Chapter 3.45 EMPLOYEE BENEFITS

In addition to the basic monthly salary, the district may provide other fringe benefits to regular full-time employees. Full-time employees are regularly scheduled to work over 999 hours per fiscal year. These benefits may be amended from time to time by the board, depending upon a variety of factors, including, but not limited to, the district’s financial situation and management recommendations. [Res. 24-17; Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-27; Res. 10-13 Art. 8 § A].

3.45.020 Retirement programs – Social Security and CalPERS retirement formula.

A. Social Security. Federal law requires Social Security insurance for every regular full-time employee commencing on the first day of employment. The employee must pay his/her share of the contribution, which is deducted from the bi-weekly paycheck.

B. PERS. The district is a member of the California Public Employees Retirement System (PERS), and all regular full-time employees are required to be members of PERS commencing on the first day of employment. PERS is a defined benefit plan which provides benefits that are calculated using a defined benefit formula, rather than contributions and earnings to a defined contribution plan. Retirement benefits are calculated using a number of factors including the member’s years of service, age at retirement, and the applicable final compensation and benefit factor based on date of hire.

On September 12, 2012, Governor Brown signed into law the Public Employees’ Pension Reform Act of 2012 (“PEPRA”). Among other provisions, PEPRA adopts a compulsory formula and mandatory contributions for certain employees hired on or after January 1, 2013, that are defined as “new members.” Pursuant to new Government Code Section 7522.04(f), the term “new member” refers to the following individuals:

1. An individual who becomes a member of any public retirement system for the first time on or after January 1, 2013, and who either (a) was not a member of any other public retirement system prior to that date; or (b) who was a member of another public retirement system prior to that date, but who was not subject to reciprocity.

2. An individual who was an active member in a retirement system and who, after a break in service of more than six months, returned to active membership in that system with a new employer.

As a result of PEPRA, the district will now have three separate tiers of retirement benefits the application of which depends on an employee’s hire date and status as a new member. PERS-eligible employees that were hired before January 1, 2013, and PERS-eligible employees hired on or after January 1, 2013, that are not new members, as defined above, are referred to in this section as “classic members.”

C. Classic Members.

1. For district employees hired on or before December 24, 2011, the benefit factor shall be two and one-half percent at age 55 pursuant to Government Code Section 21354.4, and final compensation shall be determined by using the single highest year of compensation pursuant to Government Code Section 20042.

2. For district employees hired after December 24, 2011, other than new members, the benefit factor shall be two percent at age 60 pursuant to Government Code Section 21353, and final compensation shall be determined using the three-year average compensation period pursuant to Government Code Section 20037.

D. New Members. The benefit factor for new members shall be two percent at age 62, and final compensation shall be determined using the three-year average compensation period pursuant to Government Code Section 20037.

As of January 1, 2013, the PERS-able compensation of new members used to calculate retirement benefits will be capped at $113,700, an amount that shall be subject to adjustment by PERS. Further, the amount of a new member’s compensation reported to PERS as PERS-able compensation will be determined in accordance with the definition of “pensionable compensation” in new Government Code Section 7522.34 as interpreted by PERS.

E. All PERS Eligible Employees. In addition, the district has contracted with PERS to provide the following optional benefits:

1. Additional service credit for unused sick leave at retirement (Government Code Section 20965). See HDWDC 3.55.020(I) for unused sick leave formula.

2. Post-retirement survivor allowance (Government Code Sections 21624 and 21626).

3. Military service credit as public service (Government Code Section 21024).

To be eligible for service retirement, the employee must be at least age 50 and have a minimum of five years of CalPERS-credited service. [Res. 13-14 Att. A; Res. 13-01 Att. A; Res. 12-24 Att. A; amended by district 5/2012; Res. 11-30; Res. 11-21; Res. 10-27; Res. 10-13 Art. 8 § B].

