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<br />35 <br /> <br />Regional pricing schedule. The retiree will be required to pay the <br />additional premium amount that is in excess of the Bay Area rates. <br /> <br />B. Retiree Health Tier 2: For retirees hired by the City on or after <br />October 29, 2018, 2018, the stipend shall not exceed ninety percent <br />(90%) of the CalPERS Bay Area Kaiser Premium for single party <br />coverage. The City will pay the PEMHCA minimum employer <br />contribution to CalPERS and reimburse the retiree for the remaining <br />difference in the City’s contribution amount. <br /> <br />For Retiree Health Tier 2 retirees hired by the City on or after October <br />29, 2018, who reside in other higher priced regions, the City’s <br />contribution shall not exceed ninety percent (90%) of the CalPERS <br />Bay Area Kaiser Premium for single party coverage. The retiree will <br />be required to pay the additional premium amount that is in excess of <br />the Bay Area rates. <br /> <br /> For Retiree Health Tiers 1 and 2, in accordance with CalPERS <br />regulations, Medicare-eligible retirees shall enroll in Medicare, and the <br />City’s maximum contribution for the retiree shall equal the cost of the <br />“Kaiser Permanente SR Advantage Plan” for single party coverage. <br />Retirees that reside in other higher priced regions will be required to pay <br />the additional premium amount that is in excess of the Bay Area rates. <br /> <br /> For employees retired prior to September 1, 1985, the City shall pay the <br />cost of health plans in accordance with the applicable MOU or City <br />practice in effect at the time of retirement. <br /> <br />Section 10.2.5 shall be interpreted to include prior service as a Redwood <br />City Police Officer in meeting the eligibility requirement for retiree <br />medical coverage when a Redwood City Police Officer retires from the <br />City. <br /> <br />If the original separation from service is due to layoff, layoff provisions <br />of the MOU would govern reinstatement and treatment of prior service <br />for the duration of layoff separation as outlined in the current MOU. <br /> <br />When the retiree becomes eligible for Medicare, the City will not <br />reimburse the retiree for Medicare Parts A and B. <br /> <br />10.2.6 All costs incurred by the City to maintain the Group Health Benefits Plan <br />in compliance with Government Code Section 22751, et. seq., and all <br />costs incurred by the City to maintain the Cafeteria Plan in compliance <br />with IRS Code Section 125, shall be paid from the aforementioned <br />monthly dollar caps identified in Sections 10.2.2, and 10.2.3. Such costs <br />include, but are not limited to, premiums, surcharges, and/or <br />administrative fees. <br /> <br />6.I. - Page 47 of 84 <br />277