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<br />37 <br /> <br />“Retiree Health Coverage,” contingent on the retiree’s continued status as <br />an annuitant receiving an industrial disability retirement pension. <br /> <br />For IDR Retiree Health Tier One and Tier Two, when the retiree becomes <br />eligible for Medicare, the City will not reimburse the retiree for Medicare <br />Parts A and B. <br /> <br />10.2.9 For employees who leave the City in good standing, for reasons other than <br />retirement, who are not eligible for benefits as provided in Section 10.2.5 <br />or 10.2.8, and who have twenty (20) years of service with the City of <br />Redwood City, the maximum City contribution toward health plan <br />coverage shall be equal to the CalPERS Bay Area Kaiser premium for <br />employee only coverage, for the period September 1, 2015 through <br />August 31, 2018, provided that the following conditions are met: <br /> <br />A. The employee is not eligible for similar medical benefits through <br />a spouse’s health plan. <br /> <br />B. The employee is not eligible for similar medical benefits through <br />other employment. <br /> <br />Whenever the above eligibility criteria are met, the City will provide paid <br />medical benefits for the employee only. The City will pay the PEMHCA <br />minimum employer contribution to CalPERS and reimburse the retiree for <br />the remaining difference in premium amount. <br /> <br />10.2.10 Retiree Health Savings Plan <br /> <br />Effective January 23, 2023, the City will establish an RHS Account for <br />each employee hired after January 30, 2023 to which the City and <br />employees contribute to save, on a tax-deferred basis, money to help pay <br />the cost of healthcare once an individual retires. The RHS Account may <br />be used for health-related expenses as provided under the terms of the Plan. <br />The RHS Plan is intended to constitute a “health reimbursement <br />arrangement” within the meaning of IRS Notice 2002-45. Any tax <br />consequences resulting from City contributions to the RHS Plan are the <br />sole responsibility of the employee. <br /> <br />For employees hired after January 30, 2023, the City and employees will <br />contribute to the RHS Account as follows: <br /> <br />• Starting after an employee has successfully completed their initial <br />probationary period, the City will contribute forty dollars ($40) per <br />month (the equivalent of $18.46 per pay period) to the employee’s <br />RHS Account. Likewise, the employee will contribute forty dollars <br />($40) per month (the equivalent of $18.46 per pay period) to the <br />RHS Account via payroll withholding. <br />6.I. - Page 49 of 84 <br />279