3.45.025 Retirement programs – Member contributions to CalPERS.

A. Employees Hired Prior to July 1, 2009. In accordance with Resolution 14-09, effective July 1, 2014, district employees hired prior to July 1, 2009, shall pay eight percent of the normal member contribution required by CalPERS via payroll deduction. The district has elected to implement the provisions of Section 414(h)(2) of the Internal Revenue Code such that any portion of the normal member contribution paid by employees via payroll deduction is not taxable when paid. Notwithstanding the preceding, the district reserves the right to supersede Resolution 14-09 with a subsequent resolution which increases the portion of the normal member contribution paid by employees hired prior to July 1, 2009, until such time as such employees pay the entire normal member contribution.

B. Employees Hired on or After July 1, 2009. In accordance with Resolution 10-02, district employees hired on or after July 1, 2009, must pay the entire normal member contribution required by PERS via payroll deduction. The district will not pay any portion of the normal member contribution of employees hired on or after July 1, 2009. The district has elected to implement the provisions of Section 414(h)(2) of the Internal Revenue Code such that normal member contributions paid by employees via payroll deduction are not taxable when paid. [Res. 14-09; Res. 13-14 Att. A; Res. 13-01 Att. A; Res. 12-24 Att. A; amended by district 5/2012; Res. 12-09; Res. 11-17; Res. 10-27; Res. 10-20 §§ I – VI].

3.45.027 CalPERS loan program.

Effective for all loans granted pursuant to the plan¹ document, the following rules and procedures shall apply:

A. Any participant, as that term is defined in Article 1 of the plan document, may apply for a loan from the plan. The charge to the participant will be $50.00 per loan application. There are no annual maintenance fees or asset-based fees.

B. A participant may apply for a loan over the customer service line or Internet site maintained for the plan.

C. If the loan application is approved, the participant will receive the loan check along with a truth-in-lending disclosure statement. The promissory note and security agreement will be printed on the back of the loan check. The notice will contain the amount financed, the finance charge, the loan’s annual percentage rate, the repayment procedure, the security interest and a copy for the participant.

D. The minimum loan amount is $1,000. The maximum loan amount is the lesser of: (1) 50 percent of the participant’s vested account balance as of the valuation date immediately preceding the date on which the loan is approved, or (2) $50,000, less the highest outstanding loan balance over the last 12 months. For the purpose of determining the maximum loan amount available to a participant, any loan from any other plan maintained by a participating employer will be treated as if it were a loan made from this plan, and the participant’s vested interest under the other plan will be considered a vested interest under this plan; provided, however, that the provisions of this subsection will not be applied so as to allow the amount of a loan from this plan to exceed the amount that would otherwise be permitted under federal law.

E. If a participant has an outstanding loan from any other plan maintained by a participating employer, CalPERS will accept a transfer of the participant’s unencumbered account balance from the other plan, less the amount of the outstanding loan balance payable to the other plan.

F. If a participant has an outstanding loan with the CalPERS 457 plan and requests a transfer of his or her account to another plan maintained by a participating employer, CalPERS will process the transfer of the participant’s unencumbered account balance less the outstanding loan balance payable to the CalPERS 457 plan. Further transfer requests will not be processed until the participant’s loan with the CalPERS 457 plan has been repaid in full.

G. The minimum time period for borrowing is one year. The maximum time period for borrowing is five years.

H. The maximum number of loans permitted at one time is one. No new loan may be taken until the outstanding loan is paid off. Loan refinancing is not allowed.

I. A loan to a participant may only be secured by an interest in the participant’s vested account balance.

J. Loan disbursements will be taken pro rata across all money sources and investment funds in the participant’s account.

K. A loan will bear an interest rate of the prime rate plus one percent. All repayments plus interest will inure to the participant’s account.

L. Loan repayments will be automatically deducted from the employer’s payroll system, deducted after tax withholding and remitted with the regular payroll beginning the second month, or as soon thereafter as is administratively practicable. Payroll transmission including loan repayments will be via an automated process, including wire or Internet transmission.

