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RESOLUTION NO. 7332 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING THE NON-UNION RETIREMENT HEALTH SAVINGS PLAN WHEREAS, due to the new Internal Revenue Service regulations, previously agreed plans relating to employee contributions to the Retirement Health Savings Plan need to be restructured; and WHEREAS, non-union employees had numerous meetings on developing a Non-Union Retirement Health Savings Plan. NOW, THEREFORE BE IT RESOLVED, that the Mounds View City Council revises Section 3.45 of the Mounds View Personnel Manual as follows: POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45 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 Pan (RHSP): A. Upon separation from the City, employees who have completed two or more years of service and leave the City in good standing shall contribute fifty percent (50%) of their unused sick leave calculated against a maximum accumulation as follows: Base cap = 960 hours. The base cap shall be increased by 20 hours per year for each year employed beyond ten years. Thus a 15-year employee's cap would be 1060 hours and a twenty-year employee's cap would be 1160 hours. Employees with less than two years of service with the City are not eligible to contribute sick leave hours to the RHSP and have no right to any payout of unused sick leave hours. Employees who had completed ten years of service by January 1, 2008, shall, upon separation, be eligible to contribute remaining sick leave hours to RHSP at a 65% bonus rate rather than the otherwise stated 50% rate. (The bonus rate applies ONLY to sick leave hours converted at separation subject to the maximum contribution listed above.)