Common use of CAFETERIA BENEFIT PLAN Clause in Contracts

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. The CITY shall provide the number in dollars in the Cafeteria Benefit Plan to be benchmarked and maintained at the same level of the “Self-Represented Employees.” Options available under the program shall be as set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information booklet. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee through deductions withheld from the bi-weekly paycheck. C. The Cafeteria Plan offers reimbursement for certain expenses in addition to the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administrator. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. Nothing herein shall prevent the CITY and the ASSOCIATION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY and the ASSOCIATION agree to negotiate over health care during the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiations.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a implemented an Internal Revenue Code Section 125 cafeteria benefit programplan ("PLAN") on or about August 1, 1989. The CITY shall provide the number in dollars in the Cafeteria Benefit Plan to be benchmarked PLAN contains a provision for employer contribution and maintained at the same level of the “Self-Represented Employees.” Options available under the program EMPLOYEE flexible spending accounts. The PLAN, if practical, shall be as set forth in written to provide for all allowable benefits. This MOU shall control which of those benefits are utilized and the Annual Open Enrollment and Cafeteria Benefit Plan information booklet. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coveragedollar amount of any employer contribution. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by Whereas the CITY will continue to make available individual term life insurance, such insurance will not be part of the PLAN and must be paid for by the employee through deductions withheld EMPLOYEE as a normal payroll after-tax deduction. The monthly cafeteria plan allowances will be as follows: Each EMPLOYEE who elects coverage from a CalPERS’ health plan shall have the bi-weekly paycheck. C. The Cafeteria Plan offers reimbursement PEMHCA statutory minimum paid by the City to CalPERS (See Section A of this Article) for certain expenses in addition that benefit, with the balance of the cafeteria benefit allowance available for other cafeteria selections or taxable cash. An EMPLOYEE who elects not to the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by covered under a Third Party Administrator. D. The CalPERS health insurance plans provided by plan may use the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. Nothing herein shall prevent the CITY and the ASSOCIATION from mutually agreeing to the provision total cafeteria benefit allowance for different health insurance benefits to employees covered by this MOU, during the term of this MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. The CITY reserves the right at any time during the term of this MOU to change its insurance carriersother eligible benefits. In the event such a change materially affects coverage or benefitsthat the total cost of benefits selected exceeds the allowance, the CITY agrees difference shall be deducted from the EMPLOYEE's salary as a "salary reduction" item; i.e., paid with before-tax dollars. If the allowance exceeds the total cost of benefits selected, the difference shall be paid to meet the EMPLOYEE in cash (Cash in lieu). Effective January 1, 2020, the maximum cash in lieu amount an employee is eligible to receive is $287.50/month. All employees must enroll in an available City health program unless they opt out. An employee may receive cash in lieu, as specified above, for opting out of the City’s health program if he/she: (1) provides proof that the employee and confer all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in advance or with the City’s plan year to which the opt out applies (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) signs an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of such change, provided however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. the plan year. The CITY opt-out payment cannot be made and the ASSOCIATION agree City will not in fact make payment if the employer knows or has reason to negotiate over know that the employee or tax family member doesn’t have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. The City may reopen negotiations on the issue of health care during the term of this agreementinsurance benefits or cafeteria plan (including, without having as to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislationboth, including but not limited to, plan benefits or structure, City or employee contributions and/or opt out amount or requirements) in order to avoid penalties or taxes under the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits ACA or other statutory scheme that may be offered if changes are necessary during the term result from an interpretation of the agreement. If ACA or other statutory scheme by the Internal Revenue Service or other federal agency (including, but not limited to, a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside revenue ruling, regulation or other guidance) or state agency, or a ruling by a court of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiationscompetent jurisdiction.