Under Article 21 Sec 2, PBSO pays what percent of the premium increase?

Under Article 21 Sec 2, PBSO pays what percent of the premium increase?

• A. 10 percent
• B. 25 percent
• C. 50 percent
• D. 75 percent

Answer: (B)

The idea being tested is how benefits costs are shared when premiums rise, as specified in a contract clause. The provision states that when there is a premium increase, PBSO covers 25% of that increase. In practical terms, if the premium goes up by an amount Δ, PBSO pays 0.25Δ and the employee covers the remaining 0.75Δ. This makes sense as a negotiated sharing arrangement to cushion employees a bit without fully absorbing the entire jump in cost. Other percentages would not align with the contractual wording, which fixes PBSO’s contribution at a quarter of the increase.

The idea being tested is how benefits costs are shared when premiums rise, as specified in a contract clause. The provision states that when there is a premium increase, PBSO covers 25% of that increase. In practical terms, if the premium goes up by an amount Δ, PBSO pays 0.25Δ and the employee covers the remaining 0.75Δ. This makes sense as a negotiated sharing arrangement to cushion employees a bit without fully absorbing the entire jump in cost. Other percentages would not align with the contractual wording, which fixes PBSO’s contribution at a quarter of the increase.