Bargaining Unit Employees Hired Before January 1, 2018. For active bargaining unit employees hired before January 1, 2018, or the effective date of the City’s CalPERS contract amendment, whichever is later, who retire from the City while meeting the eligibility requirements for CalPERS retiree health insurance, the City shall pay directly to CalPERS the PEMHCA minimum as determined by CalPERS under Government Code Section 22892. In addition, the City shall make available a Retiree Health Reimbursement Arrangement (HRA). Through the HRA, the City will continue to provide to eligible CalPERS annuitants monthly contributions for medical insurance premiums according to the following formula: (# of years City has contracted w/PEMHCA) x (5%) x (City’s contribution for active employees). The City’s contribution for annuitants is adjusted annually according to this formula and the annual adjustment to the minimum monthly employer contribution cannot exceed $100.00. The amount paid by the City on behalf of annuitants and/or their eligible survivors shall increase annually under this formula until the City’s contributions for annuitants and active employees are the same. For 2017, the City’s contributions for annuitants are as follows: Kaiser Premium: Total Employer Contribution % of Premium Retiree Pays Employee $733.39 $733.39 100.00% $0.00 Employee+ 1 $1,466.78 $1,267.36 86.40% $199.42 Employee + Family $1,906.81 $1,347.26 70.66% $559.55
