12-08-2025 - Agenda Packet City Council - Regular Meeting

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Article 14. SEPARATION FROM SERVICE Section 14.01 Resignations Employees wishing to leave the city service in good standing must provide a written resignation notice to their supervisor, at least fourteen calendar days before leaving. Exempt employees must give thirty calendar days' notice. The written resignation must state the effective date of the employee's resignation. Unauthorized absences from work for a period of three consecutive workdays may be considered as resignation without proper notice. Failure to comply with this procedure may be cause for denying the employee's severance pay and any future employment with the city. Section 14.02 Severance Pay Employees who leave the employment of the city in good standing by retirement or resignation will receive 100% (One -hundred percent) of unused accrued vacation (annual leave) as severance pay and cannot use accrued vacation to extend the effective date of resignation. Each employee with at least three (3) years, but less than twelve (12) years, of full-time service will receive, upon honorable termination of employment, one-third (1/3) of the employee's accumulated sick leave as severance pay. Each employee with twelve (12) years or more of service will receive, upon honorable termination of employment, one-half (1/2) of the employee's accumulated sick leave as severance pay. Applicable taxes will be withheld from the payments. Pay will be computed at the compensation level effective at the time of retirement or resignation. For severance pay, years of service calculation does include service credit given to employees upon Full-time benefit eligible hire date. Section 14.03 Post -Retirement Health Care Savings Plan Employees participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minn. Stat. § 352.98 and as outlined in the Minnesota State Retirement System's Trust and Plan Documents unless exempted by statute. 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. Contributions shall be made as follows: Employee Payroll Contribution Employees with 0-5 completed years of service will contribute 0% of pay. Employees with 5+ years of service will contribute 1 % of pay. Severance Contribution Employees with 0-5 completed years of service will contribute 0% of pay. Severance will be paid out to employees. Employees with 5+ years of service will contribute 100% of pay of their sick leave severance pay per section 14.02. For HCSP, years of service calculation does include service credit given to employees upon Full-time benefit eligible hire date. Employees can waive participation into the HCSP if they are eligible for TRICARE retiree medical/dental benefit or have service -connected disability (priority group 1,2 or 3). Employees will need to fill out the waiver form. If waiving, upon severance, employee will receive 100% of pay of their sick leave severance pay per section 14.02 on their last payroll as taxable income. Page 54 of 151 150