Common use of Cafeteria Plans Clause in Contracts

Cafeteria Plans. 17.1.1 Each active and each retired employee shall receive a City contribution equal to the minimum employer contribution for agencies participating in the Public Employees Medical and Hospital Care Act (PEMHCA). 17.1.2 Each active employee shall be allocated an amount, inclusive of the City contribution specified in Section 17.1.1 to be used to purchase qualified benefits as descrbed in this Section. The amount shall be allocated to each worker according to the health benefits selected, as follows: $1,385.62 per month family coverage $1,065.86 per month two-person coverage $532.93 per month single person coverage $154.68 per month no coverage 17.1.3 Effective with the implementation of cafeteria plan year 2009, the amounts for each tier of coverage shall be adjusted to the corresponding basic monthly rate for the highest HMO less $10.00 per month for single coverage, less $20.00 per month for two-person coverage and less $30.00 per month for family coverage. The no coverage option shall remain at $154.68. 17.1.4 Effective with the implementation of cafeteria plan years 2010 and 2011, the City will increase the allocated amount contained in 17.1.3 by eighty five percent (85%) of the highest PEMHCA HMO premium increase of HMO plans available to the Bay Area/Sacramento area, or adjust the allocated amount to match each tier for Kaiser rates for the Bay Area/Sacramento area, whichever is the greater amount. The employee will be responsible for any remaining premium in excess of the allocated amount. 17.1.5 Each officer may use his/her allocated amount for: (a) PEMHCA health insurance premiums (b) long term disability insurance (c) any personal medical, dental and vision care expenses not covered by the City’s plans, including but not limited to deductibles, co-payments, medication and medical equipment (d) reimbursement for individual long term disability (LTD) policy premiums paid by employees (e) supplemental life insurance through the City’s carrier (f) contributions to a City offered deferred compensation plan 17.1.6 If any employee expends less than the total of his/her allocated amount above the minimum employer contribution contained in 17.1.1, then such employee shall be entitled to the unused amount in cash as taxable income, subject to appropriate tax withholding. 17.1.7 Each employee must enroll in an available PEMHCA health insurance plan or demonstrate that he or she has health insurance coverage equivalent to the PEMHCA plan in order to receive cash back under Section 17.1.6. 17.1.8 Officers who wish to have domestic partners covered under the cafeteria plan may do so after filing the “Declaration of Domestic Partnership” form with the California Secretary of State and complying with any other requirements necessary to qualify for domestic partner health benefits under the CalPERS health program. It is understood that the premiums and benefits provided as a result of covering domestic partners may be taxable, and that the City will administer the program in accordance with State and Federal Tax regulations. 17.1.9 The parties share an interest in addressing the increase in the cost of PEMHCA benefits. To that end, the parties agree that the City may contract with different health benefit providers, consortia, or groups to provide health coverage that is equivalent to that provided under PEMHCA. If either the benefits provided or the rate structure in place between active and retired employees is not equivalent to that provided under PEMHCA, then the City shall meet and confer with the Union prior to contacting with the alternative provider, consortia or group. However, P.O.A. shall have the option to remain in the PEMHCA program. 17.1.10 During the term of this Agreement, upon request by P.O.A., the parties agree to meet and discuss the current status of Health Savings Accounts (HSA). The discussions are intended to be informational and exploratory, and such participation does not bind the City to additional expenditures or the P.O.A. to voluntary deductions.