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fifteen dollars ($15) for brand and thirty-five dollars ($35) for non-formulary (the Kaiser <br /> HMO provides for a two-tier prescription drug plan). The Preferred Provider Organization <br /> (PPO)medical plan co-pays shall be fifteen dollars($15)for office visits. The prescription <br /> drug co-pays shall be ten dollars ($10) for generic, twenty-five ($25) for brand and thirty- <br /> five dollars ($35) for non-formulary. <br /> D. Changes to Plan Designs <br /> During the term of this agreement, the City reserves the right to propose changes to the <br /> plan designs and co-pay structure in order to reduce costs to the City and employees. <br /> Changes to plan design shall be by mutual agreement. <br /> The City agrees to provide up to three (3) health plan options for employees and eligible <br /> dependents. At least two (2)options will be HMOs and the other option will be a PPO. For <br /> the term of this agreement, the City agrees to continue to offer Kaiser as one of the HMO <br /> options. <br /> 16.2 Health and Medical Care—Retired Employees <br /> A. Spousal Continuation of Benefits <br /> In the case where the employee eligible for two-party coverage is deceased,the amount the <br /> City is obligated to pay shall be reduced by one half(1/2). If the spouse remarries, the <br /> obligation by the City shall terminate. Domestic partners shall be treated in the same <br /> manner as spouses for continuation of benefits. <br /> B. Plan Design <br /> Employees who retire on or after July 1, 2009, will have the same benefit co-pay and plan <br /> design as provided to active employees in accordance with Section 16.1.0 and are subject <br /> to the 15%premium cap provisions of Section 16.1.B. <br /> C. Vesting Schedule for Employees Hired Before July 1,2012 <br /> 1. Service Retirement <br /> For all employees who retire with service from the City of Pleasanton,the City shall pay <br /> four percent(4%)for each year of service of the City's contribution toward the monthly <br /> premium for employee and one dependent. <br /> 2. Disability Retirement <br /> For all employees who retire due to disability, the City shall pay a percentage of the <br /> City's contribution toward the monthly premium for employee plus one dependent(two- <br /> party rate)for the lowest cost HMO plan in accordance with the schedule set forth below: <br /> 24 <br />