HomeMy WebLinkAboutResolution 7332RESOLUTION 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.)
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 an
expanded maximum contribution equivalent to the highest sick
leave balance carried during 2008.
B. 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%
accrued vacation compensation to the RHSP.
C. Employees who have accumulated 480 or more hours of sick leave 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 480 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.
D. In addition to the above, non-exempt employees shall contribute three percent
(3%) of their salary per payroll period toward the RHS plan.
E. In addition to the above, POST Certified Employees shall contribute five percent
(5%) of their salary per payroll period toward the RHS plan.
Adopted 's 8t" day of September 2008.
Ro Marty, ayor
ATTEST:
J ~,ti'~-~ C.~~''1~'~~.
Jim Ericson, Clerk-Administrator
(SEAL)