Transcript the City shall provide active employees covered by this agreement

MEMORANDUM OF
AGREEMENT
between the
CITY OF MELROSE
AND THE
MELROSE PUBLIC EMPLOYEE
COMMITTEE
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HISTORY
• First PEC/GIC agreement ratified for
three years in September, 2008.
• Vote to renew the agreement for
another three years in March, 2011.
• Current agreement expires June 30,
2015
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Bargaining the current
agreement
• Mayor requested bargaining
• Bargaining sessions in April, May
and June
• Public Employee Committee (PEC)
met after each session
• Agreement reached on June 17, 2014
• PEC recommending this agreement
for ratification
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Memorandum of Agreement between
The City of Melrose and the
Melrose Public Employee Committee
WHEREAS, the City of Melrose and the Melrose
Public Employee Committee have concluded negotiations on
health insurance benefits to be provided by the City to
employees, retirees and their dependents and survivors, and,
WHEREAS, the parties agree that the collective
bargaining agreements in effect between the City and its
Unions shall continue in full force and effect except as
expressly modified by this Memorandum of Agreement, and
WHEREAS, the Melrose Board of Aldermen voted on
November 15, 2004 to accept Section 19 of Chapter 32B, (as
amended by Chapter 67 of the Acts of 2007 and Chapter 69
of the Acts of 2011), and
NOW, THEREFORE, the Public Employee and the
City have entered into this Memorandum of Agreement
pursuant to Section 19 of Chapter 32B.
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Effective Date
and
Duration of Agreement
1.
This agreement shall take effect on the date as of which
this agreement has been executed by the Mayor and by
representatives of the Public Employee Committee
constituting a majority of the weighted votes of the
Committee and shall remain in effect through June 30,
2021.
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Health Coverage to be Provided Through the Group
Insurance Commission
2.
The City of Melrose and the Public Employee
Committee agree that health coverage will continue to
be provided for all subscribers through the Group
Insurance Commission through June 30, 2021. For
purposes of this agreement, the term “subscribers”
shall mean all employees, retirees, and their
dependents and survivors, currently insured and
eligible under Chapter 32B or under section 12 of
Chapter 32A and under any policies, practices and/or
regulations of the City in effect as of the date of this
agreement, as well as any subscribers who become
eligible in the future under Chapter 32B and any
policies, practices and/or regulations of the City in
effect as of the date of this agreement.
3.
Subscribers will receive health coverage from the Group
Insurance Commission in accordance with the
provisions of Section 19 of Chapter 32B, as amended by
Chapter 67 of the Acts of 2007, Chapter 69 of the Acts
of 2011, or any subsequent amendments thereto.
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4.
To the extent necessary, the City will provide the Group
Insurance Commission with a copy of this agreement as
soon as possible after it takes effect in accordance with
paragraph 1, and in no event later than October 1, 2014.
Premium Contributions
HMO/PPO Plans – 84/16 Split
5.
Effective July 1, 2015, and for the duration of this
agreement, the City will contribute eighty-four percent
(84%) of the premium or cost for any of the following
health maintenance (HMO) or preferred provider (PPO)
plans offered by the Group Insurance Commission
which a subscriber selects and the subscriber shall
contribute sixteen (16%) percent.
•
•
•
•
•
Neighborhood Health Plan
Fallon Select Care
Fallon Direct Care
Harvard Pilgrim Health Care Independence Plan
Harvard Pilgrim Primary Choice
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•
Health New England
Tufts Health Plan Spirit
Tufts Health Plan Navigator
UniCare State Indemnity Plan PLUS
•
UniCare State Indemnity Plan Community Choice
•
•
•
If the GIC offers any new or additional HMO or PPO
plans during the life of this agreement, the same
contribution percentages will apply. However, it is
agreed that only plans offered by the GIC will be
available to subscribers.
In accordance with Chapter 46 of the Acts of 2005, the
City shall contribute eighty-five percent (85%) of the
premium cost for any employee who has retired or will
retire from the service of the City and is enrolled in an
HMO or PPO type health plan offered by the City, for
as long as the retiree remains continuously enrolled in
such plans notwithstanding any change in the health
plan premiums paid by the City for active employees.
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Indemnity Plans – 60/40 Split
6.
For the duration of this agreement, the City will
contribute sixty percent (60%) of the premium or cost
for any of the following indemnity plans offered by the
Group Insurance Commission which a subscriber
selects and the subscriber shall contribute forty (40%)
percent:
•
•
UniCare State Indemnity Plan Basic
with CIC
UniCare State Indemnity Plan Basic without CIC
If the GIC offers any new or additional Indemnity
plans during the life of this agreement, the same
contribution percentages will apply. However, it is
agreed that only plans offered by the GIC will be
available to subscribers.
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Medicare Enrollment – 70/30 Split
7. Subscribers who are eligible or who become eligible for
Medicare shall transfer to Medicare coverage. The City
shall pay any Medicare Part B premium penalty assessed
by the federal government and will contribute seventy
percent (70%) of the monthly cost of the standard
Medicare Part B premium and of a Medicare Extension
Plan selected by the subscriber for any subscriber
enrolled in Medicare and the subscriber will contribute
30 percent (30%).
