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The city's predetermined proportionate share of the premium or payment cost of the group insurance, self-insured health plan coverage provided for officers, employees, retirees and dependents and any tax-preferred health coverage funding vehicles included in the trust shall be paid from funds budgeted and authorized to be paid during each fiscal year that such group insurance policy or health plan shall be in effect. The finance director is hereby authorized and directed to pay, upon receipt of duly executed demands, to the group insurance carrier or the self-insured health benefits such sums as may, from time to time, be due and payable as premiums or payments in accordance with the agreement and master policy. Such payments shall be made from the appropriate fund of the city.
(Ord. No. 11628, § 6, 3-5-19)
The human resources director is hereby charged with the duty of causing all officers, employees and retirees of the city who are eligible to participate in an employee health or welfare plan to be informed as to their benefits, rights and obligations under such health or welfare plan. The human resources director also is directed to deduct and withhold for each and every payroll period from the compensation of each such officer, employee and retiree (or from pension payments, in the case of a retiree) a sum equal to that individual's predetermined proportionate share of the premium or cost of the group insurance, self-insured health benefits plan provided to and elected by such officer, employee or retiree and any tax-preferred health coverage funding vehicles included in the trust. In appropriate cases, as determined by the human resources director, officers, employees and retirees may submit payment of his or her predetermined proportionate share of the premium or cost of any elected group insurance or self-insured health benefits plan via alternative means acceptable to the human resources director. The amount so withheld or collected shall be paid to the appropriate insurance company or to the Self-Insured Health Benefits Trust as provided by section 22-81; however, failure of the human resources director to withhold such sums shall not relieve such officer or employee from whose compensation such sums are not withheld from liability therefor. If more or less than the correct amount is deducted in any payroll period or collected from the officer, employee or retiree, proper adjustment or refund shall be made, without interest, in such manner and for such time as the human resources director shall prescribe.
(Ord. No. 11628, § 7, 3-5-19)
Funds of the Self-Insured Health Benefits Trust shall be expended solely for payment of claims incurred in accordance with any self-insured medical benefits plan, administration of any such plan and the Self-Insured Health Benefits Trust, overhead and indirect costs allocated by the city to the self-insured medical benefits plan and the trust, wellness programs benefitting city employees participating in the self-insured medical benefits plan and their dependents, and other purposes of the trust as approved by the trustees. The trustees shall adopt an annual budget for the trust, including the administrative costs of administering the trust and the plans, as well as benefit and reinsurance costs.
(Ord. No. 11628, § 8, 3-5-19)
Notwithstanding other provisions of this article, any city officer or employee eligible for medical coverage under the city's medical plan may waive coverage under the city's medical plan and elect to receive a medical insurance incentive allowance of thirty-six dollars and ninety-two cents ($36.92) per pay period provided that the city officer or employee is not currently covered by the city's retiree medical plan or as a dependent under another city employee or retiree's plan, and provided that the employee provides acceptable proof of non-city medical insurance to the Benefits division of Human Resources. This waiver does not extend to dental coverage or to other plans provided under section 125 of the Internal Revenue Code.
Any city officer or employee may request the incentive for waiver of medical coverage during the initial thirty-one (31) days of city employment, during the annual open enrollment period, or whenever there is a qualifying life event such as gaining coverage through a non-city medical plan, and provided that the city officer or employee is not currently covered by the city's medical plan.
The actual effective date for the incentive payment will depend upon the reason for the change. For newly hired employees, the effective date for start of the incentive will be the date a new hire employee normally becomes eligible for other city-paid benefits. For an open enrollment change, the effective date for start of the incentive will be the date that the new fiscal year's medical insurance premiums otherwise would take effect. For qualifying life events, the effective date for starting the incentive payment will be the first day the waiver of city medical coverage takes effect. Regardless of the reason, in order for the incentive to take effect on the dates prescribed above, proper documentation supporting the incentive for waiver must be received by the Benefits division of Human Resources before the incentive payment will begin. If documentation is received after the date incentive otherwise would have taken effect, the incentive will begin the pay period that the acceptable documentation is received, and retroactive payments of the incentive will not be made.
When an eligible employee resumes medical coverage on a city plan, the effective date for stopping the incentive will be the last date prior to the date the city medical coverage begins.
Any city officer or employee waiving medical coverage under the city's plan must provide written proof of medical coverage from another non-City of Tucson source. Failure to provide periodic proof of medical coverage from another non-city source, satisfactory to, and at such frequency as determined by the city, will be grounds for the city to discontinue the incentive and recoup any incentive payments made for the time the employee did not maintain medical coverage. Proof of medical coverage from another non-city source must be provided within thirty (30) days of any request.
(Ord. No. 9857, §§ 1, 2, 6-2-03; Ord. No. 10059, § 1, 10-11-04; Ord. No. 10678, § 2, 6-9-09, eff. 7-1-09; Ord. No. 10991, § 1, 6-12-12, eff. 7-1-12; Ord. No. 11364, § 3, 6-7-16, eff. 6-26-16; Ord. No. 11628, § 10, 3-5-19)
Editor’s note – It should be noted that § 22-88 is effective retroactive to April 30, 2003.
ARTICLE V.
LEAVE BENEFIT PLAN*
LEAVE BENEFIT PLAN*
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* Editors Note: Ord. No. 9348, § 1, adopted Feb. 7, 2000, amended the title of art. V to read as herein set out.
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