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Home My WebLink AboutCity Council - 2004-36 RESOLUTION NO. 2004-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MARINE SAFETY OFFICERS ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT WHEREAS, on December 18, 2000,the City Council of Huntington Beach adopted Resolution No. 2000-123 for the purpose of adopting the 2000/03 Memorandum of Understanding (MOU) between the City and the Huntington Beach Police Marine Safety Officers' Association (HBMSOA);and On December 16, 2002, the City Council of Huntington Beach adopted Resolution No. 2002-134 which reflected changes, corrections, and clarifications to the MOU that were reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBMSOA ("2002 Side Letter of Agreement"); Subsequent to the adoption of the MOU and the 2002 Side Letter of Agreement, the City of Huntington Beach and the HBMSOA agreed to changes, corrections, and clarifications to the MOU that are reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBMSOA ("Side Letter of Agreement") attached hereto as Exhibit A and incorporated herein by this reference; The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of Agreement. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1. The Side Letter of Agreement attached hereto as Exhibit A is approved and Adopted. Section 2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach and the HBMSOA. Section 3. The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of Agreement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of May ,2004. ocv-m 46"4 Z41 Cjty--C-je-T V 70 M REVIEWED AND PRO 4Ed APPROVED AS TO FORM: nn City Administrator ity Attor4ey �Q INITIAT APPROVED: Director Administra rve Services G-ARESOLUTM20041-MMSOA side 5-10-04.doc Exh ibFIE&ANo. 2004-36 Side Letter Agreement— Health and Other Insurance Benefits Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association Effective: Upon City Council Approval This is to memorialize an agreement between the City of Huntington Beach (City) and the Huntington Beach Marine Safety Officers' Association (MSOA) to reflect agreed upon changes, corrections or clarifications to Article IX — Health and Other Insurance Benefits of the existing Health and Other Insurance Benefits Side Letter (adopted December 16, 2002) and Article X — Retirement and Exhibit D of the existing 2000-2003 Memorandum-of- Understanding (adopted December 18, 2000). All other terms and conditions of the existing side letters and the Memorandum-of-Understanding remain in full force and effect. Both parties agree to continue the meet and confer process in good faith as required by the Meyers-Mllias-Brown Act. The goal of the continued meet and confer process is a new Memorandum-of-Understanding between the City and the MSOA. The subject of the continued meet and confer process shall be all issues between the parties concerning wages, hours, and other terms and conditions of employment. This agreement is to be incorporated into any future Memorandum-of- Understanding between the City and the MSOA. Article IX — Health and Other Insurance Benefits, Article X — Retirement and Exhibit D shall now read: Res. No. 2004-36 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS A. Health The city shall continue to make available group medical, dental and vision benefits to all association employees. 1. Eliailbillity Criteria and Cost: a. Year 2004 Premiums Effective January 1, 2004 health premiums for 2004 are as set forth in the chart below- ............. Delta Mon ' ... ..Y.. ........ City P Yp it............ Dd vsp DentalDental ...a.... ii+W11h!N " ............ P .......... .......... �V HMO . . (PPOY�:�� FsrQrl ............... $481.40 $313-01 .$48.93 $24.38 $18.07 EE 951.96 685.85 93.42 41.46 18.07 �E qr.:Mbre. 1165.54 903.97 132.47 63.40 1&07 EI b. Employer Contributions The City's maximum monthly employer contribution for health and other insurance premiums are set forth in the charts below. January 3, 2004 through March 26, 2004. M ............ onthl' Ift Qelta laelta V nw Plan lrlet D'ent. P , Employer-, 1 Dental Vision PO �:Hmo:� :� �j. I P 0 on i q (HM. G' $429.93 $330.19 $42.88 $23.00 $17.58 F77 E E 758.41 611.67 81.82 39.11 17.58 ore'-, 907.501 776.34 1 116.36 59.81 17.58 2 Res. No. 2004-36 March 27, 2004 and until the PEMHCA program is in place. font>k►ly City Health elta Delta WSP Emptoyer P'Can ref den#af [�r�ta1 �stvn Ctnbut1or� ? ...:. PP� (HICK EE,.. $373.77 $274.03 $42.88 $23.00 $17.58 EE t 702.25 555.51 81.82 39.11 17.58 4 2 ar mere; : 851.34 720.18 116.36 59.81 17.58 In no event shall the employee be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. c. Employee Contributions Effective the first pay period beginning in January 2004, employee pre-tax payroll deduction contributions for 2004 premiums are set forth in the charts below: i. Bi-Weekly Employee Contributions January 3, 2004 through March 26, 2004. Bi VIleekly City Heafth [ eita delta Employee F'lar t+Jet l? ntaf Dwn Gntruton' PCS i;IMO EE $23.76 $0.00 $3.83 $0.64 $0.23 EE 1 = 89.33 33.99 7.40 1.08 0.23 EI`. 