M. Loan repayments by the participant will be reinvested according to the participant’s current investment elections.

N. A participant may prepay his/her loan in full at any time by paying the outstanding loan balance by cashier’s check or certified check. Partial payments are not allowed.

O. CalPERS will treat a loan in default if any scheduled repayment remains unpaid after the expiration of the maximum grace period – the last day of the calendar quarter following the calendar quarter in which the required repayment was due, or if there is outstanding principal existing on the loan after the last scheduled repayment date. If a loan is defaulted, the participant’s vested account balance will be offset by the outstanding loan balance to the extent that a distribution from such account is permissible under the plan. This will be reported as earned income and a 1099R will be issued. The participant will be permanently ineligible for any future loans from the plan and will be prohibited from making contributions to the plan until 12 calendar months have elapsed from the date the defaulted loan has been repaid in full.

P. Upon death, disability, retirement or termination of employment, the participant’s outstanding loan balance will be immediately due and payable. Failure to repay upon death, disability, retirement or termination will be deemed a distribution and will be reported as earned income and a 1099R will be issued. [Res. 12-24 Att. A; Res. 11-02].

3.45.030 Retirement programs – Medical benefits for all eligible retired employees.

A. All employees who are eligible for district-paid retirement benefits, and who retire on or after January 1, 2011, will be required to enroll in Medicare Parts A and B at their earliest eligibility, and to notify the district of such enrollment. Medicare premiums will be the responsibility of the retiree. Employees who are eligible for district-paid retirement benefits, who retire on or after January 1, 2011, and who are eligible for Medicare Parts A and B, will relinquish their district-paid retiree medical benefits.

B. Tier One Medical.

1. At time of retirement:

a. Hired on or before November 15, 2000.

b. Fifty years of age or older.

c. Ten years of continuous service at Hi-Desert Water District.

2. Retiree will receive:

a. District-paid lifetime retiree medical benefits, which may be amended from time to time.

C. Tier Two Medical.

1. At time of retirement:

a. Hired after November 15, 2000, and on or before May 17, 2006.

b. Fifty-five years of age or older.

c. Twenty years of continuous service.

2. Retiree will receive:

a. District-paid lifetime retiree medical benefits, which may be amended from time to time.

D. Tier Three Medical.

1. At time of retirement:

a. Hired after May 17, 2006, and before July 1, 2009.

b. Fifty-five years of age or older.

c. Twenty years of continuous service.

2. Retiree will receive:

a. District-paid retiree medical benefits, which may be amended from time to time, until age 65 years.

E. Tier Four Medical.

1. At time of retirement:

a. Hired on or after July 1, 2009.

2. Retiree will not receive any district-paid retiree medical benefits. [Res. 24-17; Res. 20-08 § 2; Res. 13-18 Att. A; Res. 12-24 Att. A; Res. 11-03 Att. A §§ 10, 11; Res. 10-27; Res. 10-13 Art. 8 § C].

3.45.040 Retirement programs – Dental, vision, and life insurance benefits for all eligible retired employees.

A. Tier One Dental, Vision, and Life.

1. At time of retirement:

a. Hired on or before November 15, 2000.

b. Sixty years of age or older.

c. Ten years of continuous service.

2. Retiree will receive:

a. District-paid lifetime retiree dental, vision and life insurance, which may be amended from time to time, in accordance with the terms and conditions of the district’s contract with the insurance carriers.

B. Tier Two Dental, Vision, and Life.

1. At time of retirement:

a. Hired after November 15, 2000, and before September 1, 2004.

b. Sixty years of age or older.

c. Twenty years of continuous service.

2. Retiree will receive:

C. Tier Three Dental, Vision, and Life.

1. At the time of retirement:

a. Hired on or after September 1, 2004.

2. Retiree will not receive any district-paid retiree dental, vision and life insurance. [Res. 24-17; Res. 12-24 Att. A; Res. 10-27; Res. 10-13 Art. 8 § D].

