Agenda - Council Work Session - 06/10/2014

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Comparison of Responding Cities: Maximum percentage of Sick Leave Severance 33% to 75% Ramsey is 40% Number of Years Required for Minimum Payout 1 to 10 Ramsey is After 5 years Highest Number of Years for Maximum Payout 10 to 25 Ramsey is After 25 years employee will receive thirty-seven (37) percent of unused accumulated sick leave. After twenty -five (25) years of continuous employment, the employee will receive forty (40) percent of said employee's unused, accumulated sick leave. Severance pay shall not be available in any sum to an employee if that employee is discharged for just cause, if an employee voluntarily terminates his or her employment prior to five (5) years of continuous employment service or if the employee voluntarily terminates his or her employment without giving the City of Ramsey fourteen (14) days written notice. Receipt of severance pay terminates all seniority rights and ends all City of Ramsey's liability with regard to other benefits. Excerpt from Section 7.3 of the Personnel Policy -- Sick Leave Accrual Rates: Every probationary and regular employee is entitled to earn sick leave with pay at the rate of 1 day for each calendar month of full -time service or major fraction thereof. Sick leave may be banked to a maximum of 120 days. Unused sick leave in excess of 120 days at the end of a calendar year (December 31st) shall be converted to vacation at a rate of one hour of vacation for each two hours of sick leave. Regular part-time employees are eligible to earn sick leave in proportion to that earned by regular full -time employees based on the number of hours worked. Sick leave will count toward total budgeted work hours for the year. Current Severance Policy: After 05 years of service / 33% After 15 years of service / 35% After 20 years of service /37% After 25 years of service / 40% Possible Non -union Revision Option J Same After 15+ years of service / 50% N/A N/A Timeframe: Approximately 20 minutes. Funding Source: There is no funding required at this time. However, if the proposed policy revision is authorized, the actual severance benefit payout would occur over time as employees separate from employment. Although the liability would very likely occur intermittently, the city is required to fund 100% of the liability at the percentage earned; resulting in an increased liability of approximately $39,700 in 2015. This funding is referred to as a Sick Leave Deferred Absence Liability. Responsible Party(ies): Colleen Lasher, Human Resources Manager. Outcome: For the City Council to provide staff with direction regarding modifications to the non -union sick leave severance policy.