Common use of Pension and Medical Benefits Clause in Contracts

Pension and Medical Benefits. (a) ABAG will retain sole financial responsibility for meeting its annual obligation for outstanding CalPERS pension obligations and retiree medical benefits, and will make meeting such obligations its highest budgetary priority permitted by law. (b) In the event of need to fund the obligation referenced in (a), the first priortity for use of excess revenues from ABAG’s new financial services joint powers authority will be to meet the obligations referenced in subsection (a). (c) In the event that the ABAG dues and revenues described in subsection (b) are insufficient and ABAG is unable to meet the obligations referenced in subsection (a), MTC will use its best efforts to assist ABAG in raising new revenues required to make these payments; however in no event shall MTC be responsible for nor assume the obligation to make such payments under subsection (a) above.