Common use of Section 125 Flexible Benefit Plan Clause in Contracts

Section 125 Flexible Benefit Plan. There will be an IRS Section 125 Plan (“Plan”) made available for Employees covered by this Agreement. The summary of benefits can be found on the District’s website. That Plan will provide as follows: 15.1.8.1 Board Contribution to Major Medical Insurance. Employees who are regularly assigned at least 0.50 FTE for the full school year and who elect to participate in Board-sponsored major medical insurance (“health premium benefits”) of any type (i.e., HMO, PPO, HDHP, etc.) will receive a Board contribution toward the purchase of such insurance coverage. That Board contribution for the 2023 calendar year shall be $9,284.00 for single coverage and shall be $23,211.00 for family coverage. For future contract years (calendars years 2024, 2025, 2026 and 2027), any increase in the health premiums will be determined using a blended rate of the premiums for each of the Board- sponsored major medical insurance options (HMO, PPO, HDHP, etc.). Specifically, the increase (determined by the use of a blended rate) will be managed as follows: (1) if the blended rate of the premiums increases up to and including eight percent (8%) over the prior year’s premium, the Board and the HHSTA will split the increases equally (i.e., the Board’s increased contribution shall be limited to a total of 4% per year); (2) if the blended rate of the premiums increases over 8% of the prior year’s premium, the Employee will be responsible for the balance. Example for when the increase exceeds eight percent (8%): If the PPO insurance premium for the 2023 insurance year is $10,000.00, the Board will pay $9,284.00 and the Employee will pay $716.00. If in the 2024 insurance year, the blended rate of the insurance premiums increases to $10,900.00 (9% increase over the prior year’s PPO premium), the Board pays $9,684.00 (4%) and the Employee pays $1,216.00 (5%). Example for when the increase is equal to or less than eight percent (8%): If the PPO insurance premium for the 2023 insurance year is $10,000.00, the Board will pay $9,284.00 and the Employee will pay $716.00. If in the 2024 insurance year, the blended rate of the insurance premiums increases to $10,600.00 (6% increase over the prior year’s PPO premium), the Board pays $9,584.00 (3%) and the Employee pays $1,016.00 (3%). 15.1.8.2 As further set forth in the Plan document, the Employee may apply the Board contribution toward any of the health premium benefits available in the Plan (e.g., HMO, PPO, or HDHP/HSA coverage). However, the Board contribution cannot be applied towards the election of any non- health premium benefits in the Plan (e.g., dental coverage, health FSA or dependent care FSA). However, if the Employee receives excess cash pursuant to Section 15.1.8.3 below, the Employee may use that money to purchase other benefits under the Plan via salary-reduction. 15.1.8.3 Any portion of the Board contribution remaining after the Employee’s election of health premium benefits may be retained by the Employee in the form of cash at the maximum amount of $5,000 for the insurance year. The $5,000 cash option will be allocated across the yearly paycheck. 15.1.8.4 Eligible Employees not electing coverage under any of the Board- sponsored major medical insurance shall receive cash in the amount of $5,000 provided such Employees are able to verify group medical insurance coverage at another employer by providing evidence to Human Resources before the first “cash out” payment is issued. 15.1.8.5 Employees who are not eligible to participate in the health premium benefits shall not be eligible to participate in the health FSA available under the Plan. 15.1.8.6 The Board contribution and any cash benefit payable under the Plan shall be payable on a per payroll basis. Changes in status shall be made in accordance with the Plan document and applicable law. The Board contribution/cash benefit payable under the Plan may be modified in accordance with the Plan document for Employees experiencing such changes in status. 15.1.8.7 Participation in the Plan shall be in accordance with the terms of the Plan document and applicable law. 15.1.8.8 Participation in any insured or self-insured Board-sponsored benefit shall be in accordance with the terms and conditions of any applicable insurance contract and applicable law. 15.1.8.9 The Parties hereby agree that the Board and the Association make no representations regarding the creditable earnings status with respect to any compensation received by Employees pursuant to the terms of this Contract. Any and all determinations regarding creditable earnings, creditable service, and related TRS issues shall be made by TRS and, where applicable, a court of competent jurisdiction.

