Memorandum of Understanding with Unit 12 - Dpa - State of California

3.4 Health and Welfare Trust PlanA. During the term of this agreement, the Union may establish a Health and Welfare TrustFund for the purpose of providing health, dental, and vision benefits to its Unit 12 membersand their dependents. The benefits provided through the union-administered Plan must be:1. comparable to those currently offered Unit 12 members and their dependents;2. a cost effective alternative to the current benefits offered;3. legally and administratively feasible under the State's payroll and benefitsprocessing systems or an alternative system that is equal to the State's payroll andbenefits processing system established by the union Trust.B. The Union agrees to provide the State, as part of the approval process, a comprehensiveproposal detailing:1. The benefits to be offered.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 of the benefit plan pursuant to a written plandocument;2. written designation of one or more named fiduciaries who jointly or severally haveauthority to control and manage the operation and administration of the plan.D. The Health and Welfare Trust Fund and Union sponsored plan must also comply with allrequirements of 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 with the State toclarify the Union's sole responsibility and liability for the funds paid to the Health andWelfare Trust, the provision of benefits offered, and claims against the Trust for servicesrequired and to indemnify and hold harmless the State, its officers, agents and employeesfrom any and all claims and losses accruing or resulting from the performance of contractsor subcontracts established with 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 of a Health and Welfare Trust outsidethe Public Employees' Medical and Hospital Care Act (PEMHCA), all Unit 12 employees,their dependents and future annuitants become ineligible for:1. Other health plans offered through PEMHCA.2. Rural subsidy provided under Government Code Section 22825.01.3. Retiree health benefits provided through PEMHCA.30BU 12(99-01)