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. provide and pay premiums for $25,000 of group term life insurance for each employee in the unit. B. The CITY shall provide and pay premiums for a Short Term and a Long Term Disability Program. C. The CITY and the number in dollars in UNION mutually agree to continue with the CITY's Cafeteria Benefit Plan Plan. The cafeteria benefit plan makes available a variety of options including: alternate health insurance plans, dental and vision plans, option to be benchmarked purchase additional life insurance coverage for employee and maintained at the same level spouse, and option to purchase additional Long Term Disability benefit. D. Pursuant to Government Code §22892 of the “SelfPublic Employees’ Medical and Hospital Care Act (PEMHCA), effective January 1, 2015, the City shall provide $122 per month for health benefits for all active employees and retirees, effective January 1, 2016 the contribution will increase to $125.00 per month. In addition to that amount, the City shall provide to active employees a cafeteria plan which, when combined with that monthly sum, shall equal $1.298.00 per month, which is equal to what self-Represented Employees.” represented and other represented employees will be receiving in 2016. Options available under the program shall be as set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information bookletmemorandum from the Director of Administrative Services. Persons hired during the year shall receive a proportionate allowance. For calendar years 2017 and 2018, the City agrees to provide all employees a cafeteria plan benefit allotment equal to the amount provided to self- represented employees and other represented employees receive. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. E. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee employee. At the discretion of the employee, payment shall be accomplished either through deductions deduction withheld from the biemployee's bi- weekly paycheck or as a lump-weekly paychecksum deduction from gross salary prior to tax withholding. C. The F. To the extent that Congress enacts tax reform legislation, which impacts the Cafeteria Plan offers reimbursement for certain expenses in addition Plan, the CITY and UNION agree to meet and confer on the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administratorimplementation of any mandatory changes. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. G. Nothing herein shall prevent the CITY and the ASSOCIATION UNION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this the MOU, so long as the benefit levels remain approximately the sameequal. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. H. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided provided, however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY and the ASSOCIATION agree to negotiate over health care during the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiations.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a offers an Internal Revenue Code Section 125 cafeteria benefit programplan ("PLAN”) which coincides with the CalPERS’ Health Benefits Program plan year. The CITY PLAN contains provisions for employer contribution and EMPLOYEE flexible spending accounts. The PLAN, if practical, shall be written to provide for all allowable benefits. This MOU shall control which of those benefits are utilized and the number in dollars in dollar amount of any employer contribution. The cafeteria benefit allowance will be paid monthly with the Cafeteria Benefit Plan to be benchmarked and maintained at the same level of the “Self-Represented Employees.” Options available under the program contribution amount set on a calendar year basis. The monthly cafeteria benefit allowance shall be as set forth in follows: Effective January 1, 2020: $1,200.00 Effective January 1, 2021: $1,250.00 Effective January 1, 2022: $1,300.00 Effective January 1, 2023: $1,350.00 Each EMPLOYEE who elects coverage from a CalPERS’ health plan shall have the Annual Open Enrollment and Cafeteria Benefit Plan information booklet. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided statutory minimum according to PEMHCA paid by the CITY will be paid for by the employee through deductions withheld from the bi-weekly paycheck. C. The Cafeteria Plan offers reimbursement for certain expenses in addition City to the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administrator. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date CalPERS (See Section A of this MOUArticle) for that benefit. Nothing herein shall prevent This statutory minimum is the CITY and amount which is paid to CalPERS on behalf of retirees electing such insurance. An EMPLOYEE who elects not to be covered under a CalPERS’ health plan may use the ASSOCIATION from mutually agreeing to the provision monthly cafeteria benefit allowance for different health insurance benefits to employees covered by this MOU, during the term of this MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. The CITY reserves the right at any time during the term of this MOU to change its insurance carriersother eligible benefits. In the event such that the total cost of benefits selected exceeds the allowance, the difference shall be deducted from the EMPLOYEE's salary as a change materially affects coverage or "salary reduction" item; i.e., paid with before-tax dollars. If the allowance exceeds the total cost of benefits selected, the difference shall be paid to the EMPLOYEE as “cash in lieu” under the following stipulations: Employees shall be entitled to receive the monthly cafeteria allowance difference that exceeds the total cost of benefits, up to $1,150, as cash in lieu. Are not eligible for any cash in lieu. In the CITY agrees event any provision of Federal law would impose greater financial cost or penalties on the City, which is above and beyond the City’s agreed upon contribution to an EMPLOYEE’s cafeteria plan as described above, the parties agree to a limited meet and confer solely as to changes to the cafeteria plan that would be needed to avoid such additional cost or penalties. The City may require proof of coverage as a condition