Common use of Post-Retirement Medical Benefits Clause in Contracts

Post-Retirement Medical Benefits. 51.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU shall continue to receive such benefit in accordance with the provisions of the MOU between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees subject to the following terms and conditions: 51.2.1 The employee must be credited with at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one (¼) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. ‌ 51.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU shall continue to receive such benefit in accordance with the provisions of the MOU between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 Regular, full-time employees in the classified service in classifications listed in Appendix “AB”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees subject to the following terms and conditions: 51.2.1 The employee must be credited with at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-ninety- five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one (¼) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- non-participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 Retired 53.1 ANAHEIM and AFA agree that employees who are receiving a hired on or after November 9, 2001, shall not be eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and AFA agree that employees hired on or after November 9, 2001, shall be provided a defined contribution POST Retirement Medical benefit from ANAHEIM on with the date the City Council approves this MOU shall continue to receive such benefit in accordance with following provisions: 53.1.1 Use of an Integral Part Trust for reimbursement of qualified medical expenses. Qualified medical expenses are those authorized under the provisions of the MOU between Internal Revenue Code Section 213, excepting only those expenses ANAHEIM and AMEA that was in effect the AFA may mutually agree to exclude. 53.1.2 ANAHEIM will contribute a one-time lump sum of three thousand dollars ($3,000) to the individual employee’s Retirement Health Savings Account (RHSA) at the time the employee is hired into a classification represented by the AFA. This contribution shall vest to the employee upon completion of their retirementfive (5) years of continuous City service, except that this contribution shall immediately vest to the benefit of any employee who separates City service as the result of being granted an industrial disability retirement from the Public Employees Retirement System. 51.2 Regular, full53.1.3 A Mandatory employee pre-time employees in tax contribution equivalent to 3% of the classified top step Firefighter IV base earnings will be deposited to the individual employee’s Retirement Savings Account on a biweekly basis. 53.1.4 AFA and ANAHEIM agree that any employee who separates City service in classifications listed in Appendix “A”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall for any reason will be eligible to participate in any ANAHEIM sponsored health plan (withdraw funds for reimbursement of eligible medical and dental) as retirees subject expenses without regard to the following terms employee’s age or years of service. AFA and conditions:ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 51.2.1 The employee must be credited with 53.1.5 AFA and ANAHEIM agree that employees hired on or after November 9, 2001, who have completed at least ten (10) years of continuousconsecutive ANAHEIM service, full-time ANAHEIM service on the date of retirement, and 51.2.2 The employee must have been and who are awarded a retirement from PERS as the their reason for separation from ANAHEIM service, and 51.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five (95%) based on the employee’s consecutive years of Anaheim service shall be calculated allowed access to the nearest complete one (¼) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored group health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s costplans as one of their coverage options. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. ‌ 51.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU shall continue to receive such benefit in accordance with the provisions of the MOU between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 Regular, full-time employees in the classified service in classifications listed in Appendix “AB”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees subject to the following terms and conditions: 51.2.1 The employee must be credited with at least ten (10) years of continuous, full-full- time ANAHEIM service on the date of retirement, and 51.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirementsrequirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five percent (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one quarter (¼1/4) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- non-participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 Retired 57.1 ANAHEIM and APA agree that employees who are receiving a hired on or after July 6, 2001 shall not be eligible for any post-retirement medical benefit from benefits under this ARTICLE. ANAHEIM and APA agree that employees hired on the date the City Council approves this MOU or after July 6, 2001 shall continue to receive such benefit in accordance with instead be provided a Retiree Health Saving Plan, the provisions of the MOU between ANAHEIM which shall be incorporated into a Letter of Understanding and AMEA that was in effect at the time of their retirementincorporated herein. 51.2 57.2 Regular, full-time employees in the classified service in classifications listed in Appendix “"A”", hired prior to July 6, 2001 who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service service, shall be eligible to participate in any ANAHEIM sponsored health plan (as a retiree. 57.3 Employees who retired prior to July 1, 1985, who were eligible for post retirement medical benefits at the time of their separation from ANAHEIM service and dental) as retirees subject who maintain continuous membership in good standing shall be eligible to participate in any ANAHEIM sponsored medical plan and shall pay monthly premiums in accordance with the following schedule: Single coverage $15.00 monthly Two Party coverage $15.00 monthly Family coverage $45.00 monthly 3.1 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 57.4 Employees who were hired prior to February 1, 1984, and who retire on or after July 1, 1985, and prior to February 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 57.4.1 The employee must have completed at least five (5) years of continuous, full-time ANAHEIM service on the date of retirement, and 57.4.2 The employee must have been awarded a retirement from the Public Employees' Retirement System ("PERS") as the reason for separation from ANAHEIM service, and 57.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 57.4.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical and/or dental plan elected by the employee as follows: • Service Retirements ANAHEIM Years of Service At Age 60 Under Age 60 WCAB Rating greater than or equal to 70% ANAHEIM’s contribution percent shall be credited with equal to 100% of the WCAB rating to a maximum contribution of 90%. WCAB Rating less than 70% ANAHEIM’s contribution percent shall be equal to 50% of the WCAB rating until age 60, then 100% of the WCAB rating. If the retiree participates in an ANAHEIM sponsored Rehabilitation Plan, ANAHEIM’s contribution shall be 90% for one year or until the rehabilitation plan ends, then ANAHEIM’s contribution reverts to the 50% or 100% standard. • Service Retirements ANAHEIM Years of Service At Age 60 Under Age 60 25+ 45% 22 ½% WCAB Rating greater than or equal to 70% ANAHEIM’s contribution percent shall be equal to 50% of the WCAB rating. WCAB Rating less than 70% ANAHEIM’s contribution percent shall be equal to 25% of the WCAB rating until age 60, then 50% of the WCAB rating. If the retiree participates in an ANAHEIM sponsored Rehabilitation Plan, ANAHEIM’s contribution shall be 45% for one year or until the rehabilitation plan ends, then ANAHEIM’s contribution reverts to the 25% or 50% standard. 