3.45.050 Retirement programs – Surviving spouse benefits.

The district will continue the payment of health, dental, and vision, for spouses of deceased, retired district personnel and eligible directors, in effect at the time of the retiree’s death in accordance with HDWDC 3.45.030 and 3.45.040; provided, that the spouse was the spouse at the time of the employee’s retirement; and provided, that they have been continuously married for a period of not less than one year and pursuant to the criteria stipulated by the insurance carriers until such time as said spouse either remarries or becomes employed with an employer offering comparable medical coverage as part of its employee benefits program. In the event a surviving spouse terminates coverage, they are not eligible to reenroll.

A. Tier One Surviving Spouse. Qualified employees hired prior to September 1, 2004, who retire will receive district-paid lifetime surviving spouse benefits, which may be amended from time to time.

B. Tier Two Surviving Spouse. Qualified employees hired after September 1, 2004, and before April 16, 2008, who retire will receive district-paid lifetime surviving spouse benefits, which may be amended from time to time, with any increases over premium cost of April 16, 2008, to be borne by individual.

C. Tier Three Surviving Spouse. Qualified employees hired on or after April 16, 2008, and before July 1, 2009, who retire will receive district-paid surviving spouse benefits, which may be amended from time to time, with any increases over premium cost of April 16, 2008, to be borne by individual until the earlier of age 65 years or Medicare eligibility.

D. Tier Four Surviving Spouse. Employees hired on or after July 1, 2009, who retire will receive no district-paid surviving spouse benefits. [Res. 24-17; Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-27; Res. 10-13 Art. 8 § E].

3.45.060 Retirement programs – Directors.

All eligible retired directors of the district who have at least 12 continuous years of service with the district are authorized to receive medical, dental, vision, and life insurance benefits from the district’s program and the district will pay the cost of such coverage for said retired directors. Directors elected after January 1, 1994, are not eligible for retiree medical, dental, vision, and life insurance benefits. [Res. 12-24 Att. A; Res. 10-13 Art. 8 § F].

3.45.070 Workers’ compensation insurance.

The district provides workers’ compensation coverage. This coverage protects the employee if they are injured or disabled on the job. It also provides medical, surgical, and hospital treatment in addition to payment for loss of earnings that result from work related injuries. Compensation payments begin from the first day of your hospitalization or after the third day following the injury if the employee is not hospitalized.

The cost of this coverage is completely paid for by the district. Accumulated Paid Time Off (“PTO”) may be used for the three-day waiting period, and to bring the employee’s compensation up to, but not greater than, the employee’s regular gross pay, at the discretion of the general manager. Employees needing follow-up medical appointments will be charged the time off from their accumulated PTO leave. Any overpayment of benefits will require reimbursement to the district.

If you are injured while working, you must immediately report such injuries to your supervisor, or another manager, regardless of how minor the injury might be.

Supervisors are responsible for notifying the general manager or his designee of employee injuries so that the appropriate steps are taken to process the claim within 24 hours. Employees are responsible for completion of all required forms and supplying information as needed.

Employees should contact human resources with any questions regarding this workers’ compensation coverage. [Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-13 Art. 8 § G].

3.45.075 Workers’ compensation coverage.

The board of directors wishes to extend workers’ compensation coverage as provided by state law to the following designated categories of persons as indicated by a black dot to the left of the descriptions:

• All members of the board of directors of the Hi-Desert Water District as presently or hereafter constituted;

• All persons performing voluntary services without pay other than meals, transportation, lodging or reimbursement for incidental expenses;

• Individuals on work-study programs;

• Interns; and/or

• Other volunteers.

Such persons coming within the categories specified above, including the duly elected or appointed replacements of any board member and other designated individuals are deemed to be employees of the Hi-Desert Water District for worker’ compensation coverage as provided in Division 4 of the Labor Code while performing such service. However, said board of director members and other designated individuals will not be considered an employee of the Hi-Desert Water District for any purpose other than for such workers’ compensation coverage, nor grant nor enlarge upon any other right, duty, or responsibility of such board of director members or other designated individuals, nor allow such persons to claim any other benefits or rights given to paid employees of the Hi-Desert Water District. [Res. 17-26].

