Reso 2006-995 - Laserfiche WebLink

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they have an ongoing option to make an election at a future date. An annual election window of 60 days will be provided during which the election may be made. This window is available from October 1 through November 29 each year. Contributions may begin no earlier than the calendar year following the year of the election. (Note: Once an employee chooses to make irrevocable pre-tax contributions of accrued leave, they will not be able to change the amount or discontinue the contributions.) 4. Annual Prospective Election for Pre- Tax Contributions of Leave: Sick and vacation leave accrued in the next calendar year may be contributed to the Plan on the employee's behalf. The total amount of sick leave that may be contributed by an employee is limited based on the City's existing sick leave pay-out policy, i.e., a non-exempt employee with less than three years service may not contribute sick leave until three years service is attained and then only up to 10% of the employee's current sick leave balance may be contributed (see attached). Contributions of future leave accruals will be remitted as earned. An annual election window of 60 days will be provided during which the election to contribute leave to be accrued in the next calendar year may be made. The election window will run from October 1 to November 29. Contributions may begin no earlier than the calendar year following the year of the election. Limits on Total Contributions There is no overall limit on the percentage or dollar amount of earnings that may be contributed each year. However, the City's RHS Plan may place limits on each contribution type as indicated above in the Contributions Section. Vesting Schedule 1. Direct Employer Contributions: (none at this time) 2. Employee's Elective Pre-Tax Contributions are 100% vested at all times. Benefits Healthcare Benefits: An employee is eligible to receive medical expense benefits upon retirement with the City. If the employee terminates employment prior to retirement with the City, then they will receive benefits immediately upon separation from service. The definition of retirement is an employee who meets the age and service eligibility requirements of the City's retirement plan (FRS or ICMA, whichever is pertinent). Medical expenses eligible for reimbursement consist of all medical expenses eligible under Internal Revenue Code Section 213, other than direct long-term care expenses. Amounts paid from an employee's account to reimburse an employee for qualifying medical expenses will be tax-free.