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5 <br />SLMO 2020-21 Memorandum of Understanding <br />2.3 Medical and Dental (Retiree) <br /> <br />Five Year Health & Welfare Vesting Requirement: Unless otherwise determined <br />by the City Manager as part of the initial hiring agreement, full-time employees hired <br />on or after January 1, 2005 must render five (5) years of continuous service with the <br />City of San Leandro in order to receive retiree medical and/or dental benefits under <br />this section. <br /> <br />Medical: Under CalPERS rules, the City will directly contribute the “Minimum <br />Employer Contribution" towards retiree medical coverage. Additional retiree health <br />contributions will be made on a reimbursement basis as set forth below. The <br />amounts listed below are inclusive of the CalPERS Medical Plan “Minimum <br />Employer Contribution.” <br /> <br /> The City shall pay the contributions required by the health plan two-party rate for <br />retired full-time City employees who were assigned to classifications represented by <br />the San Leandro Management Organization and who are currently members of one <br />of the City’s health plans. The City shall contribute to the health plan two-party rate <br />costs until the employee is eligible for Medicare coverage. The maximum amount to <br />be contributed by the City shall not exceed three hundred and sixty dollars ($360.00) <br />per month. In the event the amounts required by the health plans exceed the <br />maximum City contribution, such excess amounts shall be paid by the retiree, except <br />as provided herein. Coverage under this section shall continue until the employee’s <br />65th birthday; except for the PERS Medical Plan “Minimum Employer Contribution”, <br />which shall continue for life. <br /> <br /> Retired employee dependent eligibility for City health plan contribution is conditional <br />upon the active enrollment of the retired employee. If a retired employee moves <br />outside the service area of their medical plan the retiree will be allowed an <br />opportunity within thirty (30) days of such move to change medical insurance <br />coverage to another CalPERS option. If a retired employee remarries, the retiree <br />may add the retiree’s spouse to the medical insurance coverage. The City shall have <br />no obligation to obtain medical insurance for a retiree living outside the service area <br />of its medical insurance plans. <br /> <br /> Dental: The City shall contribute a maximum of seventy dollars and eighty-seven <br />cents ($70.87) towards monthly dental plan costs for each retired full-time City <br />employee who is currently a member of the City’s dental plan, or who was a member <br />of the City’s dental plan and retired on or after July 1, 1983. Any increases in dental <br />plan costs during the term of this Agreement shall be split equally between the City <br />and the retired employee. Coverage shall continue until age 65. <br /> <br /> No change in dental plan carrier, or level of benefits, shall be made unless agreed <br />to by the Management Organization. <br /> <br /> <br /> <br />361