Agmt 2006 San Leandro Management Organization SLMO

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Effective January 1, 2007, an employee may elect to waive the dental plan only and enroll only in the medical plan and receive fifty dollars ($50.00) per month for their non- election. Re-enrollment in the medical and/or dental plan shall be allowed only based upon a qualifying event as defined by the IRS codes or during an open enrollment period. The parties agree that during the term of this agreement, they will jointly explore various instruments enabling employee savings for retiree medical costs and related purposes. 2.2. Medical (Retiree) Under CalPERS rules, the City will directly contribute "the employer minimum share" towards retiree health coverage. Additional retiree health contributions will be made on a reimbursement basis as set forth below. The amounts listed below are inclusive of the PERS Medical Plan "employer minimum share." The City shall pay the contributions required by the health plan two-party rate for retired City employees who were assigned to classifications represented by the San Leandro Management Organization and who are currently members of one of the City's health plans. The City shall contribute to the health plan two-party rate costs until the employee is eligible for Medicare coverage. The maximum amount to be contributed by the City may not exceed three hundred and sixty dollars ($360.00). Management Safety Employees who retire on or after January I, 2002 and are not eligible for Medicare may have the City retiree contribution extended until they reach seventy (70) years of age. In the event the amounts required by the health plans exceed the maximum City contribution, such excess amounts shall be paid by the retiree, except as provided herein. Coverage under this section shall continue until the employee's 65th birthday; except for the PERS Medical Plan "employer minimum share," which shall continue for life. Retired employee dependent eligibility for City health plan contribution is conditional upon the active enrollment of the retired employee. If a retired employee moves outside the service area of their medical plan the retiree will be allowed an opportunity within thirty (30) days of such move to change medical insurance coverage. If a retired employee remarries, the retiree may add the retiree's spouse to the medical insurance coverage at the City's expense. The City shall have no obligation to obtain medical insurance for a retiree living outside the service area of its medical insurance plans. The contribution toward retiree insurance will continue, however. The employer shall implement a Medicare risk plan, which shall be made available to retirees at no cost to the City. 2.3 Dental (Active) The City shall contribute the following maximum monthly amounts, for current MetLife dental coverage, toward the cost of dental benefits for active employees: 3 slmo.05-01-06 JC