Agmt 2011 San Leandro Management Organization SLMO

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In the event both spouses are employed by the City and eligible to enroll in the City's flex benefits plan, one employee may elect not to enroll in the medical and dental plans and will receive the employee opt -out rate of up to two - hundred fifty dollars ($250.00) per month payment, if enrolled under spouse's medical and dental coverage. 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. No change in dental plan carrier, or level of benefits, shall be made unless agreed to by the Management Organization. 2.3 Medical and Dental (Retiree) Five Year Health & Welfare Vesting Requirement: Unless otherwise determined by the City Manager as part of the initial hiring agreement, full -time employees hired on or after January 1, 2005 must render five (5) years of continuous service with the City of San Leandro in order to receive retiree medical and/or dental benefits under this section. Medical: Under CaIPERS rules, the City will directly contribute "the employer minimum share" towards retiree medical 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 full -time 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 shall not exceed three hundred and sixty dollars ($360.00) per month. Management Safety Employees who retire on or after January 1, 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. 3 SLMO final 2010