Flexible Spending Accounts
8. The City will offer to active employees a Flexible
Spending Medical Program (including the debit card)
and will provide for and pay the administrative costs
associated with the program. The City will also pay an
annual administrative fee for subscribers who opt into
the program for the duration of this Agreement.
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Meetings
9.
The Public Employee Committee shall be comprised of
a union officer from each collective bargaining unit
which negotiates with the Mayor and a retiree
representative designated by the Retired State, County
and Municipal Employees Association. Each union
officer and the retiree representative shall have the
option of allowing one additional representative to
attend meetings of the Public Employee Committee
with the Mayor, and/or his designees.
10.
The parties shall establish a regular schedule of
meetings to discuss the administration and operation
of this agreement and any issues relating to the
effectiveness and efficiency of health coverage for
subscribers. Such meetings shall take place no less
than quarterly, unless agreed otherwise. Meetings will
be held at times and places which are mutually agreed
upon by the City and the Committee. In addition,
either party may convene a meeting upon 7 days’ notice
to the other party, unless there is an emergency that
requires shorter notice. Meeting notices will be
provided to the Mayor and to the Public Employee
Committee to the person and in the manner
designated in writing by the Mayor and the
Committee.
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11.
Any employee who is a representative on the Public
Employee Committee shall receive time off to attend
meetings of the Committee with the Mayor, and/or his
designees, with full pay and benefits.
Correspondence and Information
12. The City shall copy a designee of the Public Employee
Committee on all correspondence to the Group
Insurance Commission or to any provider of health
coverage. The City shall also provide the Public
Employee Committee with a copy of all correspondence
from the Group Insurance Commission or from any
provider of health coverage by requesting that the
Commission or the provider copy of the Public Employee
Committee on such correspondence or by providing a
copy to the Public Employee Committee, providing that
nothing in this section will violate state or federal law.
13. Upon request, the City shall provide the Public Employee
Committee with information necessary to carry out it
responsibilities under this agreement and the provisions
of Section 19 of Chapter 32B as amended by Chapter 67
of the Acts of 1997, Chapter 69 of the Acts of 2011, or any
subsequent amendments thereto.
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Health Coverage after June 30, 2021
14.
This agreement will terminate on June 30, 2021.
15.
The Mayor and the Public Employee Committee will
begin negotiations for a successor agreement pursuant
to Section 19 of Chapter 32B, and any subsequent
amendments thereto, no later than February 1, 2020. At
the request of the PEC, the City will present a proposal
for alternative plans which are at least the actuarial
equivalent of those offered by the Commission for the
(sixth year) plan year so that the parties may fully
explore and negotiate the health coverage to be
provided to subscribers starting on July 1, 2021. If the
parties have not reached a successor agreement by June
1, 2020, either party may file for final and binding
arbitration of all unresolved issues, including but not
limited to , whether to withdraw from Commission
coverage, the health coverage which will be provided if
subscribers are withdrawn from the Commission , and
premium contributions. The arbitration proceeding
shall be administered by the American Arbitration
Association under the procedures set forth in its Labor
Arbitration Rules. The arbitrator shall render a decision
no later than September 1, 2020 and the parties shall
execute a successor agreement no later than September
15, 2020.
16. In accordance with the provisions of the successor
agreement, the City will continue coverage through the
Commission effective July 1, 2021 the interval specified
in the agreement or that the City is withdrawing its
subscribers effective July 1, 2021. In the event that the
City ceases to provide health insurance through the
Group Insurance Commission, the City and the Public
Employee Committee agree to maintain Section 19 of
Chapter 32B to bargain health insurance coverage.
Effect of Agreement
17. This agreement shall be binding on all subscribers and
shall supersede any conflicting provisions of any City
policies or any collective bargaining agreements between
the City and any unions representing town employees.
Cancellation
18. In the event the City is delinquent in making payments as
required by the Group Insurance Commission and the
Commission notifies
Arbitration of Disputes
19. Either party may submit a dispute between the parties
concerning the interpretation or application of this
agreement to the American Arbitration Association for
final and binding arbitration under its Labor Arbitration
rules.
A request for arbitration on behalf of the Public
Employee Committee must be approved by seventy
percent (70%) of the weighted votes of the
representatives on the Committee.
Special Legislation
20. Throughout the duration of this agreement, the City of
Melrose commits that it will not petition the Legislature,
nor commence any process, for the enactment of special
legislation concerning the provision of health insurance
to subscribers covered by this agreement, as well as the
subject matters which are also covered by this
Agreement.
Premium Holiday
21. In Fiscal Year 2016 (July 1, 2015 to June 30, 2016), the City
shall provide active employees covered by this agreement
with a premium holiday during the month of December.
Said premium holiday shall equate with 1/12th of the
employee’s annual share of his or her health insurance
premium contribution. This premium holiday shall only
occur during the month of December in Fiscal Year 2016,
and shall not occur in any subsequent years during the
life of this Agreement.
