HomeMy WebLinkAbout4.E.2. Approval of Appendix C to 2012-2013 Labor Contract for Police Officers y�.,z.
CITY OF SHAKOPEE
Memorandum �� _ � ..a�� '
TO: Mayor and City Council
Maxk McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator �'
�
SUBJECT: Approval of Appendix C to 2012-13 Labor Contract for Police Officers
DATE: February 2, 2012
Introduction
The City Council is asked to approve Appendix C to the 2012-131abor contract for the City's
police officers.
Background
On December 20, 2011, the City Council authorized the appropriate officials to enter into a
negotiated labor contract with Law Enforcement Labor Services, representing the City's 37
police officers. However, as part of that action, Appendix C was held open to provide union
members additional time to come to a consensus regarding the contribution schedule for the
City's Post-Employment Health Care Savings Plan (HCSP). The City provides this plan to all
benefits-eligihle employees, but the amount contributed by employees is established by a
contribution schedule that is distinct for each employee group (the Public Works union, Police
union, Sergeants union, Non-Union Exempt and Non-Union Non-Exempt). The City contributes
a uniform amount per month for all employees, but allows each employee group to determine the
employee contribution level as long as it confirms to the plan regulations. After discussing the
issue, the police officers union has decided to keep the existing contribution schedule, a copy of
which is attached.
Budget Impact
This item pertains solely to the employee contribution to the plan and therefore has no budgetary
impact for the City.
Relationship to Vision
This is a housekeeping item (F).
Requested Action
The Council is asked to authorize the appropriate officials to sign Appendix C of the 2012-13
Labor Contract with Law Enforcement Labor Services, representing the City's police officers.
APPENDIX C
POST EMPLOYMENT HEALTH CARE SAVINGS PLAN (HCSP)
CONTRIBUTION SCHEDULE FOR LELS MEMBERS
Years of Service with Hire - Beginning 2" Beginning 16� Beginning of
City of Shakopee year 1 vear - 15 Xears year-30 years 31 st year +
% of per payroll contribution 0% 1% 1% 1%
City Contribution $25/mo $25/mo $25/mo $25/mo
Severance contribution None 50%* 100%** 100% **
of unused sick leave
(45% of max of 960 hours)
Contribution of None None 50% 100%
Accrued Vacation
Accelerated Sick Leave N{A NIA 100% of 100% of
Severance Payout*** Step-up Step-up
Formula Formula
*Upon eligibility after year 5
** For employees who are ineligible for Accelerated Sick Leave Payout
*** Upon eligibility after year 15
Accelerated Sick Leave Severance Payout
The City of Shakopee appreciates employees, who through long-term service and dedication,
contribute to making the city a successful and positive service provider. In recognition thereof,
the City acknowledges such long-term service by providing an accelerated sick leave payout
formula listed below if the employee meets all the following conditions:
• Full-time or part-time benefit-eligible employee with the City of Shakopee for 15
continuous years or more.
• Employee must reach the age (usually age 55, as governed by Minnesota Statutes, 2004,
353.29 and related chapters) and service requirements to be qualified for retirement under
PERA.
• Employee is separating employment in good standing.
• The percentage of the severance pay-out shall be based on a maximum of 960 hours of
accumulated sick leave calculated on the basis of the employee's current annual base pay.
• The accelerated severance payment will be deposited in the employee's HCSP account
not later than the first regularly scheduled payday following the employee's final day of
employment.
Completion of Continuous Service ,
With the Citv of Shakopee Step-up Pavout formula
15 years 55%
16 years 57%
17 years 59%
18 years 61 %
20
19 years 63%
20 years 65%
21 yeaxs 67%
22 years 69%0
23 years 71 %
24 years 73%
25 years 75%
Anniversary date of full-time employment or part-time benefit-eligible date is used to compute
years of service with Shakopee.
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