HomeMy WebLinkAbout2005-163 CCRMember Kay Lasman introduced the following resolution and moved
its adoption:
RESOLUTION NO. 2005-163
RESOLUTION AMENDING THE CITY'S PERSONNEL RULES AND
REGULATIONS
WHEREAS, on September 8, 1997, the Council adopted the City's Personnel Rules
and Regulations by Resolution No. 97-161; and
WHEREAS, the Council finds that it is in the public interest to update personnel
policies for city employees; and
WHEREAS, attached hereto and incorporated herein by reference as Exhibit "A" are
proposed amendments to the City's Personnel Rules and Regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the City's Personnel Rules and Regulations be and hereby are amended as set
forth in Exhibit "A".
November 14, 2005
Date A
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Kathleen Carmody
and upon vote being taken thereon, the following voted in favor thereof:
Myrna Kragness, Kay Lasman,_ Diane Niesen,..and Mary 0 Connor;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.
RESOLUTION NO. 2005-163 EXHIBIT A
ADDENDUM TO PERSONNEL RULES AND REGULATIONS
EXHIBIT "A"
The following Sections are adopted or amended as set forth.
7.11 Election Day Leave
Employees eligible to vote in a regularly scheduled state primary or general election may be
absent from work for the purpose of voting during the morning of the day of that election,
without penalty or deduction from salary or wages because of the absence. A request for time off
to vote must be made prior to election day and the supervisor may specify the time when an
employee may be absent for voting purposes.
7.13 Parenting Leave
In compliance with MN Statues 181.941; regular employees who are a natural or adoptive parent
in conjunction with the birth of adoption of a child shall be granted an unpaid leave of absence
for a period not to exceed six weeks. Eligible employees anticipating parenting leave must
submit a written request to their supervisor, who will forward the request to human resources,
before the anticipated birth or adoption of the child whenever possible. A parenting leave may
not begin more than six weeks after the birth or adoption of the child. If the child must remain in
the hospital longer than the mother, the leave may not begin more than six weeks after the child
leaves the hospital.
9.4 Continuation of Benefits upon Separation - COBRA
Federal law provides that employees who are actively enrolled in a health plan and who have
separated from city service may continue on the city's group health, dental coverage plan and life
insurance for up to 18 months. Pursuant to applicable state or federal law requirements, changes
in family status, eligibility for Medicare, or death of a spouse may warrant continuing coverage
for up to 36 months. Continuing coverage premiums must be paid in full by the separated
employee, their spouse or dependents, or coverage will lapse. See human resources for plan
details.
9.6 Retiree Health Savings Plan (RHSP)
The Retiree Health Savings Plan (RHSP) is established to help defray the cost of medical
expenses and health insurance premiums for employees, spouses and dependents after the
employee leaves employment with the City of Brooklyn Center. (Added per City Council
Resolution 2004-171.)
1. Participation Eligibility
Regular full-time benefit earning employees may have contributions made on their behalf into the
RHSP.
Participants must be 21 years of age or older. Unless noted otherwise in this policy, the
RESOLUTION NO. 2005-163 EXHIBIT A
minimum period of service required to participate in the plan is 60 days.
Every eligible employee in an employee group is required to participate in the RHSP for their
group as outlined in this Personnel Policy or applicable labor agreement.
2. RHSP Contributions
When appropriate, each employee will have an account established in his or her name. Unless
specifically noted otherwise, contributions (and earnings) to an employee's RHSP account are
not taxable income.
3. Accessing Funds
a. Employees may access the funds in their RHSP account when they are eligible to retire
under the Public Employees Retirement Association's (PERA) rules.
b. Unless prohibited by the IRS, employees leaving employment with the City prior to being
eligible for retirement through PERA, for the reasons noted below, may make withdrawals on a
tax-free basis for eligible health-related expenses.
• Upon termination of employment.
• If employee is collecting a disability.
• If employee is on a medical leave (six months or longer)
• If employee is on a leave of absence (one year or longer).
If the employee returns to work and is earning medical benefits, they are no longer eligible to
make withdrawals from their RHSP account.
The IRS does not allow these funds to be rolled into any other type of plan, including an IRA.
