ARTICLE 14. INSURANCE BENEFITS

ARTICLE    14.    INSURANCE BENEFITS

SECTION  1.     ACTIVE EMPLOYEE HEALTH INSURANCE

1.1       The Employer will continue for the period of this Agreement to provide for active employees such health and life insurance benefits as are provided by Employer at the time of execution of this Agreement.

1.2       Eligibility Waiting Period.  Employees who have been employed in the District for more than thirty (30) days are eligible for health insurance benefits on the first day of the month following 30 days of continuous hire to a regular benefit eligible position and will be included in the insurance program for District employees and any supplemental or replacement program required to provide benefits described in Section 1, Active Employee Health Insurance.  Insurance benefits provided to eligible employees include hospital, surgical, medical, major medical, dental, long-term disability, and life insurance coverage.  Employees may enroll in optional or voluntary Insurance Benefits, i.e. vision, optional life, dependent life, accidental death, short term disability, after thirty (30) days of continuous regularly appointed service in the District in a benefit eligible position.

1.3       Full-Time Status.  For the purpose of this Article, full-time employment is defined as appearing on the payroll at least thirty-two (32) hours per week or at least sixty-four (64) hours per pay period, excluding overtime hours.

1.4       Half-Time Status.  For the purpose of this Article, half-time employment is defined as appearing on the payroll at least twenty (20) hours but less than thirty-two (32) hours per week or at least forty (40) hours but less than sixty-four (64) hours per pay period, excluding overtime hours.

1.5.2       Employer Contribution Amount--Full-Time Employees  Each eligible employee covered by this Agreement who is employed full time and who selects employee insurance coverage, the Employer agrees to contribute the cost of such coverage or $717.50 per month, whichever is less.  For each eligible full-time employee who selects family coverage, the Employer will contribute the cost of such family coverage or $1,440 per month, whichever is less.

1.5.3   Effective January 1, 2025, for each eligible employee covered by this Agreement who is employed full time and who selects employee insurance coverage, the Employer agrees to contribute the cost of such coverage or $777.50 per month, whichever is less.  For each eligible full-time employee who selects family coverage, the Employer will contribute the cost of such family coverage or $1,530 per month, whichever is less. 

1.5.4   Effective January 1, 2026, for each eligible employee covered by this Agreement who is employed full time and who selects employee insurance coverage, the Employer agrees to contribute the cost of such coverage or $837.50 per month, whichever is less.  For each eligible full-time employee who selects family coverage, the Employer will contribute the cost of such family coverage or $1,620 per month, whichever is less. 

1.6       Employer Contribution Amount--Half-Time Employees.  For each eligible employee covered by this Agreement who is employed half time, the Employer agrees to contribute fifty percent (50%) of the amount contributed for full-time employees selecting employee coverage; or for each half-time employee who selects family insurance coverage, the Employer will contribute fifty percent (50%) of the amount contributed for full-time employees selecting family coverage in the same insurance plan.

1.6.1       Notwithstanding Section 1.6 above, employees covered by this Agreement and employed half time prior to January 1, 1986, shall receive the same insurance contributions as a full-time employee.  This Section 1.6.1 applies only to employees who were employed half-time during the month of December 1985 and shall continue to apply only as long as such employee remains continuously employed half time.

ARTICLE    14.    INSURANCE,  Section 1.  (continued)

1.7       Life Insurance.  For each eligible employee, the Employer agrees to provide $25,000 life insurance coverage.  Effective November 1, 2008, for each eligible employee, the Employer agrees to provide $50,000 life insurance coverage.  This amount shall drop to $5,000 of coverage, in the event of early retirement, until the retiree reaches age 65; then all Employer coverage shall terminate.

1.8       Dental Insurance.  The Employer will contribute for each eligible employee covered by this Agreement who is employed full-time toward participation in a dental care plan offered by the Employer up to $35 per month for single coverage.  Effective January 1, 2009, the Employer will contribute for each eligible employee covered by this Agreement who is employed full-time toward participation in a dental care plan offered by the Employer up to $40 per month for single coverage.

