HomeMy WebLinkAbout10- Montana Public Employees Association Letter of AgreementLetter of Agreement
This Letter of Understanding and Agreement is made and entered into this
thy of May, 2010, by and between the City of Bozeman, Montana hereinafter
referred to as the "Employer", and the Montana Public Employees Association,
hereinafter referred to as the "Union".
The Parties mutually agree as follows:
1. That Article 8, Health/Dental/Vision Insurance, Section 1, paragraph A is
modified to read follows:
Section 1
July 1,
Effective Jai)/ .1., 201C
contribute
committccisubjcct to Common approval;
June deduction the City of Boz
o
Coverage
Employee-Only
Employee Spouse
Employee Children
Employee Family
Employer Contribution
$480
$782
$719
$1,043
for fivIVV' dme employees for employeE? heaVgbigentaV/vIsilon/presndratVen
or) ti nce and .other cafeteria pllan orytvonsv
man wil
The CVty may
requ J y€5 tO a y a dct1 ti 0 11 a CO fltb.U tiO fl, s nvvvv c.over" ders nde nts„
spouses and/or borrestk: pardbers.„ Costs of these addition& coverages will
be paid by the employee through payroll deduction.
ri; g Open fl o Pleflt Peak) "Veep eMpoydres yay select thevr 50.0 C0
coverage try choosvng P on among the pVans offdred by the CVty,
_yr
2. That Article 8, Health/Dental/Vision Insurance, Section 2 is modified as follows:
Pro OD At/di:pent ['keit reoornent Bern:eat Reseghoz.orog tohe boavordas oritteof of
ernuiVicoyedearviod tVvite. Citry, es reflected on Art ocO e Se!' C 0 n cyl the V"'"Poori2008
Fl201..1 collective bargdormag agreerravanit alloys empdioyees to participL.. on a 11
nOen kookier e by critiopioyees can CO nitro:oh:at:ft too/ a d t.he ""lEi Se Of
e I h tilt a '11":,3 0 ost otesc r coot iodro L.1 reroicido on prertax baS'S and seekoovittl to
(iv:far oity th errtpV Oye es optioons d E3 S L.„11Ct71 pDaoiro, A.rtOeVe 1..1 Sect viodrivo 2. of tilise
coilvVectove barigoorioong ego iosi hereby retmattroviely arterided to
as fibiDovvd v
Effective July 1, 1996, the City's contribution toward employee's
health/dental/vision/prescription insurance will be added to the employee's gross
pay. This portion of the employee's gross pay is hereinafter referred to as the
"Contribution." As part of this collective bargaining agreement, employees are
required to participate in the City's health/dental/vision insurance plan on either
a pre-tax or post-tax basis. If an employee elects to participate on a pre-tax
basis, the employee shall authorize a payroll deduction from the employee's
gross pay equal to the Contribution toward employee's health/dental/vision/
prescription insurance. This deduction from the employee's gross pay will be
paid into a fund maintained to provide health/dental/vision /prescription
insurance benefits for employees.
If an employee elects to participate on a post-tax basis, the Contribution shall be
taxable income to the employee and the employee shall authorize the payment
of the Contribution value, after its deemed receipt, toward the employee's
health/dental/vision/ prescription insurance.
Including the City's contribution toward employee's health/dental/vision/
prescription insurance in the employee's gross pay serves the purpose of
augmenting the employee's eventual retirement benefit. It is hereby
acknowledged that both employee and employer retirement contributions will be
required on this additional gross income--causing a decrease to the net income
of the employee. It is also the intent of the employees and the City that the
Contribution be excluded from the determination of the employee's "regular
rate" of rpmpensation as that phrase is defined under 29 207(e)(4). In
the evert that any subsequent law, court, arbitrator, or other lawful authority
determines that the inclusion of the City's health/dental/vision/prescription
insurance contribution in the employee's gross pay should be included in
overtime compensation calculations, then the parties agree that there will be a
corresponding adjustment to the affected hourly rate of pay to carry out the
intent of this provision. The intent of such adjustment will be to result in the
least net financial effect on both the employee and the employer.
Effeadsve fiL4 2010,. regardless (:ff tac arrimirst the (PIN contpagetes tpavva an
enliploye.da deaVta edsufaradip a.s stated St.:!stdon :I. above, the Cfc.nitribution to alb
empLOyee'S gbOSS pay"far purposes of cakfukahng mcarne for rs.:.:.:. r...a.dhoses
vkaH be per frafastts.,
IN WITNESS WHEREOF, the Parties hereto have set their hands this c), day
of May, 2010
CITY OF BOZEMAN:
Chris Kukulski, City Manager
MONTANA PUBLIC EMPLOYEES ASSOCIATION:
Executive Director