2 or mod 119.10 58.57 10.37 1.66 0.23 March 27, 2004 and until the PEMHCA program is in place. Mori€hfy G�ty Health 1Ita [)efts VIP mple�r plan [het Ir►ta Ir�ta! �ontri F'PC3 f�I�fC �sfon' Ewn E: $49.68 $17.88 $3.83 $0.64 $0.23 115.25 59.91 7.40 1.08 023 E ;21or Mnre;; 145.02 84.49 10.37 1.66 0.23 3 Res. No. 2004-36 ii. Monthly Employee Contributions January 3, 2004 through March 26, 2004. Mon4 .............. ............. ...... t ...............--............. Delta ............... yee, D 'taL .......... .......... m 0'' ' ' T� .......... . ................ R P-F,, VSP .......... ........... EE $51.47 $0.00 $8.30 $1.38 $0.49 193.55 L73.64 16.04 2.35 0.49 10're 258.04 1 E*21-,or,A 26.91 22-47 3.59 0.49 March 27, 2004 and until the PEMHCA program is in place. ta VSP .......6 .......... . D [mental M6 ..... .. ... ........ Viston "P6 ........... M0 $107.63 $38.73 $8.30 $1.38 $0.49 249.71 129.80 16.04 2.35 0.49 _or rnbre',-,,, 314.20 183.07 22.47 3.59 0.49 d. Future Premiums The City "caps" its contributions toward monthly group medical, dental and vision plan premiums, by category (EE, EE + 1, and EE + 2 or more) and plan, at the year 2004 level. Until the City Council approves a successor to this Memorandum-of- Understanding, the City's 2004 contribution Gaps will remain in place, even if premium increases result in these additional costs being bome by the employee. e. Dependent Health Coverage until the PEMHCA program is in place The city will assume payment for dependent coverage for the City Plan POS, Health Net HMO, Delta Dental, and VSP effective the first of the month following the month during which the employee completes one (1) year of full time continuous service with the city. 4 Res. No. 2004-36 2. Public Employees' Medical and Hospital Care Act The City will promptly begin the contract process with the California Public Employees' Retirement System (CalPERS) to implement the provisions of the Public Employees' Medical and Hospital Care Act (PEMHCA), as set forth in the California Government Code, to provide medical insurance coverage for all employees represented by the association. The contract to provide medical coverage through PEMHCA shall not be construed as a guarantee of a continuing benefit. A retiree's right to receive a City contribution, and the City's obligation to make payment on behalf of retirees, shall only exist as long as the City contracts with CalPERS for medical insurance. In addition, while the City is in PEMHCA, its obligations to make payments on behalf of retirees shall be limited to the minimum payment required by law. The City may elect to terminate its participation in the PEMHCA program by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program on the association. Until the City Council and the CaIPERS Board approve the City's participation in PEMHCA and the City is fully participating in PEMHCA the rates and plans stated above (Article X.A.1.a) will continue to apply to all employees. a. Employer Contributions Upon the City's full participation in PEMHCA the following premiums shall apply_ i. City Contribution — Health Insurance The City shall contribute on behalf of each employee, the following sum per month toward the payment of premiums for medical insurance under the PEMHCA program. (The following monthly sum represents the parties' understanding of the minimum monthly contribution required by law (and assumes the City remains in PEMHCA throughout this time period). If the mandated minimum is increased from these figures, the City shall make the appropriate adjustments by decreasing the supplemental benefit set forth in subsection "iii" below.) 5 Res. No. 2004-36 ENOMMUNIM 2004 $32.20 2005 $48.40 2006 $64.60 2007 $80.80 2008 $97.00 2009 and beyond Shall be adjusted annually by the CaIPERS Board ii. City Contribution — Dental and Vision Insurance The City shall contribute on behalf of each employee, the following sum per month toward the payment of premiums for dental and vision insurance under the city sponsored programs. March 27, 2004 through December 31, 2004 $42.88 $23.00 $0.00 81.82 39.11 0.00 116.36 89.81 0.00 The effective date for all dental and vision coverage [i.e., employee and dependent(s)] is the first of the month following one full month of employment. Until the City Council approves a successor to this Memorandum- of-Understanding, the dental and vision insurance contribution caps will remain in place, even if dental and vision insurance cost increases result in these additional costs being borne by the employee. 