MEMORANDUM OF UNDERSTANDING WITH THE CULVER CITY POLICE OFFICERS ASSOCIATION JULY 1, 2025, THROUGH JUNE 30, 2028. - Flipbook - Page 35
ARTICLE FOUR
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)
457 Plan
Contribution
Taxable Income:
Paid in first two (2) pay checks per month ($300
each)
Pre-Tax Retirement Savings:
Contributions made in first two (2) pay checks per
month ($300 each); Reduces annual IRS 457 Limit
1.
Employees who opt out of CalPERS health plan coverage and
request that the flex dollars be converted to taxable income, shall
receive the value of flex dollars up to the amount of $600.00 per
month as taxable income, minus any monthly deduction costs
toward mandatory life insurance and other ancillary plan benefits
the employee selects. The flex dollars shall be distributed via two
(2) equal payments of taxable income in the first two (2) pay checks
each month.
2.
Employees who opt out of CalPERS health plan coverage and
request that the flex dollars be converted into a pre-tax contribution
in the employee’s City-sponsored 457 retirement savings plan
account, shall receive the value of flex dollars up to the amount of
$600.00 per month, minus any monthly deduction costs toward
mandatory life insurance and other ancillary plan benefits the
employee has selected.
The flex dollars shall be deposited via two (2) equal pre-tax contributions
into the employee’s 457 retirement savings plan occurring the first two (2)
pay checks of each month. Flex dollar contributions into the 457retirement savings plan account shall be applied to the employee’s annual
deferral limit. For example, the 2026 annual deferral limit is currently
$24,500. If the employee is eligible for $600 in flex dollars per month, the
employee’s deferral limit shall be reduced by $7,200 ($24,500 minus $
7,
200 = $17,300).
The cash out option is not payable to employees enrolled in a government
sponsored health plan (i.e., Medicare, Covered California, Medi-Cal).
D.
PROOF OF COVERAGE / WAIVE CITY LIABILITY
POA MOU 2025-2028
57132141.1/005528.00065
Page 33
