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10.2 <br /> <br />10.1.7 <br /> <br />The City shall establish in accordance with Section 125 of the IRS Code <br />a Cafeteria Plan establishing the following individual accounts for each <br />active employee <br /> <br />A. PERS Medical Premiums <br />B. Dependent Care <br />C. Health Care Reimbursement <br /> <br />10.1.8 <br /> <br />For the period September 1, 1998 through August 31, 2001, the City's <br />maximum monthly contribution for each active full-time employee for <br />the aforementioned Cafeteria Plan shall be four hundred fifty dollars <br />($450.00) per month per employee minus any costs incurred by the City <br />to maintain said Cafeteria Plan in compliance with IRS Code Section <br />125, and minus any costs incurred by the City to maintain the PERS <br />Health Benefits Plans in compliance with Government code Section <br />22751, et. seq. Such costs include, but are not limited to surcharges, <br />and/or administrative fees. The actual maximum monthly contribution <br />per active employee, once these charges have been deducted, is <br />estimated to be $424.00. <br /> <br />10.1.9 <br /> <br />For employees covered by this MOU, this amount shall be prorated. (For <br />permanent part-time employees working (20) or more hours per week <br />covered by the MOU this amount shall be prorated.) <br /> <br />Dental <br /> <br />The City shall continue to provide to eligible employees and dependents fully <br />paid dental insurance through Delta Dental Fee for Service program through the <br />term of this agreement or upon the establishment of a mutually agreed upon <br />alternative program. <br /> <br />10.3 Li~Insurance <br /> <br />The City shall continue to offer to eligible employees the life insurance program <br />in effect on February 1, 1974. <br /> <br />10.4 Savines Clause <br /> <br />If, pursuant to any federal or state law which may become effective subsequent to <br />the effective date of this MOU, the City is required to pay contributions or taxes <br />for hospital-medical-surgical, dental care, prescription drug or other health <br />benefits to be provided its employees under such federal or state act, the City's <br />obligation to furnish the same benefits under the hospital-medical-surgical, dental <br />care and major medical programs existing at this time shall be suspended and the <br />contributions agreed to be paid monthly hereunder by the City shall be reduced <br />each month by the amounts which the City is required to expend during any such <br /> <br />22 <br /> <br /> <br />