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<br />63 <br /> <br />pension during the four (4) years following the effective date of <br />IDR. <br /> <br />2. At the end of the four (4) year period described above, retiree <br />health coverage will revert to the applicable service retiree health <br />benefit (Retiree Health Tier 2) as described in Section 19.2 of this <br />MOU entitled “Retiree Health Benefits,” contingent on retiree’s <br />continued status as an annuitant receiving an industrial disability <br />retirement pension. <br /> <br />3. City Contribution to Retiree Health Savings (RHS) Account for <br />Employees Hired On or After May 9, 2022 <br /> <br />Effective the first full pay period following City Council approval <br />of a successor MOU in 2022, the City will establish a n RHS <br />Account for each employee to which the City and employees <br />contribute to save, on a tax-deferred basis, money to help pay <br />the cost of healthcare once an individual retires. The RHS <br />Account may be used for health-related expenses as provided <br />under the terms of the Plan. The RHS Plan is intended to <br />constitute a “health reimbursement arrangement” within the <br />meaning of IRS Notice 2002-45. Any tax consequences resulting <br />from City contributions to the RHS Plan are the sole responsibility <br />of the employee. <br /> <br />For employees hired on or after May 9, 2022, the City and <br />employees will contribute to the RHS Account as follows: <br /> <br />a. Starting after an employee has successfully completed their <br />initial probationary period, the City will contribute forty <br />dollars ($40) per month (the equivalent of $18.46 per pay <br />period) to the employee’s RHS Account. Likewise, the <br />employee will contribute forty dollars ($40) per month (the <br />equivalent of $18.46 per pay period) to the RHS Account via <br />payroll withholding. <br />b. During an employee’s initial hire probationary period with <br />the City, neither the employee nor the City will contribute <br />to the employee’s RHS Account. Upon successful <br />completion of the initial hire probationary period, the City <br />will contribute a lump sum of forty dollars ($40) per month <br />6.A. - Page 74 of 99 <br />81