Opt-Out Incentive Clause Samples
An Opt-Out Incentive clause is designed to encourage parties to voluntarily withdraw from a contract or agreement by offering a specific benefit or reward for doing so. Typically, this clause outlines the conditions under which a party may opt out, such as within a certain timeframe or upon meeting specific criteria, and details the incentive provided, which could be a monetary payment, waiver of penalties, or other advantages. The core function of this clause is to provide a structured and mutually beneficial way for parties to exit an agreement early, thereby reducing potential disputes and offering flexibility in contractual relationships.
POPULAR SAMPLE Copied 2 times
Opt-Out Incentive. The Board will pay an annual opt-out incentive to unit members who opt-out of the Board’s health insurance plan on or before September 1st of each year. The opt-out incentive shall be paid as follows: Family Plan: $4,200, and Single Plan: $2,400.
A. The lump sum payment shall be made in the last pay in June of each contract year.
B. If coverage is dropped for less than twelve (12) months, the incentive payment will be based on the number of whole months during the contract year for which coverage was dropped.
C. For part-time unit members, the opt-out incentive will be prorated to reflect the proportion of full time equivalent (FTE) position held by the unit member.
D. In order to be eligible to receive the opt-out incentive, the unit member must stay off the Board’s health insurance plan from September 1st through the remainder of that contract year. However, if the unit member experiences a qualifying event (including, but not limited to the unit member’s spouse losing his/her job) then, in such event, the unit member will be eligible to immediately resume his/her health insurance coverage through the Board. The unit member’s opt-out incentive will be prorated to reflect the percentage of a full contract year that the unit member was off the Board’s health plan.
E. If the employer of the spouse of a unit member has a health insurance open enrollment period that begins after September 1st, then the unit member may opt-out of the Board’s health insurance plan through the remainder of that contract year. In such event, the above referenced health insurance opt-out incentive would be prorated to reflect the percentage of a full contract year that the unit member stays off the Board’s health plan. In no instance will a unit member be paid the opt- out incentive if he/she is covered by a spouse or parent who is provided Board-paid health insurance.
Opt-Out Incentive. 1. The Board will pay an annual Opt-Out Incentive to unit members who opt-out of the Board’s major medical health insurance plan on or before December 1st of each year. The opt-out incentive shall be paid as follows: Family Plan: $4,200 Single Plan: $2,400
2. The lump sum payment shall be made in the last pay in June of each school year.
Opt-Out Incentive. Any employee who elects not to participate in the Board offered health insurance plan and stays out of the District’s Health Plan for 12 months (July 1 – June 30) will receive an annual cash payment. The cash payment will be $3,000.00 if the employee is eligible to participate in a family plan and $1,500.00 if the employee is eligible to participate only in a single plan. If an employee who has elected not to participate in the Board offered health insurance plan resigns or is terminated effective prior to the end of the school year, the cash payment to which the employee is entitled will be 8.33 percent of the applicable dollar amount for each full month the employee has been employed since the preceding July 1. An employee electing not to participate in the health insurance plan will not pay the employee’s portion of the health insurance premiums. The deduction for health insurance premiums will commence again when the employee elects to come back to the District’s Health Insurance Plan. The annual cash payment will be made along with the employee’s second pay in July, commencing with the year following the election to opt out. If a husband and wife are both employees of the Board eligible to participate in the Board offered health insurance plan, neither is eligible for this opt-out incentive. No incentive will be paid for switching from a family to a single plan. The election to opt out must be made in writing annually on or before the first day of July, or at such other time as a qualifying event may occur that would permit a change in health insurance coverage to be requested and will remain in effect through the next June
Opt-Out Incentive. Employees that have comprehensive medical coverage other than through a state or federal exchange, may choose to “opt out” of participation in the city sponsored plan. If employees opt out, they will receive a portion of the monthly premium savings that can be used to offset the cost of other benefits or receive it as taxable compensation in their paychecks throughout the year. The amount the employee can receive depends on their eligible coverage level, as shown in this chart: Eligible Coverage Level* Annual Opt-Out Amount Family Coverage $2,400 2-Person Coverage $1,600 Single Coverage $1,000 *Eligible coverage level refers to the number of eligible dependents the employee has. To opt out, employees must provide proof of comprehensive insurance coverage elsewhere.
Opt-Out Incentive. 1. The Board will pay an annual Opt-Out Incentive to unit members who opt-out of the Board’s major medical health insurance plan on or before September 1st of each year. The opt-out incentive shall be paid as follows: Family Plan: $4,200 Single Plan: $2,400
2. The lump sum payment shall be made in the last pay in June of each school year.
3. If coverage is dropped for less than twelve (12) months, the incentive payment will be based on the number of whole months during the contract year for which coverage was dropped.
4. For part-time unit members, the opt-out incentive will be prorated to reflect the proportion of a full-time equivalent (FTE) position held by the unit member.
Opt-Out Incentive. Effective January 1, 1999, employees will be able to opt out of medical coverage if they have alternative coverage. The opt out payment will be equal to one-third of the cost for the employee’s applicable HMO dependent status tier.