Hiatus Period Procedures
22. Reimbursement During Hiatus Period.
(a) COBRA
Any newly hired eligible employee who enrolls in a GIC
health insurance plan and continues group health
benefits under COBRA during the Hiatus Period shall
be reimbursed by the City on a proportional basis for
the cost of COBRA benefits during the Hiatus Period.
The proportional reimbursement amount shall be
determined by the contribution split agreed to in the
Section 19 PEC Agreement
(i.e. 84/16 for HMO and PPO plans; 60/40 for
indemnity plans) for the selected GIC plan. Under no
circumstances, shall the City’s COBRA
reimbursement exceed what the City would have
contributed to the selected GIC plan during the
Hiatus Period.
(b) Health Connector Plan.
Any newly hired eligible employee without health
insurance coverage who enrolls in a GIC health
insurance plan and who also chooses to enroll in a plan
available to him/her through the Commonwealth
Connector during the Hiatus Period shall be reimbursed
by the City on a proportional basis for the total cost of
the selected Commonwealth Connector plan premium
during the Hiatus Period. The proportional
reimbursement amount shall be determined by the
contribution split agreed to in the Section 19 PEC
Agreement (i.e. 84/16 for HMO and PPO plans; 60/40
for indemnity plans) for the selected GIC plan. Under
no circumstances, shall the City’s Connector
reimbursement exceed what the City would have
contributed to the selected GIC plan during the
Hiatus Period.
(c) Medical expenses in lieu of premium
reimbursement during Hiatus Period
Any newly hired eligible employee without health
insurance coverage who enrolls in a GIC health
insurance plan, but chooses not to continue COBRA
benefits or elect a Connector plan shall be reimbursed
by the City on a proportional basis for all unexpected
medical expenses incurred by the employee during the
Hiatus Period that do not exceed the total cost of the
selected GIC premium. The proportional
reimbursement amount shall be determined by the
contribution split under the Section 19 PEC Agreement
(i.e. 84/16 for HMO and PPO plans; 60/40 for
indemnity plans) for the selected GIC plan. Under no
circumstances, shall the City’s reimbursement
exceed what the City would have contributed to the
selected GIC plan during the Hiatus Period.
3. GIC Retroactive Effective Date of Coverage
If an employee incurs medical expenses that exceed the
total cost of the GIC selected plan premium during the
Hiatus Period, said employee may file a written request
to the Commission for approval of Health Coverages to
become effective on the first day of employment. Upon
Approval by the Commission, coverage shall take effect
as of the first day of employment. Upon approval by the
Commission, coverage shall take effect as of the first day
of employment. In this event, the City shall contribute
the same percentage toward the premium of the
selected GIC plan retroactive to the first day of
employment as provided for under the Section 19 PEC
Agreement. The City shall submit the full-cost of the
premium for the Hiatus Period to the GIC in a timely
manner. The Employee shall reimburse the City his/her
proportional share of the premium for the Hiatus Period
through normal payroll deductions.
4. Notice
The City shall provide the following information to each
newly hired employee within ten (10) days of his or her
first day of employment.
a) An explanation of the GIC Hiatus Period as
provided in 805 DMR 9.01(3) and the date of when
his/her health insurance shall become effective.
(b) The GIC Retroactive Coverage as provided in CMR
9.01(4).
c) The reimbursement arrangements and options set
forth under the terms of this Side Letter of
Agreement.
d) The tax penalties associated with the requirements
under the Massachusetts Health Care Reform Acts
and applicable regulations.
Commitment to Avoid Layoffs
23. The City commits that it will not effectuate layoffs upon
any bargaining unit employee covered by this agreement
in Fiscal Years 2015 or 2016. In the event a bargaining
unit employee separates from service in either FY15 or
FY16 via voluntary act (i.e., resignation or retirement),
the City maintains the managerial discretion as to
whether said position shall be filled.
In the event the City is required to effectuate layoffs upon
any bargaining unit employee covered by this agreement
in either Fiscal Year 2015 or Fiscal Year 2016, the parties
agree that the premium split for HMO and/or PPO plans
shall revert back to 87/13 for the year(s) in which said
layoff is effectuated. Thereafter, and for any other year
encompassing the term of the agreement, said split shall
be 84/16 for HMO and PPO plans.
24. Each signatory to this agreement is authorized to bind
the entity she represents.
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_______________________________
Robert J. Dolan, Mayor
____________________
Date
Executed on behalf of the Public Employee Committee:
______________________________
Melrose Education Association
__________________________
Superior Officer’s Union
______________________________
Fire Fighter’s Local 1617
__________________________
Patrolmen’s Association
______________________________
Association of City Hall Employees
Employees
_________________________
Melrose Association of City
______________________________
Library AFSCME
__________________________
School Administrators
______________________________
Melrose School Secretaries
__________________________
Melrose Education Paraprofessionals
______________________________
School Transportation
__________________________
School Custodians
______________________________
Retirement Representative