CITY COUNCIL REGULAR MEETING AGENDA PACKET 5-5-26

19 provides for a two-tier prescription drug plan). The Point of Service (POS) medical plan co- pays shall be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, twenty-five ($25) for brand and thirty-five dollars ($35) for non- formulary. C. Increases in Premiums During the term of this agreement, the City will pay for any increase in the medical plan premiums up to a maximum of 15% of the lowest cost HMO family rate. The difference will be deducted from the employee’s paycheck on a pre-tax basis. In the event that the medical premium increase is less than 15%, the City’s sole obligation is to pay the lower percentage increase. D. Changes to Plan Designs During the term of this Agreement, the City reserves the right to propose changes to the plan designs and co-pay structure in order to reduce costs to the City and employees. Changes to plan design shall be by mutual agreement. 14.2 Hospital and Medical - Retired Employees A. Federal or State Legislation Plan Design The City reserves the right to meet and confer with the Association for the purposes of coordinating retired employees hospital and medical care in the event Federal or State legislation is implemented that effects retiree's medical insurance. B. Benefits for Medicare Eligible Retirees All retirees eligible for Medicare are required to apply for benefits when eligible to remain on the City’s group health plans. Upon qualifying for and receiving parts A and B of Medicare, the City shall not be obligated to contribute a monthly amount in excess of the monthly premium for the Kaiser supplement to Medicare Health Plan through June 30, 2009. For employees who retire after July 1, 2009, the City shall not be obligated to contribute a monthly amount in excess of the monthly premium for the lowest cost HMO health plan supplement to Medicare as provided below. C. Spousal Continuation of Benefits In the event the employee is eligible for two-party coverage and the eligible employee is deceased, the amount the City is obligated to pay shall be reduced by 1/2 (one half). If the spouse remarries, the obligation by the City shall terminate. D. Plan Design for Employees Who Retire Prior to July 1, 2009 Hospital and Medical - Retired Employees Effective March 1, 1990, for all employees who retire for service after March 1, 1990 the City shall pay for each year of service with the City of Pleasanton, four percent (4%) of the monthly premium for employee and one dependent of the City's current Kaiser S-1 Health Plan coverage. Effective March 1, 1990 for all employees who retire for disability after March 1, 1990, the City shall pay a percentage of the monthly premium for employee and one dependent Page 189 of 248