Laserfiche WebLink
Unused leave: The City could allow employees to contribute a portion of their next year’s <br />vacation or sick leave to the plan. The employee could make this election each year for <br />the next year’s contribution. This would result in the City paying out cash that it otherwise <br />might not pay out until several years later, however the City may avoid some large lump- <br />sum severance payments. The City would save its share of the social security tax and this <br />could be a solution to the situation of employees who have more than 960 hours of sick <br />time on the books. There could be a formula where X hours of sick time converts into one <br />hour of contribution into RHS. Staff recommends consideration of an annual contribution <br />of sick leave (contributed at a 2:1rate, where 2 hours sick leave equals one hour of RHS <br />time). It is proposed that employees have and maintain at least 480 hours of sick leave on <br />the books and could only contribute 80 hours maximum of RHS time per year. <br /> <br />Matching contributions: The City could make a direct employer contribution to match <br />employee contributions. This is more common in the private sector and not recommended <br />for the City. <br /> <br />Recommendation: <br />It is recommended that the City Council consider the provisions for Retirement Health <br />Savings severance annual contributions and sick leave conversion personal policy <br />amendments at a future meeting and that such language also be considered for labor <br />contracts as they are negotiated.