57.4.5 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 57.5 Employees who retire on or after July 1, 1985, and prior to July 6, 2001, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 57.5.1 The employee must have completed at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 57.5.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 57.5.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 57.5.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 57.5.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 57.5.5.1 For service retirementsService Retirements, the contributions contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “Safety 2% @ 60” at 50 PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) % based on the employee’s 's age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 57.5.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) % for each year of service to a maximum contribution of ninety-five (95%) % based on the employee’s 's consecutive years of Anaheim service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one (¼) one-quarter year. 51.2.5.3 57.5.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLE, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 57.5.5.4 An employee who has completed twenty (20) consecutive years of service with ANAHEIM as a sworn Police Officer and who has prior service as a sworn Police Officer with another California law enforcement agency shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM’s contribution towards post-retirement medical benefits. 57.5.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s 's cost. 51.2.5.5 57.5.7 The full value of any Medicare MediCare credits provided to ANAHEIM or Medicare MediCare surcharges imposed on ANAHEIM by virtue of a retiree’s 's participation or non- non-participation in Medicare MediCare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 52.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU shall continue to receive such benefit in accordance with the provisions of the MOU between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 52.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees subject to the following terms and conditions: 51.2.1 52.2.1 The employee must be credited with at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 52.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 52.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 52.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 52.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 52.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 52.2.5.2 For disability retirementsrequirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five percent (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one quarter (¼1/4) quarter year. 51.2.5.3 52.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 52.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 52.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- non-participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 52.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 52.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 ‌ 52.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU shall continue to receive such benefit in accordance with the provisions of the MOU between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 52.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”, who are enrolled as subscribers in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees subject to the following terms and conditions: 51.2.1 52.2.1 The employee must be credited with at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 52.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 52.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, or 51.2.4 52.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 52.2.5 ANAHEIM shall provide separate contributions toward the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 52.2.5.1 For service retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) times the miscellaneous “2% @ 60” PERS retirement schedule to a maximum contribution of ninety-five percent (95%) based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 52.2.5.2 For disability retirementsrequirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five percent (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one quarter (¼1/4) quarter year. 51.2.5.3 52.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 52.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 52.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- non-participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 52.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 52.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 Retired ‌ 53.1 ANAHEIM and AFA agree that employees who are receiving a hired on or after November 9, 2001, shall not be eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and AFA agree that employees hired on or after November 9, 2001, shall be provided a defined contribution POST Retirement Medical benefit from ANAHEIM on with the date the City Council approves this MOU shall continue to receive such benefit in accordance with following provisions: 53.1.1 Use of an Integral Part Trust for reimbursement of qualified medical expenses. Qualified medical expenses are those authorized under the provisions of the MOU between Internal Revenue Code Section 213, excepting only those expenses ANAHEIM and AMEA that was in effect the AFA may mutually agree to exclude. 53.1.2 ANAHEIM will contribute a one-time lump sum of three thousand dollars ($3,000) to the individual employee's Retirement Health Savings Account (RHSA) at the time the employee is hired into a classification represented by the AFA. This contribution shall vest to the employee upon completion of five (5) years of continuous City service, except that this contribution shall immediately vest to the benefit of any employee who separates City service as the result of being granted an industrial disability retirement from the Public Employees Retirement System. 53.1.3 A mandatory employee pre-tax contribution equivalent to three percent (3%) of the top step Firefighter IV base earnings will be deposited to the individual employee's Retirement Savings Account on a bi-weekly basis. 53.1.4 AFA and ANAHEIM agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. AFA and ANAHEIM acknowledge that employee contributions for employer- provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 53.1.5 AFA and ANAHEIM agree that employees hired on or after November 9, 2001, who have completed at least ten (10) years of consecutive ANAHEIM service, and who are awarded a retirement from PERS as their reason for separation from ANAHEIM service shall be allowed access to ANAHEIM sponsored group health plans as one of their retirementcoverage options. 51.2 53.1.6 AFA and ANAHEIM agree that upon the death of an employee, the surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. 53.1.7 AFA and ANAHEIM agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility, consistent with this Letter of Understanding and with applicable Internal Revenue Service regulations. 