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<br /> <br /> <br />Once the deferred sick leave bank is exhausted, employees will use annual leave for all <br />absences covered by the annual leave program. Any deferred sick leave balance remaining <br />when an employee leaves City service will expire. The City does not pay out any hours that <br />may remain in the deferred sick leave bank at termination. <br /> <br />Current Vacation Balances <br /> <br />Unused vacation balances shall be converted to annual leave on an hour for hour basis. <br /> <br />Severance Pay <br /> <br />Employees leaving the City in good standing will receive 100% of their annual leave balance <br />as compensation (applicable taxes will be withheld). Employees have the option of directing <br />those dollars into a 457 deferred compensation plan (subject to IRS maximum deferral <br />regulations and Minnesota law). <br /> <br />Annual Leave Conversion <br /> <br />Annual leave will be eligible for conversion to cash or to a 457 deferred compensation plan <br />on an hour-for-hour basis (subject to IRS maximum deferral regulations and Minnesota law) <br />annually with the following conditions. Up to 40% of the annual leave balance, not to exceed <br />eighty (80) hours, may be converted each year provided the employee has used at least <br />30% of his/her annual accrual during the current calendar year and has a balance of at least <br />176 hours. The minimum balance requirement will be determined as of the first payroll in <br />December. Payment will be based on the employee’s current hourly rate on December 1. <br /> <br />Conversion to cash or deferred compensation will occur in the second payroll of the following <br />year with specific dates to be determined by accounting each year. Accounting will notify all <br />employees in November of each year as to the dates and conversion options. The <br />conversion will be part of regular payroll and will not be paid in a separate check. Regular <br />rate for the purpose of this policy is the employee’s straight time rate not including overtime, <br />pay differentials, out-of-class adjustments or any other additions to regular pay.