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Home My WebLink AboutResolution 7913 RESOLUTION NO. 7913 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING THE NON-UNION RETIREMENT HEALTH SAVINGS PLAN WHEREAS, due to the decertification of the AFSCME Union, previously agreed plans relating to employee contributions to the Retirement Health Savings Plan need to be restructured; and WHEREAS, the Retirement Health Savings Plan was developed and reviewed by non-union employees. 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 (RHSP) 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 the City, employees who have completed two or more years of service and leave the City in good standing shall contribute 100% of their eligible sick leave to their RHSP. Except as noted below, eligible sick leave is limited to 50% of an employee's sick leave balance, which is capped as follows: Base cap = 960 hours. The base cap shall be increased by 20 hours per year for each year employed beyond ten years. For example, 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, qualify for enhanced sick leave payout. Upon separation, qualifying employees shall contribute 100% of their eligible sick leave to their RHSP. The enhanced sick leave payout is equal to 65% of an employee's sick leave balance. (The enhanced conversion rate applies ONLY to sick leave hours contributed at separation, subject to the maximum cap addressed above.) . .xi.* ..t ki-a N.tn' . N.ea '.a •..Y e..r.•;a f....-.t,a'4V"r-^f .YY S' t ..,.i .l;_ .....aye .. ,.:+.. ..: Resolution 7913 Page 2 Sick leave balances in excess of the above described cap are not eligible for contribution or payout in any form, except as follows: Employees having accrued a balance of 1,400 or more sick leave hours as of September 1, 2008 shall be eligible for the enhanced payout up to a maximum contribution equivalent to the highest sick leave balance carried during 2008. Employees who have a sick leave balance of 600 or more hours shall contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum annual contribution of 160 hours (80 hours converted) or that amount which brings the employee's sick leave balance down to 600 hours—whichever is less.The City shall calculate and process the annual employee contribution to the RHSP on the first payroll period of November of each year. B. In addition to the provisions listed in Section A, the following below shall apply to non-exempt civilian Police Department employees: 1. Civilian Police Department employees forty (40) years of age or older shall contribute ten percent (10%) of their salary per payroll towards the RHSP and, in addition, upon separation, employees in this category who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent(100%)of accrued vacation compensation to the RHSP. C. In addition to the provisions listed in Section A, the following table below and terms shall apply to all other non-exempt employees: Group Designation Age + Years of Service Group A Up to 44 Group B 45 – 59 Group C 60 - 74 Group D 75 – 89 Group E 90 and above 1. Employees in Group A shall contribute 1% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute fifty percent(50%) of accrued vacation compensation to the RHSP. 2. Employees in Group B shall contribute 1%of their salary per payroll towards the RHSP, and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute fifty percent (50%) of accrued vacation compensation to the RHSP. Y .A+...:i'..A vAi..i:.i sr,rtat;. ..agy.•u... '...fir veaa.♦,, fri..♦ YY.a.vei..as :"l:.e:3V.i Y..,1'.R}C..a.'..<.:.t 1, t.:,. .'.ai. ,w... . , ., ... ,..e it ....na s...,,-- ,..,. .. a ,...is ✓ ✓ri ...-.n ,.a;b ..+.P Resolution 7913 Page 3 3. Employees in Group C shall contribute 3% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. 4. Employees in Group D shall contribute 5% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. 5. Employees in Group E shall contribute 10% of their salary per payroll towards the RHSP. D. In addition to the provisions listed in Section A, POST Certified employees shall contribute five percent(5%) of their salary per payroll period toward the RHSP, and, in addition, upon separation from the City, employees in this classification who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. Adopted this 12th day of March, 2012. pir e Flah- ►r ATTEST: ,J cijv 444 James Ericson, City Administrator (SEAL)