Loading...
HomeMy WebLinkAbout40-98 S • • RESOLUTION No. 40-98 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS AMENDING THE TOWN'S EMPLOYEE BENEFIT LISTING FOR FISCAL YEAR 1998-99 WHEREAS, Staff has completed a review of the benefits provided to the Town's employees, as part of a complete compensation study for the Town; and WHEREAS, the City Manager recommends, as a result of this review, that the Employee Benefits be amended as shown in the attached "Exhibit A", including the following modifications to current benefits: (1) provide for an increased reimbursement limit of$800 per fiscal year for. dental expenses for each employee and their dependents, and (2) provide for an Employee Assistance Program which will allow confidential referrals to help employees resolve issues of a personal nature that may affect job performance or morale. WHEREAS, the City Manager also recommends that the current contract with the California Public Employees Retirement System be amended to provide the"2% at 55" formula option to enhance employee retirement benefits, WHEREAS, the City Council has considered such recommendations and desires to establish employee benefits in order to attract and retain a quality staff for the Town of Los Altos Hills; NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby approve the benefit enhancements, and directs Staff to implement these benefit changes at the earliest possible date after the beginning of the 1998- 99 fiscal year. REGULARLY PASSED AND ADOPTED this 17th day of June, 1998. By: 1Vlayo`r ATTEST: City Clerk • • • TOWN OF LOS ALTOS HILLS EMPLOYEE BENEFITS ADOPTED BY THE CITY COUNCIL JUNE 17, 1998 Employee benefits are not vested (with the exception of retirement benefits after five years). The Town reserves the right to repeal, amend and add to any of these benefits as deemed appropriate. • • • • • Vacation Leave I. General Description Vacation leave consists of paid time off for full time employees as well as some part time employees (see `Eligibility" below). Vacation leave is earned and accrued with each pay period worked. II. Eligibility Permanent, full-time employees and part-time employees who regularly work an average of twenty hours per week or more are eligible for this benefit. Part time employees who work less than twenty hours per week, temporary employees and retired employees are not eligible for this benefit. III. Benefit • The amount of vacation earned each year is determined by the length of time worked for the. Town. Vacation is accruedon a semi-monthly basis and is computed according to the following schedule for full time employees: Years of Service Annual Vacation Days Earned 0-5 12 6-10 15 11 and above 20 Part time employees who work twenty hours or more per week earn a pro-rated number of vacation days based upon the average number of hours worked per week divided by 40. IV. Method of Administration The maximum number of vacation hours that may be accrued by an employee is 240. If vacation hours are not used and the balance reaches 240 hours, no further vacation hours are accrued until the balance drops to less than 240 hours. No provision shall be made for "payout" of accrued vacation hours. -Use of vacation time must be requested in advance and approved by a Department Head or City Manager. An employee may only use vacation hours which he/she has previously accrued. Use of vacation time in increments of less than four hours is discouraged. If employment with the Town is terminated for any reason, the employee will be paid for the balance of their accrued vacation hours at their current salary rate. 2 • • • Sick Leave I. General Description Sick leave is paid leave time which may be used when an employee is ill. Sick leave may also be used by an employee to care for an injured or sick member of his/her immediate family. II. Eligibility Permanent, full-time employees and part-time employees who regularly work an average of twenty hours per week or more are eligible for this benefit. Part-time employees who work less than twenty hours per week, temporary employees and retired employees are not eligible for this benefit. III. Benefit Full time employees earn 12 days (1 day/month) of paid sick leave for each year with the Town. Sick leave is earned on a pro-rated basis by regular part-time employees who work more than twenty hours per week. Sick leave may be used to care for a sick or injured member of an employee's immediately family, or to discharge customary obligations arising out of the death of a member of his/her immediate family. In the case of a death in the immediate family, up to 3 days of bereavement leave may be granted by the City Manager, which will not be subtracted from an accumulated sick leave balance. IV. Method of Administration To use sick leave, the employee must have his/her supervisor's approval. Employees must contact their supervisor at the beginning of the work day during which they are ill. If an employee is absent on sick leave for more than three days, a supervisor may request that the employee submit a statement from their doctor. Earned sick leave hours