6 Res. No. 2004-36 iii. Supplemental Benefit — Health and Vision Insurance In addition to the amount specified above (Article X.A.2.a.i and X.A.2.a.ii), the City will contribute up to the following amounts as a supplemental benefit to PEMHCA health and vision insurances: Employee only $358.75 $259.41 Employee + one $687.63 $540.89 Employee + two or more $836.72 $705.56 The employee will have no entitlement to any portion of the supplemental benefit not utilized by the employee. Any cost for health and vision insurance benefits that exceeds the City's supplemental benefit to health insurance contribution is the responsibility of the employee and the employee will cover the cost through a payroll deduction. To the extent permitted by law an employee's payroll deduction will be pre-tax. So long as the City remains in PEMHCA the supplemental benefit to health and vision insurance contribution shall be decreased every January 1, by an amount equal to the City's increased contribution set forth in Article X.A.2.a.i above. Each year from January 1, 2005 until January 1, 2009, the monthly-required PEMHCA contribution is expected to increase $16.20. If the monthly-required PEMHCA contribution is increased by more than $16.20 per month, then the amount of the supplemental benefit will be decreased by that higher amount. After January 1, 2009, the CAPERS Board will determine the monthly-required PEMHCA contribution; if it increases then the amount of the supplemental benefit will be decreased by that higher amount.. Until the City Council approves a successor to this Memorandum- of-Understanding, the supplemental benefit to health and vision insurance contribution caps will remain in place, even if health and vision insurance cost increases result in these additional costs being borne by the employee. b. Retiree (Annuitant) Coverage As required by the Government Code retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. The City's requirement to provide retirees and/or annuitants medical coverage is solely governed by the Government Code requirement that requires the City to extend this benefit to 7 Res. No. 2004-36 retirees (annuitants). While the City is contracted with CalPERS to participate in the PEMHCA program, CaIPERS shall be the sole determiner of eligibility for retiree and/or annuitant to participate in the PEMHCA program. i. City Contribution (Unegual Contribution Method) As allowed by the Government Code and the CalPERS Board, and requested by the association, the City shall use the Unequal Contribution Method to make City contributions on behalf of each retiree or annuitant. The following is an example of the sum per month toward the payment of premiums for medical insurance under the PEMHCA medical insurance program for a retiree or annuitant. The City shall make these payments only while the City is a participant in the PEMHCA program. 2004 $1.00 2005 $3.42 2006 $6.65 2007 $10.69 2008 $15.54 2009 and beyond Shall be adjusted annually by the CAPERS Board ii. City_'s Termination of Participation in the PEMHCA program The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the city terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2000-123 Exhibit D to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. 8 Res. No. 2004-36 c. Additional Costs for Participation in the PEMHCA program i. Retiree and/or Annuitant Coverage The association shall pay to the City an amount equal to $1.00 per month for each additional retiree and/or annuitant in the bargaining unit who elects to participate in the PEMHCA plan but is not participating in the City sponsored retiree medical program as of the beginning of a pay period after the PEMHCA program is in place. Each January Vt the amount per month paid to the City for each retiree and/or annuitant described above shall increase by the amount PEMHCA requires the City to pay on behalf of each retiree (annuitant). Article X.A.2.b.i provides an example of expected payments per retiree or annuitant per month. In the event of passage of State Legislation, Judicial Rulings, or CaIPERS Board Actions that increases the mandatory minimum monthly contribution for retirees (annuitants), the association shall pay an equal amount to the City. Payments shall be made the first of the month (following implementation). If the association fails to make timely payments for two consecutive months, the City shall implement