Section 125 Flexible Benefit Plan. There will be an IRS Section 125 Plan (“Plan”) made available for Employees covered by this Agreement. The summary of benefits can be found on the District’s website. That Plan will provide as follows: 15.1.8.1 Board Contribution to Major Medical Insurance. Employees who are regularly assigned at least 0.50 FTE for the full school year and who elect to participate in Board-sponsored major medical insurance (“health premium benefits”) of any type (i.e., HMO, PPO, HDHP, etc.) will receive a Board contribution toward the purchase of such insurance coverage. That Board contribution will be equal to ninety percent (90%) of the total cost for the 2023 Board-sponsored PPO insurance premium for the 2017 calendar year shall at either the single rate or the family rate dependent upon the Employee’s level of coverage elected for that insurance year (i.e., Employee elects single coverage, the Board contribution will be $9,284.00 for equal to the PPO premium at the single coverage and shall be $23,211.00 for family coveragerate). For future contract years (calendars years 20242018, 20252019, 2026 2020, 2021 and 20272022), any increase in the health premiums will be determined using a blended rate of the premiums for each of the Board- sponsored major medical insurance options (HMO, PPO, HDHP, etc.). Specifically, the increase (determined by the use of a blended rate) will be managed as follows: (1) if the blended rate of the premiums increases up to and including eight percent (8%) over the prior year’s premium, the Board and the HHSTA will split the increases equally (i.e., the Board’s increased contribution shall be limited to a total of 4% per year); (2) if the blended rate of the premiums increases over 8% of the prior year’s premium, the Employee will be responsible for the balance. Example for when the increase exceeds eight 8 percent (8%): If the PPO insurance premium for the 2023 2017 insurance year is $10,000.0010,000, the Board will pay $9,284.00 9,000 and the Employee will pay $716.001,000. If in the 2024 2018 insurance year, the blended rate of the insurance premiums increases to $10,900.00 10,900 (9% increase over the prior year’s PPO premium), the Board pays $9,684.00 9,400 (4%) and the Employee pays $1,216.00 1,500 (5%). Example for when the increase is equal to or less than eight 8 percent (8%): If the PPO insurance premium for the 2023 2017 insurance year is $10,000.0010,000, the Board will pay $9,284.00 9,000 and the Employee will pay $716.001,000. If in the 2024 2018 insurance year, the blended rate of the insurance premiums increases to $10,600.00 10,600 (6% increase over the prior year’s PPO premium), the Board pays $9,584.00 9,300 (3%) and the Employee pays $1,016.00 1,300 (3%). 15.1.8.2 As further set forth in the Plan document, the Employee may apply the Board contribution toward any of the health premium benefits available in the Plan (e.g., HMO, PPO, or HDHP/HSA coverage). However, the Board contribution cannot be applied towards the election of any non- health premium benefits in the Plan (e.g., dental coverage, health FSA or dependent care FSA). However, if the Employee receives excess cash pursuant to Section 15.1.8.3 below, the Employee may use that money to purchase other benefits under the Plan via salary-reduction. 15.1.8.3 Any portion of the Board contribution remaining after the Employee’s election of health premium benefits may be retained by the Employee in the form of cash at the maximum amount of $5,000 for the insurance year. The $5,000 cash option will be allocated across the yearly paycheck. 15.1.8.4 Eligible Employees not electing coverage under any of the Board- sponsored major medical insurance shall receive cash in the amount of $5,000 provided such Employees are able to verify group medical insurance coverage at another employer by providing evidence to Human Resources before the first “cash out” payment is issued. 15.1.8.5 Employees who are not eligible to participate in the health premium benefits shall not be eligible to participate in the health FSA available under the Plan. 15.1.8.6 The Board contribution and any cash benefit payable under the Plan shall be payable on a per payroll basis. Changes in status shall be made in accordance with the Plan document and applicable law. The Board contribution/cash benefit payable under the Plan may be modified in accordance with the Plan document for Employees experiencing such changes in status. 15.1.8.7 Participation in the Plan shall be in accordance with the terms of the Plan document and applicable law. 15.1.8.8 Participation in any insured or self-insured Board-sponsored benefit shall be in accordance with the terms and conditions of any applicable insurance contract and applicable law. 15.1.8.9 The Parties hereby agree that the Board and the Association make no representations regarding the creditable earnings status with respect to any compensation received by Employees pursuant to the terms of this Contract. Any and all determinations regarding creditable earnings, creditable service, and related TRS issues shall be made by TRS and, where applicable, a court of competent jurisdiction.

