MEMORANDUM OF UNDERSTANDING WITH THE CULVER CITY POLICE MANAGEMENT GROUP JULY 1, 2025, THROUGH JUNE 30, 2028. - Flipbook - Page 31
ARTICLE FOUR
If the total cost of the selected benefits (must also include the cost of
mandatory life insurance) exceed the employee’s monthly eligible flex dollar
allowance based on number of dependent(s) (EE only, EE+ 1, family), the
balance shall be paid by the employee through automatic pre-tax payroll
deduction(s) as permitted under IRS Code Section 125. The balance owed
shall be split into two (2) equal deductions and taken from the first and
second pay checks of each month.
If the total cost of the selected benefits (must also include the cost of
mandatory life insurance) does not exceed the employee’s monthly eligible
flex dollar allowance, the difference between the employee’s eligible flex
dollar allowance and the cost of selected benefits shall be converted to
taxable income, payable to the employee in the first and second pay checks
of each month.
C.
MEDICAL INSURANCE PREMIUMS – OPT-OUT/CASH OUT OPTION
(NON-PERSABLE)
Upon proof of other coverage, unit employees who “Opt-Out” shall be
allotted the value of single-party flex dollars toward other items in the full
flex cafeteria plan or convert it to taxable income.
Effective January 1, 2027, the “Opt-Out” shall be reduced to a maximum of
six hundred dollars ($600) as follows: Upon proof of other coverage that
meets ACA requirements, unit employees may elect to not participate in the
City’s medical insurance program and choose from one of the following
options:
Cash Out Option
(Taxable)
Taxable Income:
Paid in first two (2) pay checks per month ($300 each)
457 Plan
Contribution
Pre-Tax Retirement Savings:
PMG MOU 20222025-2025
Page 29
57222818.1/005528.00067
Contributions made in first two (2) pay checks per month
($300 each); Reduces annual IRS 457 Limit
2028
