Chapter 2.44
EMPLOYEE BENEFIT PLAN
Sections:
2.44.010 Definitions.
2.44.020 Plan component.
2.44.030 Insurance component.
2.44.040 Retirement component.
2.44.050 Part-time employees.
2.44.010 Definitions.
A. “Base pay” means the stated salary of the employee.
B. “City contribution” means that portion of an employee’s total compensation that the city would otherwise contribute to social security, less the cost of survivor and disability insurance.
C. “Current compensation” means that portion of the employee’s total compensation that is not deferred compensation.
D. “Deferred compensation” means that amount of the employee’s total compensation which the city defers from payment to the employee and instead deposits into a deferred compensation plan.
E. “Total compensation” means the total compensation paid by the city for services of the employee regardless of the components, i.e., base pay, employer’s contributions. (Ord. 411 § 1, 1982).
2.44.020 Plan component.
A benefit plan shall consist of survivor and long-term disability insurance, and an investment program for retirement income. The city’s administrative staff shall recommend to the council a specific plan or a combination of plans to accomplish these benefits. (Ord. 411 § 2, 1982).
2.44.030 Insurance component.
The city shall purchase an insurance plan that provides long-term disability and survivor benefits. The city shall use moneys the city would otherwise contribute to social security tax to purchase the plan. All permanent employees under the age of 70 who work 20 hours a week or more are covered by the approved plan. Coverage ceases when an employee terminates, is laid off, or participates in a work stoppage (strike or lockout). (Ord. 411 § 3, 1982).
2.44.040 Retirement component.
A. The city shall adopt a money purchase retirement plan as an investment vehicle that will provide retirement income for city employees. The city shall contribute on behalf of each participant to the retirement plan, the amount the city would otherwise make to social security less the cost of survivor and disability insurance. Employees shall contribute a match sum from their base salary equal to the city’s contribution to the retirement plan. This contribution shall be made in compliance with the policies and procedures of the approved plan. The employee’s and the city’s contribution shall be computed based on the employee’s total earnings, including overtime and bonuses.
B. The administration of the plan shall be governed by Internal Revenue Service rules and the policies of the specific plan. Although the city retains proprietary rights of the funds, the city shall authorize disability, retirement or termination, and distribution to survivor upon death of the employee. All permanent employees are eligible to participate. (Ord. 541 § 1, 1988; Ord. 411 § 4, 1982).
2.44.050 Part-time employees.
A. Regular employees of the city who, on a quarterly basis, work an average of less than 40 hours per week for weekly employees, or a proportionately adjusted number of hours for shift employees, shall be eligible for participation in the city’s benefit programs under the following terms and conditions:
1. Employees working 40 hours or more per week shall receive full benefits.
2. Employees working less than 20 hours per week shall not be eligible and may not participate in the city’s benefit program.
3. Employees working from 20 to less than 30 hours per week on a quarterly basis shall be eligible for participation in the benefit program by paying 50 percent of the cost of the benefit programs attributable to themselves and/or their families, with the city paying the remaining 50 percent of the benefit program costs.
4. Employees working from 30 to less than 40 hours per week on a quarterly basis shall be eligible for participation in the benefit program by paying 25 percent of the cost of the benefit program attributable to themselves and/or their families with the city paying the remaining 75 percent of the benefit program costs.
B. As used in this section, the following terms shall be given the definition shown:
1. “Benefit program” means health, vision, and dental and other benefit programs, including participation in the city’s deferred compensation program provided to regular full-time employees of the city.
2. “Program costs” means the cost which the city pays on behalf of its full-time employees.
3. “Full-time employee” means an employee working an average of 40 hours or more per week on a monthly basis; provided, however, that shift employees such as police officers who work a schedule calculated at greater than 40 hours per week shall have their eligibility determined on a proportionate basis by comparing the shift-worker’s weekly work schedule with 40 hours per week.
4. Eligibility. A part-time employee shall be eligible for participation in the program after completing one full calendar quarter (three months). A full-time employee shall be eligible for participation in the program on the first day of the month following the date of employment.
C. The benefits established pursuant to this program shall be interpreted and applied in accordance with the plan, requirements or insurance policy of a particular benefit program. For example, if the city has a program such as deferred compensation which the employee designates a portion of his or her salary, which results in no cost to the city, an employee may participate regardless of the number of hours, and the provisions of the program shall apply. In the event of conflict between this section and any individual employment contract or labor collective bargaining agreement, the provisions of the contract or the collective bargaining agreement shall control. (Ord. 773 §§ 1, 2, 3, 1997).