Reso 2016-163 - Laserfiche WebLink

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24.10 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 and dental insurance coverage at the City's expense, not to exceed the applicable rate based on date of hire, date of retirement and City service as outlined above. 24.11 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. Section 25. Retirement Plan—Two-tier System 25.1 The City shall continue to contract with the California Public Employees' Retirement System (CaIPERS) to provide retirement benefit programs for the term of this Memorandum of Understanding. 25.2 Tier One: For employees hired by the City into the SLPOA prior to January 1, 2013, or for "classic" members of CaIPERS hired after January 1, 2013, the City's contract with Ca1PERS provides the 3% @ age 50 retirement formula, fourth level 1959 Survivors Benefit and the Military Service credit,with 12 months final compensation. • Effective July 1, 2017, employees will pay an additional one percent (1%)towards the employer's pension contribution rate for a total employee contribution of 10%. • Effective July 1, 2018, employees will pay an additional one percent (1%)towards the employer's pension contribution rate for a total employee contribution of 11%. • Effective July 1, 2019, employees will pay an additional one percent(1%)towards the employer's pension contribution rate for a total employee contribution of 12%. Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on a pre-tax basis. The parties mutually recognize and acknowledge that the cost-sharing provisions provided herein satisfy the cost-sharing terms set forth in Government Code section 20516.5. These additional employee pension contributions will be applied to the employee account with Ca1PERS pursuant to a contract amendment. 25.3 Tier Two: For employees hired on or after January 1, 2013 and classified as "new" members of Ca1PERS as defined by Public Employee Pension Reform Act (PEPRA), the City shall maintain a contract with Ca1PERS for the provision of a 2.7% @ 57 (highest 36 months) retirement benefit formula. Also pursuant to PEPRA, these employees are responsible for paying one-half of the normal cost of this retirement plan and subject to the reportable annual compensation limit per Government Code Section 7522.10. Section 26. Safety The City shall conform with applicable safety regulations provided by State law to ensure the employee reasonable safe working conditions. The Association agrees to encourage its members 22