3.45.080 State Disability Insurance Plan.

All regular full-time employees are required to become members of the State Disability Insurance Plan immediately upon employment. The employee’s cost for said plan will be deducted from the bi-weekly paycheck. This plan provides for income when an employee is unable to work. Hours paid to a disabled employee during a pay period will be reduced by the equivalent hours paid by the State Disability Program for the same period. [Res. 12-24 Att. A; Res. 10-13 Art. 8 § H].

3.45.090 Group medical insurance program.

All board members and regular full-time employees shall be eligible to participate in the district’s medical plan, beginning the first of the month following 30 days of employment with the district.

The district pays the monthly premium for the subscriber and their eligible dependents, up to a maximum amount which is determined on an annual basis. The subscriber is responsible for paying the remaining portion. The amount paid by district for medical coverage will always equal or exceed 100 percent of the employee-only premium of the least cost plan for which the employee is eligible. This means the district pays a set portion of the insurance premiums on the district’s offered plans, ensuring that employees are protected within the limits of the district’s financial contribution. If the cost of insurance exceeds the district’s contribution, any additional costs may need to be covered by the individuals benefiting from the insurance. An eligible dependent is defined as spouses, children, and sometimes other family members or individuals with certain qualifying relationships.

Changes in coverage of dependents (such as adding a dependent(s) due to birth or adoption of a child, adding a spouse, or deleting a dependent due to divorce or death) must be reported to the district within 30 days of the changing event. If not reported within 30 days, the change can be made at the open enrollment period for the next calendar year.

Active employees hired prior to December 19, 2012, who have opted out of the district’s plan will receive a monthly rebate. Employee must show proof of other group coverage in order to waive district coverage. The rebate will be paid as an addition to the employee’s paycheck, in accordance with the district’s normal pay schedule, and will be recorded as taxable (non-PERS) income. The amount of the rebate will be determined on an annual basis in accordance with medical premiums. Opting in (i.e., joining the district’s medical plan) may only be done during the annual open enrollment period for the next calendar year. An exception to this is losing outside coverage due to a life-changing event, in which case the employee has 30 days to opt in or must wait for open enrollment.

Any employee who has not opted out prior to December 19, 2012, will not be eligible to do so. [Res. 24-17; Res. 13-18 Att. A; Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 11-03 Att. A § 4; Res. 10-13 Art. 8 § I].

3.45.095 Health reimbursement arrangement.

Employees may be eligible for participation in the district’s health reimbursement arrangement (“HRA”). Eligibility is determined by the subscriber’s choice of plan and coverage.

The HRA eligibility requirements and reimbursement criteria will be reviewed, and may be revised, on an annual basis. [Res. 13-14 Att. A; Res. 12-24 Att. A].

3.45.100 Vision care program.

Vision care coverage for benefits-eligible board members, employees, board member spouses, employee spouses, and children is paid by the district beginning the first of the month following 30 days of employment with the district. The district will pay 100 percent of vision premium for benefits-eligible employees, board members and their dependents. All benefits-eligible employees must enroll. Dependents of employees as well as board members and their dependents may waive vision coverage. [Res. 24-17; Res. 14-01 Att. A; Res. 12-24 Att. A; Res. 10-13 Art. 8 § J].

3.45.110 Dental care program.

Dental care coverage for benefits-eligible board members, employees, board member spouses, employee spouses, and children is paid by the district beginning the first of the month following 30 days of employment with the district. The district will pay 100 percent of dental premium for benefits-eligible employees, board members and their dependents. All benefits-eligible employees and their eligible dependents must enroll. Board members and their eligible dependents may waive dental coverage. [Res. 24-17; Res. 14-01 Att. A; Res. 12-24 Att. A; Res. 10-13 Art. 8 § K].

