Agenda - Council Work Session - 02/26/2024

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4.8 Non -union Post -employment Healthcare Savings Plan (rPEHCSP) The PEHCSP is an employer -sponsored program that allows employees to invest in a tax -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, contributing as follows: NON -UNION EMPLOYEES - PERA COORDINATED MEMBERS • GROSS WAGES: Contribute 2% after 5 years of service and greater. • SICK LEAVE CONVERSION: At the end of the calendar year, contribute all hours greater than 960 at a conversion rate of 2 to 1). • VACATION: Upon separation of employment, contribute unused accrued vacation time as follows: o 50% after 5 years of service through 10 years of service o 75% with 11 years of service through 15 years of service o 100% after 16 years of service and greater • SICK LEAVE SEVERANCE: Upon separation of employment, contribute 100% of unused eligible accrued sick leave. NON -UNION EMPLOYEES - PERA POLICE & FIRE MEMBERS • GROSS WAGES: Contribute 1% for all employees until 5 years prior to normal retirement age (55), at which time ongoing contributions increase to 4%. • SICK LEAVE CONVERSION: At the end of the calendar year, contribute all hours greater than 960 at a conversion rate of 2 to 1). • VACATION: Upon separation of employment, contribute 100% of unused accrued vacation time (regardless of years of service). • SICK LEAVE SEVERANCE: Upon separation of employment, contribute 100% of unused eligible accrued sick leave. Eligible sick leave severance shall include a combined total of both traditional sick leave and earned sick and safe time. It 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. 4.9 Employee Assistance Program The City offers an employee assistance program (EAP) at no cost to assist employees and their families with -a variety of services from mental health and substance abuse counseling to child care resources. The EAP will provide confidential counseling services by highly trained clinicians or suggest other professional resources that may be useful to employees and their families. 25 1Page Commented [CL16]: Future changes may occur on this section. There is no additional cost to the City, regardless of the amounts.