"In lieu" premium credit option.

San José Municipal Code § 3.28.1965

in effect

3.28.1965 - "In lieu" premium credit option. A. Effective June 16, 2017, members and their surviving spouses, surviving domestic partners, and/or children who are eligible for medical insurance coverage under Section 3.28.1950 or 3.28.1960 may instead of receiving such coverage choose to receive a credit for an amount equal to twenty-five percent (25%) of the monthly premium of the lowest cost medical plan as defined under Section 3.28.1980 and the lowest cost dental plan under the coverage provided under Part 17. Such credited amounts must be applied toward the cost of such person's healthcare premiums actually incurred in future years under Part 16 and Part 17 of this Plan. B. Each year during the annual open enrollment period during which qualifying individuals covered under this Part 16 and Part 17 are provided the opportunity to elect healthcare coverage under this Part 16, or upon the occurrence of another event identified by the medical plans as providing qualifying individuals with the opportunity to elect coverage under this Part 16, such individuals may again elect such coverage and pay the full cost of the member portion of the coverage or instead elect to have the credit described in Section 3.28.1950.D again credited to be used only for application toward the cost of such person's healthcare premiums actually incurred in future years under Part 16 and Part 17 of this Plan. C. Individuals receiving credits in lieu of premiums for greater than the cost of single coverage must annually submit substantiation that they continue to be eligible for coverage at greater than the cost of single coverage. 1. Eligible retirees who receive retiree healthcare coverage as a dependent of another City employee or retiree are not eligible for the family in lieu premium credit. He or she may elect the single in lieu premium credit. D. To the extent a member and/or the member's eligible dependents selects to receive the credits under this Section 3.28.1965.A or 3.28.1965.B and the member and his or her surviving dependents do not use the accumulated credits while eligible for healthcare coverage under this Part 16, any remaining credits will be forfeited. In no event can a member, surviving spouse, surviving domestic partner, and/or eligible dependent receive the credits in lieu of coverage under this Part 16 as cash and such credits may only be applied to the cost of future premiums for coverage provided under this Part 16 and Part 17. E. Any member who retires for service or disability pursuant to the provisions of this Chapter waives coverage, he or she will not be required to enroll in Medicare Parts A or B. However, if such member or former member later joins a City plan, he or she will be required to enroll in Medicare Parts A and B and any charges or penalties imposed by Medicare associated with enrollment outside the "initial enrollment period" shall be borne by such member or former member. (Ord. 29904.)

Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT3PE_IIREPL_CH3.281975FEEMREPL_PT16MEBECERESU_3.28.1965LIPRCROPFetched: 11/1/2026