60B - AGREEMENT WITH THE FIRE MANAGEMENT ASSOCIATION

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will no longer be available for use by transitioning employees. OCFA will provide a report to the City within 30 days after April 14, 2017 (or within 30 days following separation) detailing the hours remaining in each employee's bank. With respect to the vacation and sick leave transferred to OCFA described in subsections A through C, above, former SAFMA members shall be required first to use their OCFA accrued vacation and sick leaves, respectively, before using the vacation or sick leave which transferred from the City. On April 14, 2017, or such earlier date if the former SAFMA member separates from OCFA, all remaining vacation and sick leave which transferred to OCFA from the City shall be paid off by the City at the former SAFMA member's regular rate of pay as of April 20, 2012. With respect to any leave described in subsections 1 through 3 above which the City is paying off to employees as a result of the transition to OCFA, it shall be paid to employees on the second payday following the transition date. If that date is April 20, 2012, it shall be paid on May 20, 2012. 7. Fund 105: The City shall cease subsidy payments to retirees on or about March 16, 2012. The City agrees to amend the existing contract with its current Retirement Health Savings Plan ("RHS") vendor, 1CMA-RC", to allow current SAFMA members and retirees to participate in the "Vantage Care" RHS. SAFMA shall determine how the existing funds shall be divided among its current members and retirees. All existing funds shall be deposited into the RHS established specifically for SAFMA by April 16, 2012. 8. Transitioning Employees, New Hires and CaIPERS Retirement: The parties agree that OCFA shall not offer employment to City personnel who retire from the City prior to April 20, 2012. However, the parties agree that employees are not precluded from transitioning to OCFA and then retiring from CalPERS. OCERS has informed the City that transitioning employees, and new hires who retire from CalPERS and then work under OCERS, start as new employees under the OCERS system. Therefore, the parties acknowledge that their mutual understanding is that City transitioning employees and new hires able to transition to OCFA: 1) with full reciprocity elected, 2) with no reciprocity elected or 3) starting as a new employee in OCERS and then retiring from CalPERS. 9. Health Insurance for the Month of May 2012: The parties acknowledge that by transitioning to the OCFA on April 20, 2012, the City would be responsible to continue to cover the SAFMA employees' health insurance through the month of May 2012 unless otherwise agreed. The parties agree that since transitioning employees will be covered by OCFA's health and welfare insurance plans effective May 1, 2012, the City need not cover such employees for any health insurance (including medical, dental and vision insurance) beyond April 30, 2012. As such, this agreement constitutes a clear waiver of the right to city-sponsored health insurance coverage in May 2012 and beyond. All other health and welfare benefit plans sponsored by the City (including dental, vision, life and AD&D, long- term disability insurance and flexible spending plans) shall cease on April 30, 2012 per the current contract provisions with each insurance provider, and notification of COBRA Election Rights will be sent to all affected qualified beneficiaries. 4 60B-8