Common use of Tier 2 Clause in Contracts

Tier 2. Benefits for unit employees with less than fifteen (15) years of fulltime service to the City on or before May 1, 2014. a. Monthly stipend for medical premiums: Upon retirement from the City, the City shall pay on behalf of each Tier 2 retiree the actual cost of the retiree and dependents’ health insurance, not to exceed five hundred dollars ($500) per month, beginning the first month after retirement from the City and continuing for one hundred eighty (180) months. b. Effective upon the adoption of the new Salary Ordinance, the monthly stipend for medical premiums shall increase from five hundred dollars ($500) to seven hundred dollars ($700). The stipend is paid directly to the City’s medical benefit provider. The retiree/dependents shall be responsible for any difference in the medical premium. c. Upon retirement, a Tier 2 retiree may, in lieu of the one hundred eighty (180) stipend payments, elect to receive forty percent (40%) of the value these stipends (e.g., $700 x 180 months x .40 = $50,400.00) as a one-time, lump sum payment deposited into his or her RHS Plan. d. The retiree medical stipend will terminate forever, if at any time the retiree/dependent(s) fails to pay the difference between the stipend and the cost of the monthly medical insurance premium, after reasonable notice of such failure to pay is received by the retiree/dependent(s). e. The dependents of a deceased Tier 2 retiree who was receiving a stipend shall continue to receive the balance of such stipend payments provided said dependent(s) maintain(s) the City’s medical coverage. f. All unit employees in Tier 2 shall make an annual contribution of two percent (2%) of his/her base salary to his/her RHS plan. Effective July 1, 2019, for unit employees in Tier 2, the matching contribution by the City and every unit employee in Tier 2 shall increase from two (2%) to three percent (3%). g. This contribution will be made in twenty-four (24) increments to coincide with each “non-free” pay period (e.g., there are twenty-six [26] pay periods per year, however, two [2] of them do not have voluntary deductions taken from them). The employee contribution shall begin the first pay period after the RHS Plan has been implemented. This amount may be modified from time to time by IPMA, in which case the parties shall amend this provision of the MOU.

Tier 2. Benefits for unit employees with less than fifteen (15) years of fulltime service to the City on or before May 1, 2014. a. Monthly stipend for medical premiums: Upon retirement from the City, the City shall pay on behalf of each Tier 2 retiree the actual cost of the retiree and dependents’ health insurance, not to exceed five hundred dollars ($500) per month, beginning the first month after retirement from the City and continuing for one hundred eighty (180) months. b. Effective upon the adoption of the new Salary Ordinance, the monthly stipend for medical premiums shall increase from five hundred dollars ($500) to seven hundred dollars ($700). The stipend is paid directly to the City’s medical benefit provider. The retiree/dependents shall be responsible for any difference in the medical premium. c. b. Upon retirement, a Tier 2 retiree may, in lieu of the one hundred eighty (180) stipend payments, elect to receive forty percent (40%) of the value these stipends (e.g., $700 500 x 180 months x .40 = $50,400.0036,000.00) as a one-time, lump sum payment deposited into his or her RHS Plan. d. c. The retiree medical stipend will terminate forever, if at any time the retiree/dependent(s) fails to pay the difference between the stipend and the cost of the monthly medical insurance premium, after reasonable notice of such failure to pay is received by the retiree/dependent(s). e. d. The dependents of a deceased Tier 2 retiree who was receiving a stipend shall continue to receive the balance of such stipend payments provided said dependent(s) maintain(s) the City’s medical coverage. f. e. All unit employees in Tier 2 shall make an annual contribution of two percent (2%) of his/her base salary to his/her RHS plan. Effective July 1, 2019, for unit employees in Tier 2, the matching contribution by the City and every unit employee in Tier 2 shall increase from two (2%) to three percent (3%). g. This contribution will be made in twenty-four (24) increments to coincide with each “non-free” pay period (e.g., there are twenty-six [26] pay periods per year, however, two [2] of them do not have voluntary deductions taken from them). The employee contribution shall begin the first pay period after the RHS Plan has been implemented. Note: The percentage from each “non-free” pay period shall equal approximately 2.16667. This amount may be modified from time to time by IPMA, in which case the parties shall amend this provision of the MOU.