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6.B. - Page 186 of 366 employees and dependents, a Cafeteria Plan Allowance equal to the cost of ninety percent (90%) of the premium for the employee's selected plan and level of coverage, up to ninety percent (90%) of the cost of the Kaiser Bay Area three (3) parry premium per month per employee minus any costs incurred by the City to maintain said Cafeteria Plan in compliance with IRS Code Section 125, and minus any costs incurred by the City to maintain the Group Health Benefits Plans in compliance with Government code Section 22750, et. seq. Such costs include, but are not limited to, surcharges and/or administrative fees. €ff-ecfive ary 1, 2012, if a pla ea aleets fie kealt eeveFage n shows- evidences of ether- eevem,.n Fpm=h. ,.,-� ill Tec-rcited to the employee's flexiblepeading aeoelints. Effective January 1, 2016, if an employee elects no health coverage and shows proof of alternative minimum essential coverage for the employee and dependents , two hundred dollars ($200) per month will be credited to the employee's flexible spending accounts. 10.2.3 For permanent part-time employees working (20) or more hours per week covered by the MOU this amount shall be prorated. 10.2.4 The health plans offered shall be those of the California Public Employee's Retirement System (PERS) provided however, upon the request of the City, the parties will re -open this Article 10.2.4 to meet and confer on modifying 10.2.4 to provide a different group health plan. It is understood that any change from the group health plans offered by the California Public Employee's Retirement System (CaIPERS) will only be made by mutual agreement between the City of Redwood City and the Police Officers Association. It is understood that any such change is subject to approval of the P.O.A. membership. 10.2.5 Retiree Health Coverage: For employ9cs who have ten (10) or more years of service and retire under the City's retirement plan within one hundred twenty 120 days of separation from City employment, the retirement stipend paid by the City shall be as follows: A. Retiree Health Tier 1: For retirees hired by the Citv before October 29, 2018, the stipend shall be the amount of the premium for single party covera e in the plan selected by the retiree not to exceed the amount of the CaIPERS Bay Area Kaiser Premium for family coverage. The City will pay the PEMHCA minimum employr contribution to CaIPERS and reimburse the retiree for the remaining difference in premium amount. For Retiree Health Tier 1 retirees hired by the City before October 29, 2018 who reside in other higher priced regions, the City's contribution shall be the amount of the premium for single pgty coverage in the plan selected by the retiree, not to exceed the amount 205