HomeMy WebLinkAboutResolution 9120RESOLUTION NO. 9120
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING RETIREMENT HEALTH SAVINGS PLAN REVISIONS
WHEREAS, the Retirement Health Savings Plan was developed by non-union
employees; and,
WHEREAS, non-union staff met to revisit the Retirement Health Savings Plan
Policy and consider possible changes for the upcoming three years.
NOW, THEREFORE, BE IT RESOLVED, that the Mounds View City Council
approves revisions to Section 3.45 of the Mounds View Personnel Manual as follows:
The City of Mounds View provides its employees with a Retirement Health Savings Plan
(RHSP) pursuantto Internal Revenue Code regulations through a third party administrator
selected by the City.
POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45
For purposes of Item A and D, eligible sick leave hours shall be capped. For each year
of service up to 10 years, 96 hours will be added to the cap. For each year beyond 10 an
additional 20 hours will be added to the cap.
The following contributions are required to the Retirement Health Savings Plan:
A. 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 December of each year. At no point however shall an
employee's cumulative contributions exceed the employee's maximum eligible
hours, as defined above.
B. In addition to the provisions listed in Section A, the following table below and terms
shall apply to all non-exempt employees and are calculated on January 1st:
Group Desi
nation
A e + Years of Service
Group
A
Up to 57
Gr ou
B
58 to 74
Group
C
75 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
Resolution 9120
May 28, 2019
Page 2
shall contribute fifty percent (50%) of accrued vacation compensation to the
RHSP.
2. Employees in Group B 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.
3. Employees in Group C 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 one hundred percent (100%) of accrued vacation
compensation to the RHSP.
C. In addition to the provisions listed in Section A, non-union POST Certified
employees shall contribute two percent (2%) 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.
D. Upon separation from the City, employees who have completed two or more years
of service and leave the City in good standing shall contribute their eligible sick
leave hours, converted at the rate of 50%, to their RHSP, in accordance with the
following:
For employees hired after January 1, 2008, sick leave hours paid out as
severance shall not exceed the employee's maximum eligible hours cap less
any annual contributions made under Section A.
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.
3. Employees who had completed ten years of service by January 1, 2008, qualify
for enhanced sick leave payout at the rate of 65%. Upon separation, qualifying
employees shall contribute their eligible sick leave hours to their RHSP, at the
enhanced rate. The enhanced conversion rate of 65% applies ONLY to sick
leave hours contributed at separation.
4. Sick leave balances in excess of the maximum eligible cap as defined above
are not eligible for contribution or payout in any form.
Resolution 9120
May 28, 2019
Page 3
Adopted this 28th day of May, 2019.
Carol A. Mueller, Mayor
ATTEST:
Nyle ikmu d, City Administrator
(Seal)