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so required by the terms and conditions of said term life insurance policy. <br />In the event any such employee is determined to be ineligible for said insurance coverage, the <br />City will attempt to provide as much coverage as may be obtained at reasonable cost without <br />having to provide evidence of insurability. <br />12.5 The City shall retain the right to change health, dental and life insurance carriers, administer <br />the insurance benefits provided thereunder, and select and/or change any excess or <br />supplemental insurance carriers as a part of any self-insurance plan during the term of this <br />Agreement, provided that employees covered by this Agreement continue to receive <br />equivalent benefits and provided that the parties have met and conferred before the changes <br />have been made. <br />12.6 Option to Redesignate Certain Contributions. Affected employees shall have the option of <br />redesignating coverage under any City-sponsored group, medical, dental, long-term <br />disability, or life insurance plan. Effective January 1, 2006, the amount allowed for <br />redesignation of dental coverage is equal to the amount of City contribution (i.e. $90/month <br />in 2006, $100/month in 2007, and $110/month in 2008). The amount allowed for <br />redesignation of medical coverage is equal to the amount of City contribution toward medical <br />premiums for either the "employee-only" or "family" tier, respectively, during the term of the <br />Agreement. The amount allowed for redesignation of long-term disability or life coverage, <br />respectively, is equal to the amount actually paid by the City on behalf of the employee. The <br />amounts referenced above may be applied to the options within the cafeteria plan. <br />If two City employees are married, at least one of the two employees must maintain <br />insurance coverage. The amount of money that can be redesignated by the employee waiving <br />coverage is limited to the value of the "employee-only" level within each type of insurance. <br />In the event the City experiences an adverse impact in rates due to utilization of the <br />redesignation option, the City and PMA agree to meet and confer over the impact. <br />12.7 Medical Retirement Subsidy Plan. Effective July 1, 1998, July 1, 1999, July 1, 2000, and <br />July 1, 2001, respectively, the City contributed an amount equal to one-half of one percent <br />(.5%) of the bargaining unit's salary base for the purpose of providing a retiree health <br />insurance subsidy plan. The specific payments made to members of the Association pursuant <br />to this plan shall be designated at the sole discretion of the Association. The plan shall be <br />administered by the City, at no cost to the Association or its members, in such a manner as to <br />insure that the funds are invested in a reasonably secure plan that bears a reasonable rate of <br />interest/growth given current financial markets. For purposes of this Agreement, investments <br />made pursuant to the then current Statement of Investment Policy for the City of Santa Ana, <br />shall be deemed to meet the requirements of this section. Effective June 30, 2002, this .5% <br />contribution is eliminated. <br />36 <br />