3.45.120 Deferred compensation.

Immediately upon employment, all full-time employees and board members may voluntarily participate in the deferred compensation plan. Participation in this program allows an employee to set aside a portion of his/her wages prior to federal and state tax computations. Contributions are only limited by provisions of applicable federal and state laws. [Res. 12-24 Att. A; Res. 10-13 Art. 8 § L].

3.45.130 Life insurance program.

Immediately upon employment, all regular full-time employees will participate in the district’s group life insurance program in accordance with the terms and conditions of the district’s contract with the insurance carrier. The district shall pay monthly premiums. The benefit is equal to no more than one year’s annual salary; however, capped at $130,000. [Res. 12-24 Att. A; Res. 10-13 Art. 8 § M].

3.45.140 Long-term disability program.

A long-term disability program will be provided to all regular full-time employees at district expense. [Res. 12-24 Att. A; Res. 10-13 Art. 8 § N].

3.45.150 Employee assistance program.

A. The EAP is a confidential program to provide employees and their household members with mental health therapy visits and other services including financial and legal counseling.

B. All benefits-eligible employees at the district are automatically enrolled in the employee assistance program on the first day of the month following 30 days of employment with the district. Premium is 100 percent paid for by the district. [Res. 24-17; Res. 14-01 Att. A; Res. 12-24 Att. A; Res. 10-13 Art. 8 § O].

3.45.160 Credit union.

Immediately upon employment, all board members and employees are eligible to become a member of a district-approved credit union if they so wish. Savings/checking deposits, loan payments, etc., may be made through payroll deduction after the board member or employee authorizes said deduction(s). [Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-13 Art. 8 § P].

3.45.170 Tuition reimbursement.

All full-time, regular employees who have completed six months of employment are eligible to participate in the district’s tuition reimbursement program, which enhances their usefulness to the district as a whole and to their jobs in particular. Participation in this program is strictly voluntary and when the course of study meets the conditions of reimbursement as follows, the employee will be reimbursed for tuition, books, and other required fees up to a maximum of $5,000 per employee per fiscal year if the employee attains a grade point average (“GPA”) of “B” or above for the course(s). If the employee attains a GPA of “C” for the course(s), the maximum reimbursement will be $2,500 per fiscal year. Employees will not be reimbursed if the final grade attained for the course is below a “C.” In the case of a pass-fail course, reimbursement will be 100 percent, not to exceed $5,000, for a passed course and no reimbursement will be made for a failed course.

The following provisions shall apply to the reimbursement policy:

A. An annual tuition reimbursement budget, not to exceed $20,000 per fiscal year, may be budgeted by the board. The budget will be apportioned in two equal parts for courses completed in the six-month periods between July – December and January – June. Tuition reimbursement requests will be considered in the order received by the general manager. In the event that approved tuition reimbursement requests exceed available budgeted funds, reimbursement may be delayed, and approval of new requests deferred until sufficient funds are available in the next six-month period, or in the next fiscal year.

B. The supervisor must recommend approval to the general manager (individuals under the supervision of the general manager must have approval from the general manager) of the course of study prior to attendance and reimbursement of related costs, based on the following criteria:

1. The course(s) of study must be job-related.

2. The course(s) of study will be a benefit to the employee’s professional growth in his/her department, and a benefit to the district relative to the employee’s present or potential position.

3. The course(s) of study must be from an accredited college, university, or other institution, including approved home study courses.

C. The general manager must approve the course of study and related costs prior to attendance based on the availability of funds and the appropriateness of the course content.

D. The course of study shall not interfere with the employee’s performance of his/her employment responsibilities.

E. The employee must present evidence of course completion with evidence of the final grade at the time of reimbursement submission, which must be no more than 30 days after completion of the course(s).

F. All tuition reimbursements received by an employee in the 12 months preceding a voluntary termination of employment will be required to be repaid to the district.

