WELFARE PLAN CONTINUATION Clause Samples
The Welfare Plan Continuation clause ensures that employees continue to receive certain welfare benefits, such as health insurance or disability coverage, for a specified period after their employment ends. Typically, this clause outlines which benefits are maintained, the duration of continuation, and any conditions or limitations, such as the employee's obligation to pay premiums or eligibility requirements. Its core function is to provide financial and health security to employees during transitions, addressing the risk of sudden loss of essential benefits upon termination or separation from employment.
WELFARE PLAN CONTINUATION. For a thirty (30) month period after the Date of Termination, or if sooner, until the Executive reaches the age of sixty-five (65) years, the Corporation shall provide the Executive (at no cost to the Executive) with life, disability, accident and health insurance benefits substantially similar to those that the Executive is receiving immediately prior to any related Potential Change in Control or the receipt of the Notice of Termination (without giving effect to any reduction in such benefits subsequent to a Change in Control which reduction constitutes Good Reason), whichever is greater; provided, however, that the final 18 months of the continued coverage period hereunder shall be deemed to constitute the full amount of the Executive's entitlement to COBRA benefits as a result of the Executive's termination of employment. Upon the termination of the Executive's continued benefits provided under the prior sentence, the Executive shall be eligible to continue such benefits (at the Executive's cost) to the same extent that such benefits are provided by the Corporation thereafter (the "Continued Access Period") to comparable executives and, after the Executive attains age 65, to retired executives. Benefits otherwise receivable by the Executive pursuant to the first sentence of this Section 6.1(b) shall be reduced to the extent comparable benefits are actually received by or made available to the Executive without cost during such period following the Executive's termination of employment (and any such benefits actually received by the Executive shall be reported to the Corporation by the Executive). Continued coverage during the Continued Access Period shall terminate if comparable benefits are made available to the Executive under any other policy or program (and the availability of any such benefits shall be reported to the Corporation by the Executive).
WELFARE PLAN CONTINUATION. The Employee and his or her dependents shall be eligible for coverage under the health (including medical and dental) plan, life insurance plan, and disability plan (if any) provided to full-time employees of Illinois Power Company (or its successor) from time to time, subject to the same requirements and limitations as are applicable to full-time employees (including, without limitation, any requirement for employee contributions to pay premiums for such coverage). Eligibility for each of such health coverage, life insurance coverage, and disability coverage, respectively, shall continue until the earliest of:
(i) The first day the Employee becomes eligible for health coverage, life insurance coverage, or disability coverage, respectively, under a plan or arrangement of the Employee's new employer.
(ii) In the case of health coverage and life insurance coverage, if the Employee has attained age 50 but has not attained age 52 on the date of termination, the Employee's 55th birthday; and if the Employee has not attained age 50, or is older than age 52 on the date of termination, the three-year anniversary of the Employee's Termination Event. In the case of disability coverage, the three-year anniversary of the Employee's Termination Event.
(iii) The date the Employee attains age 65. Medical coverage provided under this section A-1(b) shall be counted towards the Company's obligation to provide coverage under the provisions of section 4980B of the Internal Revenue Code and section 601 of the Employee Retirement Income Security Act (sometimes referred to as "COBRA coverage").