5.3. ERMUSR 05-10-2007 - Laserfiche WebLink

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Section 16 of our employee hand book currently states: "...Employees accrue sick leave at a rate of one day per month of employment to a maximum of 120 days. An employee, upon resignation, termination or retirement, will be paid for unused sick leave to a maximum of 40% of 100 days (40 days) at his or her then prevailing wage. At the end of any calendar year, an employee who has over 120 days accrued will be paid for 40% of any amount over 120 days to bring the balance back to 120 days. The resigning, terminating or retiring employee may elect, in lieu of being paid cash for the previously defined unused sick leave, to have SO% of the unused sick leave to a maximum of SO% of 100 days (SO days) placed in a fund which will be used for payment of medical insurance by the Utility. This medical insurance may be one of the employee's choosing, or the group policy in effect for the Utilities at that time. It can be used for either single or family coverage. If the employee dies before the fund is expended, the remainder shall be paid to the employee's designated beneficiary. " Staff is recommending the above language be deleted and the following language be inserted in a new section. Elk River Municipal Utility employees are eligible to participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minnesota Statutes, section 352.98 (Minn. Supp. 2001) and as outlined in the Minnesota State Retireme~zt System's Trust and Plan Documents. All funds collected by the employer on the behalf of the employee will be deposited into the employee's post employment health care savings plan account. Participation is outlined below: 1) Employees have agreed to contribute 1 % ofgross wages to the Post Employment Health Care Savings Plan. These funds will be deposited after each pay period. 2) Employees who have accrued over 960 hours of sick time will have SO% of those hours converted to cash and deposited in their post employment health care savings account. The conversion will take place once a year at the end of December. 3) Employees, upon resignation, termination, or retirement, will have SO% of unused sick leave, up to a maximum of 100 days, converted into cash and deposited into their post employment health care savings account.