§ 11-12. Premium Stabilization Fund.

(a) In general.

The City shall maintain a Premium Stabilization Fund within the City's Risk Management Fund.

(b) Maintenance.

The Fund:

(1) may not be commingled with any part of the City's General Operating Fund;

(2) shall be maintained by the City for the exclusive benefit of the Program; and

(3) shall be used only to enable the City to defray a year-end deficit in the health benefit plan accounts after:

(i) all revenues, claims, and costs are fully accounted for; and

(ii) full disclosure has been made to the:

(A) exclusive employee organizations;

(B) MAPS;

(C) retirees; and

(D) their consultant.

(c) Transfer of surplus.

(1) In general.

The Program's year-end surplus shall be transferred into the Fund until the balance of the Fund reaches the equivalent of 2 months of medical and prescription drug claims for the previous plan year.

(2) Reporting.

The Director shall report the balance of the Fund within 3 to 6 months after the end of each plan year to the:

(i) exclusive employee organizations;

(ii) MAPS;

(ii) retirees; and

(iii) their consultant.

(d) Pricing.

When the Fund's balance is equal to or greater than 2 months of Program medical and prescription drug claims for the most recent completed plan year, the City may not use margin as a factor in the pricing of:

(1) premiums for vendor insured plans for active employees;

(2) premiums for vendor insured plans for retirees;

(3) premium equivalents for self-insured benefit plans for active employees; and

(4) premium equivalents for self-insured benefit plans for retirees.

(e) Disbursements.

(1) Application by Director.

Disbursements from the Fund shall be authorized only if the Board of Estimates approves an application by the Director.

(2) Disclosure to representatives.

Thirty days before presenting the application described under this subsection to the Board of Estimates, the Director shall provide a copy of the application to the:

(i) exclusive employee organizations;

(ii) MAPS;

(iii) retirees; and

(iii) their consultant.

(3) Application of surplus after disbursement.

If a disbursement from the Fund is authorized by the Board of Estimates due to a plan's year-end deficit, then year-end plan surpluses in subsequent plan years shall be exclusively applied to restore the Fund.