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Section 16. Health and Welfare 16.1 Health and Medical Care — Active Employees Medical contribution cap will be the equivalent to the premium for Pleasanton's Kaiser S -1 health plan, including durable medical equipment and Kaiser CH -3 chiropractic plan coverage, provided such plan is made available to the City of Pleasanton. In no event shall the City be obligated to contribute a monthly amount in excess of the monthly premium for the Kaiser S -1 Health Plan full family coverage. At such time as this plan is no longer available, the Department will contribute at the PEMHCA Kaiser rate structure. A. The parties agree to a Dental Plan as provided by the City of Pleasanton at the City's full expense. Along with Item D below, the parties agree to research a joint self - insured dental plan and/or a change to dental benefits. The City will provide a dental plan including a maximum orthodontia coverage of $1,500. The premium costs of this plan shall be included in the 125 Plan referenced in Section 16.1 C. B. Fire Inspectors original to Livermore will continue with their Livermore medical and dental cap until a resolution is reached with the Local on the 125 program and caps identified in item d. below. If any Livermore Inspector receives a spousal benefit, it will be grandfathered at the existing amount until the 125 Plan amount is implemented. C. By August 31, 2001, an IRS Section 125 Plan will be implemented for calendar year 2002 for each full -time employee who is eligible to enroll in one of the medical insurance plans offered by the City of Pleasanton. The 125 Plan will have the elements agreed to by the parties in the MOU that expired on July 30, 2001, Appendix C; specifically, the premium costs the City is paying for medical, dental, vision will be added together. The balance of the cost incurred to provide medical, dental and vision care benefits for the employee and eligible dependents above the city's contribution will be paid by the employee on a pre -tax basis. Should there be an increase in premium rates, the City shall adjust the city contribution accordingly. In the event the amounts are insufficient to pay 100 %, the Employer shall make a payroll deduction from the employee's pay to cover the difference in cost. For the purpose of this Section, a dependent is defined as a person who satisfies the definition of dependent in the medical insurance plan in which the employee is enrolled. Such dependents must also be enrolled in and covered by the plan. D. In addition, the plan will take into account the employees' interests in AFLAC supplemental insurance products, life insurance and long -term care insurance to the extent that these benefits can be offered within a 125 Plan on a pre -tax basis. E. Until closure is reached with the City of Pleasanton on how to provide a "spousal benefit" under current IRS regulations, Livermore employees receiving this benefit as of 10/30/98 will continue to receive it. Upon implementation of the 125 Plan, the City will discontinue the current system of providing medical, dental and vision care provided for active employees in the Memorandum of Understanding, including the `grand- fathered spousal benefit' amounts paid to the prior City of Livermore IAFF- represented employees. 19