Common use of Retiree Health Benefits Clause in Contracts

Retiree Health Benefits. 1. Unit members hired before January 1, 1987 who retire may continue their current benefits under existing practice (80% employer/20% employee split) for the number of years they participated as an active employee or receive the same benefits for life at a 70% employer/30% employee split. Employees hired after January 1, 1987 shall be eligible for lifetime benefits with a 70% employer/30% employee, premium split. For purposes of this section, 70% employer/30% employee split means that after 15 years of service, the split shall be 70%/30%. For employees with more than 5 years service but less than 15 years service, the employer shall pay 50% plus 2% for each additional year after five, up to a maximum of 70%. However, employees retired on a service-connected disability shall be eligible for a 70% employer/30% employee split regardless of length of service.