53.1.8 If any provision of Section 53.1.1 through 53.1.8 is at any time or in any way expressly prohibited by Private Letter Ruling or held to be contrary to any law by any court of proper jurisdiction, the remainder shall not be affected thereby, and shall remain in full force and effect. The following provisions (§53.2 through and including §53.7) apply only to those employees hired prior to November 9, 2001. 53.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”"B", who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical benefits only) plan as a retiree. As of January 1, 1995, regular full-time employees in the classified service in classifications listed in Appendix "B", who are enrolled as a subscriber in an ANAHEIM-sponsored dental plan, at the time of separation from ANAHEIM service and dental) all retirees who were actively employed on or after January 1, 1988, who are enrolled as retirees subject a subscriber in any ANAHEIM sponsored health plans, shall also be eligible to participate in any ANAHEIM-sponsored dental plan as a retiree. 53.2.1 Employees who retired prior to January 1, 1988, who were eligible for post- retirement health benefits at the time of their separation from ANAHEIM service and who maintain continuous membership in good standing shall pay monthly premiums in accordance with the following schedule: Single coverage $15.00 monthly Two-party coverage $15.00 monthly Family coverage $45.00 monthly 53.2.2 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 53.3 Employees who were hired prior to January 1, 1984, and who retire on or after January 1, 1988, and prior to January 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 53.3.1 The employee must be credited with have completed at least ten five (105) years of continuous, full-full- time ANAHEIM service on the date of retirement, and 51.2.2 53.3.2 The employee must have awarded a retirement from the Public Employees' Retirement System (hereinafter called "PERS") as the reason for separation from ANAHEIM service, and 53.3.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 53.3.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Employee Medical Plan Option I in the year prior to the employee's retirement. 53.3.5 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored dental plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Safeguard Dental Plan in the year prior to the employee's retirement. 53.3.6 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 53.4 Employees who retire on or after January 1, 1988, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored health plan. 53.4.1 The employees must have completed at least ten (10) years of continuous, full- time ANAHEIM service on the date of retirement, and 53.4.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 53.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 53.4.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 53.4.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 53.4.5.1 For service retirementsService Requirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “"2% @ 60” at age 50" Safety PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) based on the employee’s 's age and consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-one quarter (¼) year. 51.2.5.2 53.4.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five percent (95%) based on the employee’s 's consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one (¼) one-quarter year. 51.2.5.3 53.4.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLE, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 53.4.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost's post. 51.2.5.5 53.4.7 Employees who retire on or after June 1, 2006 shall be required to enroll in Medicare Parts A and B upon establishing eligibility as a condition of continued health plan coverage. 53.4.8 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s 's participation or non- participation nonparticipation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 53.4.9 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s 's retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 53.5 The following conditions shall apply to all retirees who have post-retirement medical benefit coverage under Sections 53.2 et seq. of this ARTICLE: 53.5.1 Once canceled for any reason, coverage shall not be reinstated. 53.5.2 ANAHEIM agrees to notify the AFA when coverage may be canceled for nonpayment of fees. Coverage shall be canceled for nonpayment of fees after three (3) months in arrears. 53.5.3 There shall be Coordination of Benefits where other insurance exists. 53.5.4 Retirees may change plans and add dependents only during the annual open enrollment period, except that the surviving spouse of a retiree may not enroll a new spouse. 53.5.5 Vision care benefits shall be provided to all retired firefighters. 53.6 As used in this ARTICLE, "spouse" is understood to include a registered domestic partner when a Declaration of Domestic Partnership has been filed with California Secretary of State. 53.7 An employee who has completed twenty (20) consecutive years of service with ANAHEIM as a certified Firefighter and who has prior service as a certified Firefighter, with another California Fire agency, shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM's contribution towards post-retirement medical benefits. Employees who retire on have completed five (5) or after January 1, 2006 more years of continuous full-time ANAHEIM service and who terminate employment with ANAHEIM and are subsequently reinstated within three (3) years of their date of separation shall be credited with ANAHEIM prior service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under calculating continuous full- time ANAHEIM service upon completion of all of the provisions vesting requirements in Section 53.4. 53.8 Effective June 24, 2022, notwithstanding date of ARTICLEemployment, ANAHEIM shall contribute one percent (1%) of an employee’s base pay to the employee’s retirement health savings account on a bi-weekly basis. 53.9 Effective June 23, 2023, notwithstanding date of employment, ANAHEIM shall contribute three percent (3%) of an employee’s base pay to the employee’s retirement health savings account on a bi-weekly basis.

Post-Retirement Medical Benefits. 51.1 Retired 53.1 ANAHEIM and AFA agree that employees who are receiving a hired on or after November 9, 2001, shall not be eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and AFA agree that employees hired on or after November 9, 2001, shall be provided a defined contribution POST Retirement Medical benefit from ANAHEIM on with the date the City Council approves this MOU shall continue to receive such benefit in accordance with following provisions: 53.1.1 Use of an Integral Part Trust for reimbursement of qualified medical expenses. Qualified medical expenses are those authorized under the provisions of the MOU between Internal Revenue Code Section 213, excepting only those expenses ANAHEIM and AMEA that was in effect the AFA may mutually agree to exclude. 53.1.2 ANAHEIM will contribute a one-time lump sum of three thousand dollars ($3,000) to the individual employee's Retirement Health Savings Account (RHSA) at the time the employee is hired into a classification represented by the AFA. This contribution shall vest to the employee upon completion of five (5) years of continuous City service, except that this contribution shall immediately vest to the benefit of any employee who separates City service as the result of being granted an industrial disability retirement from the Public Employees Retirement System. 