can be accrued and carried over from one fiscal year to the next without limit. The sick leave benefit is for the described uses for this benefit only; no payment value is associated with sick leave hours accrued. Therefore, if employment is terminated with the Town for any reason, no payment will be made to the employee for any balance of accrued sick leave hours. Compensatory Time Policy (Comp Time) I. General Description Comp time is that time accrued by a non-exempt employee as a result of working overtime approved by the supervisor. II. Eligibility Permanent, full-time employees are eligible for comp time if the work is determined to be "overtime work" and is approved by the employee's supervisor. Overtime work, as defined in the Personnel Policies Manual, is work (by a non-exempt employee) which is required and authorized in excess of the basic work week for the department and classification involved. 3 • • III. Benefit When a non-exempt employee is required to work "overtime" as defined in the Town's Personnel Policy Manual, that employee shall be compensated for those hours worked, either through overtime pay at a rate of one-and-one-half times the employee's regular rate per hour, or through compensatory time off(comp time) at a rate of one-and-one-half times the number of hours worked. III. Method of Administration Employees may bank comp time hours accrued, to be used as time off at a later date. Use of comp time hours must be approved by their supervisor. A supervisor may deny the request for use of comp time hours as time off if it is determined that use of said leave time has a material negative impact on the operations of that department. Employees may accumulate comp time hours during the course of the year, but may not carry over a balance of more than 150 comp time hours from one fiscal year to the next. This carry over requirement will be phased in such that the limit of comp time carry over for the end of FY 1998/99 will be 240 hours and the carry over limit at the end of FY 1999/2000 and thereafter will be 150 hours. Hours that can not be carried over will be paid to the employee at their current rate. If employment with the Town is terminated for any reason, the employee will be paid for the balance of his/her accrued comp time hours at the current salary rate. ADMINISTRATIVE LEAVE I. General Description Administrative leave is any type of leave for which pay is received other than vacation, sick leave and holidays. II. Eligibility Department Heads and the City Manager. III. Benefit Administrative leave provides an additional number of leave hours for Department Heads and the City Manager, who are not eligible to receive overtime pay. The current leave available for Department Heads is at the discretion of the City Manager, up to seven days per calendar year. The City Manager's administrative leave is set by contract. IV. Method of Administration This benefit is pro-rated throughout the year in which the Department Head or Manager works. Use of administrative leave is at the discretion of the City Manager, and is accrued on a calendar year basis, with no carryover from one year to the next. 4 ® ! • Jury Duty I. General Description Jury duty leave consists of paid leave for service as a juror. II. Eligibility Permanent, full-time employees and part-time employees who regularly work twenty hours per week or more are eligible for this benefit. Part-time employees who work less than twenty hours per week, temporary and retired employees are not eligible for this benefit. III. Benefit Leave with pay is granted for jury duty service, however, an employee must pay to the Town any compensation received for jury service. Mileage compensation for jury duty service may be retained. IV. Method of Administration Paid leave for jury duty is approved upon proof of service and surrender of compensation for jury duty to the Town. Leave Without Pay Leave without pay is discouraged and is not considered a benefit. The City Manager may, however, grant leave without pay for a limited time for urgent or substantial personal reasons. Leave accruals and other employee benefits will be suspended or pro-rated (if applicable) during any period of leave without pay. Military The provisions of the California Military and Veterans Code governs the military leave of the Town. This is not considered a Town benefit. Holidays I. General Description There are twelve holidays per year recognized by the Town for which employees receive paid time off. Town Hall is closed on these days. Town employees receive twelve paid holidays each year as shown below. II. Eligibility Permanent, full-time employees and part-time employees who regularly work an average of 20 hours per week or more are eligible for this benefit. Part-time employees who work less 5 • ! • 4110 than twenty hours per week, temporary employees and retired employees are not eligible for this benefit. III. Benefit The holidays observed by the Town are as follows: New Year's Day Independence Day Martin Luther King's Birthday Labor Day Washington's Birthday Columbus Day Memorial Day Veteran's Day