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HomeMy WebLinkAboutResolution No. 328-08 ie 14 a �3 ,g RESOLUTION BE IT RESOLVED by the Common Council of the City of Rochester that the City adopt modifications to the personnel policy regarding Unused Sick Leave Program. A copy of the policy is attached. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS 1774 DAY OF O&LV 2008. PRESIDENT OF SAID COMMON COUNCIL ATTEST: CITY CLERK APPROVED THIS DAY OF 2008. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Res05lAdopt.PersPolicy.UnusedSickLeave.doc M ORGANIZATIONAL POLICY UNUSED SICK LEAVE PROGRAM A. Policy It is the policy of the City of Rochester to convert a portion of an employee's unused sick leave account upon retirement and place it in a health care savings plan. B. Eligibility Regular full-time or regular part-time employees of the City of Rochester who terminate employment after ten (10) years of service. C. Guidelines When an employee terminates employment after ten (10) years of regular full- time or regular part-time employment with the City of Rochester, the City will convert forty (40) percent of the employee's unused sick leave balance to be deposited to an individual Minnesota, State Retirement System (MSRS) Health . Care Savings Plan (HSCP) or the International City Manager's Association (ICMA) Vantagecare Retirement Savings Plan. The employees bargaining agreement will determine which of the above plans their eligible unused sick leave funds will be deposited in. The Health Care Savings Plan and the Vantagecare Retirement Savings Plan are tax free savings accounts. The accounts can be used to cover medical necessary expenses and pay health care and long-term care insurance premiums after retirement or termination. The money deposited is tax deferred and payouts are tax free for medically related expenses that .the participant incurs subject to the rules applied by MSRS or ICMA. After ten (10) years of service, the dollar value of accumulated sick leave hours will be equal to forty (40) percent of the total accumulated sick leave hours at the time of termination/retirement multiplied by the employee's hourly rate of pay at the time of termination/retirement. Regular part-time employees (those regularly scheduled for twenty (20) to thirty-nine (39) hours per week) and who are not designated as temporary or seasonal will be eligible to convert forty (40) percent of their accumulated sick leave. In case of permanent disability of an active employee, as determined by the Public Employees Retirement Association, an amount equal to one hundred (100) percent of unused sick leave will a deposited Health Care Savings Plan or Vantagecare Retirement Savings Plan for the use of the employee as governed by MSRS or ICMA rules. 5/08