Agenda - Council Work Session - 10/24/2023

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4.8 Non-union Post-employment Healthcare Savings Plan (PEHCSP) The PEHCSP is an employer-sponsored program that allows employees to invest in atax-preferred medical savings account while employed by a Minnesota public employer. All non-union employees hired after January 1, 1984 will participate in the post-employment healthcare savings plan, as follows: PERA COORDINATED MEMBERS • WAGES: Contribute 2% after 5 years of service (starting with the 61h year of service) and greater to the PEHCSP • MAXED OUT SICK LEAVE: Contribute unused sick leave hours that would normally convert to vacation time (all hours greater than 960 at a conversion rate of 2 to 1)to the PEHCSP. • VACATION: Upon separation of employment/contribute unused accrued vacation time, as follows: • 50% after 5 years of service through 10 years of service and then • 75%with 11 years of service through 15 years of service and then • 100% after 16 years of service and greater shall be contributed to the PEHCSP • SICK LEAVE: Upon separation of employment/contribute unused eligible accrued sick time, as follows: 100% of eligible unused accrued sick leave after 5 years of service and greater PERA POLICE & FIRE MEMBERS • WAGES: Contribute 1% for all employees until 5 years prior to normal retirement age (55), at which time ongoing contributions will be 4% of salary. • MAXED OUT SICK LEAVE: Contribute all unused sick leave hours that would normally convert to vacation time (all hours greater than 960 at a conversion rate of 2 to 1) to the PEHCSP. • VACATION Upon separation of employment/contribute unused accrued vacation time, as follows: 100% -- Regardless of years of service • SICK LEAVE: Upon separation of employment/contribute unused eligible sick leave, as follows: 100% of eligible unused accrued sick leave -- regardless of years of service. Eligible sick leave severance shall be defined as a lump sum payment upon termination of employment, contributed to the PEHCSP, based on thirty-three (33)percent of employee's unused, accumulated sick leave after five (5) years of continuous employment. After fifteen (15) years of continuous employment, the employee will instead receive thirty-five (35)percent of said employee's unused, accumulated sick leave. After twenty(20) years of continuous employment, the employee will instead receive thirty-seven(37)percent of unused accumulated sick leave. After twenty-five (25) years of continuous employment, the employee will instead receive forty(40)percent of said employee's unused, accumulated sick leave. In order to obtain eligible sick leave severance pay, an employee must leave City employment in "good standing," as provided in Policy 3.13.