of receiving the City’s full cafeteria contribution. If and when this becomes necessary, an employee who provides evidence of group medical insurance coverage (e.g., coverage under a spouse’s employer’s plan) that is compliant with the Affordable Care Act (“ACA”) shall receive the full cafeteria benefit allowance cash in advance lieu in accordance with the stipulations stated above. Employees hired before July 1, 2019, who do not provide appropriate proof of such changecoverage, provided howeveror who provide proof of non-group coverage, or coverage that if such a change results in comparable coverage and benefitsis otherwise not ACA compliant, no obligation to meet and confer shall arise hereunder. G. The CITY only receive the difference between the City’s monthly cafeteria plan contribution and the ASSOCIATION agree to negotiate over health care during lowest priced “Employee Only” coverage offered through the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiationsCalPERS’ medical insurance plans.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. The CITY shall provide the number in dollars in the Cafeteria Benefit Plan to be benchmarked and maintained at the same level of the “Self-Represented Employees.” Options available under the program shall be as set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information booklet. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee through deductions withheld from the bi-weekly paycheck. C. The Cafeteria Plan offers reimbursement for certain expenses in addition to the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administrator. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. Nothing herein shall prevent the CITY and the ASSOCIATION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY and the ASSOCIATION agree to negotiate over health care during the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION MEMBERS to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. . H. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiations.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. provide and pay premiums for $25,000 of group term life insurance for each employee in the unit. B. The CITY shall provide and pay premiums for a Short Term and a Long Term Disability Program. C. The CITY and the number in dollars in UNION mutually agree to continue with the CITY's Cafeteria Benefit Plan Plan. The cafeteria benefit plan makes available a variety of options including: alternate health insurance plans, dental and vision plans, option to be benchmarked purchase additional life insurance coverage for employee and maintained at the same level spouse, and option to purchase additional Long Term Disability benefit. D. Pursuant to Government Code §22892 of the “Self-Represented Public Employees.” ’ Medical and Hospital Care Act (PEMHCA), the contribution amount for retired employees participating in CalPERS health plans shall be $143.00 per month for calendar year 2021. In addition to that amount, the City shall provide to active employees a cafeteria plan. Options available under the program shall be as beas set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information bookletmemorandum from the Director of Administrative Services. Persons hired during the year shall receive a proportionate allowance. For calendar year 2022, the City agrees to provide AFSCME employees a cafeteria plan benefit allotment equal to the amount provided to self-represented employees. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. E. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee employee. At the discretion of the employee, payment shall be accomplished either through deductions deduction withheld from the biemployee's bi- weekly paycheck or as a lump-weekly paychecksum deduction from gross salary prior to tax withholding. C. The F. To the extent that Congress enacts tax reform legislation, which impacts the Cafeteria Plan offers reimbursement for certain expenses in addition Plan, the CITY and UNION agree to meet and confer on the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administratorimplementation of any mandatory changes. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. G. Nothing herein shall prevent the CITY and the ASSOCIATION UNION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this the MOU, so long as the benefit levels remain approximately the sameequal. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. H. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided provided, however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY I. In anticipation of changes brought about by the Affordable Care Act and particularly by the anticipated Cadillac Tax expected in 2018, the City is evaluating alternative methods for delivering health benefits to its employees. Nothing herein shall prevent the City and the ASSOCIATION agree Union from mutually agreeing to negotiate over the provision for different health care insurance benefits to employees covered by this MOU, during the term of this agreementMOU, without having to re-negotiate so long as the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will benefit levels remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiationsapproximately equal.