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HomeMy WebLinkAboutResolution 9661RESOLUTION NO. 9661 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 2.11 of the Mounds View Personnel Manual as follows: The City of Mounds View provides its employees with a Retirement Health Savings Plan (RHSP) pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. Section 2.11: RETIREMENT HEALTH SAVINGS PLAN The City provides its employees with a Retirement Health Savings Plan (RHSP) pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. Participation is mandatory and deductions begin on employees' first payroll. For purposes of Item A and E, eligible sick leave hours shall be capped. 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 1: Group Designation A e + Years of Service Group A Up to 65 Group B 66 to 74 Group C 75 and above Resolution 9661 November 28, 2022 Page 2 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 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 100% of accrued vacation compensation to the RHSP. D. Exempt employees who have two (2) or more years of service and leave City employment in good standing shall contribute 100% of accrued vacation compensation to the RHSP. E. Upon separation from the City, employees who have completed two (2) 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 separation compensation shall not exceed the employee's maximum eligible hours cap less any annual contributions made under Section A. 2. Employees with less than two (2) 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 10 years of service by January 1, 2008, qualify for enhanced sick leave payout at the rate of 05%. Upon separation, qualifying employees shall contribute their eligible sick leave hours to their RHSP, at the Resolution 9661 November 28, 2022 Page 3 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 Adopted this 28th day of November, 2022. 01 Carol A. Mueller, Mayor ATTEST: 'A A I " ZY - Nyle mun , Ci y Administrator (Seal)