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Changes to plan design shall be by mutual agreement. <br /> The City agrees to provide up to three (3) health plan options for employees and eligible <br /> dependents. At least two options will be HMOs and the other will be a PPO option. For <br /> the term of this agreement, the City agrees to continue to offer Kaiser as one of the HMO <br /> options. <br /> 16.2 Health and Medical Care—Retired Employees <br /> A. Spousal Continuation of Benefits <br /> In the case where the employee eligible for two-party coverage is deceased, the amount <br /> the City is obligated to pay shall be reduced by one half(1/2). If the spouse remarries, the <br /> obligation by the City shall terminate. Domestic partners shall be treated in the same <br /> manner as spouses for continuation of benefits. <br /> B. Plan Design <br /> Employees who retire on or after July 1, 2009, will have the same benefit co-pay and plan <br /> design as provided to active employees in accordance with Section 16.1.0 and are subject <br /> to the 15%premium cap provisions of Section 16.1.B. <br /> C. Vesting Schedule for Employees Hired Before July 1,2012 <br /> 1. Service Retirement <br /> For all employees who retire with service from the City of Pleasanton, the City shall pay four <br /> percent(4%) for each year of service of the City's contribution toward the monthly premium for <br /> employee and one dependent. <br /> 2. Disability Retirement <br /> For all employees who retire with disability, the City shall pay a percentage of the City's <br /> contribution toward the monthly premium for employee and one dependent in accordance with <br /> the schedule set forth below: <br /> Years of Service City's Contribution <br /> 10 20% <br /> 11 25% <br /> 12 30% <br /> 13 35% <br /> 14 40% <br /> 15 45% <br /> 16 48% <br /> 17 51% <br /> 18 54% <br /> 19 57% <br /> 20 80% <br /> 21 84% <br /> 22 88% <br /> 23 92% <br /> 24 96% <br /> 25+years of service 100% <br /> 23 <br />