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<br />12 <br />ARTICLE 22: 22.2 RETIREMENT HEALTH SAVINGS PLAN <br /> <br />22.1 The City of Mounds View offers its employees a Retirement Health Savings Plan <br />pursuant to Internal Revenue Code regulations through a third party administrator <br />selected by the City. Future changes in the Internal Revenue Code regulations may <br />change the tax status of this plan and the City shall not be liable for such changes. <br /> <br /> Contribution to the Plan shall occur according to the following provisions: <br /> <br />A. Employees who have completed two or more years of service and leave in <br />good standing shall direct their eligible sick leave compensation to the Plan. <br />Eligible sick leave shall be computed based on years of completed service, less <br />any elected annual contributions, computed according to the table in <br />Appendix B, at a conversion rate of two for one (50%). (Employees who <br />separate with less than two years of completed service are not eligible to be <br />compensated for any accrued sick leave.) <br /> <br />B. Employees who had accumulated 960 or more hours of sick leave as of <br />January 1, 2005 are not subject to the computation table in Appendix B. <br />Rather, any such employee shall direct sixty-five percent (65%) of their <br />remaining sick leave compensation to the Plan. <br /> <br />C. Upon separation from employment with the City, employees with twenty (20) <br />or more years of service and leave in good standing shall direct 100% of any <br />vacation and compensatory time balances to the Plan. Employees with less <br />than twenty (20) years of service and leave in good standing will receive a <br />lump-sum taxable severance compensation for all remaining vacation and <br />compensatory time as provided for in Article 21.1. <br /> <br />The employee is responsible for enrolling in the plan and designate a beneficiary during a <br />regularly scheduled open enrollment period prior to termination of their employment. <br /> <br /> The following contributions will be allowed to the Retirement Health Savings Plan: <br /> <br />A. Upon separation from employment with the City, an employee may contribute <br />their compensation for accrued vacation and compensatory time. Employees who <br />have completed two years of service and leave in good standing may also <br />contribute fifty percent (50%) of unused sick leave calculated against a maximum <br />accumulation of 960 hours. Additional bank sick leave hours will not be <br />computed for the contribution. <br /> <br />B. An employee may elect to contribute a percentage of their annual pay to the plan <br />on a pre-tax basis. Once this election is made, it can never be changed. <br /> <br />C. An employee may elect to make an after-tax contribution of their annual pay to <br />the plan. This election may be changed each year, but is limited to 25% of total <br />contributions to the plan by all employees.