Common use of Vested Benefits for Tier 1 Clause in Contracts

Vested Benefits for Tier 1. In exchange for OPMG agreeing to changes in retiree medical and pension formulas for new employees hired on or after July 1, 2012, the City agrees that Tier 1 employees and retirees have a vested benefit to retiree medical contributions. Specifically, the vested benefit as a Tier 1 retiree is the value of the actual premium cost up to the Kaiser premium rate applicable to the region including the City of Ontario for the coverage level selected and not to exceed the two-party Kaiser premium rate for the City-provided insurance applicable to active employees.

Vested Benefits for Tier 1. In exchange for OPMG the Association agreeing to changes in retiree medical and pension formulas for new employees hired on or after July 1, 2012, the City agrees that Tier 1 employees and retirees have a vested benefit to retiree medical contributions. Specifically, the vested benefit as a Tier 1 retiree is the value of the actual premium cost up to the Kaiser premium rate applicable to the region including the City of Ontario for the coverage level selected and not to exceed the two-party Kaiser premium rate for the City-provided insurance applicable to active employees.