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11.9. Administrative Leave In recognition that Battalion Chief s employees are required to work hours beyond their regular hours of work to fulfill their managerial responsibilities, each employee will receive 56 hours of administrative leave per year and may be credited up to a total of 80 hours of administrative time per year as recommended by the Fire Chief and approved by the City Manager. Administrative leave hours not used by the last payroll period of the calendar year will be cashed out. Section 12. Health and Welfare 12.1 Medical Insurance-Active Employees A. Contributions All employees participating in the City's health plans will contribute one of the following two amounts,whichever is greater: 1. $25 per month for employee only coverage, $25 per month for employee plus one coverage, or$50 per month for family coverage. 2. The difference between the family rate of the lowest cost HMO and the premium of the employee's more expensive plan selection. Contributions will be deducted from the employee's paycheck on a pre-tax and bi- weekly basis. B. Increases in Premiums The City will pay for any increase in the medical plan premiums up to a maximum of 15%annually of the lowest cost HMO family rate. Any premium increase above 15% will be deducted from the employee's paycheck on a pre-tax basis. In the event that the medical premium increase is less than 15%, the City's sole obligation is to pay the lower percentage increase. C. Plan Co-Pays The health maintenance organization(HMO)medical plans co-pays shall be ten dollars ($10) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, fifteen dollars ($15) for brand and thirty-five dollars ($35) for non-formulary (the Kaiser HMO provides for a two-tier prescription drug plan). The Preferred Provider Organization (PPO) medical plan co-pays shall be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, twenty-five($25) for brand and thirty-five dollars($35)for non-formulary. D. Changes to Plan Designs The City reserves the right to make changes to the medical plan designs. 4894-5387-2224 Q 20