04/28/2011 - Personnel Committee0
PERSONNEL COMMITTEE MEETING
MAY 3, 2011
5:30 P.M.
CITY ADMINISTRATOR'S OFFICE
AGENDA
I. AGENDA ADOPTION
II. REVIEW MILITARY LEAVE PROVISIONS
III. OTHER BUSINESS
IV. ADJOURNMENT
City of Eap ma
TO: PERSONNEL COMMITTEE (MAYOR MAGUIRE AND
COUNCILMEMBER FIELDS)
FROM: CITY ADMINISTRATOR HEDGES
DATE: APRIL 29, 2011
SUBJECT: PERSONNEL COMMITTEE MEETING / TUESDAY, MAY 3,5:30 PM
A Personnel Committee meeting is scheduled on Tuesday, May 3 at 5:30 p.m. in the City
Administrator's office. The committee will recall that at the April 20 Listening Session, Director
of Administrative Services VanOverbeke and Human Resources Manager Peterson presented
military leave options in preparation for the deployment of a City employee. Council direction
was provided at the Listening Session to include the military leave provisions on the May 3
consent agenda, with the understanding that the Personnel Committee would review the
provisions prior to the May 3 Council meeting. Thus, the purpose of the meeting is for the
committee to give one last review of the proposed military leave provisions before they are
formally considered at the May 3 City Council meeting.
Enclosed on pages 2) through (p is a memo outlining the current circumstances
necessitating the provisions, along with the same background memo that is included in the May 3
Council agenda packet. Please feel free to contact me if you have any questions in advance of
Tuesday's committee meeting.
/s/Thomas L. Hed 6 es
City Administrator
411�
City of Eap mu
To: Tom Hedges, City Administrator
Gene VanOverbeke, Director of Administrative Services
From: Lori Peterson, Human Resources Manager
CC: File
Date: April 28, 2011
Subject: Military Leave Provisions —contains CONFIDENTIAL DATA
The purpose of this memo is to follow up from the City Council Listening Session
held last Wednesday, April 20, 2011, in which Gene VanOverbeke presented
information related to the Uniformed Services Employment and Reemployment
Rights Act of 1994 ("USERRA"), and military leave provisions under Minnesota
Statue.
The City of Eagan has an employee who received orders for deployment to the
Middle East effective early May 2011. The service member will be on active duty for
approximately 12 months. Per the City Council's direction, the Human Resources
Manager met with him and the Police Chief to discuss how his military leave will
affect his employment with the City.
USERRA and MN Statute dictate how an employer treats an employee on active
duty; including provisions regarding deployment, reemployment, seniority related
benefits and non seniority benefits.
These rights under USERRA and Minnesota statute were recently reviewed with the
employee.
The following summarizes how benefits should be managed while the service
member is on active duty, per USERRA:
• For an employee on a military leave of up to 5 years, they shall be regarded as an
active employee when defining seniority and receiving seniority credit.
• Accrual rates for vacation and sick will reflect the equivalent time of that of an
active employee for the same period of time in which the service member is on
military leave.
• Holiday compensation is paid according to Collective Bargaining Agreement, in
the same fashion as an active Police Officer.
• Public Employee Retirement Association (PERA): Per USERRA, service credits
continue as if he were working for up to 5 years. PERA states that employer and
employee deductions shall not continue while the service member is on a military
leave. Upon re-employment, the service member may buy back lost salary and
service credits. If the employee decides to buy back PERA salary credits, the
Employer is then obligated to pay back their contribution to PERA as well.
Application To Current Situation:
• The service member was informed of the right to drop the City's plan without
penalty during the military leave, per USERRA. He expressed interest in dropping
the City's insurance until such time that he is re-employed. He reports that he and
his legal dependent (spouse) will be covered under the military's insurance plan.
• The service member was given information about how other benefits could be
managed while on military leave.
o Health Care Savings Plan provisions: (The City will continue to contribute
.80/hour in order to maintain his HCSP at the same level as that of an active
Police Officer),
o City sponsored Life Insurance Policy and Long Term Disability: The City may
choose to continue the Life Insurance policy. The employer cost will be
approximately $2.50 per month. Long Term Disability cannot be continued. (The
City Council action is written with a continued payment for life insurance.)
Compensation Discussion:
Based on the direction from the City Council, the Human Resources Manager learned
that the service member will be paid by the military based on his rank, assignment and
location. In general, he expects to receive a base gross monthly wage of approximately
$3050 per month. (Other variable pay may include combat pay of approximately
$100/month, oversees pay of approximately $50/month and separation pay of
approximately $100/month) As a police officer, he receives a gross monthly wage of
approximately $4643.00 per month.
If the City decides to pay the service member the difference between the military wage
and the wage he would receive if actively working, using base pay only, it would cost the
City approximately $1593/month (gross wages).
If the City decides to pay the service member the difference between the military wage
and the wage he would receive if actively working, using base pay and variable pay, it
would cost the City approximately $1343/month (gross wages).
In either case, the City would make payment upon receipt of military pay information.
y
Per the collective bargaining agreement, as an active employee hired after January 2005,
he would receive an additional .80/hr to be contributed to the HCSP effective 7/19/2011.
In order to maintain the HSCP at the same benefit level as that of an active employee, the
City would contribute an additional gross monthly amount of $128/month.
To summarize, USERRA and MN Statutes dictate many of the benefit and employment
related provisions for an employee deployed to active duty. The City may decide to act
above and beyond these provisions with regard to insurance coverage and compensation.
Lkp/benefits/military/ccLOA5.2011
5
Agenda Information Memo
May 3, 2011 Eagan City Council Meeting
B. PERSONNEL ITEMS
Item 2.
ACTION TO BE CONSIDERED:
Approve military leave provisions for a City employee being deployed to active duty effective May
2011.
FACTS:
• The City of Eagan has an employee who will be deployed May 2011 for approximately
12 months. The City is required to follow the provisions set forth by the Uniformed
Services Employment and Reemployment Rights Act of 1994 ("USERRA") and related
Minnesota Statues.
• In addition to following federal and state regulations, the City will continue the employee's life
insurance benefit not to exceed 18 months, per COBRA guidelines.
• The City will also provide compensation to the same level of that of an active employee by
paying the difference between the employee's military pay and what he would be paid by the City
as an active Police Officer with the same level of experience. Payments to the employee are
contingent on the City receiving proof of military pay.
• Per USERRA, medical and dental insurance benefits for the employee may be continued through
the City. If so, the City will continue to pay the same contribution amount as that of an active
employee.