C. Access following death. The surviving spouse and eligible dependents continue to access
the account for eligible expense reimbursements until the RHSP account is exhausted. Such
reimbursements are not taxable. Unless prohibited by the IRS, reimbursements may also be
made to a beneficiary other than a surviving spouse or eligible dependent. However, such
reimbursements would be taxable to the recipient.
5. Eligible Expenses Reimbursed by Plan
Funds in an RHSP account may be used to reimburse:
1. Insurance premiums (health insurance premiums, Medicare supplemental insurance
premiums, Medicare Part B insurance premiums, COBRA and Chapter 411 insurance premiums,
long term care insurance premiums (not long term care expenses), and dental insurance
premiums.
RESOLUTION NO. 2005-163 EXHIBIT A
2. Most qualifying medical expenses as defined in Internal Revenue Code Section 213 (i.e.
medical costs that would otherwise be deductible to the employee on his or her individual
income tax return).
A third-party claims administrator hired by ICMA-RC will handle claims administration.
6. No Opt-out
Employees and retirees in groups covered by the RHSP program are not permitted to opt-out of
the program. Participation is mandatory.
7. Program Administration
Along with the Human Resources Division, the ICMA Retirement Corporation will administer
the RHSP program. The employee controls how the money is invested similar to his or her
section 457 deferred compensation program. The employee receives an account statement each
quarter from ICMA for his or her RHSP account.
8. Administrative Fees
The following administrative fees will be assessed on each employee's account:
Account fee:
1. .90% will be applied to the first $7,000 balance. There is a minimum annual charge
of $35.
2. .55% will be applied to assets between $7,001 and $23,000.
3. Accounts greater than $23,000, a maximum annual fee of $150 will apply.
There are also fees within the various mutual funds. Account administration fees will be
calculated by ICMA each quarter based on the balance on the last day of the previous
quarter and will be charged against the account on a quarterly basis.
9. Plan Modifications
The details of ICMA-RC's administration of the RHSP as well as other features of the plan are
set forth in the RHSP materials provided by ICMA-RC. These details and IRS regulations
regarding the RHSP may be revised, necessitating the revision to this policy or other agreements
between employee groups and the City.
The City reserves the right to modify its policy to comply with any other regulations regarding
the plan and to add contribution requirements.
10. Contribution Formulas
1. Election for Pre-Tax Contributions from Compensation.
Employees may elect to contribute up to 25% of their compensation.
RESOLUTION NO. 2005-163 EXHIBIT A
This is a one-time, irrevocable election. Employees must make this decision during the
open enrollment period.
2. Severance Pay.
Employees who qualify to receive severance pay and vacation pay upon retiring or
leaving the city in good standing , as defined by the Personnel Policy, will
designate from 0% to 100% (in 10% increments) to be placed in their individual
RHSP accounts at the time of retirement or resignation.
This is an irrevocable election. Employees must make this decision during the open
enrollment period prior to the beginning of the year in which they will retire.
7.4.3 Sick Leave Severance
Severance pay in the amount of one-third the accumulated sick leave employees have to their
credit at the time of resignation, retirement, or death shall be paid to employees who have been
employed for at leave five consecutive years. If discharged for cause, or lack of appropriate
notice, severance pay shall not be allowed.
Employees hired after 111112 and having 25 years of continuous service at the time of separation,
shall be paid 40% of their accumulated sick leave into the City authorized Health Care Savings
Plan. In the event that the retiree benefit in effect on September 1, 2005 is completely eliminated
by the employer for employees hired before 1/1/92, the sick leave severance pay for employees
hired prior to 1/l/92 and having 25 years of continuous service will be paid at 40% of their
accumulated sick leave into the City authorized Health Care Savings Plan. If discharged for
cause, severance pay shall not be allowed.
12.3.3 Personnel Expense Reimbursement
3. Reimbursement for meals while on authorized travel will be for actual expenditures with
a maximum of 85% of the federal per diem rate per day for the location.
12.3.4 Repealed
4. Employees and offleials of the City shall be reimbefsed for indivi"al or- aeWa4 ffleal
tmiess meal east is pai4 of funetion. See euffen4 pay plan for maximum allowable amou+A.
Section 3.10 Information Systems/Internet Use Policy
Section is removed from the Personnel Rules and Regulations.