§ XVII. Retirement.

A.

The purpose of the retirement policy is to define when an employee is eligible for retirement benefits under the city provided retirement income plan with the ICMA Retirement Corporation and medical, dental and vision benefits.

B.

Retirement income benefits. All regular full-time employees are participants in the city's retirement income plan. Retirement income benefits are provided by the city contributions to the 401(a) retirement plan through ICMA Retirement Corporation. Employees are entitled to benefits from the retirement plan based on the following vesting schedule:

1.	Years of Service Entitlement
2.	0—1 year	0%
3.	after 1 year	20%
4.	after 2 years	40%
5.	after 3 years	60%
6.	after 4 years	80%
7.	after 5 years	100%
8.	All employees withdrawing funds from the retirement income plan will be subject to provisions of the Internal Revenue Code.

 

C.

Other retirement benefits. Employees are eligible to continue at their full cost, medical, dental and vision plan benefits if the employee meets the following criteria: The employee is eligible to begin drawing retirement dollars from their retirement plan within sixty (60) days of retirement and with no penalties as outlined by the Internal Revenue Code.

1.

Employees who are not eligible according to paragraph C. will be allowed to continue benefits as provided through the provisions of COBRA.

2.

Employees continuing benefits as a retiree will be required to pay the full cost of the benefits.

3.

When a retiree becomes eligible for Medicare at age sixty-five (65), health benefits will cease as outlined in Resolution Number 189-84. Employees who retire under these provisions and go to work for another employer must notify human resources at the city. The employee must provide a letter from their employer stating his/her eligibility for health benefits at their place of employment. If the retiree is eligible for health benefits at their place of employment, he or she will be ineligible to continue benefits under the city's medical, dental and vision plans. Failure to comply with this policy will result in cancellation of the city's medical, dental and vision benefits. If a retiree does not comply with this policy and the city determines that the retiree is working and eligible for health benefits at his/her place of employment, and the retiree has failed to notify the city, the city has the right to seek all remedies allowed by law.

4.

Vacation benefits will be paid at retirement according to the vacation benefit under the leave policy.

5.

Accrued sick leave will be paid at retirement according to the sick leave benefit under the leave policy.