Chapter 3 County of Allegheny 202 Tentative Agreement

Memorandum of Understanding

MEMORANDUM OF UNDERSTANDING

TENTATIVE AGREEMENT

between

COUNTY OF ALLEGHENY

and

SERVICE EMPLOYEES INTERNATIONAL UNION

LOCAL 668, CTW, CLC

(Manual Salary - Unit 202)

            Intending to be legally bound the parties hereto agree to the following changes to the collective bargaining agreement between the parties which expired on July 31, 2008.  Except as otherwise provided herein the provisions of the agreement will remain the same.

1.         Term of Agreement - Four years; January 1, 2009 through December 31, 2012.

2.         Wages – All base wage rates shall be increased by the following amounts on the dates indicated:

            1/1/2009                     2.5% increase

            1/1/2010                     3.0% increase

            1/1/2011                     3.0% increase

            1/1/2012                     3.0% increase

3.         Article XXII related to Insurance Benefits shall be amended as follows:

            .      .      .

3.   Health Plan

     Regular full-time employees covered by this agreement will be eligible to participate in the County’s hospitalization plan beginning the first day of the first month immediately following completion of the probationary period.

A.        Regular full-time employees covered under this agreement will be eligible to participate in the Highmark PPO Blue Plan.  Except as provided below, the specific services and benefits of the plan shall remain the same as existed on December 31, 2008.  The main features of the healthcare plan are as follows:

                  1.         Co-pays per visit during the agreement shall be as follows:

                              Doctor visits                                                  $20.00

                              Mental Health and Substance Abuse      $20.00

                              Emergency Room                                       $75.00

                              Prescriptions shall be as follows:

                                                                  $5.00 Generic

                                                                  $20.00 Brand Formulary

                                                                  $45.00 Brand Non-Formulary

                                                                  (Charges for mail order shall be

                                                                   double these amounts)

                  2.         Chiropractor visits - 20 visit maximum per benefit period

       3.         Physical therapy, occupational therapy and speech therapy visits               shall be unlimited.

4.         Effective January 1, 2010, the healthcare plan shall have an individual deductible of $200 per calendar year or a family deductible of $400 per calendar year; provided however, that, if the covered employee completes the requirements of the “Lifestyle Returns” wellness program offered by Highmark, the $200/$400 deductibles will be waived as set forth below.

a.   The Lifestyle Returns Program will include i.)  a Pledge; ii.)  a Health Risk Assessment; iii.)  scheduling preventive exams; iv.)  participating in two health and wellness programs; and v.)  completing the requirements of a healthy education course (reading about a particular subject and completing a survey.)

b.   To be eligible for the waiver of the $200 individual and $400 family deductible for calendar year 2010, the covered employee must complete all of the requirements of the Lifestyle Returns program in 2009 before September 30, 2009.  To be eligible for the waiver of the $200 individual and $400 family deductible for subsequent calendar years, the covered employee must complete the Lifestyle Returns program each year before September 30 of the previous calendar year.  Employees shall receive a day off or $125 for each calendar year in which they complete the requirements of the Wellness Program.

c.   Highmark or County may change the name of the wellness program provided for herein or change the requirements of that program from time to time.  Allegheny County will meet and discuss any such change in the requirements with the Union.

d.   A newly hired employee shall not be subject to the $200/$400 deductibles during the calendar year in which the employee is hired.  In order for the deductibles to be waived in the year following the year in which the employee is hired, the employee must comply with the Lifestyle Returns participation requirements set forth above as follows:

                                         (1)       employees who become eligible for healthcare
                                          benefits between January 1  and  March  31 shall be  required
                                         to  complete all steps of the wellness program  by September 30;

                                          (2)       employees who become eligible for healthcare 
                                           benefits between April 1 and July 31 shall be
                                           required  to complete the first three (3) steps of the
                                           wellness  program (i.e.  i.)  a Pledge and ii.)  a Health
                                           Risk  Assessment and iii.)  scheduling preventive
                                           exams)  by September 30;

                                           (3)       employees who become eligible for healthcare
                                           benefits between August 1 and December 1 shall be 
                                           required to complete the first two (2) steps of the 
                                           wellness program (i.e.  i.)  a Pledge and ii.)  a Health 
                                           Risk Assessment) within 60 days of becoming eligible 
                                           for healthcare benefits.

B.        All covered participants must verify dependent eligibility upon request.  For employees who opt not to be covered under County plans, they may re-enroll annually during the open enrollment period.  They may re-enroll earlier upon the occurrence of one of the following:

1.   Death of a spouse;

2.   Divorce or legal separation;

3.   Lay off of spouse;

4.   Voluntary resignation of spouse;

5.   Involuntary resignation of spouse;

6.   Retirement of spouse (causing a reduction in health care benefits);

7.   Spouse's coverage is reduced through no fault of spouse;

8.   The employee loses coverage from other employment.

C.        All benefits shall be coordinated and not duplicated.  In addition to non-duplication of benefits under this Agreement, an employee's insurance coverage shall be coordinated with similar coverage provided by other employers to employees' spouses, to the end that a covered occurrence shall be indemnified only once to the extent provided herein, with primary coverage apportioned in accordance with normal insurance standards.  It is further understood that the insurance benefits set forth shall be provided upon execution of a proper application by each eligible employee and acceptance by the carrier in accordance with normal insurance standards.  The hospitalization-surgical coverage will be provided to each employee who does not have equal or better coverage through an insurance plan provided by another employer to the employee's spouse.  The County may require employees to verify the extent of insurance coverage, if any, provided by another employer.

D.        Dental Insurance

            Dental Insurance shall be available to all employees eligible to participate in the health plan.

1.   Employees may choose either the Concordia Flex plan or the Concordia Plus program.

2.   The actual cost of the Concordia Flex plan will be shared by the County paying ninety percent (90%) and all participating employees contributing ten percent (10%) by payroll deduction.

3.   The County shall pay towards the cost of an employee's participation in the Concordia Flex program an amount not more than it would have paid for such employee's participation in the Concordia Plus plan.

4.    The Concordia Flex plan shall have an individual deductible of $50 per calendar year or a family deductible of $100 per calendar year.

            4.         Both the health plan and dental plan described above are subject to
            changes (including but not limited to changes in the names of the plans)
            which may be made by the carriers of those plans.  In the event that the     
            carriers indicate substantial changes may be made in the plans either the 
            County or the Union may request a reopening of the contract as to those
            health or dental benefits only.

      5.         Cost Containment

            It is specifically understood that during the term of this Agreement, the 
           County shall have the right to institute, delete or modify the full range of   
           wellness and all cost containment measures in hospitalization, surgical,    
           major medical, and dental coverage.  The program shall be at
           no additional cost to employees (other than the participation
            arrangements set forth herein) and benefits shall not be reduced.

      6.         Effective January 1, 2009, each bargaining unit employee who receives
            insurance benefits (health care, dental or vision) shall contribute 1.0% of
            his or her base salary towards a premium.  Effective January 1, 2010, the
            contributions shall increase to 1.5% of base salary.  Effective January 1, 
           2011, the contributions shall increase to 2.0% of base salary.   
           Contributions shall be made by paycheck deduction.

            IN WITNESS WHEREOF, and intending to be legally bound to all of the above terms and conditions, the parties have this ______ day of ___________________, 2009 hereto affixed their signatures below.