dollar value the salary reduction and of the retained MPPP 1.627%% of payroll. For sworn personnel, the District shall first adjust base salary up to the amount it was reduced for the period provided in B.3, before reinstatement of any portion of the MPPP contribution retained pursuant to B.3. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a distribute the total excess of five hundred thousand dollars ($500,000) into the employees’ collective as adjustments to base salary an MPPP accounts. These payments would be contributions prorated in the same manner as would result from full payment of the 1.627% into the employee accountsreductions provided in B.2 and B.3 were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustments. The baseline ARC is as follows: 7: FY Year Beginning Baseline ARC 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 6. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) 30 year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-below− listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ([$1,000,000)], the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths twenty−two one−hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-thirty−six one− hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidanceyear. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” up percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” up period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During The District shall continue to retain all of the one and six hundred twenty−seven one−thousandths percent (1.627%) Money Purchase Plan contribution for the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 aboveagreement. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 above to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows: : FY Year Beginning Baseline ARC 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 7. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) 30 year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-below- listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars (*$1,000,000)], the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-one- hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution contributions referred to in subsection D.5 subsections B.2 and B.3 above and implement the base salary reductions provided for in B.3 above, to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contributioncontributions and salary reductions provided for in B.2 and B.3, the District shall pay make appropriate adjustments to the base salaries of sworn personnel and appropriate portion contributions to the MPPP’s of the 1.627% into the employees’ MPPP accountssworn and civilian personnel, but only to the extent that the difference between amount the actual ARC and exceeds the baseline ARC is less than the dollar value of the retained MPPP 1.627%% of payroll. For sworn personnel, the District shall first adjust base salary up to the amount it was reduced for the period provided in B.3, before reinstatement of any portion of the MPPP contribution retained pursuant to B.3. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a distribute the total excess of five hundred thousand dollars ($500,000) into the employees’ collective as adjustments to base salary and MPPP accounts. These payments would be contributions prorated in the same manner as would result from full payment of the 1.627% into the employee accountsreductions provided in B.2 and B.3 were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustments The baseline ARC is as follows:: FY Year Beginning Baseline ARC 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 76. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.paid

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) 30 year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ($1,000,000), the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-one- hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” up percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” up period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ($1,000,000) and the ARC percentage is fourteen percent (14%), the District will contribute one hundred forty thousand dollars ($140,000) to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 C.2 above to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows:: 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 76. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (RHBT) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (GASB) compliant Annual Required Contribution (ARC) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ($1,000,000), the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidance. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ($1,000,000) and the ARC percentage is fourteen percent (14%), the District will contribute one hundred forty thousand dollars ($140,000) to the RHBT for that pay period.) 5. During the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 above. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 C.2 above to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows:: 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 76. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the District shall contribute into its Retiree Health Benefit Trust (“RHBT”) amounts that, at minimum, reflect an eight (8) year “ramp up” to District payment of the full Government Accounting Standards Board (“GASB”) compliant Annual Required Contribution (“ARC”) beginning July 1, 2013 using an open group valuation method with a closed thirty (30) 30 year amortization schedule for unfunded liability ending June 30, 2034. Except as provided in paragraph 3 below, each pay period the District shall contribute to the RHBT an amount equal to the below-below− listed percentages of straight time bargaining unit base pay paid to bargaining unit members in that pay period into the RHBT. (For example, if base pay in the pay period in FY ‘07 is one million dollars ([$1,000,000)], the District will contribute $34,900 into the RHBT for that pay period). July 1, 2007 (FY 08) 3.49% July 1, 2008 (FY 09) 3.64% July 1, 2009 (FY 10) 3.79% July 1, 2010 (FY 11) 3.94% July 1, 2011 (FY 12) 4.10% July 1, 2012 (FY 13) 4.27% 2. In addition, on or before June 30, 2009 the District shall, at minimum, contribute into the RHBT an amount equal to three and twenty-two one-hundredths twenty−two one−hundredths percent (3.22%) of straight time bargaining unit base pay paid in FY ‘06 and three and thirty-six one-thirty−six one− hundredths percent (3.36%) of straight time bargaining unit base pay paid in FY ‘07. These figures represent the “ramp up” percentages for those fiscal years. 3. The District shall perform an actuarial study of the retiree medical insurance plan liabilities and funding needs (including the Annual Required Contribution – “ARC”) after the end of each calendar year but before the beginning of the next fiscal year for which the results provide guidanceyear. For each fiscal year beginning with FY 2007, the actuaries shall adjust the above “ramp up” up percentages for the fiscal year for which the study was prepared and for each remaining fiscal year in the “ramp up” up period. The last such adjustment will be in the study performed prior to July 1, 2013 for FY 2013. The revised percentages shall be the percentages contributed by the District to the RHBT for those years, except that the District shall pay no less than the percentages specified in subsections 1 and 2 above. 4. Beginning July 1, 2013, the District shall, at minimum, contribute to the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution (ARC) percentage of straight time base pay paid to bargaining unit members during that pay period using an open group valuation method with a closed thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. (For example, if the base pay during the pay period is one million dollars ([$1,000,000) ] and the ARC percentage is fourteen percent ([14%)], the District will contribute one hundred forty thousand dollars ([$140,000) ] to the RHBT for that pay period.) 5. During The District shall continue to retain all of the one and six hundred twenty−seven one−thousandths percent (1.627%) Money Purchase Plan contribution for the term of this Agreement, the District shall retain .0888% of the 1.627% of the Money Purchase Pension Plan contribution in addition to the $37/month to be used as specified in Paragraph B2 aboveagreement. 6. Effective July 1, 2013, the District shall retain the remainder of the 1.627% MPPP contribution referred to in subsection D.5 above to the extent necessary to compensate the District for paying the difference between the actual ARC and the baseline ARC described below. The District shall retain this amount through June 30, 2034. In any year in which the actual ARC does not exceed the baseline ARC by an amount equal to the amount of the retained 1.627% MPPP contribution, the District shall pay the appropriate portion of the 1.627% into the employees’ MPPP accounts, but only to the extent that the difference between the actual ARC and the baseline ARC is less than the dollar value of the retained MPPP 1.627%. EXAMPLE: Assume that the actual ARC is fifteen percent (15%) in the particular year, the baseline ARC is fourteen percent (14%) in the particular year, and that the difference between the two is one million dollars ($1,000,000). Assume further that the value of the retained 1.627% is one million five hundred thousand dollars ($1,500,000). The District would then pay a total of five hundred thousand dollars ($500,000) into the employees’ collective MPPP accounts. These payments would be prorated in the same manner as would result from full payment of the 1.627% into the employee accounts. The baseline ARC is as follows: : FY Year Beginning Baseline ARC 7/1/13 11.88% 7/1/14 11.94% 7/1/15 12.00% 7/1/16 12.06% 7/1/17 12.12% 7/1/18 12.18% 7/1/19 12.24% 7/1/20 12.30% 7/1/21 12.36% 7/1/22 12.42% 7/1/23 12.48% 7/1/24 12.54% 7/1/25 12.60% 7/1/26 12.66% 7/1/27 12.72% 7/1/28 12.78% 7/1/29 12.84% 7/1/30 12.90% 7/1/31 12.96% 7/1/32 13.02% 7/1/33 13.08% 7. Effective July 1, 2013 the District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT. No premiums will be paid from the RHBT prior to July 1, 2013.