a decrease in the supplemental benefit contribution to health insurance for each unit employee by an amount equal to the total increased cost paid by the City. [For example, if the increased cost for retirees equals $6,000 per year, the monthly supplemental benefit for each employee will be decreased as follows: $6,000 divided by twelve (months) = $500, which is then divided by the number of employees receiving supplemental benefits.] ii. Excess Administrative Fees The association shall remit to the City its pro rata share of any administrative fees charged by CaIPERS that exceed that employee organization's pro-rata share of the administrative fees the City will no longer have to pay to hire employees to administer the City's plan. d. Impact of Programmatic Changes In the event of passage of State Legislation, Judicial Rulings, or a CalPERS Board Action, which in any way changes the employer's contribution to the PEMHCA medical plan, the City shall terminate its contract with CaIPERS at its earliest opportunity, unless the association pays the full cost of the change. Examples of 9 Res. No. 2004-36 programmatic changes which would change the City's employer's contribution, include, but are not limited to, the CalPERS Board decision to assess a Contingency Fund fee, eliminating the differential contribution for retirees set forth in Government Code Section 22857(b), and/or eliminating the ability to differentiate between the minimum insurance contribution and the supplemental benefit contribution. In order to remain within the CalPERS medical plans in the event of passage of State Legislation, Judicial Rulings, or a CalPERS Board Action that changes the employer's contribution to the CalPERS medical plan, the association shall pay the full cost of the change(s) to the employer contribution or the City shall terminate its contract with CAPERS at its earliest opportunity. The association may request termination of the City's contract with CaIPERS after the announcement of State Legislation, Judicial Rulings, or a CalPERS Board Action that changes the employer's contribution to the CaIPERS medical plan. 3. Medical Cash-Out If an employee is covered by a medical program outside of a city- provided program (evidence of which must be supplied to Administrative Services Department), they may elect to discontinue city medical coverage and receive ninety two dollars and thirty-one cents ($92.31) bi- weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 4. Section 125 Employee Plan The City shall provide an Internal Revenue Code section 125 employee plan that allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses as determined by the Internal Revenue Code. B. Life insurance City will provide $25,000 of term life insurance without evidence of insurability other than evidence of working a full time duty at city cost. Each employee shall have the option, at their own expense, to purchase additional amounts of life insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Accidental Death and Dismemberment Insurance: Each employee shall be provided with $10,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his or her own expense, to purchase additional amounts of accidental death and dismemberment insurance to the extent provided by the 10 Res. No. 2004-36 city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. Long Term_Disability Insurance 1. The existing long-term disability program provided employees by the city shall remain in effect. This program provides for each incident of illness or injury, pay up to sixty (60) calendar days at the employee's salary rate (excluding overtime but including any special pay in effect at the time of illness of injury). After the sixty (60) calendar day period, the employee will be covered by an insurance plan paid for by the city which will provide 66 2/3% of the employee's salary rate (excluding overtime and any special pay) up to a maximum of $10,000 a month in accordance with the following: Disability Due to Disability Due to Accident Illness First 60 Days Regular Pay Regular Pa Next 24 Months 66 2/3% of Base Pay 66 2/3% of Base Pay To age 65 66 2/3% of Base Pay None days and months refer to calendar days and months 2. Plan integrated with Workers' Compensation, Social Security and other non-private program benefits to which entitled. 3. Disability is defined as the inability to perform all of the duties of regular occupation during two (2) years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. 4. Survivors' benefit continues plan payment for three (3) months beyond death. 