APPENDIX F

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COMPUTATION FORMULA FOR DETERMINING EMPLOYEE'S PORTION OF ACTIVE HEALTH CARE COSTS

1. Actual expenditures for a year will be determined by adding together the amounts reported for EDP line numbers 1000, 2000, 3000, 4000, and 5000 from the California Community Colleges Annual Financial Budget Report (CCFS-311) for the General Fund Actual Total Expenditures.

2. The Health Care Expenditure for active employees and retirees will be determined by summing the total of premiums paid for insurance provided in accordance with Article IX, section 9.1, and other direct costs of underwritten claims and the processing costs of those underwritten claims (costs attributable to processing must be agreed upon by the District and the association) plus the cost of Medicare for retirees, for the applicable fiscal year less the amount identified as the premium cost calculated as being applicable to surviving spouses of deceased retirees or employees.

3. The individual payroll deduction for an employee's health care cost will be computed by August 31 of each year as follows:

a. Multiply the actual expenditures determined in number 1 by 10%.

b. Subtract the result of 3a. from the amount determined in 2.

c. Apply any accumulated credit from previous years to the amount determined in 3b.

1. If the result is negative, it will be determined as a credit to be used in subsequent years.

2. If the result is positive, the amount will be divided by the average number of active employee(s) for whom premiums were paid in number 2. The resulting amount will be deducted from employee paychecks in equal installments over the following year.