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 30 year amortization schedule for unfunded liability ending June 30, 2034. 2. 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.) 3. The District shall retain the contributions referred to in subsection B.2 above and implement the base salary reductions provided for in B.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 MPPP contributions and salary reductions provided for in B.2, the District shall make appropriate adjustments to the base salaries of sworn personnel and appropriate contributions to the MPPP’s of sworn and civilian personnel, but only to the extent that the amount the actual ARC 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.2, before reinstatement of any portion of the MPPP contribution retained pursuant to B.2. 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 distribute the total excess of five hundred thousand dollars ($500,000) as adjustments to base salary and MPPP contributions prorated in the same manner as the reductions provided in B.2were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustments. The baseline ARC is as follows: 4. The District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT.

Retiree Insurance Funding. 1. Beginning July 1, 2007, the 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 30 thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. 2. The District shall, at minimum, contribute to into the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution three and twenty-two one-hundredths percent (ARC3.22%) percentage of straight time bargaining unit base pay paid to in FY 06 and three and thirty-six one- hundredths percent (3.36%) of straight time 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 paid in FY ‘07. These figures represent 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 “ramp up” percentages for that pay periodthose fiscal years.) 3. The District shall retain all or part of the contributions referred to in subsection B.2 above 1.627% of payroll (as defined by the Money Purchase Pension Plan), for civilian employees and implement the base salary reductions provided for in B.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 MPPP contributions and salary reductions provided for in B.2B.3, the District shall make appropriate adjustments to the base salaries of sworn personnel first and then appropriate contributions to the MPPP’s of sworn and civilian personnel, but only to the extent that the amount the actual ARC exceeds the baseline ARC is less than the dollar value of 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.2, before reinstatement of any portion of the MPPP contribution retained pursuant to B.2. 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 distribute the total excess of five hundred thousand dollars ($500,000) as adjustments to base salary and MPPP contributions prorated in the same manner as the reductions provided in B.2were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustments. The baseline ARC is as follows: 4. The District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT.

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 30 year amortization schedule for unfunded liability ending June 30, 2034. 2. 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.) 3. The District shall retain the contributions referred to in subsection B.2 B.3 above and implement the base salary reductions provided for in B.2 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 MPPP contributions and salary reductions provided for in B.2B.3, the District shall make appropriate adjustments to the base salaries of sworn personnel and appropriate contributions to the MPPP’s of sworn and civilian personnel, but only to the extent that the amount the actual ARC 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.2B.3, before reinstatement of any portion of the MPPP contribution retained pursuant to B.2B.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 1.627retained 1. 627% is one million five hundred thousand dollars ($1,500,000). The District would then distribute the total excess of five hundred thousand dollars ($500,000) as adjustments to base salary and MPPP contributions prorated in the same manner as the reductions provided in B.2were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustments. The baseline ARC is as follows: 4. The District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT.in

Retiree Insurance Funding. 1. Beginning July 1, 2007, the 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 30 thirty (30) year amortization schedule for unfunded liability ending June 30, 2034. 2. The District shall, at minimum, contribute to into the RHBT each pay period an amount equal to the full GASB compliant Annual Required Contribution three and twenty-two one-hundredths percent (ARC3.22%) percentage of straight time bargaining unit base pay paid to in FY 06 and three and thirty-six one- hundredths percent (3.36%) of straight time 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 paid in FY ‘07. These figures represent 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 “ramp up” percentages for that pay periodthose fiscal years.) 3. The District shall retain all or part of the contributions referred to in subsection B.2 above 1.627% of payroll (as defined by the Money Purchase Pension Plan), for civilian employees and implement the base salary reductions provided for in B.2 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 MPPP contributions and salary reductions provided for in B.2B.3, the District shall make appropriate adjustments to the base salaries of sworn personnel first and then appropriate contributions to the MPPP’s of sworn and civilian personnel, but only to the extent that the amount the actual ARC exceeds the baseline ARC is less than the dollar value of 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.2B.3, before reinstatement of any portion of the MPPP contribution retained pursuant to B.2. 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 distribute the total excess of five hundred thousand dollars ($500,000) as adjustments to base salary and MPPP contributions prorated in the same manner as the reductions provided in B.2were determined. For sworn personnel, base salary adjustments will occur before any MPPP adjustmentsB.3. The baseline ARC is as follows: 4. The District shall direct the Trustee of the RHBT to pay retiree health insurance premiums from the RHBT.