HomeMy WebLinkAboutTEAMSTERS LOCAL 589, MOU 6-17-202411/22 PRC
HRA/VEBA Memorandum of Understanding
This memorandum of understanding is agreed to pursuant to Article 25.2 and Article 14.8 of the Labor
Agreement by and between the City of Bremerton and the General Teamster’s Local 589.
City of Bremerton (“Employer”) has adopted the health reimbursement arrangement (HRA) plans offered
and administered by the Voluntary Employees’ Beneficiary Association Trust for Public Employees in
the Northwest (“Plan”). The Plan is designed with a variety of coverage options to allow for the maximum
benefit permitted by applicable law. Employer agrees to contribute to the Plan on behalf of all employees
in the Teamsters Local 589 (“Group”) defined as eligible to participate in the Plan, in accordance with
Plan and regulatory limitations. The Plan must receive an enrollment file for each eligible employee to
become a participant and become eligible for benefits under the Plan.
Contributions on behalf of each eligible employee (or former employee) shall be based on the
following selected funding sources/formulas:
Mandatory Employee Contributions (no individual elections permitted): The Employer and
Group agree that the Group’s compensation package will be changed such that eligible
employees shall receive additional benefits in the form of HRA VEBA Plan contributions equal
to fifteen dollars ($15.00), which shall be contributed on a per pay period basis, and each eligible
employee’s salary shall be reduced by an equal amount. Such contributions shall be made on
behalf of all Group employees defined as eligible and shall be considered and referred to as
Employer contributions.
Changes to the Plan will be done pursuant to IRS Regulations and Article 14.8 of the Teamsters
Collective Bargaining Agreement. Changes to the Plan or Contributions will require a new
Memorandum of Understanding.
This Agreement shall become effective on the pay period ending July 15, 2024. All other provisions of
the Collective Bargaining Agreement apply in all respects.
For the Union: For the City:
Robert Driskell, Teamsters Local 589 Greg Wheeler, Mayor
Charlotte Nelson, Human Resources Manager
APPROVED AS TO FORM
Kylie Finnell, City Attorney