2000 - Personnel

2101 - Defined Medical Benefit

DEFINED MEDICAL BENEFIT                             2101

1.    BENEFITS

1.1    Beginning with the 2008-2009 school year, an employee of the Sevier School
District (“District”) who is eligible for defined medical benefits under this policy shall be
allowed the following benefits:

1.1.1    Defined Medical Benefit Trust Funds

1.1.2    After the completion of each fiscal year, a single deposit for that year will be
made into a defined medical benefit trust fund account on the employee’s
behalf in an amount determined by the employee’s number of years of service
with the District as follows:

1.1.2.1    1 to 10 years: $350
1.1.2.2   11 to 15 years: $1,500
1.1.2.3   16 to 20 years: $1,300
1.1.2.4   21 to 25 years: $1,100
1.1.2.5   26 or more: $300

1.2    The medical benefit trust funds deposited on behalf of the employee will be held
in a District trust account or the District’s trust accumulation account that is
subdivided into individual employee accounts, which will be interest bearing at
the current invested rates.  Interest will be posted to employee sub-accounts
periodically as earned.

1.3    As of the completion of an employee’s tenth consecutive year of employment
with the District, the employee shall have a 100 percent vested entitlement to the
medical benefit trust funds, which the District has previously deposited to that
employee’s account.  If an employee terminates employment with the District for
any reason before the completion of his or her tenth consecutive year of
employment, then any medical benefit trust funds and interest earnings
previously deposited to that employee’s account by the District will be forfeited to
the District.

1.4    If an employee participating in this benefit terminates his or her employment for
any reason with the District after meeting the vesting requirements, then any
medical benefit trust funds including interest earnings being held in the District’s
individual employee sub-account or the District’s trust accumulation account for
that employee will be deposited into a medical benefit trust account under the
employee’s name at the end of the contract year.

1.4.1.     An employee who is 100 percent vested in the medical trust and
has a trust fund balance in excess of $5,000, will be allowed to participate
in self-directed investment options in accordance with the District’s
Medical Reimbursement Plan documents.  Upon making this request, the
employee shall assume all responsibility for future earnings and trust fund
balances.
1.5    Upon the death of the employee and all dependents who are eligible to withdraw
funds from the defined medical benefit trust, the remaining funds will be returned
to the District, which in turn will, as far as is possible, issue the funds to the
estate of the deceased employee as defined by their beneficiary designation.  
Dependents or heirs of the employee who receive funds are responsible for all
tax consequences from District distributions.

1.6    Employer Contributions of Converted Health Insurance Premiums. All employees
participating in the District provided Group Health Insurance Coverage may
forfeit the District’s contributory share of premiums and pay 100 percent of the
required premium on their own. In the event a participating employee chooses to
forfeit the District’s contributory share of the District provided group health
premiums, the District will make a mandatory contribution in an amount equal to
the forfeited amount to the post-retirement medical trust established by the
employer. In no event may an employee choose to receive the contribution in
cash in lieu of the contribution to the medical trust.

2.    ELIGIBILITY

2.1    Eligibility is restricted to full-time employees defined as:

2.1.1    employees who are employed at least 35 hours per week in a
professional/certified/administrative position in the District for a complete
year contract; or

2.1.2    classified employees who are employed at least 35 hours per week, and
who are under contract for a minimum of 204 days per year in a position
within the District for a complete year.

2.2    If an employee makes his or her irrevocable election to participate in policy
#2100A and is later re-hired by the District, he or she remains ineligible to
participate in this policy, #2101.     

Adopted 07/26/06
Revised 10/15/08
Revised 05/26/09
Revised 06/18/2009
Revised 08/11/10

Revised 10/10/18

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Sevier School District does not discriminate on the basis of race, color, national origin, sex, disability, or age in its programs. Please contact your school principal for further information.