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ARTICLE 19 HEALTH PLANS 19.1 Health and Cafeteria Plans 19.1.1 19.1.2 19.1.3 19.1.4 19.1.5 19.1.6 19.1.7 The City agrees to contract with the California Public Employee's Retirement System (PERS) for participation under the Public Employees Medical and Hospital Care Act (Govemment Code Section 22751, et, seq.), pursuant specifically to Government Code Section 22825 and 22850, provided however, that upon the request of the City, the parties will re-open this Article 19.1.1 to meet and confer on modifying 19.1.1 to provide a different group health plan. For the period January 1, 2005 through September 30, 2009, the City's maximum contribution for each active employee for Health Benefits Plan (as referenced in Government Code 22825) shall not exceed forty eight dollars and forty cents (48.40) per month effective January 1, 2005; sixty four dollars and sixty cents (64.60) per month effective January 1, 2006; eighty dollars and eighty cents (80.80) per month effective January 1, 2007; ninety seven dollars ($97.00) per month effective January 1, 2008. . For RCMEA members employed by the City who have ten (10) years of service and retire under the City's retirement, the maximum City contribution toward health plan coverage shall be equal to the percent of premium paid for an active employee. In the event there are any costs not charged to the City due to delays by PERS and/or other administrative agencies in calculating or reporting these costs, said costs shall be carried over and charged as administrative costs to the following plan year and deducted from the aforementioned monthly dollar caps accordingly. The City shall establish in accordance with Section 125 of the IRS Code a Cafeteria Plan establishing the following individual accounts for each active employee A. Group Health Plan Medical Premiums B. Dependent Care C. Health Care Reimbursement For the period October 1, 2005 through September 30, 2009, the City's total maximum combined contribution per full-time eligible employee for the aforementioned Health Plan and Cafeteria Plan shall be equal to the amount of the Kaiser Family premium. The City will offer a health savings/cash option not to exceed $102.50 per month. 19.1.7.1 If an employee elects coverage in health, medical spending and/or dependent care the City and the employee shall share equally the difference between their elected coverage to a maximum total shared savings of $205.00 per month. For example, the maximum an employee could receive under this provision is 50% of $205.00 or $102.50 per month. An employee's savings under this provision shall be at least five dollars ($5.00). 25