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. provide and pay premiums for $25,000 of group term life insurance for each employee in the unit. B. The CITY shall provide and pay premiums for a Short Term and a Long Term Disability Program. C. The CITY and the number in dollars in UNION mutually agree to continue with the CITY's Cafeteria Benefit Plan Plan. The cafeteria benefit plan makes available a variety of options including: alternate health insurance plans, dental and vision plans, option to be benchmarked purchase additional life insurance coverage for employee and maintained at the same level spouse, and option to purchase additional Long Term Disability benefit. D. Pursuant to Government Code §22892 of the “Self-Represented Public Employees.” ’ Medical and Hospital Care Act (PEMHCA), effective January 1, 2015, the City shall provide $122 per month for health benefits for all active employees and retirees, effective January 1, 2016 the contribution will increase to $125.00 per month. In addition to that amount, the City shall provide to active employees a cafeteria plan. Options available under the program shall be as set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information bookletmemorandum from the Director of Administrative Services. Persons hired during the year shall receive a proportionate allowance. For calendar years 2019, 2020 and 2021, the City agrees to provide AFSCME employees a cafeteria plan benefit allotment equal to the amount provided to self-represented employees. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. E. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee employee. At the discretion of the employee, payment shall be accomplished either through deductions deduction withheld from the biemployee's bi- weekly paycheck or as a lump-weekly paychecksum deduction from gross salary prior to tax withholding. C. The F. To the extent that Congress enacts tax reform legislation, which impacts the Cafeteria Plan offers reimbursement for certain expenses in addition Plan, the CITY and UNION agree to meet and confer on the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administratorimplementation of any mandatory changes. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. G. Nothing herein shall prevent the CITY and the ASSOCIATION UNION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this the MOU, so long as the benefit levels remain approximately the sameequal. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. H. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided provided, however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY I. In anticipation of changes brought about by the Affordable Care Act and particularly by the anticipated Cadillac Tax expected in 2018, the City is evaluating alternative methods for delivering health benefits to its employees. Nothing herein shall prevent the City and the ASSOCIATION agree Union from mutually agreeing to negotiate over the provision for different health care insurance benefits to employees covered by this MOU, during the term of this agreementMOU, without having to re-negotiate so long as the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will benefit levels remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiationsapproximately equal.

CAFETERIA BENEFIT PLAN. A. The CITY shall make available a cafeteria benefit program. provide and pay premiums for $25,000 of group term life and accidental death and dismemberment (AD&D) insurance for each employee in the unit. B. The CITY shall provide and pay premiums for a Short Term and a Long Term Disability Program. C. The CITY and the number in dollars in UNION mutually agree to continue with the CITY's Cafeteria Benefit Plan Plan. The cafeteria benefit plan makes available a variety of options including: alternate health insurance plans, dental, vision, and ancillary plans, option to be benchmarked purchase additional life insurance coverage for employee and maintained at the same level dependents, and option to purchase additional Long Term Disability benefit. D. Pursuant to Government Code §22892 of the “Self-Represented Public Employees’ Medical and Hospital Care Act (PEMHCA), the contribution amount for retired employees participating in CalPERS health plans shall be $149.00 per month for calendar year 2022.” E. In addition to that amount, the City shall provide to active employees a cafeteria plan. Options available under the program shall be as set forth in the Annual Open Enrollment and Cafeteria Benefit Plan information bookletmemorandum from the Director of Administrative Services. Employees hired during the year shall receive a proportionate allowance. For calendar year 2022, the City agrees to provide AFSCME employees a cafeteria plan benefit allotment equal to the amount provided to self-represented employees. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. F. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided by the CITY will be paid for by the employee employee. At the discretion of the employee, payment shall be accomplished either through deductions deduction withheld from the biemployee's bi- weekly paycheck or as a lump-weekly paychecksum deduction from gross salary prior to tax withholding. C. The G. To the extent that the government enacts tax reform legislation, which impacts the Cafeteria Plan offers reimbursement for certain expenses in addition Plan, the CITY and UNION agree to meet and confer on the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administratorimplementation of any mandatory changes. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date of this MOU. H. Nothing herein shall prevent the CITY and the ASSOCIATION UNION from mutually agreeing to the provision for different health insurance benefits to employees covered by this MOU, during the term of this the MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. I. The CITY reserves the right at any time during the term of this MOU to change its insurance carriers. In the event such a change materially affects coverage or benefits, the CITY agrees to meet and confer in advance of such change, provided provided, however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer shall arise hereunder. G. The CITY and the ASSOCIATION agree to negotiate over health care during the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiations.

