Common use of Tier I Clause in Contracts

Tier I. An employee covered by this Agreement who retires after the age of 55 and who has 15 or more consecutive years of paid service in the District immediately prior to the date of retirement shall receive the health and welfare benefit contributions (except life insurance) for the applicable level of single, two-party, or family coverage until the retiree reaches age 70 or until the retiree becomes eligible for other health and welfare benefits (e.g., Medicare Parts A and B), whichever occurs first. For the purpose of calculating "consecutive years of paid service," District-approved paid leaves of absence shall not be considered as a break in service. 1. At the time when the retiree becomes "eligible" for other benefits, the retiree's medical insurance coverage shall be modified pursuant to the terms of the medical insurance policy. The word "eligible" as used herein shall mean the attainment of the age at which the retiree may apply for the other benefits. The District's contribution shall be reduced to the amount necessary to purchase the modified medical insurance coverage. 2. When the retired employee no longer receives District contributions to the health and welfare benefit program, the retiree may, with the approval of the carrier(s), continue applicable coverage at the retiree's expense. 3. The provisions of paragraph E of this Article shall not apply to any employee whose first date of hired service to the District is on or after July 30, 1996.