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C. Spousal Continuation of Benefits In the event the employee is eligible for two-party coverage and the eligible employee is deceased,the amount the City is obligated to pay shall be reduced by 1/2 (one half). If the spouse remarries,the obligation by the City shall terminate. D. Plan Design for Employees Who Retire Prior to July 1,2009 Hospital and Medical- Retired Employees Effective March 1, 1990, for all employees who retire for service after March 1, 1990 the City shall pay for each year of service with the City of Pleasanton, four percent (4%) of the monthly premium for employee and one dependent of the City's current Kaiser S-1 Health Plan coverage. Effective March 1, 1990 for all employees who retire for disability after March 1, 1990,the City shall pay a percentage of the monthly premium for employee and one dependent of the City's current Kaiser S-1 Health Plan coverage in accordance with the schedule set forth below: Years of Service City's Contribution 10 20% 11 25% 12 30% 13 35% 14 40% 15 45% 16 48% 17 51% 18 54% 19 57% 20 80% 21 84% 22 88% 23 92% 24 96% 25 +years of service 100% Upon qualifying for and receiving parts A and B of Medicare,the City shall not be obligated to contribute a monthly amount in excess of the monthly premium for the Kaiser S-1 supplement to Medicare health plan for employee and one dependent. In the case where the eligible employee is deceased the amount the City is obligated to pay shall be reduced by 1/2 (one half). If the spouse remarries,the obligation by the City shall terminate. The City reserves the right to meet and confer with the Association for the purposes of coordinating retired employees hospital and medical care in the event Federal or State legislation is implemented that effects retiree's medical insurance. E. Plan Design for Employees Who Retire On or After July 1,2009 Employees who retire on or after July 1, 2009 will have the same benefit co-pays and plan design as provided to active employees. 15