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19.2 Retiree Health Benefits <br />For employees who have ten (10) years of service with Redwood City and retire <br />under the City's retirement plan within one hundred twenty (120) days of <br />separation from City employment, the maximum City contribution toward health <br />plan coverage shall be: <br />A. Retiree Health Tier 1: For retirees hired by the City before January 1, 2019, <br />the City's contribution shall be the amount of the premium for single party <br />coverage in the plan selected by the retiree, not to exceed the amount of the <br />CalPERS Bay Area Kaiser Premium for family coverage. The City will pay the <br />PEMHCA minimum employer contribution to CalPERS and reimburse the <br />retiree for the remaining difference in premium amount. <br />For Retiree Health Tier 1 retirees hired by the City before January 1, 2019 <br />who reside in other higher priced regions, the City's contribution shall not <br />exceed the amount of the premium for single party coverage in the plan <br />selected by the retiree, not to exceed the amount of the CalPERS Bay Area <br />Kaiser Premium for family coverage based on the Bay Area Regional pricing <br />schedule. The retiree will be required to pay the additional premium amount <br />that is in excess of the Bay Area rates. The City will pay the PEMHCA <br />minimum employer contribution to CalPERS and reimburse the retiree for the <br />remaining difference in the premium amount. <br />B. Retiree Health Tier 2: For retirees hired by the City on or after January 1, <br />2019, the City's contribution shall not exceed ninety percent (90%) of the <br />CalPERS Bay Area Kaiser Premium for single party coverage. The City will <br />pay the PEMHCA minimum employer contribution to CalPERS and reimburse <br />the retiree for the remaining difference in the City's contribution amount. <br />For Retiree Health Tier 2 retirees hired by the City on or after January 1, <br />2019, who reside in other higher priced regions, the City's contribution shall <br />not exceed ninety percent (90%) of the CalPERS Bay Area Kaiser Premium <br />for single party coverage. The retiree will be required to pay the additional <br />premium amount that is in excess of the Bay Area rates. The City will pay the <br />PEMHCA minimum employer contribution to CalPERS and reimburse the <br />retiree for the remaining difference in the premium amount. <br />C. For Retiree Health Tier 2 retirees who separate employment via a service <br />retirement during the term of this MOU, this benefit shall continue until a <br />member becomes eligible for Medicare. Once a member becomes eligible <br />for Medicare, the City will pay the member a stipend that shall not exceed the <br />single party cost of the "Kaiser Permanente SR Advantage Plan." Should <br />that plan be abolished, the City will pay members a stipend not to exceed the <br />single party cost of the next most comparable plan. The City will pay the <br />PEMHCA minimum employer contribution to CalPERS and reimburse the <br />retiree for the remaining difference in premium amount. <br />47 <br />