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POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45 <br /> <br />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. <br /> <br />The following contributions will be allowed to the Retirement Health Savings Pan <br />(RHSP): <br /> <br />A. Upon separation from the City, employees who have completed two or more <br />years of service and leave the City in good standing shall contribute fifty percent <br />(50%) of their unused sick leave calculated against a maximum accumulation as <br />follows: <br /> <br />Base cap = 960 hours. The base cap shall be increased by 20 <br />hours per year for each year employed beyond ten years. <br />Thus a 15-year employee’s cap would be 1060 hours and a <br />twenty-year employee’s cap would be 1160 hours. <br /> <br />Employees with less than two years of service with the City are not eligible to <br />contribute sick leave hours to the RHSP and have no right to any payout of <br />unused sick leave hours. <br /> <br />Employees who had completed ten years of service by January 1, 2008, shall, <br />upon separation, be eligible to contribute remaining sick leave hours to RHSP at <br />a 65% bonus rate rather than the otherwise stated 50% rate. (The bonus rate <br />applies ONLY to sick leave hours converted at separation subject to the <br />maximum contribution listed above.) <br /> <br />Sick leave balances in excess of the above described cap are not eligible for <br />contribution or payout in any form, except as follows: <br /> <br />Employees having accrued a balance of 1,400 or more sick <br />leave hours as of September 1, 2008 shall be eligible for an <br />expanded maximum contribution equivalent to the highest sick <br />leave balance carried during 2008. <br /> <br />B. Upon separation from the City, employees who have completed two or more <br />years of service and leave the City in good standing shall contribute 100% <br />accrued vacation compensation to the RHSP. <br /> <br />C. Employees who have accumulated 480 or more hours of sick leave shall <br />contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum <br />annual contribution of 160 hours (80 hours converted) or that amount which <br />brings the employee’s sick leave balance down to 480 hours—whichever is less. <br />The City shall calculate and process the annual employee contribution to the <br />RHSP on the first payroll period of November of each year. <br /> <br />Draft Language August 25, 2008