Common use of VEBA Clause in Contracts

VEBA. For calendar years 2012 and 2013 upon retirement, thirty-five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contract. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or b. forfeit the sick leave cash out altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices: a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.

VEBA. For calendar years 2012 and 2013 upon Upon retirement, thirty-five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contractretire. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes vote to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or b. forfeit the sick leave cash out altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes vote to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices: a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.

VEBA. For the calendar years 2012 2008, 2009 and 2013 2010 upon retirement, thirty-thirty- five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contract. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes vote to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or b. forfeit the sick leave cash out altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes vote to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, term shall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices: a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.

VEBA. For the calendar years 2012 2008, 2009 and 2013 2010 upon retirement, thirty-thirty- five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contract. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes vote to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or b. forfeit the sick leave cash out altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes vote to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, term shall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices: a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.

VEBA. For calendar years 2012 and 2013 upon Upon retirement, thirty-five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contractretire. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes vote to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or or b. forfeit the sick leave cash out cashout altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes vote to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices: a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.

VEBA. For calendar years 2012 and 2013 upon Upon retirement, thirty-five percent (35%) of an employee's unused sick leave credit accumulation shall be transferred to a VEBA account (as described below) to be used according to Internal Revenue Service (IRS) regulations on the day prior to their retirement. Upon the death of an employee, either by accident or natural causes, twenty-five percent (25%) of such employee's accumulated sick leave credits shall be paid to their designated beneficiary. However, if an employee is eligible for retirement and chooses to vest their funds with the Retirement System at the time they leave City Employment, they will lose all sick leave credit and not be eligible to receive the twenty-five percent (25%) cash out. Employees who are eligible to retire during the term of this contract shall participate in a vote administered by the Union to determine if the Voluntary Employee Benefits Association (VEBA) benefit shall be offered to employees who elect to retire during the term of this contract. The VEBA benefit allows employees who are eligible to retire from City Service to cash out their unused sick leave balance upon retirement and place it in a VEBA account to be used for post-retirement healthcare costs as allowed under IRS regulations. Eligibility-to-Retire Requirements: • 5 – 9 years of service and are age 62 or older • 10 – 19 years of service and are age 57 or older • 20 – 29 years of service and are age 52 or older • 30 years of service and are any age For purposes of identifying all potential eligible-to-retire employees, the City shall create a list of members who are in the City’s HRIS system at age 45 or older as of the final day of the contract term and provide this list to the union so that the union can administer the vote. 1. If the eligible-to-retire members of the bargaining unit votes to accept the VEBA, then all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall either: a. place their sick leave cashout at 35% into their VEBA account, or or b. forfeit the sick leave cash out cashout altogether. There is no minimum threshold for the sick leave cash out. Members are not eligible to deposit their sick leave cashout into their deferred compensation account or receive cash. 2. If the eligible-to-retire members of the bargaining unit votes to reject the VEBA, all members of the bargaining unit who retire from City service from the date of the vote until the end of the contract term, shall fshall be ineligible to place their sick leave cashout into a VEBA account. Instead, these members shall have two choices:VEBA a. Members can cash out their sick leave balance at 35% and deposit those dollars into their deferred compensation account. The annual limits for the deferred compensation contributions as set by the IRS would apply; or b. Members can cash out their sick leave balance at 25% and receive the dollars as cash on their final paycheck. Sabbatical Leave and VEBA: Members of a bargaining unit that votes to accept the VEBA and who meet the eligible-to-retire criteria are not eligible to cash out their sick leave at 25% as a part of their sabbatical benefit. Members who do not meet the eligible-to-retire criteria may cash out their sick leave at 25% in accordance with the sabbatical benefit.