4.7 SR 08-05-2024 - Laserfiche WebLink

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Severance Pay An employee resigning employment may be eligible for a cash payment for a portion of unused sick leave. For the purpose of this section, sick leave is the combination of an employee's sick leave bank and Earned Sick and Safe Time (ESST) bank. Accrual for the year of payment shall be based on 3.6924 or 2.4616 hours per pay period, whichever is applicable to employee. To receive a severance payout, the following conditions shall be met: • The employee must earn sick leave per the Sick Leave policy below; and • The employee must leave in good standing, not terminated by the city; and • S/he must provide proper notice of resignation as stated above with city administrator discretion; and • S/he must execute a release of claims. Payment shall be based on the consecutive years of leave -eligible service completed by the employee with the City of River and his/her accrued sick leave balance. Payment shall be at the rate of pay when the resignation is submitted. For Employees hired before August 8, 2023, and completing two (2) years of consecutive service, the severance payment is calculated at fifty percent (50%) of the accumulated sick leave balance up to a maximum paid of four hundred eighty (480) hours. Employees hired August 8, 2023, or later, and completing five (5) years of consecutive service, will receive a payout as outlined below: 5-9 consecutive years of service 40% of up to 960 hours 10 or more consecutive years of service 50% of up to 960 hours An employee eligible for Severance Pay as noted above and eligible for PERA benefits will receive payout as outlined below. 15-19 consecutive years of service 60% of up to 960 hours 20-24 consecutive years of service 65% of up to 960 hours 25-29 consecutive years of service 70% of up to 960 hours 30-32 consecutive years of service 75% of up to 960 hours 33 or more consecutive years of service 80% of up to 960 hours Accumulated leave in excess of nine hundred sixty (960) hours is not eligible for a severance payment. Sick leave shall continue to accumulate in excess of nine hundred sixty (960) hours to be used in accordance with the Family Medical Leave Act. Due to unforeseen circumstances and in his/her sole discretion, the city administrator may grant exceptions to provide partial payout prior to five (5) years of service. Page 43 of 159