1.8.1            Employees who wish to enroll in family dental coverage may pay the difference between the cost of family coverage and the District contribution toward single coverage.

1.9       Long-Term Disability Insurance.  The Employer shall provide, for each eligible employee covered by this Agreement who is employed full time, long-term disability insurance.

1.10      Flexible Spending Account.  It is the intent of the Employer to maintain during the term of this Agreement a plan for medical and child care expense accounts to be available to employees in this bargaining unit who are eligible for Employer-paid premium contribution for health insurance for such expenses, within the established legal regulations and IRS requirements for such accounts.

1.11      The contributions indicated in this Article 14 shall be paid to the Employer’s group health and welfare plan.

1.12      Any cost of any premium for any Employer-offered employee or family insurance coverage in excess of the dollar amounts stated in this Article 14 shall be paid by the employee through payroll deduction.

SECTION 2.     RETIREMENT HEALTH INSURANCE

Subd. 1.      Benefit Eligibility for Employees who Retire Before Age 65

1.1       Employees hired into District service before May 1, 1996, must have completed the following service eligibility requirements with the District prior to retirement in order to be eligible for any payment of any insurance premium contribution by the District after retirement: 

A.      Be eligible for pension benefits from PERA, St. Paul Teachers Retirement Association or other public employee retiree program at the time of retirement and have severed the employment relationship with the District.

B.      Must be at least fifty-five (55) years of age and have completed twenty‑five (25) years of service, or;

C.      The combination of their age and their years of service must equal eighty‑five (85) or more, or;

D.      Must have completed at least thirty (30) years of service, or;

E.      Must have completed at least twenty (20) consecutive years of service within the District immediately preceding retirement.

F.      Employees hired into the District on or after January 1, 2014, will not be eligible for any district contribution toward health insurance upon retirement.

            Years of regular service with the City of Saint Paul will continue to be counted toward meeting the service requirement of this Subd. 1.1 B, C or D, but not for 1.1 E.

ARTICLE    14.    INSURANCE,  Section 2.  (continued)

1.2       Employees hired into District service after May 1, 1996, must have completed twenty (20) years of service with the District immediately preceding retirement.  Time with the City of Saint Paul will not be counted toward this twenty (20) year requirement.

1.3       Eligibility requirements for all retirees:

A.      A retiree may not carry his/her spouse as a dependent if such spouse is also a District retiree or a District employee and eligible for and is enrolled in the District health insurance program, or in any other Employer-paid health insurance program.

B.      Additional dependents beyond those designated to the District at the time of retirement may not be added at District expense after retirement.

C.         The employee must make application through District procedures prior to the date of retirement in order to be eligible for any benefits provided in this Section.

D.      Employees terminated for cause will not be eligible for employer contributions toward insurance premiums for pre-age 65 or post-age 65 coverage.  At the Employer’s discretion, the Employer may consider an employee’s voluntary resignation in lieu of termination.  If a termination is contested, ineligibility for benefits will not occur, unless a neutral third party upholds the termination.

Subd. 2.      Employer Contribution Levels for Employees Retiring Before Age Sixty-Five

2.1       Health Insurance Employer Contribution

            Employees who meet the requirements in Subd. 1 or Subd. 2 will receive a District contribution toward health insurance until the employee reaches sixty-five (65) years of age as defined in this Subd.

2.1.1       The District contribution toward health insurance premiums will equal the same dollar amount the District contributed for single or family coverage to the carrier in the employee’s last month of active employment.

2.1.2       In the event the District changes health insurance carriers, it will have no impact on the District contribution for such coverage.

2.1.3       Any employee who is receiving family coverage premium contribution at date of retirement and later changes to single coverage will receive the dollar contribution to single coverage that was provided in the contract under which the retirement became effective.