5. The terms and conditions of the disability insurance coverage are set forth in the policy, a copy of which is on file in the Administrative Services Department. In the event of any conflict between the policy and this article, the policy shall control. The city may change insurance companies, policies, or self-insure this benefit, provided that the plans shall remain comparable to that currently in effect. 11 Res. No. 2004-36 ARTICLE X - RETIREMENT A. Benefits: 1. Public Employees' Retirement System: The City shall provide the 3% @ Age 50 retirement formula set forth in California Government Code Section 21362.2 for all safety employees represented by the Association. If at any time after the implementation of the 3% at age 50 formula the City is required to make retirement contributions with respect to employees represented by the Association, the amount with respect to which each employee is reimbursed pursuant to Article IX.B.1 shall be reduced by a percentage equal to one-half of the percentage of compensation earnable the City is required to pay in retirement contributions to PERS, not to exceed 2.25%. For example, if the City is required to contribute an amount equal to 2% of each employee's "compensation earnable." The amount of the reimbursement set forth in Article VI.0 shall be reduced from 9% of the employee's compensation earnable to 8% of the employee's compensation earnable. If, on the other hand, the City is required to contribute an amount equal to 8% of each employee's "compensation earnable," the amount of the reimbursement set forth in Article IX.B.1 shall be reduced to 6.75% of the employee's compensation earnable. 2. Self-Funded Supplemental Retirement Benefit: In the event a member elects Option #2 (Section 21333) or Option #3 (Section 21334) of the Public Employees' Retirement Law, and the member is a unit employee who was hired before the adoption of this MOU, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her lift alone. This payment shall be made only to the member, shall be payable by the City during the life of the member, and upon that member's death, the City's obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees hired before November 2, 1998. All unit employees hired on or after November 2, 1998 shall not be eligible for this benefit. (Note: The options provide that the allowance is payable to the member until his or her death, and then either the entire allowance (Option #2), or one-half of the allowance (Option #3) is paid to the beneficiary for life). 3. 1959 Survivors' Benefit Level IV - Members of the city's safety retirement plan shall be covered by the Fourth Level of the 1959 Survivor Benefit. 12 Res. No. 2004-36 4. Medical Insurance for Retirees: As required by the Government Code, while the City is contracted with CalPERS to participate in the PEMHCA program, retired employees (annuitants) shall have available the ability to participate in the Public Employees' Medical and Hospital Care Act (PEMHCA) program. CalPERS shall be the sole determiner of eligibility for retiree (annuitant) to participate in the PEMHCA program. The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the city terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2000-123 Exhibit D to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan- B. Public Employees' Retirement System Reimbursement and Reporting: 1. Employees' Contribution: Each employee covered by this agreement shalt be reimbursed an amount equal to 9% of the employee's base salary plus education incentive pay as pickup of a portion of each employee's PERS contribution. The above PERS pickup is not base salary but are done pursuant to Section 414(h)(2) of the Internal Revenue Code. 13 Res. No. 2004-36 EXHIBIT D — SERVICE CREDIT SUBSIDY PLAN An employee who has retired from the City and meets the plan participation requirements shall receive a monthly Service Credit Subsidy to reimburse the retiree for the payment of qualified medical expenses incurred for the purchase of medical insurance. Plan Participation Requirements 1. At the time of retirement the employee has a minimum of ten (10) years of continuous regular (permanent) City service or is granted an industrial disability retirement; and 2. At the time of retirement, the employee is employed by the City; and 3. Fallowing official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System (CalPERS). The City's obligation to pay the Service Credit Subsidy as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: a. During any period the retired employee is eligible to receive or receives medical insurance coverage at the expense of another employer, the payment will be suspended. "Another employer" as used herein means private employer or public employer or