53.1.3 A mandatory employee pre-tax contribution equivalent to t h r e e p e r c e n t ( 3%) of the top step Firefighter IV base earnings will be deposited to the individual employee's Retirement Savings Account on a bi-weekly basis. 53.1.4 AFA and ANAHEIM agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. AFA and ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 53.1.5 AFA and ANAHEIM agree that employees hired on or after November 9, 2001, who have completed at least ten (10) years of consecutive ANAHEIM service, and who are awarded a retirement from PERS as their reason for separation from ANAHEIM service shall be allowed access to ANAHEIM sponsored group health plans as one of their retirementcoverage options. 51.2 53.1.6 AFA and ANAHEIM agree that upon the death of an employee, the surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. 53.1.7 AFA and ANAHEIM agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility, consistent with this Letter of Understanding and with applicable Internal Revenue Service regulations. 53.1.8 If any provision of Section 53.1.1 through 53.1.8 is at any time or in any way expressly prohibited by Private Letter Ruling or held to be contrary to any law by any court of proper jurisdiction, the remainder shall not be affected thereby, and shall remain in full force and effect. The following provisions (§53.2 through and including §53.7) apply only to those employees hired prior to November 9, 2001. 53.2 Regular, full-time employees in the classified service in classifications listed in Appendix “"A”", who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical benefits only) plan as a retiree. As of January 1, 1995, regular full-time employees in the classified service in classifications listed in Appendix "A", who are enrolled as a subscriber in an ANAHEIM-sponsored dental plan, at the time of separation from ANAHEIM service and dental) all retirees who were actively employed on or after January 1, 1988, who are enrolled as retirees subject a subscriber in any ANAHEIM sponsored health plans, shall also be eligible to participate in any ANAHEIM-sponsored dental plan as a retiree. 53.2.1 Employees who retired prior to January 1, 1988, who were eligible for post- retirement health benefits at the time of their separation from ANAHEIM service and who maintain continuous membership in good standing shall pay monthly premiums in accordance with the following schedule: Single coverage 15.00 monthly Two-party coverage 15.00 monthly Family coverage 45.00 monthly 53.2.2 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 53.3 Employees who were hired prior to January 1, 1984, and who retire on or after January 1, 1988, and prior to January 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 53.3.1 The employee must have completed at least five (5) years of continuous, full-time ANAHEIM service on the date of retirement, and 53.3.2 The employee must have awarded a retirement from the Public Employees' Retirement System (hereinafter called "PERS") as the reason for separation from ANAHEIM service, and 53.3.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 53.3.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Employee Medical Plan Option I in the year prior to the employee's retirement. 53.3.5 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored dental plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Safeguard Dental Plan in the year prior to the employee's retirement. 53.3.6 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 53.4 Employees who retire on or after January 1, 1988, and who meet the requirements described below shall be credited with eligible to participate in any ANAHEIM sponsored health plan. 53.4.1 The employees must have completed at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 53.4.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 53.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 53.4.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 53.4.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 53.4.5.1 For service retirementsService Requirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “"2% @ 60” at age 50" Safety PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) based on the employee’s 's age and consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-one quarter (¼) year. 51.2.5.2 53.4.5.1.1 An employee who retires may also use the seventy-five percent (75%) portion of sick leave hours transferred to an employee's Sick Leave Trust Fund Account on December 19, 1980, to calculate additional ANAHEIM service credit. Such sick leave hours shall be converted to additional service credit in accordance with the service credit conversion formula used by the Public 4.5.1 to a maximum combined total contribution of ninety-five percent (95%). 53.4.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (( 2%) for each year of service to a maximum contribution of ninety-ninety- five (percent ( 95%) based on the employee’s 's consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one (¼) one-quarter year. 51.2.5.3 53.4.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLEArticle, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 53.4.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE Article shall prevent a retiree from properly enrolling new dependents at the retiree’s cost's post. 51.2.5.5 53.4.7 Employees who retire on or after June 1, 2006 shall be required to enroll in Medicare Parts A and B upon establishing eligibility as a condition of continued health plan coverage. 53.4.8 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s 's participation or non- participation nonparticipation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 53.4.9 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s 's retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 53.5 The following conditions shall apply to all retirees who have post-retirement medical benefit coverage under Sections 53.2 et seq. of this Article: 53.5.1 Once canceled for any reason, coverage shall not be reinstated. 53.5.2 ANAHEIM agrees to notify the AFA when coverage may be canceled for nonpayment of fees. Coverage shall be canceled for nonpayment of fees after three ( 3 ) months in arrears. 53.5.3 There shall be Coordination of Benefits where other insurance exists. 53.5.4 Retirees may change plans and add dependents only during the annual open enrollment period, except that the surviving spouse of a retiree may not enroll a new spouse. 53.5.5 Vision care benefits shall be provided to all retired firefighters. 53.6 As used in this Article, "spouse" is understood to include a registered domestic partner when a Declaration of Domestic Partnership has been filed with California Secretary of State. 53.7 An employee who has completed twenty (20) consecutive years of service with ANAHEIM as a certified Firefighter and who has prior service as a certified Firefighter, with another California Fire agency, shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM's contribution towards post-retirement medical benefits. Employees who retire on have completed five (5) or after January 1, 2006 more years of continuous full-time ANAHEIM service and who terminate employment with ANAHEIM and are subsequently reinstated within three ( 3 ) years of their date of separation shall be credited with ANAHEIM prior service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under calculating continuous full• time ANAHEIM service upon completion of all of the provisions of ARTICLEvesting requirements in Section 53.4.

