CITY OF
lFPl'E, Local 21
Cupertino
Employees'
Association
CUPERTINO
2019 - 2022 MOU
Side
Letter
Agreement
SIDE LETTER AGREEMENT TO THE
2019 - 2022 CUPERTINO EMPLOYEES' ASSOCIATION
MEMORANDUM OF UNDERST ANDING
CONCERNING ADOPTION OF IRS SECTION 125
PREMIUM ON[,Y P'[AN
DATE: April 20, 2021
The City of Cupertino ("City") and the City of Cupertino Employees' Association ("Employee Association") enter into this Side Letter Agreement and hereby agree to amend the existing MOU provisions as fonows:
SECTION 13.1: MAXIMUM WORKING HOURS AND FATIGUE TIME
13.1. Health - Medical and Dental Insurance
City agrees to pay an amount as set forth herein for medical coverage for employee and dependents through the Meyers-Geddes State Employees Medical and Hospital Care Act. For each participating employee, the City sliall contribute the maximum toward premium cost per month for health and dental during the term of this agreement as follows:
Effective January 1,
2020
City Max Health
Contribution
City Max Dental
Contribution*
City Total Max
Contribution
Employee 848.87 126.78 975.65
Employee +l 1,443.09 126.78 1,569.87
Employee +2 1,876.01 126.78 2,002.79
January 1, 2021 City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 891.32 126.78 1,018.10
Employee+l 1,515.24 126.78 1,642.02
Employee +2 1,969.81 126.78 2,096.59
-l-
CITY OF 2019 - 2022 MOU
IFPTE Local 21
Cupertino
Employees
Association
CUPERTINO
Side
Letter
Agreement
January 1, 2022 City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 935.88 126.78 1062.660
Employee +I 1,591.01 126.78 1,717.79
Employee +2 2,068.31 126.78 2,195.09
Required contribution amounts exceeding the premium contribution of the City are the responsibility of tlie employee. Tlie City no longer pays medical insurance casli back (excess of the monthly premium less the cost of the medical coverage) for any employees.
Effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits as defined in the Summary of Benefits can continue on the Cupertino medical and dental plans provided that they pay the premiums in full.
The City reserves the right of selection and administration as to deferred compensation and Section 125 plan(s).
If during the term of this agreement, modifications are made to the Federal tax code which would result in any of the medical insurance provided be subject to taxation, the contract will be re-opened for the purposes of adjusting the salary and medical benefits so long as it does not result in an increase or decrease in the total compensation.
If during the term of this agreement, new medical plans are identified that will be beneficial to the City and CEA, the contract will be reopened to discuss these plan options.
Health deductions for employee payments towards PEMHCA premiums shall occur on a bi-monthly basis consistent with CalPERS required PEMHCA paymentschedule.
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CITY OF 2019 - 2022 MOU
lFPl'E, Local 21
Cupertino
Employees'
Association
CUPERTINO
Side
Letter
Agreement
To tlie extent any Citv prei'niui'n contributions or employee out-of- pocket costs for premiun'is are eligible for pre-tax treatment under Section 125 of tlie Internal Revenue Code, tlie City and all participating employees sliall pay their respective sliare of the cost of medical, dental, vision, and slioit and long term disability insurance through a City-sponsored Section 125 Premirim Only Plan (POP).
13.2 Health In Lieu Payments
City agrees to pay a monthly amount of three hundred seventy-five ($375.00) per month to bargaining unit employee who can demonstrate tliat they have equivalent health coverage through their spouse, parent, or other group coverage and wl'io request this cash payment in lieu of health insurance coverage. Emplovees waiving City-sponsored liealth coverage must provide proof of other satisfving coverage for tlie employee and otlier eligible dependents (if applicable) and submit the applicable election forms to Human Resources annually. Enrollment in City-sponsored liealtli coverage shall be required (consisting of at least the lowest cost's employee only healtli plan) unless the employee meets the requirements to waive coveraze.
13.3 Life Insurance
City shall provide life insurance and accidental death and dismemberment coverage for each employee in the amount of two and one half times annual salary to a maximum benefit of $250,000. Employees may be eligible to purchase additional life insurance subject to the provisions of the insurance policy.
13.4 Shoit Term and Long Term Disability Insurance CEA employees will participate in California State Disability Insurance (SDI). SDI weekly benefits are determined by the State of California and information is available on the State of California Employment Development Department website. Employees may use leave banks to supplement lost salary during the 7 day elimination period.
Bargaining unit members shall pay the 1% cost of CA SDI, which will be deducted from their biweekly paychecks. Until full enrollment in CA SDI becomes effective, bargaining unit members will continue to be covered by the current Short Term Disability plan during the transition. Integration of SDI with the City's current Short Term Disability plan will be in accordance -3-
CITY OF 2019 - 2022 MOU
lti'PIE, Local21
Cupertino
Employees'
Association
CUPERTINO
Side
Letter
Agreement
witli SDI rules and regulations.
The City shall provide Long Term Disability (LTD) insurance for employees. LTD income protection coverage sliall be up to $7,000 of covered monthly salary. Employees may use sick leave and/or vacation leave to supplement lost salary during the 90 day elimination period.
13.5 Vision Care Insurance
The City shall provide Vision Care Insurance for employees and their dependents at a cost of$l4.94 monthly.
Unless otherwise stated, the provisions of this Side Letter Agreement shall supersede any inconsistent or conflicting provisions of the parties' Memorandum of Understanding, effective July 16, 2019 - June 30, 2022 ("MOU") as well as the terms of the November 26, 2019 Side Letter of Agreement between the parties regarding Section 13.2. All other provisions of the parties' MOU shall otherwise remain in full force and effect. This Side Letter Agreement shall only become binding and effective upon the City Council's approval and adoption of this Side Letter Agreement.
The parties further agree that the contents and terms of this Side Letter Agreement shall be incorporated into the successor MOUs unless modified otherwise in successor MOU negotiations, and the terms of this Side Letter Agreement shall remain in force beyond the expiration of the 2019 - 2022 MOU.
The parties' signatures below signify that they have met and conferred in good faith in accordance with CaLifornia Government Code Section 3500, et seq. Agreed to on this th day of April 2021, by the parties' authorized representatives.
For the City For the Employee Association
Christopher Boucher Date
s'!:'b/%"Amq2sn
Stanley Young
May 21, 2021
Date
-4-
2021-04-20 Final CEA Side Letter Agreement
Final Audit Report
Created:
By:
Status:
Transaction ID:
2021-05-07
Vanessa Guena ([email protected])
Signed
CBJCHBCAABAASRHO-4aXm218lKf YlPcB5maZn2xHiNT
2021-05-24
"202'l -04-20 Final CEA Side Letter Agreement" History '6 Document created by Vanessa Guerra ([email protected]) 2021-05-07 - 6:36:01 PM GMT- IP address: 108.213.70.66 F?-+ Document emailed to Michael Moore ([email protected]) for signature 2021-05-07 - 6:38:22 PM GMT
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