Thanksgiving Day Christmas Eve Day Day after Thanksgiving Christmas Day IV. Method of Administration Town Hall is closed on all holidays. Permanent, full-time employees are paid their equivalent salary for an eight hour work day for each Town holiday. Permanent, part-time employees who work twenty hours per week or more are paid a pro-rated amount for the holiday. Holiday leave does not accrue. If a holiday falls on a Saturday, an employee receives the preceding Friday off from work. If a holiday falls on a Sunday, the employee receives the following Monday off. When an employee takes a vacation during which a holiday occurs, the employee receives holiday pay for the holiday and the leave is not charged against his/her accrued vacation time. Health Plans I. General Description The cost of health insurance premiums is paid by the Town for employees and their dependents. Employees have the choice of several plans enabling them to seek the best program for their family's needs. II. Eligibility Permanent, full-time employees and their eligible dependents are covered by this benefit. Part-time employees who regularly work 20 hours per week or more and their dependents are eligible for a pro-rated share of payment of their health insurance premium payment. This benefit also continues for employees who retire from the Town, assuming that the retiree - enrolls for Medicare coverage, if eligible. The spouse of an eligible retiree also may receive this benefit. The Town pays a retiree's health insurance premium up to the cap III. Benefit Through the California Public Employees Retirement System, employees are offered a choice of eleven Health Maintenance Organizations, two Preferred Organizations and four "Association" plans. The list of health care providers is on file with the Finance Department and may change in number and makeup over time. The cost of these plans vary. each category 6 • • • of coverage (i.e. 1 person, 2 persons, and 3 or more persons) for each employee's health insurance premium. IV. Method of Administration The Town's contribution toward an employee's health insurance premium is calculated for each category of coverage by determining the average premium amount for each category. A new maximum contribution amount is calculated each time PERS adjusts their premium rates, and is adopted by resolution of the City Council. If an employee selects a health care plan with a premium amount higher than this maximum contribution, the balance of the premium must be paid by the employee through payroll deductions. This procedure is also valid for retired employees and their spouses. During periods of paid leaves or leave covered by the Town's Family and Medical Leave policy, the Town will continue it's maximum contribution toward an employee's health insurance premium. If an employee is on leave without pay due to a non job related injury or a serious illness, the Town's contribution of the employee's health insurance premium will continue to be paid by the Town until 90 days after the employee has been absent from service. This time period corresponds to the beginning of an employee's long term disability leave benefit. Payment of the premium after that time is the responsibility of the employee. Dental Plan I. General Description The Town's dental plan consists of direct payment or reimbursement for employee and dependent dental costs, up to a defined maximum for each fiscal year. II. Eligibility Permanent, full-time employees are eligible for dental benefits. This benefit also covers dental work of the dependents of eligible employees. Dependents, for the purposes of this benefit, are defined as an employee's spouse and children (and legal dependents) who are 18 years old or younger. Part-time employees who regularly work twenty hours per week or more are eligible for a pro-rated share of the maximum dental benefit. Part-time employees who regularly work less than twenty hours per week, temporary and retired employees are not eligible for this benefit. III. Benefit Dental benefits to Town employees consists of direct payment or reimbursement of dental costs for employees and their dependents, for a maximum annual benefit of$800. IV. Method of Administration This benefit is administered on a fiscal year basis. Employees may elect to pay for dental care directly and seek reimbursement from the Town by submitting the required Town dental forms to the Finance Department. An employee may also elect to have their dentist bill the Town directly for dental care received. The Town tracks the amount each employee has been 7 • • • • • • reimbursed in a year, paying no more than the maximum benefit amount in any fiscal year. Newly hired employees must work at least six months of a fiscal year to be eligible for this benefit. The benefit is then pro-rated for the number of months worked in that fiscal year. However, the employee may receive reimbursement for any eligible dental expenses incurred subsequent to his/her employment date. Life, and Accidental Death and Dismemberment Insurance I. General Description The Town provides employees with an amount