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Healthcare Settlement Payment

CONTENTS

This is an update about the July 25, 2007 Healthcare Settlement Payment for those bargaining unit members covered by the Healthcare Union "Super Coalition" bargaining team and the labor contracts effective July 1, 2007. The affected bargaining units are:

Eligibility for the payment will be centrally coordinated by HR Benefits & WorkLife and the payment will be made through the UW payroll system.

Healthcare Settlement Eligibility Requirements

The healthcare settlement provides a lump sum amount of $756.00 to eligible employees on July 25, 2007. It states that there are two requirements:

  1. You must be insurance eligible (according to Health Care Authority WAC 182-12-115) for the month of June 2007, which means an employee must be employed on June 1, 2007.
  2. You must be covered by a 2007-2009 collective bargaining agreement (CBA) negotiated pursuant to RCW 41.80 on July 1, 2007.

Frequently Asked Questions

What is this settlement for?
This settlement was negotiated between the governor's office and the "super coalition" of unions which bargain healthcare benefits for classified staff in a labor bargaining unit.
The settlement resolves outstanding issues from the prior contract negotiations regarding the amount of money to be allocated to salaries, versus healthcare for represented employees.  Unions representing classified staff may provide more information about the settlement.
Why is this payment taxable - isn't the payment a refund of my healthcare premiums?
No, this payment is not a refund of healthcare premiums.  This is a settlement payment that resolves a labor dispute arising out of the last negotiated contract over the amount of money available for compensation, and how much of that money would be allocated to healthcare payments.  The parties agreed to a negotiatied amount to be paid to each affected employee to settle the dispute. Settlements of this sort must be treated as compensation and are taxable under IRS regulations..
What is the "super coalition"?
The "super coalition" is an amalgam of representatives of most of the state employee unions, which must together bargain with the governor's office over the state's contribution to healthcare costs. The bargaining is limited to the amount the state will pay per employee per month for the insurance package.
If I meet both of the requirements, do I need to do anything? How is the lump sum paid?
No, you do not need to do anything. The lump sum amount will be paid centrally, and added to affected employees' July 25, 2007 paycheck. This amount is considered wages and therefore, subject to taxes and retirement.
An employee leaves state service on June 29, 2007. Is the employee entitled to the lump sum payment?
No. This employee would not meet requirement number 2 above, of being covered by the 2007-2009 contracts, which do not take effect until July 1, 2007.
An employee is on leave without pay (LWOP) during the month of June. Is the employee entitled to the lump sum?
Maybe. They may not be insurance eligible for June if they did not have at least eight hours of pay that month, or were not covered by FMLA healthcare benefits. The Benefits & WorkLife Office will coordinate the healthcare eligibility to verify eligibility for the payment.
An employee is hired on Monday, June 4, 2007 into a bargaining unit position and is in the bargaining unit on July 1, 2007. Therefore the employee does not become insurance eligible until July 1, 2007. Is this employee entitled to the $756.00?
No. This situation does not meet the criteria (not insurance eligible for June 2007).
On July 1, 2007 a bargaining unit employee who was insurance eligible in June 2007 is in a position outside the bargaining unit. Is the employee entitled to the $756.00?
No. This does not meet the criteria (not in a bargaining unit position on July 1, 2007).
A bargaining unit employee is insurance eligible during June 2007 and in a bargaining unit position on July 1, 2007. However, the employee has elected to waive participation in healthcare. Is the employee entitled to the $756.00?
Yes, the criteria states they must be insurance eligible in June 2007. Whether they have elected to waive participation in healthcare coverage or not is not relevant.
What if I am laid off June 30? Am I eligible for the payment?
No. Someone laid off from an eligible position has ended UW employment and the payment will not be made. If the person finds a new position on or before July 1 that meets both criteria for eligibility for the payment, the payment would then be made.
Will 9-, 10-, and 11-month employees on summer leave receive this payment if they meet the criteria?
Yes. For those 9-, 10-, and 11-month employees who do not normally work during the summer but who meet both criteria for eligibility for the payment, a check will be generated regardless of whether a person is working during the July 1 - 15 pay period (for the July 25 paycheck).
What if I am not scheduled to work on June 1?
Only a new employee hired as of June 1 must actually begin work on June 1 to meet the criteria. Ongoing employees who are eligible for PEBB insurances in the month will meet the necessary requirements by virtue of their June insurance eligibility.
Can the Benefits Office confirm individual eligibility for this payment?
No. Unfortunately we cannot provide confirmation of individual eligibility. Those who meet both criteria will receive the payment.
Are Academic Student Employees (ASEs) eligible for this payment?
No. They are not part of the super coalition bargaining, and they do not participate in the Health Care Authority plans.

If you have questions, please use "Healthcare Settlement" in the email subject line, and direct your questions to benefits@u.washington.edu

Notes to Departmental Payroll Coordinators