the employer of a spouse. As a condition of being eligible to receive the Service Credit Subsidy as set forth in this plan, the City shall have the right to require any retiree to annually certify that the retiree is not receiving or eligible to receive any such medical insurance benefits from another employer. If it is later discovered that a misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retiree's eligibility to receive further benefits will cease. b. On the first of the month in which a retiree or dependent reaches age 66 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare 14 Res. No. 2004-36 (whether or not such application is made) the City's obligation to pay Service Credit Subsidy may be adjusted downward or eliminated. G. in the event of the death of an eligible employee, whether retired or not, the amount of the Service Credit Subsidy benefit which the deceased employee was eligible for at the time of his/her death shall be paid to the surviving spouse or dependent for a period not to exceed twelve (12) months from the date of death. 4. Minimum Eligibility for Benefits — With the exception of an industrial disability retirement, eligibility for Service Credit Subsidy begins after an employee has completed ten (10) years of continuous regular (permanent) service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules. To receive the Service Credit Subsidy retirees are required to purchase medical insurance from City sponsored plans. The City shall have the right to require any retiree (annuitant) to annually certify that the retiree is purchasing medical insurance benefits. 6. Disability Retirees - Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $120. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. 6. Service Credit Subsidy — Payment shall not exceed dollar amount, which is equal to the qualified medical expenses incurred for the purchase of city sponsored medical insurance. 15 Res. No. 2004-36 7. Maximum Monthly Service Credit Subsidy Payments - All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), continuous years of regular (permanent) service shall be entitled to maximum monthly Service Credit Subsidy by the City for each year of completed City service as follows: Maximum Service Credit Subsidy Retirements After: Years of Service Service Credit Subsidy 10 $ 120 11 135 12 150 13 165 14 180 15 195 16 210 17 225 18 240 19 255 20 270 21 285 22 299 23 314 24 329 25 343 The Service Credit Subsidy will be reduced every January Vt by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). Article X.A.2.b.i provides an example of expected reductions per retiree per month. 8. Medicare: a. All persons are eligible for Medicare coverage at age 65. Those with sufficient credited quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, the participant pays for Part B of Medicare. 16 Res. No. 2004-36 b. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the Service Credit Subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. C. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A of Medicare, the spouse shall not receive the subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. 9. Cancellation: d. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: L Coverage for a retiree under the Service Credit Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age 65. ii. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application," whether or not application has been made for Medicare, the Service Credit Subsidy Plan will be eliminated. 17 Res. No. 2004-36 It is the understanding of the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association that this side letter to the existing Health and Other Insurance Benefits Side Letter (adopted December 16, 2002) and the existing 2000-2003 Memorandum-of-Understanding (adopted December 18, 2000) is of no force or effect whatsoever unless and until adopted by resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this side letter to the Memorandum-of-Understanding this_[ ay of May, 2004. HUNTINGTON BEACH CITY OF HUNTINGTON BEACH MARINE SAFETY OFFICERS ASSOCIATION William P. Workman Kal R. Weisser Acting City Administrate President Clay M m Steven J. R u r Direr r of Administrative Services Vice-Preside J Steven M. Berliner Grego S. ro Chief Negotiator Negotiating Team Member APPROVED AS TO FORM: 4n1ifer=MJ�GPrath City Attorney 18 Res. No. 2004-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 17th day of May 2004 by the following vote: AYES: Coerper, Hardy, Green, Cook, Houchen NOES: Sullivan, Boardman ABSENT: None ABSTAIN: None 4tlsa^rCity Clerk Ad ex-officio Clerk of the City Council of the City of Huntington Beach, California