Group Health Benefits at Retirement for Employees. (a) Tier 1 –Hired Prior to September 20, 2011 All active employees hired prior to September 20, 2011, who retire from the City and are eligible for CalPERS benefits upon separation of service shall be eligible for the City to pay a 50% proportionate share of costs of the insurance premium should the active employee transitioning to retirement elect to participate in the group health, dental and vision plan also made available to active employees. To initially qualify for the benefit, the employee must go directly from active status to retiree status with CalPERS. To maintain a qualified status, and to continue to receive the benefit, the retired employee must continue the group medical insurance during retirement without a break in coverage. Payments by the City will be discontinued upon termination of group medical insurance coverage by the City retiree or loss of qualified status by the retiree. Following the death of a retiree, the surviving spouse, if any, may continue the insurance and the City will continue the benefit on the same terms and conditions for the life of the surviving spouse. The City will not contribute payments on behalf of any retiree hired prior to September 20, 2011, except as set forth above. (Employees who retired prior to July 1, 2000, are eligible for health coverage only.)