Post-Retirement Medical Benefits. 51.1 Retired 57.1 ANAHEIM and the APA agree that employees who are receiving a hired on or after July 6, 2001 shall not be eligible for any post-retirement medical benefit from benefits under this ARTICLE. ANAHEIM and the APA agree that employees hired on the date the City Council approves this MOU or after July 6, 2001 shall continue to receive such benefit in accordance with instead be provided a Retiree Health Saving Plan, the provisions of the MOU between ANAHEIM which shall be incorporated into a Letter of Understanding and AMEA that was in effect at the time of their retirementincorporated herein. 51.2 57.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”,” hired prior to July 6, 2001 who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service service, shall be eligible to participate in any ANAHEIM sponsored health plan (as a retiree. 57.3 Employees who retired prior to July 6, 1985, who were eligible for post retirement medical benefits at the time of their separation from ANAHEIM service and dental) as retirees subject who maintain continuous membership in good standing shall be eligible to participate in any ANAHEIM sponsored medical plan and shall pay monthly premiums in accordance with the following schedule: Single coverage $15.00 monthly Two Party coverage $15.00 monthly Family coverage $45.00 monthly 57.3.1 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 57.4 Employees who were hired prior to February 1, 1984, and who retire on or after July 1, 1985, and prior to February 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 57.4.1 The employee must be credited with have completed at least ten five (105) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 57.4.2 The employee must have been awarded a retirement from the Public Employees’ Retirement System (“PERS”) as the reason for separation from ANAHEIM service, and 57.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 57.4.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical and/or dental plan elected by the employee as follows: ANAHEIM Years of Service At Age 60 Under Age 60 15-19 60% 30% 20-24 80% 40% 25+ 90% 45% • Industrial Disability Retirements Workers Compensation ANAHEIM’s contribution percent Appeals Board (WCAB) shall be equal to 100% of the WCAB Rating greater than or equal rating to a maximum contribution of to 70% 90%. WCAB Rating less than 70% ANAHEIM’s contribution percent shall be equal to 50% of the WCAB rating until age 60, then 100% of the WCAB rating. If the retiree participates in an ANAHEIM sponsored Rehabilitation Plan, ANAHEIM’s contribution shall be 90% for one year or until the rehabilitation plan ends, then ANAHEIM’s contribution reverts to the 50% or 100% standard. ANAHEIM Years of Service At Age 60 Under Age 60 15-19 30% 15% 20-24 40% 20% 25+ 45% 22 1/2% • Industrial Disability Retirements WCAB Rating greater than ANAHEIM’s contribution percent or equal to 70% shall be equal to 50% of the WCAB rating. WCAB Rating less than 70% ANAHEIM’s contribution percent shall be equal to 25% of the WCAB rating until age 60, then 50% of the WCAB rating. If the retiree participates in an ANAHEIM sponsored Rehabilitation Plan, ANAHEIM’s contribution shall be 45% for one year or until the rehabilitation plan ends, then ANAHEIM’s contribution reverts to the 25% or 50% standard. 57.4.5 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 57.5 Employees who retire on or after July 1, 1985, and prior to July 6, 2001, and who meet the requirements described below shall be eligible to participate in any ANHEIM sponsored medical and/or dental plan. 57.5.1 The employee must have completed at least ten (10) years of continuous, full- time ANAHEIM service on the date of retirement, and 57.5.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 57.5.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 57.5.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 57.5.5 ANAHEIM shall provide separate contributions toward contribution towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 57.5.5.1 For service retirementsService Retirements, the contributions contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “Safety 2% @ 60” at 50 PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) % based on the employee’s age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 57.5.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) % for each year of service to a maximum contribution of ninety-five (95%) % based on the employee’s consecutive years of Anaheim service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one (¼) one-quarter year. 51.2.5.3 57.5.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLE, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 57.5.5.4 An employee who had completed twenty (20) consecutive years of service with ANAHEIM as a sworn Police Officer and who has prior service as a sworn Police Officer with another California law enforcement agency shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM’s contribution towards post-retirement medical benefits. 57.5.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 57.5.7 The full value of any Medicare MediCare credits provided to ANAHEIM or Medicare MediCare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in Medicare MediCare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 57.5.8 Employees who retire on or after March 13, 2006, shall be required to enroll in MediCare Parts A and B upon establishing eligibility as a condition of continued health plan coverage. 57.5.9 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions conditions, provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 57.6 Employees who retire on or after January 1July 6, 2006 2001, and who meet the requirements described below shall be credited with eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 57.6.1 The employee must have completed at least ten (10) years of continuous, full- time ANAHEIM service accrued through December 31on the date of retirement, 2005 and 57.6.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 57.6.3 PERS retirement benefits must commence no later than the purpose first day of determining eligibility the month following the date of separation from ANAHEIM service, OR 57.6.4 The employee must have awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 57.6.5 ANAHEIM shall provide separate contributions towards the premium costs of any ANAHEIM sponsored medical and/or dental plan elected by the employee according to the following schedule: 57.6.5.1 For Service Retirements, the contribution shall be a percentage of the annual contribution made by ANAHEIM on behalf of active employees, and benefit levels shall be calculated in accordance with the following table: Age of Retirement Percentage Contribution Per Year of Service 50 2.60% 51 2.70% 52 2.80% 53 2.90% 54 and older 3.00% ANAHEIM’s contribution under the provisions of this ARTICLE shall be limited to no more than eighty-five percent (85%) of the contribution made by ANAHEIM on behalf of active employees, the percentage based upon the employee’s age and consecutive years of ANAHEIM service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one quarter year. 57.6.5.2 For Disability Retirements, the contribution shall be a percentage of the of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of eighty-five (85%) based on the employee’s consecutive years of ANAHEIM service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one quarter year. 57.6.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 57.6.7 The full value of any MediCare credits provided to ANAHEIM or MediCare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in MediCare shall be passed on to the retiree in the form of reduced or increased premium costs. 57.6.8 The surviving spouse of the retiree may continue coverage under the same terms and conditions, provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 57.7 Any employee who retires from ANAHEIM service and who is eligible to receive multiple benefits under this ARTICLE may elect any single benefit for which he or she is eligible at the time of retirement. Such election shall be irrevocable. 57.8 The following conditions shall apply to all retirees who have post retirement medical benefit coverage under this ARTICLE: 57.8.1 Once canceled for any reason, coverage shall not be reinstated. 57.8.2 Coverage shall be canceled for non-payment of fees after three (3) months in arrears. 57.8.3 There shall be Coordination of Benefits where other insurance exists. 57.8.4 Retirees may change plans and add dependents only during the annual open enrollment period, except that the surviving spouse of a retiree may not enroll a new spouse. 57.9 As used in this ARTICLE, “spouse” is understood to include a registered domestic partner when a Declaration of Domestic Partnership has been filed with the California Secretary of State.

