HomeMy WebLinkAbout10- Teamsters Local Union No. 2 Letter of AgreementJun 07 10 10:48a Teamsters Local 2 Great F 4064536652
Letter of Agreement
This Letter of Understanding and Agreement is made and entered into this
day of May, 2010, by and between the City of Bozeman, Montana
hereinafter referred to as the "Employer", and the TEAMSTERS LOCAL UNION NO. 2,
hereinafter referred to as the "Union".
The Parties mutually agree as follows:
1. That Section 1 of Article 11: Health/Dental/Vision/Prescription Insurance is
modified as follows:
Section 1.
ARTICLE 11:
HEALTH/DENTAL/VISION/PRESCRIPTION INSURANCE
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Effective July 1, 2010
contribute
Coverage
Employee-Only
Employee Spouse
Employee Children
Employee Family
une deduction), the City of Bozeman will
Employer Contribution
$480
$782
$719
$1,043
for full time employees for employee health/dental/A on/prescription
insurance and other cafeteria plan options.
The City may
require employees to pay additional contributions to cover dependents,
spouses and/or domestic partners. Costs of these additional coverages
will be paid by the employee through payroll deduction.
During open enrollment each year, employees may select their insurance
coverage by choosing from among the plans offered by the City.
Jun 07 10 10:48a Teamsters Local 2 Great F 4064536652
1 That Section 2 of Article 11 HEALTH/DENTAL/VISION/PRESCRIPTION
INSURANCE is modified as follows:
Section 2. Program to Augment Retirement Benefit Recognizing the previous
intent of employees and the City, as reflected in Article 11 Section 2
of the FY2007 FY2009 collective bargaining agreement, to allow
employees to participate in an I.R.C. 125 plan whereby employees
can contribute toward the purchase of health/dental/vision/
prescription insurance on a pre-tax basis, and seeking to clarify the
employees options under such plan, Article 11 Section 2 of the
collective bargaining agreement is hereby retroactively amended to
July 1, 1996 as follows:
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/prescription 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
compensation as that phrase is defined under 29 U.S.C. 207(e)(4).
In the event 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
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Jun 07 10 10:49a Teamsters Local 2 Great F 4064536652
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.
Effective July 1, 2010, regardless of the amount the City contributes
toward an employee's health insurance as stated in Section 1, the
Contribution to an employee's gross pay for purposes of calculating
income for retirement purposes will be $480.00 per month.
IN WITNESS WHEREOF, the Parties hereto have set their hands this 2 1 ‘day
of May, 2010
CITY OF BOZEMAN
Chris Kukulski, City Manager
TEAMSTER. LOCAL UNION NO. 2
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