Common use of RETIRED EMPLOYEES’ MEDICAL PROGRAM Clause in Contracts

RETIRED EMPLOYEES’ MEDICAL PROGRAM. The City shall continue to provide life and medical insurance for retired employees of the City as defined in Council Policy 300-1 (Appendix D). Employees hired after January 1, 2004 will participate in the mandatory Retirement Health Savings defined contribution plan and are not eligible for the Retired Employees’ Medical Program. The purpose of the Defined Contribution Retirement Health Savings Plan (Plan) is to establish a tax protected savings program for every full-time employee that will: • Provide a retiree medical benefit for employees hired after January 1, 2004 who will not be eligible for the health insurance contribution under the Council Policy 300-1. • Provide a supplemental benefit to the City contribution under Council Policy 300-1 for current employees (hired before January 1, 2004). The program will require mandatory participation by all full-time employees. Employees will make a monthly contribution to the plan equal to 1% of their base monthly salary, which will be matched by a 1% salary monthly contribution from the City into employees’ accounts. The account assets that accumulate, plus investment earnings, will be used in retirement to pay health insurance premiums and other eligible out-of-pocket medical expenses such as deductibles, co-payments, vision care or dental care. Employee contributions plus vested employer contributions will be portable if an employee should leave employment with Costa Mesa prior to retirement. Effective August 16, 2009, the City will suspend the Plan including the suspension of both the 1% contribution by the employee and the 1% City contribution for 26 payperiods. During the suspension, CMFA agrees to apply the 1% employee contribution (that would otherwise have been returned to the employee) towards the cost of the 3%@50 CalPERS retirement benefit per Section 6.1. If the City and Employee Associations mutually agree to continue the suspension longer than 26 payperiods, CMFA agrees to continue applying the 1% employee contribution towards the cost of the 3%@50 CalPERS retirement benefit for the term of the suspension.

RETIRED EMPLOYEES’ MEDICAL PROGRAM. The City shall continue to provide life and medical insurance for retired employees of the City as defined in Council Policy 300-1 (Appendix D). Employees hired after January 1, 2004 will participate in the mandatory Retirement Health Savings defined contribution plan and are not eligible for the Retired Employees’ Medical Program. The purpose of the Defined Contribution Retirement Health Savings Plan (Plan) is to establish a tax protected savings program for every full-time employee that will: •  Provide a retiree medical benefit for employees hired after January 1, 2004 who will not be eligible for the health insurance contribution under the Council Policy 300-1. •  Provide a supplemental benefit to the City contribution under Council Policy 300-1 for current employees (hired before January 1, 2004). The program will require mandatory participation by all full-time employees. Employees will make a monthly contribution to the plan equal to 1% of their base monthly salary, which will be matched by a 1% salary monthly contribution from the City into employees’ accounts. The account assets that accumulate, plus investment earnings, will be used in retirement to pay health insurance premiums and other eligible out-of-pocket medical expenses such as deductibles, co-payments, vision care or dental care. Employee contributions plus vested employer contributions will be portable if an employee should leave employment with Costa Mesa prior to retirement. Effective August 16, 2009, the City will suspend the Plan including the suspension of both the . 1% contribution by the employee and the 1% City contribution for 26 payperiods. During the suspension, CMFA agrees to apply the 1% employee contribution (that would otherwise have been returned to the employee) towards the cost of the 3%@50 CalPERS retirement benefit per Section 6.1. If the City and Employee Associations mutually agree to continue the suspension longer than 26 payperiods, CMFA agrees to continue applying the 1% employee contribution towards the cost of the 3%@50 CalPERS retirement benefit for the term of the suspension.

RETIRED EMPLOYEES’ MEDICAL PROGRAM. The City shall continue to provide life and medical insurance for retired employees of the City as defined in Council Policy 300-1 (Appendix D). Employees hired after January 1, 2004 will participate in the mandatory Retirement Health Savings defined contribution plan and are not eligible for the Retired Employees’ Medical Program. The purpose of the Defined Contribution Retirement Health Savings Plan (Plan) is to establish a tax protected savings program for every full-time employee that will: • Provide a retiree medical benefit for employees hired after January 1, 2004 who will not be eligible for the health insurance contribution under the Council Policy 300-1. • Provide a supplemental benefit to the City contribution under Council Policy 300-1 for current employees (hired before January 1, 2004). The program will require mandatory participation by all full-time employees. Employees will make a monthly contribution to the plan equal to 1% of their base monthly salary, which will be matched by a 1% salary monthly contribution from the City into employees’ accounts. The account assets that accumulate, plus investment earnings, will be used in retirement to pay health insurance premiums and other eligible out-of-of- pocket medical expenses such as deductibles, co-payments, vision care or dental care. Employee contributions plus vested employer contributions will be portable if an employee should leave employment with Costa Mesa prior to retirement. Effective August 16, 2009, the City will suspend the Plan including the suspension of both the 1% contribution by the employee and the 1% City contribution for 26 payperiods. During the suspension, CMFA agrees to apply the 1% employee contribution (that would otherwise have been returned to the employee) towards the cost of the 3%@50 CalPERS retirement benefit per Section 6.1. If the City and Employee Associations mutually agree to continue the suspension longer than 26 payperiods, CMFA agrees to continue applying the 1% employee contribution towards the cost of the 3%@50 CalPERS retirement benefit for the term of the suspension.