Post-Retirement Medical Benefits. 51.1 52.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU Memorandum of Understanding shall continue to receive such benefit in accordance with the provisions of the MOU Memorandum of Understanding between ANAHEIM and AMEA that was in effect at the time of their retirement. 51.2 52.2 Regular, full-time employees in the classified service in classifications listed in Appendix “"A”", who are enrolled as subscribers subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical and dental) as retirees a retiree subject to the following terms and conditions: 51.2.1 52.2.1 The employee must be credited with at least ten (10) years of continuous, full-full time ANAHEIM service on the date of retirement, and 51.2.2 52.2.2 The employee must have been awarded a retirement from PERS the Public Employees' Retirement System ("PERS") as the reason for separation from ANAHEIM service, and 51.2.3 52.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 52.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 52.2.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 52.2.5.1 For service retirementsService Retirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½1.5) times the miscellaneous “2% @ 60” at 60 PERS retirement schedule to a maximum contribution of ninety-five percent (95%) % based on the employee’s 's age and consecutive years of Anaheim service at the time of retirement. ANAHEIM service and the retiree’s 's age shall be calculated to the nearest complete one-one- quarter (¼) year. 51.2.5.2 52.2.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) % for each year of service to a maximum contribution of ninety-five (95%) % based on the employee’s 's consecutive years of Anaheim service shall be calculated to the nearest complete one (¼) quarter year. 51.2.5.3 52.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLE, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 52.2.5.4 The ANAHEIM contribution shall be based on the Two Party party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s 's cost. 51.2.5.5 52.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s 's participation or non- non-participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 52.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s 's retirement and that dependent coverage was continuously maintained during the employee’s 's retirement. 51.2.6 52.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLESection 52.2

Post-Retirement Medical Benefits. 51.1 Retired 53.1 ANAHEIM and AFA agree that employees who are receiving a hired on or after November 9, 2001, shall not be eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and AFA agree that employees hired on or after November 9, 2001, shall be provided a defined contribution POST Retirement Medical benefit from ANAHEIM on with the date the City Council approves this MOU shall continue to receive such benefit in accordance with following provisions: 53.1.1 Use of an Integral Part Trust for reimbursement of qualified medical expenses. Qualified medical expenses are those authorized under the provisions of the MOU between Internal Revenue Code Section 213, excepting only those expenses ANAHEIM and AMEA that was in effect the AFA may mutually agree to exclude. 53.1.2 ANAHEIM will contribute a one-time lump sum of three thousand dollars ($3,000) to the individual employee’s Retirement Health Savings Account (RHSA) at the time the employee is hired into a classification represented by the AFA. This contribution shall vest to the employee upon completion of five (5) years of continuous City service, except that this contribution shall immediately vest to the benefit of any employee who separates City service as the result of being granted an industrial disability retirement from the Public Employees Retirement System. 53.1.3 A mandatory employee pre-tax contribution equivalent to 3% of the top step Firefighter IV base earnings will be deposited to the individual employee’s Retirement Savings Account on a biweekly basis. 53.1.4 AFA and ANAHEIM agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee’s age or years of service. AFA and ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 53.1.5 AFA and ANAHEIM agree that employees hired on or after November 9, 2001, who have completed at least ten (10) years of consecutive ANAHEIM service, and who are awarded a retirement from PERS as their reason for separation from ANAHEIM service shall be allowed access to ANAHEIM sponsored group health plans as one of their retirementcoverage options. 51.2 53.1.6 AFA and ANAHEIM agree that upon the death of an employee, the surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. 53.1.7 AFA and ANAHEIM agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility, consistent with this Letter of Understanding and with applicable Internal Revenue Service regulations. 53.1.8 If any provision of Section 53.1.1 through 53.1.8 is at any time or in any way expressly prohibited by Private Letter Ruling or held to be contrary to any law by any court of proper jurisdiction, the remainder shall not be affected thereby, and shall remain in full force and effect. The following provisions (§53.2 through and including §53.7) apply only to those employees hired prior to November 9, 2001. 53.2 Regular, full-time employees in the classified service in classifications listed in Appendix “A”, who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical benefits only) plan as a retiree. As of January 1, 1995, regular full-time employees in the classified service in classifications listed in Appendix “A”, who are enrolled as a subscriber in an ANAHEIM-sponsored dental plan at the time of separation from ANAHEIM service and dental) all retirees who were actively employed on or after January 1, 1988, who are enrolled as retirees subject a subscriber in any ANAHEIM sponsored health plans shall also be eligible to participate in any ANAHEIM-sponsored dental plan as a retiree. 53.2.1 Employees who retired prior to January 1, 1988, who were eligible for post retirement health benefits at the time of their separation from ANAHEIM service and who maintain continuous membership in good standing shall pay monthly premiums in accordance with the following schedule: Single coverage 15.00 monthly Two-party coverage 15.00 monthly Family coverage 45.00 monthly 53.2.2 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 53.3 Employees who were hired prior to January 1, 1984, and who retire on or after January 1, 1988, and prior to January 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 53.3.1 The employee must have completed at least five (5) years of continuous, fulltime ANAHEIM service on the date of retirement, and 53.3.2 The employee must have awarded a retirement from the Public Employees’ Retirement System (“PERS”) as the reason for separation from ANAHEIM service, and 53.3.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 53.3.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Employee Medical Plan Option I in the year prior to the employee’s retirement. 53.3.5 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored dental plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Safeguard Dental Plan in the year prior to the employee’s retirement. 53.3.6 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 53.4 Employees who retire on or after January 1, 1988, and who meet the requirements described below shall be credited with eligible to participate in any ANAHEIM sponsored health plan. 53.4.1 The employees must have completed at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 53.4.