Benefit Fund Contribution; Excess Funds to Deferred Compensation; Medical, Dental, and Optical Insurance Clause Samples
This clause outlines the employer's obligations regarding contributions to a benefit fund and the allocation of any excess funds, as well as the provision of medical, dental, and optical insurance for employees. Typically, it specifies that the employer must contribute a set amount to a designated benefit fund, and if contributions exceed the required amount, the surplus is directed to a deferred compensation plan for employees. Additionally, the clause mandates that the employer provide specified insurance coverage, ensuring employees receive essential health-related benefits. The core function of this clause is to guarantee employee welfare through structured benefit funding and insurance, while also providing a clear mechanism for handling excess contributions.
Benefit Fund Contribution; Excess Funds to Deferred Compensation; Medical, Dental, and Optical Insurance. Pursuant to federal and state law, employees attaining the minimum age of 46 ("3 % @ 50" retirement plan) or 51 ("3% @ 55" retirement plan) or 53 (“2.7% @ 57” retirement plan), as applicable, and who are within 4 years of their planned retirement date/normal retirement age (NRA), may take advantage of the 457 Deferred Compensation Plan "Catch-Up" provisions and allowances as defined in the City's Great West 457 Plan document. Employees may not make "Special Section 457 Catch-Up" contributions in the year they actually retire/attain their NRA. To the extent allowed by federal and state law and the City's deferred compensation plan, the City will allow, in 1 or more of the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA), the conversion of accrued sick leave at a rate of 2.25 hours for 1 hour of cash contribution, at the employee's base rate of pay in effect at the time of conversion, to the City's 457 Deferred Compensation Plan. Sick leave conversion contributions for the "457 Catch-Up" will normally be distributed over the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA). However, based on the total amount of "457 Catch-Up" contributions available to the employee, accumulated sick leave hours, and the employee's designated retirement date/NRA (or alternate NRA), "457 Catch-Up" contributions may occur over a shorter period of time prior to retirement; in no event, however, shall any contribution occur in the year the employee actually retires/attains his/her NRA.
Benefit Fund Contribution; Excess Funds to Deferred Compensation; Medical, Dental, and Optical Insurance. Pursuant to federal and state law and the City’s deferred compensation plan, employees may take advantage of the 457 Deferred Compensation Plan "Catch-Up" provisions and allowances as defined in the City's Great West 457 Plan document. Employees may not make "Special Section 457 Catch-Up" contributions in the year they attain their Normal Retirement Age (NRA). To the extent allowed by federal and state law and the City's deferred compensation plan, the City will allow, in 1 or more of the 3 calendar years ending prior to the calendar year of an employee's planned NRA (or alternate NRA), the conversion of accrued sick leave at a rate of 2.25 hours for 1 hour of cash contribution, at the employee's base rate of pay in effect at the time of conversion, to the City's 457 Deferred Compensation Plan. Sick leave conversion contributions for the "457 Catch-Up" will normally be distributed over the 3 calendar years ending prior to the calendar year of an employee's planned NRA (or alternate NRA). However, based on the total amount of "457 Catch-Up" contributions available to the employee, accumulated sick leave hours, and the employee's designated NRA (or alternate NRA), "457 Catch-Up" contributions may occur over a shorter period of time prior to retirement; in no event, however, shall any contribution occur in the year the employee attains his/her Normal Retirement Age (NRA).
Benefit Fund Contribution; Excess Funds to Deferred Compensation; Medical, Dental, and Optical Insurance. The City agrees to contribute to a benefit fund at a rate of $925 per month, per employee. The City contribution will be directed to the employee-selected medical, dental, and optical plans sponsored/made available by the City. After deductions for medical, dental, and optical insurances, any remaining balance shall be deposited in the City-sponsored deferred compensation program or directed to dependent coverage at the employee's discretion. In the event that excess funds from the benefit fund are available, and the employee is not directing excess funds toward dependent coverage and employee is not participating in a City-sponsored deferred compensation plan, the employee will be automatically enrolled in, and excess funds shall be deposited with, the Great-West Daily Interest Guarantee Fund. Employees may change this investment option by contacting the City's Great-West Retirement Services representative or by going online to the company's website at ▇▇▇.▇▇▇▇.▇▇▇—website changes require a Personal Identification Number (P.I.N.). Implementation of a benefit fund for active employees shall not change, redefine, alter, or otherwise affect the City's contribution toward retiree-medical insurance or terms of the retiree-medical benefit as provided for in Section 9.03 and/or other relevant sections of this MOU. In order to maintain Internal Revenue Service bona fide status for City-provided health care plans, there shall be no payroll/income disbursement to the employee of any portion of the City's contribution to the benefit fund. To satisfy participation requirements imposed by health care providers and brokers of health care plans, and to prevent the negative impact employee dropout would have on premium rates for City-provided health care plans, the City is restricted in its capacity to allow less than 100 percent employee participation; therefore, at a minimum, each employee is required to maintain, or enroll in, "employee-only" coverage for City- provided medical, dental, and optical insurance plans; each employee shall also be responsible for paying any copayment, deductible, emergency room fee, and/or other associated costs related to health care. Effective the first pay period in October 2015, the City agrees to increase the benefit fund contribution from $925 per month to $975 per month, per employee. Effective the first pay period in July 2017, the City agrees to increase the benefit fund contribution from $975 per month to $1,050 per month, per em...
Benefit Fund Contribution; Excess Funds to Deferred Compensation; Medical, Dental, and Optical Insurance. Department heads are eligible for consideration and possible inclusion in the City's deferred compensation program up to a maximum of 5 percent of base salary, upon recommendation and approval of the City Manager. Participation in this plan is not a right of employees, but is a benefit to be earned based on job performance; accordingly, the Retirement Age (NRA).