of life insurance determined by the employee's annual salary. Accidental Death and Dismemberment coverage is also provided at no cost to the employee. II. Eligibility Permanent, full-time employees and part-time employees who regularly work an average of twenty hours per week or more are eligible for this benefit. Part-time employees who work less than twenty hours per week, temporary and retired employees are not eligible for this benefit. III. Benefit • The Town pays the premium for permanent full-time employees life insurance as well as their accidental death and dismemberment insurance. Under these policies, each full-time employee is provided coverage for the lump sum amount of the nearest one thousand dollar increment above the employee's yearly gross salary. The City Manager's life insurance amount is set by contract. IV. Method of Administration The Finance Department calculates and pays the premiums for each employee based on his/her salary. Disbursement of the benefits are made by the insurance provider and would be paid to the beneficiary named by the employee at the time of hire or by any subsequent notice. Long Term Disability Insurance I. General Description Long term disability insurance is an insurance policy for the protection of an employee's salary in the event of a disabling event which prevents an employee from performing his/her job. II. Eligibility Permanent, full-time employees and part-time employees who regularly work an average of twenty hours per week or more are eligible for this benefit. Part-time employees who work less than twenty hours per week, temporary and retired employees are not eligible for this benefit. 8 ID • Ili III. Benefit Employees are insured against long-term disability through third-party insurance which provides 60 percent of an employee's monthly earnings to a maximum benefit of$5000.00 per month, in the event of a disability which occurs outside of the work place. Workers Compensation insurance provides coverage for on-the-job injuries. Coverage begins 90 days following a disabling event and continues to an end date determined by the employee's age. IV. Method of Administration This benefit is administered by the third party insurance provider. The Town pays the insurance premiums. Benefit payments begin three months after a disabling event, subject to the provisions of the policy. Workers' Compensation I. General Description Through workers' compensation, employees are insured against losses due to job-related illness or injury. Under this ABAG-administered program, medical expenses are paid and, while disabled, employees are eligible for weekly compensation based on their salary. II. Eligibility Permanent, full-time employees and part-time employees and temporary employees are eligible for this benefit. Retired employees are not eligible for this benefit. III. Benefit When an employee suffers an eligible workers compensation injury, the employee is eligible for receipt of 67% of his/her salary or $490/week (whichever is lower), as well as authorized health care costs, through the workers compensation claim. Employees on workers' compensation leave may use accrued sick leave to supplement any monetary difference between their normal rate of pay and workers compensation's temporary disability benefits. IV. Method of Administration Workers compensation claims are administered for the Town by ABAG. All on-the-job injuries must be reported to ABAG immediately. When an employee makes a workers compensation claim, the claim must be submitted to the Town on the appropriate claim form supplied by ABAG, and must be accompanied with verification of the injury by a physician as well as the recommendation that the employee be absent from work for a certain length of time to allow recovery from the injury. ABAG makes the determination as to whether a claim is eligible for payment and which medical bills are eligible for reimbursement. 9 , . • • • Deferred Compensation I. General Description Town employees are eligible to participate in approved deferred compensation plans through payroll deductions. These deductions are forwarded to the appropriate institution by the Finance Department at the time that each payroll is issued. II. Eligibility Permanent, full-time employees and part -time employees who regularly work twenty hours per week or more are eligible for this benefit. Part-time employees who work less than twenty hours per week,temporary and retired employees are not eligible for this benefit. III. Benefit The two companies that are approved by the Town to administer this benefit are the Hartford Insurance Group and the ICMA Retirement Trust Corporation. Deferred compensation is self- funded with no contribution from the Town unless otherwise stipulated by contract. Employees who elect to participate have an amount deducted from each paycheck deposited directly into their deferred compensation account. The maximum annual contribution established by current law is $8,000 or 25% of an employee's annual earnings, whichever is less. IV. Method of Administration Deferred compensation transactions are