HomeMy WebLinkAboutAgreement_General_09/11/2014 � P
Village of Teauesta and Palm Beach County Police Benevolent Association
Memorandum of Agreement
Regarding Article 15 Insurance
The Village of Tequesta (Village) and the Palm Beach County Police Benevolent Association (PBA) are
parties to a collective bargaining agreement that expired September 30, 2013. The Village and the PBA
are in the process of negotiating a successor agreement.
As of this date, the Village and the PBA have not reached a complete resolution of all terms to be
included in the successor collective bargaining agreement.
Currently, all employees represented by the PBA are offered health insurance coverage via a high
deductible health plan (HDHP). Beginning on October 1, 2014, the Village will offer eligible employees a
choice of two types of health insurance plans to its employees: 1) a traditional health insurance plan,
and 2) a high deductable health plan (HDHP) with Health Savings Account (HSA).
Employees who are interested in switching from the existing HDHP plan to the new traditional health
insurance plan must do so on or before September 2, 2014 at noon.
The Village and the PBA both want to provide employees represented by PBA with the choice of
Insurance plans. Therefore, in order to assure that employees who are represented by the PBA have the
opportunity to choose between the two insurance plans, the Village and the PBA have agreed:
1. The following terms related to employee health insurance will be effective on October 1, 2014 and
will be incorporated into the Collective Bargaining Agreement:
ARTICLE 15
INSURANCE
Section 1:
1. The Village agrees to pay one hundred percent (100 %) of the employee cost of
health insurance.
2. The Village agrees to pay seventy five percent (75 %) of the cost of dependent
health insurance coverage for those Unit Members who elect such coverage.
Unit Members who elect coverage will pay the remaining twenty five percent
(25 %) by payroll deduction.
3. In those years when a choice between a traditional health insurance plan and a
high deductible health plan (HDHP) is available, and the cost of premiums for
the HDHP plan Is less than the premiums for the traditional plan, the Village will
contribute to the health savings account (HSA) of those employees who chose
the HDHP plan. The Village contribution will be as follows:
a) In Fiscal Year 2014 -15, the Village will contribute $60 per month to the HSA of
an employee who has employee only coverage; and will contribute $110 per
month to the HSA of an employee who has employee plus family coverage.
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b) In other years where a choice between traditional and HDHP plans is available,
the Village contribution will be calculated as follows:
L Start with the amount that the Village is paying for premiums for participants
In the traditional insurance plan.
ii. Subtract the amount that the Village is paying for premiums for participants in
the HDHP plan
iii. Round the difference to the nearest $10
The employee and children rate will be used to determine the family contribution.
For example the monthly Village HSA contributions for fiscal year 2014 -15 were
calculated using this formula as follows:
2014/15 VOT Traditional Premium VOT HDHP Monthly Monthly Difference
Type of Coverage: Contribution Premium Contribution
Employee Only $497.30 $437.52 $59.78 (rounded to $60)
Employee + Children $810.61 $699.44 $111.17 (rounded to $110)
c) For fiscal year 2014 -15 only, on October 1, unit members participating In the
HDHP plan may also "sell back" accrued sick leave at 100% of their hourly rate
to transfer to their HSA, up to the maximum allowed by the IRS. Beginning on
October 1, 2015, unit members participating in the HDHP plan may sell back sick
leave in accordance with the Years of employment schedule outlined in Section
3 of Article 16 (Sick Leave) for transfer to his /her health savings account. There
are no minimum requirements necessary for members to "sell back" sick leave.
4. The Village agrees to pay one hundred percent (100•x) of the employee cost of
dental insurance. Unit Members will pay one hundred percent (100%) of the cost
of dental insurance for dependents if the Unit Member elects such coverage by
payroll deduction.
5. The Village will provide life insurance for full -time employees at one and one -
half (1 %) times their annual salary, plus an additional Five Thousand Dollars
($5,000.00), up to a maximum of $150,000.
Section 2•
It is the Village's intent that all its employees be adequately protected and insured for health
care costs and expenses. Therefore, each Unit Member must enroll in, and continue to be
enrolled during their tenure with the Village, the Village's present and available health Insurance
plan and maintain full coverage for themselves at a minimum. The Unit Members may enroll
eligible dependants at their option.
The Village and the PBA agree that the following language will be incorporated into the successor
agreement related to insurance is as follows:
2. The Village will provide all employees represented by the PBA with the information that is being
provided to other employees related to the insurance options, and the Village will allow employees
in the PBA bargaining unit to make their decision about which plan to participate in by August 29,
2014.
3. This Memorandum of Agreement will be incorporated into the final Collective Bargaining Agreement
between the parties.
4. This memorandum of agreement will take effect on September 2, 2014, and will remain in effect
until it is replaced with final language that is effective for the successor collective bargaining
agreement, or September 30, 2016, whichever occurs first.
SIGNED this r day of , 2014.
ATTEST: VILLAGE OF TEQUESTA
Lori McWilliams, Michael Couzzo
Village Clerk b b� t p s Village Manager
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