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 53.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 53.4.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 53.4.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 53.4.5.1 For service retirementsService Requirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “2% @ 60at age 50” Safety PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) % based on the employee’s age and consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one quarter year. 53.4.5.1.1 An employee who retires may also use the seventy-five percent (75%) portion of sick leave hours transferred to an employee’s Sick Leave Trust Fund Account on December 19, 1980 to calculate additional ANAHEIM service credit. Such sick leave hours shall be converted to additional service credit in accordance with the service credit conversion formula used by the Public Employees Retirement System at date of retirement. The additional service credit shall be added to ANAHEIM service and then calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirements, . Additional ANAHEIM service credit received under this provision shall increase the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service up to a maximum contribution of ninety-five percent (955%) based on above the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one (¼) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit provided under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLESection

Post-Retirement Medical Benefits. 51.1 38.1 Retired employees who are receiving a post-retirement medical benefit from ANAHEIM on the date the City Council approves this MOU approved the applicable City of Anaheim Personnel Rule revision shall continue to receive such benefit benefits in accordance with the provisions of the MOU between ANAHEIM and AMEA ARTICLE 38 that was in effect at the time of their retirement. 51.2 Regular, full-time employees in 38.2 An employee covered by the classified service in classifications listed in Appendix “A”, applicable City of Anaheim Personnel Rule who are is enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any an ANAHEIM sponsored health plan (medical and dental) as retirees a retiree subject to the following terms and conditions: 51.2.1 38.2.1 The employee must be credited with at least ten five (105) years of continuous, full-full- time ANAHEIM service on the date of retirement, and 51.2.2 38.2.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 38.2.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 38.2.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 38.2.5 An employee who has completed twenty (20) consecutive years of service with ANAHEIM as a sworn Police Officer and who has prior service as a certified sworn Police Officer with another California Law Enforcement Agency shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM’s contribution towards post-retirement medical benefits. 38.3 For all regular, full-time employees hired prior to January 1, 1996 who meet the requirements for participation in any ANAHEIM sponsored health plan as a retiree, the City shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 For service retirements, the contributions 38.3.1 The percentage shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and onetwo-half tenths (1½1.2) times the miscellaneous “2% @ 60” 50 Local Public Agency Safety PERS retirement schedule for employees in classifications assigned to a maximum contribution of the Safety retirement group. Such percentage shall not exceed ninety-five percent (95%) and shall be based on the employee’s age and consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-quarter (¼) year. 51.2.5.2 For disability retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety-five (95%) based on the employee’s consecutive years of Anaheim service shall be calculated to the nearest complete one quarter (¼1/4) quarter year. 51.2.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit under this ARTICLE, the employee shall receive the Service Retirement Benefit. 51.2.5.4 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE shall prevent a retiree from properly enrolling new dependents at the retiree’s cost. 51.2.5.5 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s participation or non- participation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under the provisions of ARTICLE

Post-Retirement Medical Benefits. 51.1 Retired 53.1 ANAHEIM and AFA agree that employees who are receiving a hired on or after November 9, 2001, shall not be eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and AFA agree that employees hired on or after November 9, 2001, shall be provided a defined contribution POST Retirement Medical benefit from ANAHEIM on with the date the City Council approves this MOU shall continue to receive such benefit in accordance with following provisions: 53.1.1 Use of an Integral Part Trust for reimbursement of qualified medical expenses. Qualified medical expenses are those authorized under the provisions of the MOU between Internal Revenue Code Section 213, excepting only those expenses ANAHEIM and AMEA that was in effect the AFA may mutually agree to exclude. 53.1.2 ANAHEIM will contribute a one-time lump sum of three thousand dollars ($3,000) to the individual employee's Retirement Health Savings Account (RHSA) at the time the employee is hired into a classification represented by the AFA. This contribution shall vest to the employee upon completion of five (5) years of continuous City service, except that this contribution shall immediately vest to the benefit of any employee who separates City service as the result of being granted an industrial disability retirement from the Public Employees Retirement System. 53.1.3 A mandatory employee pre-tax contribution equivalent to t h r e e p e r c e n t ( 3%) of the top step Firefighter IV base earnings will be deposited to the individual employee's Retirement Savings Account on a bi-weekly basis. 53.1.4 AFA and ANAHEIM agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. AFA and ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 53.1.5 AFA and ANAHEIM agree that employees hired on or after November 9, 2001, who have completed at least ten (10) years of consecutive ANAHEIM service, and who are awarded a retirement from PERS as their reason for separation from ANAHEIM service shall be allowed access to ANAHEIM sponsored group health plans as one of their retirementcoverage options. 51.2 53.1.6 AFA and ANAHEIM agree that upon the death of an employee, the surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. 53.1.7 AFA and ANAHEIM agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility, consistent with this Letter of Understanding and with applicable Internal Revenue Service regulations. 53.1.8 If any provision of Section 53.1.1 through 53.1.8 is at any time or in any way expressly prohibited by Private Letter Ruling or held to be contrary to any law by any court of proper jurisdiction, the remainder shall not be affected thereby, and shall remain in full force and effect. The following provisions (§53.2 through and including §53.7) apply only to those employees hired prior to November 9, 2001. 