Common use of Cafeteria Plan Allotment Clause in Contracts

Cafeteria Plan Allotment. The Flex Benefit amount for Employee Only, those that opt out of City coverage, and those employees covered by another Chula Vista City employee shall be fixed at $13, 024. The flex amount for Employee + 1 and Employee + Family will be adjusted under the current 50/50 cost sharing formula, utilizing the average cost increase of the full-family, non-indemnity, health plan premiums. Eligible part-time benefited employees will receive an allotment in the proportion that such part-time employment bears to full-time employment. [ACA Reopener] The City provides medical benefits (via a cafeteria plan as set forth in Article 2.11) to WCE represented employees. These benefits are subject to the Federal Affordable Care Act (“ACA”). The City, upon notice to WCE, may reopen this MOU when the City has been informed of or is aware of non-compliance with the ACA, including a “Cadillac” tax. The City shall provide notice to WCE of the nature of the act or omission that forms the basis of ACA non-compliance. The City and WCE shall thereafter promptly meet and confer to the extent required by the MMBA. The City provides a Cafeteria Plan Allotment amount (“Allotment”) to WCE represented employees to purchase benefits qualified under Section 125 of the IRC as set forth in Article 2.11 of the MOU. The Allotment for 2017 is $14,136, but may increase on a yearly basis. The City shall provide a comparable or replacement benefit to any benefit lost as a result of compliance with the ACA, including a “Cadillac Tax.” The aforementioned comparable or replacement benefit shall be up to, but not exceed the Allotment amount, as provided for in Article 2.19(I)(B) above (currently $14,136 for 2017), less any remaining or non-impacted Allotment amounts. The aforementioned Allotment amount shall also not be increased to account for taxation benefits. The City shall also, to the extent necessary, earmark and set aside the impacted Allotment amounts (provided for in Article 2.11(I)(B) above [Cafeteria Plan]) so that they may be used to provide the aforementioned comparable or replacement benefit. The City shall endeavor to ensure that any plan design changes will have the least impact on employees as possible and still comply with the ACA. This re-opener shall be used only to ensure ACA compliance, including a “Cadillac” tax.