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Resolution 7548 Exhibit A POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45 The City of Mounds View offers its employees a Retirement Health Savings Plan pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. The following contributions will be allowed to the Retirement Health Savings Pan (RHSP): A. Upon separation from the City, employees who have completed two or more years of service and leave the City in good standing shall contribute 100% of their eligible sick leave to their RHSP. Except as noted below, eligible sick leave is limited to 50% of an employee's sick leave balance, which is capped as follows: Base cap = 960 hours. The base cap shall be increased by 20 hours per year for each year employed beyond ten years. For example, a 15-year employee's cap would be 1060 hours and atwenty-year employee's cap would be 1160 hours. Employees with less than two years of service with the City are not eligible to contribute sick leave hours to the RHSP and have no right to any payout of unused sick leave hours. Employees who had completed ten years of service by January 1, 2008, qualify for enhanced sick leave payout. Upon separation, qualifying employees shall contribute 100% of their eligible sick leave to their RHSP. The enhanced sick leave payout is equal to 65% of an employee's sick leave balance. (The enhanced conversion rate applies ONLY to sick leave hours contributed at separation, subject to the maximum cap addressed above.) Sick leave balances in excess of the above described cap are not eligible for contribution or payout in any form, except as follows: Employees having accrued a balance of 1,400 or more sick leave hours as of September 1, 2008 shall be eligible for the enhanced payout on a maximum contribution equivalent to the highest sick leave balance carried during 2008. B. Employees who have a sick leave balance of 480 or more hours shall contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum annual contribution of 160 hours (80 hours converted) or that amount which brings the employee's sick leave balance down to 480 hours-whichever is less. The City shall calculate and process the annual employee contribution to the RHSP on the first payroll period of November of each year. C. Non-exempt employees shall contribute three percent (3%) of their salary per payroll period towards the RHSP. In addition, upon separation from the City, non-exempt employees who have completed two or more years of service and leave in good standing shall contribute 100% of accrued vacation compensation to the RHSP. D. POST Certified Employees shall contribute five percent (5%) of their salary per payroll period toward the RHSP. In addition, upon separation from the City, POST Certified Employees who have completed two or more years of service and leave in good standing shall contribute 100% of accrued vacation compensation to the RHSP. E. Employees who are Certified Municipal Clerks or employees who have not completed two years of service shall not contribute any salary or vacation compensation to the RHSP. F. All other non-union employees who have completed two or more years of service and leave in good standing shall contribute 50% of accrued vacation compensation to the RHSP.