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In the event the employee is eligible for two-party coverage and the eligible employee is <br /> deceased, the amount the City is obligated to pay shall be reduced by 1/2 (one half). If the <br /> spouse remarries, the obligation by the City shall terminate. <br /> D. Plan Design for Employees Who Retire Prior to July 1,2009 <br /> See Side Letter. <br /> E. Plan Design for Employees Who Retire On or After July 1,2009 <br /> Employees who retire on or after July 1, 2009 will have the same benefit co-pays and plan <br /> design as provided to active employees. <br /> F. Vesting Schedule for Employees Hired Before January 1,2009 <br /> 1. Service Retirement <br /> For all employees who retire from service, the City shall pay for each year of service with the <br /> City of Pleasanton, four percent (4%) of the monthly premium for employee and one dependent <br /> of the City's lowest cost HMO health plan. Such monies may be utilized for City plans or for <br /> medical premiums for alternate plans selected by the retiree. <br /> 2. Disability Retirement <br /> For all employees who retire with disability, the City shall pay a percentage of the monthly <br /> premium for employee and one dependent of the City's lowest cost HMO health plan coverage <br /> in accordance with the schedule set forth below: <br /> Years of Service City's Contribution <br /> 10 20% <br /> 11 25% <br /> 12 30% <br /> 13 35% <br /> 14 40% <br /> 15 45% <br /> 16 48% <br /> 17 51% <br /> 18 54% <br /> 19 57% <br /> 20 80% <br /> 21 84% <br /> 22 88% <br /> 23 92% <br /> 24 96% <br /> 25 +years of service 100% <br /> 3. City Contributions <br /> Effective July 1st of each year of this agreement, the monthly contribution paid by the City <br /> shall be increased by the same dollar increase in medical insurance as is provided to active <br /> employees as set forth in Section 14.1 of this agreement up to the lowest cost HMO two-party <br /> rate. <br /> G. Vesting Schedule for Employees Hired After January 1,2009 <br /> 15 <br />