Agda Pkt 2025.03.10 Joint SA PFA

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34 and shall instead be eligible for IDR Retiree Health Tier Two in the event the employee is granted an industrial disability retirement from Redwood City. When the retiree becomes eligible for Medicare, the City will not reimburse the retiree for Medicare Parts A and B. IDR Retiree Health Tier Two: For employees hired after January 30, 2023, an employee who is granted an industrial disability retirement due to a work related illness or injury, shall receive the service retiree health benefit (Retiree Health Tier 2) described in Paragraph B of Section 10.2.6 of this MOU entitled “Retiree Health Coverage,” contingent on the retiree’s continued status as an annuitant receiving an industrial disability retirement pension. When the retiree becomes eligible for Medicare, the City will not reimburse the retiree for Medicare Parts A and B. 10.2.11 Retiree Health Savings Plan Effective August 28, 2023, the City will establish an RHS Account for each employee hired after January 30, 2023 to which the City and employees contribute to save, on a tax-deferred basis, money to help pay the cost of healthcare once an individual retires. The RHS Account may be used for health- related expenses as provided under the terms of the Plan. The RHS Plan is intended to constitute a “health reimbursement arrangement” within the meaning of IRS Notice 2002-45. Any tax consequences resulting from City contributions to the RHS Plan are the sole responsibility of the employee. For employees hired after January 30, 2023, the City and employees will contribute to the RHS Account as follows: • Starting after an employee has successfully completed their initial probationary period with the City, the City will contribute forty dollars ($40) per month (the equivalent of $18.46 per pay period) to the employee’s RHS Account. Likewise, the employee will contribute forty dollars ($40) per month (the equivalent of $18.46 per pay period) to the RHS Account via payroll withholding. • During an employee’s initial hire probationary period with the City, neither the employee nor the City will contribute to the employee’s RHS Account. Upon successful completion of the initial hire probationary period, the City will contribute a lump sum of forty dollars ($40) per month for each month served in the employee’s initial probationary period. • Upon cessation of employment with the City, the City will cease the forty dollars ($40) per month contributions to the individual’s RHS Account. • Employees will have no vested right in ongoing City contributions to the RHS Account. 10.2.12 Effective January 1, 2012, City contributions to the Cafeteria Plan will be limited to contributions described in RCPSA MOU Section 10.2.2, and will not include credit to a flexible spending account. 10.3 Dental 6.H. - Page 42 of 72 384