Medicare Complementary Premium Fund Clause Samples
The Medicare Complementary Premium Fund clause establishes a dedicated fund to cover the costs of supplemental insurance premiums that complement Medicare coverage. Typically, this clause outlines how contributions are collected from participants or employers, how the fund is managed, and what types of premiums or benefits are eligible for payment from the fund. Its core practical function is to ensure that eligible individuals have financial support for additional health coverage beyond standard Medicare, thereby reducing out-of-pocket expenses and enhancing access to comprehensive healthcare.
Medicare Complementary Premium Fund. Effective July 1, 2006, the University established and funded a fund from which age 65 or older individual official retirees (i.e., individuals who have satisfied the age and service requirements of paragraph 129), and their Medicare eligible spouses shall receive a monetary benefit to be applied to the retiree’s share of the monthly premium cost for Medicare Complementary Coverage as long as there are monies in the fund. Access to this fund is restricted to those retirees who were actively employed Sergeants as of July 1, 2005. The University’s annual lump sum contributions to the Medicare Complementary Premium Fund will cease with the July 2008 lump sum contribution of $2,000. No future lump sum contributions will be made by the University. The University will continue to pay the average 91-day United States Treasury Bill rate semi-annually on the average balance in the fund. The University may pay additional distribution, at its discretion if the actual earnings of the fund exceed the average 91-day United States Treasury Bill rate. Amounts not used in one calendar year shall be carried forward to the next calendar year. The benefit amount shall be the retiree’s full share of the monthly premium cost for the least cost HMO. However, under no circumstance shall the benefit amount exceed $200.00 per month for any retiree and his/her Medicare eligible spouse. Benefits will not be paid when the fund drops below an amount required to provide the full monthly benefit amount for each eligible retiree who has made a timely request. Any employee hired or promoted to the rank of Sergeant on or after July 1, 2005 and his/her Medicare eligible spouse will be eligible for Medicare complementary coverage through a University group health plan at the retiree’s cost.
Medicare Complementary Premium Fund. The Employer has established a Medicare Complementary Premium Fund (hereafter referred to as MCPF) from which age sixty-five (65) or older individual official retirees (i.e., individuals who have satisfied the age and service requirements of paragraph 50.4) who have retired after March 1, 1995, or were hired before December 31, 2006 and their spouses may receive a monetary benefit to be applied to the retiree’s share of the monthly premium cost for MCPF (ref. Paragraph 49.7). The Employer and the Association agree to continue the disbursement of funds through December 31, 2014 at which time this fund will no longer exist.