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<br />6.1A <br />Page 30 <br /> <br />to reflect any change to the medical care component of the Consumer <br />Price Index and shall be rounded to the nearest dollar. <br /> <br />10.1.3 The City shall establish in accordance with Section 125 of the IRS Code <br />a Cafeteria Plan establishing the following individual accounts for <br />each active employee: <br /> <br />A. Group Health Plan Medical Premiums <br />B. Dependent Care <br />C. Health Care Reimbursement <br /> <br />10.1.4 For the period September 1, 2008 through August 31, 2011, the City's <br />maximum monthly contribution for each active full-time employee for <br />the aforementioned Cafeteria Plan shall be equal to the Kaiser Bay <br />Area/Sacramento Region three (3) party premium per month per <br />employee minus any costs incurred by the City to maintain said <br />Cafeteria Plan in compliance with IRS Code Section 125, and minus <br />any costs incurred by the City to maintain the Group Health Benefits <br />Plans in compliance with Government code Section 22751, et. seq. <br />Such costs include, but are not limited to, surcharges and/or <br />administrative fees. The current maximum monthly contribution per <br />active employee is one thousand one hundred twenty-six dollars and <br />seventy-four cents ($1,126.74). In the event the Kaiser Bay <br />Area/Sacramento Region three (3) party premium, less the maximum <br />contribution as stipulated in Section 10.1.2, increases above $ 1,126.74 <br />during the term of this MOU, the City will increase its contribution in <br />an amount to equal such an increase. <br /> <br />10.1.5 For employees covered by this MOU, this amount shall be prorated. <br />(For permanent part-time employees working (20) or more hours per <br />week covered by the MOU this amount shall be prorated.) <br /> <br />10.1.6 The health plans offered shall be those of the California Public <br />Employee's Retirement System (PERS) provided however, upon the <br />request of the City, the parties will re-open this Article 10.1.6 to <br />meet and confer on modifying 10.1.6 to provide a different group <br />health plan. It is understood that any change from the group health <br />plans offered by the California Public Employee'S Retirement System <br />(PERS) will only be made by mutual agreement between the City of <br />Redwood City and the Police Officers Association. It is understood <br />that any such change is subject to approval of the P.O.A. membership. <br /> <br />10.1.7 For employees who have ten (10) years of service and retire under the <br />City's retirement plan, the retirement stipend paid by the City shall be <br />equal to the premium paid for a current employee, for the same plan <br />based on the Bay Area/Sacramento Regional pricing schedule. <br />Retirees that reside in other higher priced regions will be required to <br />pay the additional premium amount that is in excess of the Bay <br />Area/Sacramento rates. For employees retired prior to September 1, <br />1985, the City shall pay the cost of health plans in accordance with <br /> <br />24 <br />