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4.2A -3 <br />said costs shall be carried over and charged as administrative costs to the <br />following plan year and deducted from the aforementioned monthly dollar caps <br />accordingly. <br />10.1.6 An employee who is receiving a disability retirement due to a work related <br />illness or injury shall receive paid medical benefits provided that the following <br />conditions are met: <br />a) The employee is not eligible for benefits under 10.1.4; and <br />b) The employee is not eligible for similar benefits through a spouse's <br />health plan. <br />Whenever the above eligibility criteria are met, the City will provide medical <br />benefits at the same benefit tier (single, two -party or family) which the <br />employee would have been receiving if he /she had continued as an active <br />employee. <br />10.1.7 The City shall establish in accordance with Section 125 of the IRS Code a <br />Cafeteria Plan establishing the following individual accounts for each active <br />employee <br />A. PERS Medical Premiums <br />B. Dependent Care <br />C. Health Care Reimbursement <br />10.1.8 For the Plan Year beginning on January 2003, the City's maximum monthly <br />contribution for each active full -time employee for the aforementioned <br />Cafeteria Plan shall be six hundred eighty three dollars and ninety five cents <br />($683.95) per month per employee minus any costs incurred by the City to <br />maintain said Cafeteria Plan in compliance with IRS Code Section 125, and <br />minus any costs incurred by the City to maintain the PERS Health Benefits <br />Plans in compliance with Govemment code Section 22751, et. Seq. Such costs <br />include, but are not limited to surcharges and/or administrative fees. The actual <br />maximum monthly contribution per active employee, once these charges have <br />been deducted, is estimated to be $657.95. In the event the Kaiser premium <br />increases above $657.95 during the term of this MOU, the City will increase its <br />contribution in an amount to equal such an increase. <br />10.1.9 Effective with the first open enrollment after the adoption of the MOU, an <br />employee who elects no health plan coverage and provides evidence of other <br />coverage, as a health savings /cash option, the City and the employee shall share <br />equally the amount designated in Section 10.1.2 and 10.1.8 above as the City's <br />maximum combined monthly contribution. <br />20 <br />