Memorandum of Understanding with Unit 12 - Dpa - State of California
Memorandum of Understanding with Unit 12 - Dpa - State of California
Memorandum of Understanding with Unit 12 - Dpa - State of California
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3.4 Health and Welfare Trust PlanA. During the term <strong>of</strong> this agreement, the Union may establish a Health and Welfare TrustFund for the purpose <strong>of</strong> providing health, dental, and vision benefits to its <strong>Unit</strong> <strong>12</strong> membersand their dependents. The benefits provided through the union-administered Plan must be:1. comparable to those currently <strong>of</strong>fered <strong>Unit</strong> <strong>12</strong> members and their dependents;2. a cost effective alternative to the current benefits <strong>of</strong>fered;3. legally and administratively feasible under the <strong>State</strong>'s payroll and benefitsprocessing systems or an alternative system that is equal to the <strong>State</strong>'s payroll andbenefits processing system established by the union Trust.B. The Union agrees to provide the <strong>State</strong>, as part <strong>of</strong> the approval process, a comprehensiveproposal detailing:1. The benefits to be <strong>of</strong>fered.2. Premiums to be charged by the benefits carrier(s).3. Administration systems and charges.C. The Health and Welfare Trust Fund must meet all ERISA requirements including, but notlimited to:1. establishment and administration <strong>of</strong> the benefit plan pursuant to a written plandocument;2. written designation <strong>of</strong> one or more named fiduciaries who jointly or severally haveauthority to control and manage the operation and administration <strong>of</strong> the plan.D. The Health and Welfare Trust Fund and Union sponsored plan must also comply <strong>with</strong> allrequirements <strong>of</strong> the federal Consolidated Omnibus Budget Reconciliation Act (COBRA).E. The Union agrees to provide written evidence that named fiduciaries are covered byfiduciary liability insurance and are bonded.F. The Union further agrees to develop and execute a legal agreement <strong>with</strong> the <strong>State</strong> toclarify the Union's sole responsibility and liability for the funds paid to the Health andWelfare Trust, the provision <strong>of</strong> benefits <strong>of</strong>fered, and claims against the Trust for servicesrequired and to indemnify and hold harmless the <strong>State</strong>, its <strong>of</strong>ficers, agents and employeesfrom any and all claims and losses accruing or resulting from the performance <strong>of</strong> contractsor subcontracts established <strong>with</strong> benefit carriers and from any and all claims and lossesaccruing or resulting to any person, firm or corporation who may be injured or damaged bythe contractor or subcontractor providing these benefit services.G. The Union recognizes that, upon establishment <strong>of</strong> a Health and Welfare Trust outsidethe Public Employees' Medical and Hospital Care Act (PEMHCA), all <strong>Unit</strong> <strong>12</strong> employees,their dependents and future annuitants become ineligible for:1. Other health plans <strong>of</strong>fered through PEMHCA.2. Rural subsidy provided under Government Code Section 22825.01.3. Retiree health benefits provided through PEMHCA.30BU <strong>12</strong>(99-01)