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determined by City Council. However, the dollar amount will never go below the amount the employee <br />will receive when he/she retires. <br />3. In the event the retiree and/or dependent premium exceed the allowance amount per the above <br />schedule/formula, the retiree shall be billed for and must pay the excess/difference on a monthly basis. <br />If the retiree fails to remit payment within 60 days after the billing date, enrollment in the city's plan <br />shall be permanently cancelled for the retiree and any related spouse and dependents. <br />4. In the event the retiree moves out of state to an area where the city's health insurance carriers do not <br />provide coverage, the retiree must show proof of health insurance coverage and payment of monthly <br />premiums before reimbursement, subject to the aforementioned formula limits. <br />5. If the premium cost is less than the amount allocated by the formula, the retiree does not receive the <br />difference. Additionally, there is no opt -out money paid to the retiree. <br />6. In the event that the city reduces the cafeteria plan allowance, retirees will not receive an amount of <br />premium dollars that is less than their allowance at the time of the reduction. <br />7. The retiree will provide the city with all documentation required for any qualifying event, in a timely <br />manner, but never beyond thirty (30) days of said event. <br />*Dependents are defined as spouse and/or any qualified legal dependent. <br />Surviving Spouse and Dependent Coverage In The Event Of Death of the Retiree: <br />In the event of the death of the retiree who is survived by a spouse or legal dependent, enrolled in a city health <br />insurance plan at the time of the retiree's death, the city shall continue to provide health coverage subject to the <br />aforementioned schedule/formula, subject to other terms and conditions that apply to the Medicare age excess <br />billing, relocation, premiums, etc. <br />SECTION 7: SOCIAL SECURITY <br />In the event the City and its employees are required to participate in the Federal Social Security Program, the <br />contribution designated by law to be the responsibility of the employee shall be paid in full by the employee and <br />the City shall not be obligated to pay or "pick up" any portion thereof. <br />SECTION 8: MEDICARE <br />Employees hired by the City on or after April 1, 1986, shall be required to pay the designated employee <br />contribution to participate in the Medicare Program, and the City shall be under no obligation to pay or "pick <br />up" any such contributions. <br />SECTION 9: CAR/CAR ALLOWANCE <br />Auto allowance for Executive Management (Staff) positions no longer exists with the adoption of Resolution R - <br />69A -01. Members will maintain a mileage log and submit actual City business mileage used in a personal <br />vehicle for reimbursement as a non-taxable lump sum. The application of this section supersedes said <br />agreements which separate automobile allowance from salary. This provision applies to the City Clerk and the <br />City Treasurer, but does not apply to Elected Officials. <br />Page 5 of 13 <br />MOU Executive Unit <br />06/20/07 3:30 ptn <br />