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

H. The Union further acknowledges that administrative procedures must be developed inorder to allow Unit 12 employees to participate in FlexElect or the pre-tax benefits of thePretax Option Plan (POP). It shall be the Union's responsibility to obtain such legislation.The DPA agrees to support this legislation and work with the Union on setting up necessaryadministrative procedures.I. In recognition of the employees vested rights to health and welfare benefits as prescribedin Government Code section 22825.2 and 22825.3, the Union agrees to continue to providecomparable health and dental coverage to all future annuitants of the Trust withoutdiscrimination as to premium rates or benefit coverage. Any eligible survivor of a Unit 12employee has the same benefit election rights as those of a surviving spouse in a healthplan administered by PERS.J. The Union agrees to obtain and DPA agrees to support enabling legislation to transfereligible Unit 12 employees to the Health and Welfare Benefit Trust and to protect the rightsof employees and retirees to post- retirement health benefits coverage in the event ofdissolution of the trust or other loss of coverage.K. The Union agrees to comply with eligibility definitions and standards prescribed byPEMHCA except that, for cost containment, the Trust is authorized to pro-rate benefits bytime base or to limit access to benefits by economically dependent individuals who are notmembers of the employee's immediate family.L. The State agrees to pay the Trust Fund either a composite amount or a multi-party rateas mutually agreed-upon by the parties.M. The above rates as negotiated consistent with Section L above, for employees andannuitants, will be in effect during the term of this agreement.N. It shall be the Union's responsibility to develop a system to demonstrate to the State, ona monthly basis, the number of such enrollments.O. The Union agrees to bear the reasonable and accurate costs incurred by the Departmentof Personnel Administration and the State Controller's Office in removing Unit 12 employeesand their dependents from current health, dental and vision plans and in re-enrolling suchemployees and dependents in the plan(s) established by the Health and Welfare Trust. TheUnion further agrees to pay a monthly charge to the State to cover any administrativecharges involved in the processing of enrollments or payroll deductions.P. Details of this agreement will be incorporated by side letter into this MOU prior toimplementation of the Health and Welfare Trust Fund plan.Q. The parties agree to cooperate in the development of the necessary administrativesystems to ensure a smooth transition of Unit 12 employees and their dependents to theHealth and Welfare Trust Fund Plan and the effective maintenance of such plans.31BU 12(99-01)