Common use of Opt-Out Incentive Clause in Contracts

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