Tier II Employees. The City agrees to provide a Medical Allowance to Members hired on or after January 1, 1999 (“Tier II Employee”) to be used for the purpose of purchasing mandatory health coverage offered through PEMHCA for the Member and his or her eligible dependents. Effective January 1, 2018, the Medical Allowance shall consist of the following: (1) the Base Contribution Rate, plus (2) an amount equal to the difference between the Base Contribution Rate and the following amounts, as applicable.
(1) $601.42 per month for Members electing Employee only coverage;
(2) $1,202.83 per month for Members electing Employee plus one dependent coverage; or
(3) $1,563.67 per month for Members electing Employee plus two or more dependents coverage. The Medical Allowance will be made available through the Cafeteria Plan. If a Member enrolls in a health plan that costs more than the Medical Allowance, he or she will be responsible for payment of any premium in excess of the Medical Allowance. Subject to the limitations set forth below, the excess of the Medical Allowance remaining after purchase of mandatory health coverage through PEMHCA, if any (“Medical Difference”), may be allocated toward the purchase of other Cafeteria Plan benefits or may be taken as a taxable cash payment, in accordance with the terms of the Cafeteria Plan. The maximum Medical Difference to which an employee is entitled shall be as follows:
(1) $350 per month for Members entitled to and electing Employee only coverage;
(2) $700 per month for Members entitled to and electing Employee plus one dependent coverage; and
(3) $950 per month for Members entitled to and electing Employee plus two or more dependents coverage. Effective the first full pay period following June 5, 2019, no Medical Difference shall be provided to any member of CSA and, thereafter, the excess of the Medical Allowance remaining after purchase of mandatory health coverage through PEMHCA, if any, may NOT be allocated toward the purchase of other Cafeteria Plan benefits and may NOT be taken as a taxable cash payment.
Tier II Employees. A FT or regular part-time (“RPT”) employee who is hired on or after July 1, 2010, is a Tier II employee. A RPT employee is an employee in a budgeted position who is regularly scheduled to work not less than 30 hours per week or more than 35 hours per week.