CAFETERIA BENEFIT PLAN. A. The CITY offers an Internal Revenue Code Section 125 cafeteria plan ("PLAN") which coincides with the CalPERS’ Health Benefits Program plan year. The PLAN contains provisions for employer contribution and EMPLOYEE flexible spending accounts. The PLAN, if practical, shall be written to provide for all allowable benefits. This MOU shall control which of those benefits are utilized and the dollar amount of any employer contribution. Whereas the CITY will continue to make available State Disability Insurance and individual term life insurance, such insurance will not be part of the PLAN and must be paid by the EMPLOYEE as a normal payroll after-tax deduction. The cafeteria benefit programallowance will be paid monthly with the contribution amount set on a calendar year basis. The CITY shall provide the number in dollars in the Cafeteria Benefit Plan to be benchmarked and maintained at the same level of the “Self-Represented Employees.” Options available under the program monthly cafeteria benefit allowance shall be as set forth in follows: Effective January 1, 2020: $1,200.00 Effective January 1, 2021: $1,250.00 Effective January 1, 2022: $1,300.00 Effective January 1, 2023: $1,350.00 Each EMPLOYEE who elects coverage from a CalPERS’ health plan shall have the Annual Open Enrollment and Cafeteria Benefit Plan information booklet. B. The Cafeteria Plan makes available alternate health insurance plans from which eligible employees may select health insurance coverage. Any insurance coverage selected which costs more than the Annual Benefit Allotment provided statutory minimum according to PEMHCA) paid by the CITY will be paid for by the employee through deductions withheld from the bi-weekly paycheck. C. The Cafeteria Plan offers reimbursement for certain expenses in addition City to the health coverage, and the voluntary vision and dental coverage. Reimbursement may be made by a Third Party Administrator. D. The health insurance plans provided by the CITY shall include benefits at least equal to the benefits contained in the health insurance plans available on the effective date CalPERS (See Section A of this MOUArticle) for that benefit. Nothing herein shall prevent This statutory minimum is the CITY and amount which is paid to CalPERS on behalf of retirees electing such insurance. An EMPLOYEE who elects not to be covered under a CalPERS’ health plan may use the ASSOCIATION from mutually agreeing to the provision monthly cafeteria benefit allowance for different health insurance benefits to employees covered by this MOU, during the term of this MOU, so long as the benefit levels remain approximately the same. E. To the extent that Congress enacts tax reform legislation which impacts the Cafeteria Plan, the CITY and the ASSOCIATION agree to meet and confer on the implementation of any mandatory changes. F. The CITY reserves the right at any time during the term of this MOU to change its insurance carriersother eligible benefits. In the event such a change materially affects coverage or benefitsthat the total cost of benefits selected exceeds the allowance, the CITY agrees to meet and confer in advance difference shall be deducted from the EMPLOYEE's salary as a "salary reduction" item; i.e., paid with before-tax dollars. If the allowance exceeds the total cost of such changebenefits selected, provided however, that if such a change results in comparable coverage and benefits, no obligation to meet and confer the difference shall arise hereunder. G. The CITY and the ASSOCIATION agree to negotiate over health care during the term of this agreement, without having to re-negotiate the entire agreement. This re-opener allows the parties to address any changes to health care reform legislation, including but not limited be paid to the Cadillac Tax provisions of 2018. The CITY will meet and confer to determine EMPLOYEE as “cash in lieu” under the best way to limit the potential liability of these changes and will work with the ASSOCIATION to determine how a set of similar benefits may be offered if changes are necessary during the term of the agreement. If a change to the plan structure is warranted and the CITY determines it is best to offer benefits outside of the cafeteria style plan, the CITY will invite members of the ASSOCIATION to participate in a Joint Labor Management Benefits Committee. The purpose of the Committee will be to examine cost containment strategies for the management of employee benefits while maintaining the quality of the benefits offered to employees. All other provisions of the contract will remain in effect during the re-opener with no labor disruptions as a result of the re-opener negotiationsfollowing stipulations.