53.2 Regular, full-time employees in the classified service in classifications listed in Appendix “"A”", who are enrolled as subscribers a subscriber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM service shall be eligible to participate in any ANAHEIM sponsored health plan (medical benefits only) plan as a retiree. As of January 1, 1995, regular full-time employees in the classified service in classifications listed in Appendix "A", who are enrolled as a subscriber in an ANAHEIM-sponsored dental plan, at the time of separation from ANAHEIM service and dental) all retirees who were actively employed on or after January 1, 1988, who are enrolled as retirees subject a subscriber in any ANAHEIM sponsored health plans, shall also be eligible to participate in any ANAHEIM-sponsored dental plan as a retiree. 53.2.1 Employees who retired prior to January 1, 1988, who were eligible for post- retirement health benefits at the time of their separation from ANAHEIM service and who maintain continuous membership in good standing shall pay monthly premiums in accordance with the following schedule: Single coverage 15.00 monthly Two-party coverage 15.00 monthly Family coverage 45.00 monthly 53.2.2 The surviving spouse of the retiree may continue coverage under the same terms and conditions:. 51.2.1 53.3 Employees who were hired prior to January 1, 1984, and who retire on or after January 1, 1988, and prior to January 1, 1994, and who meet the requirements described below shall be eligible to participate in any ANAHEIM sponsored medical and/or dental plan. 53.3.1 The employee must have completed at least five (5) years of continuous, full-time ANAHEIM service on the date of retirement, and 53.3.2 The employee must have awarded a retirement from the Public Employees' Retirement System (hereinafter called "PERS") as the reason for separation from ANAHEIM service, and 53.3.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service. 53.3.4 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored medical plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Employee Medical Plan Option I in the year prior to the employee's retirement. 53.3.5 ANAHEIM shall contribute towards the premium costs of any ANAHEIM sponsored dental plan elected by the employee up to the amount contributed by ANAHEIM towards the cost of the Safeguard Dental Plan in the year prior to the employee's retirement. 53.3.6 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 53.4 Employees who retire on or after January 1, 1988, and who meet the requirements described below shall be credited with eligible to participate in any ANAHEIM sponsored health plan. 53.4.1 The employees must have completed at least ten (10) years of continuous, full-time ANAHEIM service on the date of retirement, and 51.2.2 53.4.2 The employee must have been awarded a retirement from PERS as the reason for separation from ANAHEIM service, and 51.2.3 53.4.3 PERS retirement benefits must commence no later than the first day of the month following the date of separation from ANAHEIM service, orOR 51.2.4 53.4.4 The employee must have been awarded a disability retirement (Ordinary or Industrial) from PERS as the reason for separation from ANAHEIM service. 51.2.5 53.4.5 ANAHEIM shall provide separate contributions toward towards the premium costs of the ANAHEIM sponsored medical and/or dental plans elected by the employee according to the following schedule: 51.2.5.1 53.4.5.1 For service retirementsService Requirements, the contributions shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to one and one-half (1½) 1.2 times the miscellaneous “"2% @ 60” at age 50" Safety PERS retirement schedule schedule, to a maximum contribution of ninety-five percent (95%) based on the employee’s 's age and consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service and the retiree’s age shall be calculated to the nearest complete one-one quarter (¼) year. 51.2.5.2 53.4.5.1.1 An employee who retires may also use the seventy-five percent (75%) portion of sick leave hours transferred to an employee's Sick Leave Trust Fund Account on December 19, 1980, to calculate additional ANAHEIM 4.5.1 to a maximum combined total contribution of ninety-five percent (95%). 53.4.5.2 For disability retirementsDisability Retirements, the contribution shall be a percentage of the annual contributions made by ANAHEIM on behalf of active employees, the percentage equal to two percent (( 2%) for each year of service to a maximum contribution of ninety-ninety- five (percent ( 95%) based on the employee’s 's consecutive years of Anaheim ANAHEIM service at the time of retirement. ANAHEIM service shall be calculated to the nearest complete one (¼) one-quarter year. 51.2.5.3 53.4.5.3 In the event an employee is eligible for both a Service and a Disability Retirement Benefit benefit under this ARTICLEArticle, the employee shall receive the Service Retirement Benefitbenefit. 51.2.5.4 53.4.6 The ANAHEIM contribution shall be based on the Two Party or Family rate only for those employees who properly enroll a dependent spouse and/or other family members prior to retirement retirement, and shall continue only as long as the retiree maintains coverage for such dependents in ANAHEIM sponsored health plans. Nothing in this ARTICLE Article shall prevent a retiree from properly enrolling new dependents at the retiree’s cost's post. 51.2.5.5 53.4.7 Employees who retire on or after June 1, 2006 shall be required to enroll in Medicare Parts A and B upon establishing eligibility as a condition of continued health plan coverage. 53.4.8 The full value of any Medicare credits provided to ANAHEIM or Medicare surcharges imposed on ANAHEIM by virtue of a retiree’s 's participation or non- participation nonparticipation in Medicare shall be passed on to the retiree in the form of reduced or increased premium costs. 51.2.5.6 53.4.9 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and conditions provided that the surviving spouse was properly enrolled at the time of the employee’s 's retirement and that dependent coverage was continuously maintained during the employee’s retirement. 51.2.6 53.5 The following conditions shall apply to all retirees who have post-retirement medical benefit coverage under Sections 53.2 et seq. of this Article: 53.5.1 Once canceled for any reason, coverage shall not be reinstated. 53.5.2 ANAHEIM agrees to notify the AFA when coverage may be canceled for nonpayment of fees. Coverage shall be canceled for nonpayment of fees after three ( 3 ) months in arrears. 53.5.3 There shall be Coordination of Benefits where other insurance exists. 53.5.4 Retirees may change plans and add dependents only during the annual open enrollment period, except that the surviving spouse of a retiree may not enroll a new spouse. 53.5.5 Vision care benefits shall be provided to all retired firefighters. 53.6 As used in this Article, "spouse" is understood to include a registered domestic partner when a Declaration of Domestic Partnership has been filed with California Secretary of State. 53.7 An employee who has completed twenty (20) consecutive years of service with ANAHEIM as a certified Firefighter and who has prior service as a certified Firefighter, with another California Fire agency, shall receive up to three (3) years of additional service credit for the purpose of calculating ANAHEIM's contribution towards post-retirement medical benefits. Employees who retire on have completed five (5) or after January 1, 2006 more years of continuous full-time ANAHEIM service and who terminate employment with ANAHEIM and are subsequently reinstated within three ( 3 ) years of their date of separation shall be credited with ANAHEIM prior service accrued through December 31, 2005 for the purpose of determining eligibility and benefit levels under calculating continuous full• time ANAHEIM service upon completion of all of the provisions of ARTICLEvesting requirements in Section 53.4.