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B. Spousal Continuation of Benefits In the case where the employee eligible for two-party coverage is deceased, the amount the City is obligated to pay shall be reduced by one half (1/2). If the spouse remarries, the obligation by the City shall terminate. Domestic partners shall be treated in the same manner as spouses for continuation of benefits. C. Plan Design Plan Design for Employees Who Retired Before July 1, 2012 Employees who retired before July 1, 2012, retired with the same retiree benefit co -pay and plan design as provided to retirees on June 30, 2011. Employees retired before July 1, 2012 are not subject to the 15% premium cap provisions of Section 15.1.B. Plan Design for Employees Who Retire On or After July 1, 2012 Employees who retire or on after July 1, 2012, will have the same benefit co -pay and plan design as provided to active employees in accordance with Section 15.1.0 and are subject to the 15% premium cap provisions of Section 15.1.B. D. Vesting Schedule for Employees Hired Before June 1, 2011 1. Service Retirement For all employees who retire with service from the City of Pleasanton, the City shall pay four percent (4%) for each year of service of the City's contribution toward the monthly premium for employee and one dependent. 2. Disability Retirement For all employees who retire with disability, the City shall pay a percentage of the City's contribution toward the monthly premium for employee and one dependent 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% -24-