G. Reimbursement will not be made if the employee is receiving a federal or state veteran’s educational benefit. [Res. 19-40 § 2; Res 15-07 Att. A; Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-13 Art. 8 § Q].

3.45.180 Seminars.

Upon approval of the general manager, employees may be permitted to attend conferences/training sessions that will provide a benefit to the district. The district will pay for costs associated with those conferences/training sessions.

For information on travel pay for nonexempt employees see Chapter 3.100 HDWDC. If the district pre-pays for a seminar and/or related expenses, and the employee’s attendance is cancelled due to personal reasons, the district may require reimbursement by the employee. [Res. 19-20 § 2 (Att. B); Res. 12-24 Att. A; Res. 12-18 Att. A; Res. 10-13 Art. 8 § R].

3.45.190 Certification and Class A license compensation.

All full-time, regular employees required by their present job position to obtain or maintain an operation certificate issued by the California State Water Resources Control Board, or the American Water Works Association, will be reimbursed for the tuition, books and other course-required costs associated with obtaining and maintaining said certificate, in accordance with HDWDC 3.45.170, Tuition reimbursement. If the district prepays for tuition, books and/or other course-required costs, and the employee does not sit for and pass the certification test within 18 months, the district may require reimbursement by the employee. Similarly, if the district prepays for an employee to attend a certification test preparation class or seminar and the employee’s attendance is cancelled for personal reasons, the district may require reimbursement by the employee. The actual cost for the certification will be 100 percent reimbursed by the district. The district will not reimburse for certification tests that an employee does not pass. No late fees will be reimbursed for certifications not renewed in a timely manner.

All full-time, regular employees, required by their present job position to obtain or maintain a Class A driver’s license issued by the state of California will be reimbursed for the tuition, books and other course-required costs associated with obtaining and maintaining said license, in accordance with HDWDC 3.45.170, Tuition reimbursement. If the district prepays for tuition, books and/or other course required costs, and the employee does not sit for and pass the certification test within 18 months, the district may require reimbursement by the employee. Similarly, if the district prepays for an employee to attend a Class A license test preparation class or seminar and the employee’s attendance is cancelled for personal reasons, the district may require reimbursement by the employee. The actual cost for the Class A license will be 100 percent reimbursed by the district. The district will not reimburse for Class A license tests that an employee does not pass. [Res. 24-03 § 2, 2024].

3.45.200 Corporate gym membership wellness program.

A. Objective. The district encourages employees to achieve and maintain a healthy lifestyle through wellness and physical fitness by providing access to a corporate gym membership.

B. Eligibility. Corporate gym membership benefits are available to full-time employees who have successfully completed their probationary period. The employee must be actively employed by the district at the time of enrollment and throughout their membership participation. Participation in the program is strictly voluntary.

C. Corporate Gym Membership Program.

1. Gym Partner. The district maintains a corporate membership account with 5-Star Fitness and Viva Fit in Yucca Valley.

2. Enrollment Process.

a. Eligible employees may sign up to join 5-Star Fitness or Viva Fit through the district’s corporate account.

b. Employees must complete the district’s gym membership enrollment form.

c. Enrollment is subject to available slots in the corporate membership agreement.

3. Membership Coverage.

a. Membership fees are paid directly by the district on the employee’s behalf.

b. No reimbursement is necessary as fees are paid directly to the gym.

c. Standard gym membership benefits as offered by 5-Star Fitness and Viva Fit apply.

D. Membership Requirements and Restrictions.

1. Active Participation Requirement.

a. Employees enrolled in the corporate gym membership must maintain regular attendance.

b. Employees who do not attend the gym for 60 consecutive days or longer will be automatically removed from the corporate membership account.

2. Notification Process.

a. HR will monitor gym attendance through reports provided by 5-Star Fitness and Viva Fit.

b. Employees will receive a 30-day notice before removal for non-attendance.

c. Employees may request reinstatement after removal, subject to available membership slots.

