Agenda Packets - 2005/04/25 - Laserfiche WebLink

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4. Article 23 Severance Pay 23.1 Any employee who has accumulated 960 hours of sick leave as a January 1, 2005, and who have completed ten (10) years of service will be eligible to receive severance pay in the amount of fifty percent (50%) of unused sick leave. Upon death of the employee, the beneficiary of the employee shall be paid the benefit. 23.2 Any employee who has accumulated a minimum of 960 hours of sick leave as of January 1, 2005 will be eligible to contribute, in lieu of severance pay as provided in Section 23.1, sixty-five percent (65%) of the employee’s accumulated and baked sick leave for contribution to the employee’s designated health savings plan. Employees who have accumulated a minimum of 960 hours of sick leave as of January 1, 2005, will be covered by the Retirement Health Savings language of Section 22.3. 23.3 Retirement Health Savings 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 Plan: A. Upon separation from employment with the City, an employee may contribute their compensation for accrued vacation and compensatory time. Employees who have completed two years of service and leave in good standing may also contribute fifty percent (50%) of unused sick leave calculated against a maximum accumulation of 960 hours. Additional bank sick leave hours will not be computed for the contribution. B. An employee may elect to contribute a percentage of their annual pay to the plan on a pre-tax basis. Once this election is made, it can never be changed. C. An employee may elect to make an after-tax contribution of their annual pay to the plan. This election may be changed each year, but is limited to 25% of total contributions to the plan by all employees. D. An employee may annually elect to contribute a portion of their sick leave balance to the plan. The employee would have to maintain a minimum balance of 480 hours of sick leave after the contribution and would be allowed to convert up to 160 hours of sick leave into 80 hours of RHS contribution per year at a 2 to 1 rate. This election may be changed each year.