Agenda Packets - 2017/02/27 - Laserfiche WebLink

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Item No: 08A Meeting Date: February 27, 2017 Type of Business: Consent City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 8715, Approving Amendments to Section 3.35 and Section 3.45 of the Personnel Manual, Relating to the Sick Leave Policy and the Retirement Health Savings Plan Policy, Respectively Background: Due to new hires in the non-union group, Staff had a meeting with all non-union employees to review whether the current Retirement Health Savings Plan (RHSP) policy meets the needs of non-union employees. The employees have elected to make some changes to the policy. Discussion: While reviewing the proposed changes to Section 3.45 of the Personnel Manual relating to the Retirement Health Savings Plan, it became apparent that changes would also be necessary in Section 3.35 of the Personnel Manual relating to the Sick Leave policy. The changes in Section 3.35 eliminate reference to “banked” sick leave, since there really are no practical limitations on the number of hours that can be accumulated. In addition, new language is introduced which caps the number of hours that may be paid out through a combination of annual contributions and severance. The new language in Section 3.35 is as follows: While there are no limits imposed upon the actual accrual of sick leave, the number of hours that can be (a) converted annually and (b) contributed via separation into an employee’s Retirement Health Savings Plan (RHSP) shall be capped according to a formula articulated in Section 3.45. The formula added in Section 3.45 of the Personnel Manual replaces “wordy” language that was unnecessarily cumbersome. The formula does not change the number of hours each employee is eligible to receive. For purposes of severance and contribution into an employee’s RHSP, eligible sick leave hours shall be capped based upon the following formulas, where “Y” represents the number of years of service completed by the employee and “M” represents the maximum eligible hours. If Y is equal to or less than 10, then M = 96 * Y. If Y is equal to 11 or more, then M = (Y-10) * 20 + 960.