2.2       Life Insurance Employer Contribution

            The District will provide for early retirees who qualify under the conditions of 1.1 or 1.2 above, premium contributions for eligible retirees for $5,000 of life insurance only until their sixty-fifth (65th) birthday.  No life insurance will be provided, or premium contributions paid, for any retiree age sixty-five (65) or over.

ARTICLE    14.    INSURANCE,  Section 2.  (continued)

Subd. 3.      Benefit Eligibility for Employees After Age Sixty-Five (65)

3.1       Employees hired into the District before May 1, 1996, who retired before age sixty-five (65) and are receiving benefits per Subd. 2 above are eligible, upon reaching age sixty-five (65), for employer premium contributions for health insurance described in Subd. 4 of this Article.

3.2       Employees hired into the District before May 1, 1996, who retire at age sixty‑five (65) or older must have completed the eligibility requirements in Subd. 1 above or the following eligibility requirements to receive District contributions toward post‑age-sixty-five (65) health insurance premiums:

A.     Employees hired before January 1, 1990, must have completed at least ten (10) years of continuous employment with the District.  For such employees or early retirees who have not completed at least ten (10) years of service with the District at the time of their retirement, the Employer will discontinue providing any health insurance contributions upon their retirement or, in the case of early retirees, upon their reaching age sixty‑five (65).

B.   Employees hired on or after January 1, 1990 and prior to May 1, 1996, must have completed twenty (20) years of continuous employment with the District.  For such employees or early retirees who have not completed at least twenty (20) years of service with the District at the time of their retirement, the Employer will discontinue providing any health insurance contributions upon their retirement or, in the case of early retirees, upon their reaching age sixty-five (65).

Years of certified civil service time with the City of Saint Paul earned prior to May 1, 1996, will continue to be counted toward meeting the District’s service requirement of this Subd. 3.  Civil service time worked with City of Saint Paul after May 1, 1996, will be considered a break in District employment.

3.3       Employees hired on or after May 1, 1996, shall not have or acquire in any way any eligibility for Employer-paid health insurance premium contribution for coverage in retirement at age sixty-five (65) and over in Subd. 4.  Employees hired on or after May 1, 1996, shall be eligible for only early retirement insurance premium contributions as provided in Subd. 2 and Deferred Compensation match in Subd. 5.

Subd. 4.      Employer Contribution Levels for Retirees After Age Sixty-Five (65)

4.1       Employees hired into the District before May 1, 1996, and who meet the eligibility requirements in Subd. 3.1 or 3.2 of this Article are eligible for premium contributions for a Medicare Supplement health coverage policy selected by the District.  Premium contributions for such policy will not exceed:

            At no time shall any payment in any amount be made directly to the retiree.

            Any premium cost in excess of the maximum contributions specified must be paid directly and in full by the retiree, or coverage will be discontinued.

ARTICLE    14.    INSURANCE,  Section 2.  (continued)

Subd. 5.  Employees hired after May 1, 1996, are eligible to participate in an employer matched Minnesota Deferred Compensation Plan or District approved 403(b) plan.   Effective July 1, 2024, the District will match up to $1,500 per year of consecutive active service. Part-time employees working half-time or more will be eligible for up to one half (50%) of the available District match. 

5.1       Employees hired in the District on or after January 1, 2014, shall be eligible for $200 per year employer match in addition to the match amount provided in this section for employees hired after January 1, 1996.

Additionally, effective January 1, 2016, all employees hired in the District after January 1, 2014 will receive a $200 per year District contribution toward a health care savings plan.

Federal and state rules governing participation in the Minnesota Deferred Compensation Plan shall apply.  The employee, not the District, is solely responsible for determining his/her total maximum allowable annual contribution amount under IRS regulations.  The employee must initiate an application to participate through the District’s specified procedures.

ARTICLE 13. SEVERANCE PAY                          TABLE OF CONTENTS                      ARTICLE 15. PROBATION