Section 125 Flexible Benefit Plan. There will be an IRS Section 125 Plan (“Plan”) made available for Employees covered by this Agreement. The summary of benefits can be found on the District’s website. That Plan will provide as follows: 15.1.8.1 12.3.1 Board Contribution to Major Medical Insurance. Employees who are regularly assigned at least 0.50 FTE for the full school year and who elect to participate in Board-sponsored major medical insurance (“health premium benefits”) of any type (i.e., HMO, PPO, HDHP, etc.) will receive a Board contribution toward the purchase of such insurance coverage. That Board contribution for the 2023 calendar year shall be $9,284.00 for single coverage and shall be $23,211.00 for family coverage. For future contract years (calendars years 2024, 2025, 2026 2025 and 20272026), any increase in the health premiums will be determined using a blended rate of the premiums for each of the Board- Board-sponsored major medical insurance options (HMO, PPO, HDHP, etc.). Specifically, the increase (determined by the use of a blended rate) will be managed as follows: (1) if the blended rate of the premiums increases up to and including eight percent (8%) over the prior year’s premium, the Board and the HHSTA HTHSSSA will split the increases equally (i.e., the Board’s increased contribution shall be limited to a total of 4% per year); (2) if the blended rate of the premiums increases over 8% of the prior year’s premium, the Employee will be responsible for the balance. • Example for when the increase exceeds eight percent (8%): If the PPO insurance premium for the 2023 insurance year is $10,000.00, the Board will pay $9,284.00 and the Employee will pay $716.00. If in the 2024 insurance year, the blended rate of the insurance premiums increases to $10,900.00 (9% increase over the prior year’s PPO premium), the Board pays $9,684.00 (4%) and the Employee pays $1,216.00 (5%). • Example for when the increase is equal to or less than eight percent (8%): If the PPO insurance premium for the 2023 insurance year is $10,000.00, the Board will pay $9,284.00 and the Employee will pay $716.00. If in the 2024 insurance year, the blended rate of the insurance premiums increases to $10,600.00 (6% increase over the prior year’s PPO premium), the Board pays $9,584.00 (3%) and the Employee pays $1,016.00 (3%). 15.1.8.2 12.3.2 As further set forth in the Plan document, the Employee may apply the Board contribution toward any of the health premium benefits available in the Plan (e.g., HMO, PPO, or HDHP/HSA coverage). However, the Board contribution cannot be applied towards the election of any non- non-health premium benefits in the Plan (e.g., dental coverage, health FSA or dependent care FSA). However, if the Employee receives Employees receive excess cash pursuant to Section 15.1.8.3 12.3.3 below, the Employee may use that money to purchase other benefits under the Plan via salary-reduction. 15.1.8.3 12.3.3 Any portion of the Board contribution remaining after the Employee’s election of health premium benefits may be retained by the Employee in the form of cash at the maximum amount of $5,000 for the insurance year. The $5,000 cash option will be allocated across the yearly paycheck. 15.1.8.4 12.3.4 Eligible Employees not electing coverage under any of the Board- sponsored major medical insurance plans shall receive cash in the amount of $5,000 5,000, provided such Employees are able to verify group medical insurance coverage at another employer by providing evidence to Human Resources before the first “cash out” payment is issued. 15.1.8.5 12.3.5 Employees who are not eligible to participate in the health premium benefits shall not be eligible to participate in the health FSA available under the Plan. 15.1.8.6 12.3.6 The Board contribution and any cash benefit payable under the Plan shall be payable on a per payroll basis. Changes in status shall be made in accordance with the Plan document and applicable law. The Board contribution/cash benefit payable under the Plan may be modified in accordance with the Plan document for Employees experiencing such changes in status. 15.1.8.7 12.3.7 Participation in the Plan shall be in accordance with the terms of the Plan document and applicable law. 15.1.8.8 12.3.8 Participation in any insured or self-insured Board-sponsored benefit shall be in accordance with the terms and conditions of any applicable insurance contract and applicable law. 15.1.8.9 12.3.9 The Parties parties hereby agree that the Board and the Association make no representations regarding the creditable earnings status with respect to any compensation received by Employees pursuant to the terms of this Contract. Any and all determinations regarding creditable earnings, creditable service, and related TRS IMRF issues shall be made by TRS IMRF and, where applicable, a court of competent jurisdiction.