3. Employment Status Changes.

a. Membership will be terminated immediately upon employee separation from the district.

b. Employees on extended leave (unpaid) may have their membership suspended.

E. Tax Implications.

1. Taxable Benefit. The corporate gym membership is considered a benefit-in-kind and will be reported as taxable income unless exempted by applicable tax regulations.

2. Tax Reporting.

a. The value of the membership benefit will be included in the employee’s taxable income.

b. Appropriate taxes will be withheld from the employee’s paycheck.

c. The benefit value will be reported to the IRS and included on the employee’s W-2.

F. Employee Responsibilities.

1. Health Clearance. Employees should consult with a physician before beginning any physical fitness regimen.

2. Gym Rules and Regulations.

a. Employees must comply with all 5-Star Fitness rules and policies.

b. Inappropriate behavior may result in removal from the corporate membership program.

c. Employees are responsible for any damages or fees imposed by the gym facility.

3. Notification Requirements. Employees must notify HR immediately of:

a. Intent to discontinue gym membership.

b. Extended absences that may affect attendance requirements.

c. Any issues or concerns with the gym facility.

G. Program Administration.

1. Budget Authorization. The corporate gym membership program is subject to annual budget approval by the board of directors.

2. Enrollment Limits. The number of available memberships may be limited based on:

a. Budget constraints.

b. Corporate membership agreement terms.

c. Gym facility capacity.

3. Waiting List. If enrollment exceeds available slots, a waiting list will be maintained on a first-come, first-served basis among eligible employees.

H. Program Evaluation. The district will periodically review the corporate gym membership program to assess:

1. Employee participation rates.

2. Program costs and benefits.

3. Employee satisfaction.

4. Overall program effectiveness.

I. Policy Modifications. The district reserves the right to interpret, make changes to, or withdraw from this program at any time, subject to applicable legal requirements and budget constraints. [Res. 25-14, 2025].

3.45.210 Deferred compensation/457 employer matching contribution program.

A. Purpose. This policy establishes the Hi-Desert Water District’s deferred compensation plan participation guidelines and employer matching contribution provisions for eligible employees under Section 457 of the Internal Revenue Code.

B Scope. This policy applies to all eligible employees of the Hi-Desert Water District as defined in the employee handbook.

C. Policy Statement. Effective the first full pay period after approval by the district’s board of directors, eligible employees may participate in the district’s deferred compensation/457 plan as outlined in the employee handbook.

D. Employer Matching Contribution.

1. Annual Cap. The district’s matching contribution shall not exceed $1,500 per calendar year per eligible employee.

2. Matching Formula. The district shall make a matching contribution equal to 50 percent of the eligible employee’s per pay period contribution, subject to the annual cap specified below.

3. Contribution Examples.

a. Example 1.

i. Employee contribution: $100.00 per pay period.

ii. District 50 percent match: $50.00 per pay period until the cap is met.

b. Example 2.

i. Employee contribution: $230.00 per pay period.

ii. District 50 percent match: $115.00 per pay period until the cap is met.

c. Example 3.

i. Employee contribution: $600.00 per pay period.

ii. District 50 percent match: $300.00 per pay period until the cap is met.

E. Contribution Limits.

1. IRS Compliance. Both the employee and employer contributions combined must not exceed applicable IRS limits for 457(b) plans as established annually by the Internal Revenue Service.

2. Maximum Contributions. Employees are responsible for ensuring their total contributions (employee plus employer match) do not exceed federal limits. The district will monitor contributions to prevent excess deferrals.

F. Remittance Requirements.

1. Payment Timeline. The district shall remit both employer and employee contributions no later than 15 days following each applicable payday.

2. Processing.

a. Payroll deductions will be processed with each regular payroll.

b. Employer matching contributions will be calculated and processed simultaneously.

c. All contributions will be forwarded to the plan administrator within the specified timeframe. [Res. 25-15, 2025].

Code reviser’s note: For the purposes of this section, “plan” refers to the 457 plan.