Common use of Retiree Medical Clause in Contracts

Retiree Medical. 31.04.1 For employees hired before June 30, 1996, the City agrees to pay the premiums for employee-only health coverage for all employees, with at least five (5) years of service, who retire after July 17, 1999 and as long as the employee maintains enrollment in one of the City health plans. Employees receiving disability retirements shall be eligible for retiree health coverage until they are covered by another health plan (such as another employer or through a spouse). Retirees may elect to continue coverage for a spouse under the retiree group medical plan provided that the spouse is covered by the group plan at the time the employee retires and maintains enrollment. The retiree is responsible for the additional monthly premium. 31.04.2 When the City contributes toward retiree premiums, the maximum allowable shall be based on the lowest single rate for active employees. This maximum allowable City contribution shall not apply to persons who retire prior to the date this MOU is adopted by the Milpitas City Council. 31.04.3 Employees hired after June 30, 1996, shall be subject to the following provisions with respect to the retiree health plan benefits: Upon completion of the first through the ninth year of service, and upon retirement, the City shall provide 25% of the lowest cost single medical insurance premium payment for the employee only (no more than any active employee’s single lowest cost premium rate), as long as the employee remains in one of the City sponsored health care programs. Upon completion of the ninth year, this payment of the retiree's medical insurance shall increase to 50%. Upon completion of the fourteenth year, this payment of the retiree's medical insurance shall increase to 75%. Upon completion of the nineteenth year, this payment of the retiree's medical insurance shall increase to 100%.