handled at the time that payroll is run. Deductions from an employee's gross pay are deposited in the appropriate account and are itemized on the employee's check stub. Taxable income at year end is based on an employee's post- deduction, gross pay. Federal and State income taxes are not calculated or withheld on amounts deposited in employee deferred compensation accounts, as they are deferred until withdrawals from the account begins (usually upon retirement). Credit Union All Town employees are eligible to become members of the Santa Clara County Employee's Credit Union. The advantages of the programs offered to member employees are typical of credit union membership, at no cost to the Town. Employee Assistance Program I. General Description The Employee Assistance Program is a confidential referral service for help in dealing with many kinds of personal problems that an employee may have. This program is an effective manner to deal with employee issues that, while affecting employee performance, are beyond the scope of management's control. The services provided would include counseling, crisis intervention, training and consultation. 10 1110 • • II. Eligibility Permanent, full time employees and part time employees who regularly work twenty hours per week or more are eligible for this benefit. Part time employees who work less than twenty hours per week,temporary and retired employees are not eligible for this benefit. III. Benefit The Town provides an Employee Assistance Program called CONCERN, through El Camino Hospital. The program offers assessment, counseling, 24-hour crisis intervention, child/elder care services, legal and financial resources, management consultation, supervisor training and - employee workshops. IV. Method of Administration CONCERN offers a fee-for-service pay plan, where services are bundled into a case rate which varies depending on how many free visits are offered to employees. Employees may confidentially use the services of CONCERN without prior approval of a Town supervisor or City Manager. El Camino Hospital then bills the Town for the service provided. Uniforms I. General Description Public Works Crew members are supplied with Town uniforms and appropriate safety gear. The footwear necessary for work in varying terrain is also provided. II. Eligibility Permanent, full-time,public works crew members are eligible for this benefit. III. Benefit Each crew member is provided with six clean shirts and six clean pairs of pants per week, which serve as uniforms. Crew members are also allotted one pair of work boots per year which are charged to the Town's account. IV. Method of Administration These items are budgeted for in the Public Works budget as supplies and are not included in the benefits budget. Shirts are purchased by the Town and are laundered weekly. Shoes are purchased by each crew member from the Red Wing Shoe Company store no more than once per year and are charged to the Town account. Retirement I. General Description The Town's retirement program provides employees with compensation through their retirement years in an amount which is based upon years of service, age of employee at the beginning of his/her retirement and highest compensation during employment. 11 • • II. Eligibility All regular, full-time and part-time employees who work twenty hours per week or more are members of the Public Employees Retirement System. Temporary employees may also enroll in the PERS program,but must pay the employee's portion of the retirement contribution. III. Benefit The Town contributes an employer share of retirement contribution equal to 7% of an employee's gross salary for each eligible employee, and also pays the employee's share of the retirement contribution equal to 7% of the employee's yearly gross salary. No deduction is made from an employees earnings for retirement. The Town's contract with Ca1PERS provides service retirement benefits under the "2% at 55" formula. The formula uses a multiplier of x %, times the number of years service, to determine retirement benefits at a given age. For example, under the 2% at 55 formula, a retiree with 10 years of service retiring at age 55 would receive an annual retirement benefit of 20% of his/her final (adjusted) annual salary. The earliest retirement date is age 50, with at least 5 years of service. The table below shows the "benefit factor", or multiplier for the 2% at 55 plan. Retirement Percent Age Per Year X 50 1.426 51 1.522 52 1.628 53 1.742 54 1.866 55 56 2.052 57 2.104 58 2.156 59 2.210 60 2.262 61 2.314 62 2.366. _ 63 and over 2.418 IV. Method of Administration The Finance Department makes the appropriate payment to PERS (Public Employee Retirement System) with each payroll cycle. PERS keeps detailed records of each employees account and sends annual statements to all employees at the end of the fiscal year. Once an employee retires, PERS administers the retirement benefit to the former employee. There are many complicateddealing issues with the accrual and disbursement of retirement benefits. These issues should be answered directly by PERS. 12