TABLE OF CONTENTS 1.0 POSITIONS DEFINITIONS DUTY YEAR Intent 3.2 Duty Day 3.3 Duty Year
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- Phebe Rogers
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2 TABLE OF CONTENTS ARTICLE PAGE 1.0 POSITIONS DEFINITIONS DUTY YEAR Intent 3.2 Duty Day 3.3 Duty Year 4.0 INSURANCE COVERAGES AND ANNUITIES Eligibility Requirements for All Insurance Programs 4.2 Qualifications 4.3 Health and Hospitalization 4.4 Life 4.5 Long-Term Disability 4.6 Dental 4.7 Worker s Compensation 4.8 Liability and Property 4.9 Tax-Sheltered Annuities 5.0 VACATION Amount 5.2 Approval 5.3 Carry Over Vacation 5.4 Payment upon Termination Vacation 6.0 HOLIDAYS LEAVES OF ABSENCE Sick Leave 7.2 Illness of Immediate Family 7.3 Bereavement Leave 7.4 Emergency Leave 7.5 Personal Leave 7.6 Compensation Leave 7.7 Maternity Leave 7.8 Medical Leave 7.9 Jury Duty 7.10 Other Leaves of Absence 7.11 Request Restrictions ii
3 7.12 Carry Over Other Paid Leaves TABLE OF CONTENTS CONTINUED ARTICLE PAGE (B) MATCHING RETIREMENT PLAN Purpose 8.2 Eligibility 8.3 Definition of Continuous Employment 8.4 Matching Contributions 8.5 Matching Payment Schedule 8.6 Guaranteed Maximum Contribution 8.7 Transition between Plans 8.8 Discharge Restrictions 8.9 Benefits in the Event of the Death of a Director 8.10 State and Federal Requirements 9.0 SECTION 105 PLAN Purpose 9.2 Contribution 9.3 Balance Roll Over 9.4 Interest Earned on Funds 9.5 Transfer to Minnesota State Retirement System Health Care Savings Plan 9.6 Benefits in the Event of Death of a Director 9.7 Responsibility Qualifications 10.0 MINNESOTA STATE RETIREMENT SYSTEM HEALTH CARE SAVINGS PLAN Purpose 10.2 Benefit Amount 10.3 Restrictions 11.0 COMPENSATION FOR UNUSED SICK LEAVE Purpose 11.2 Eligibility 11.3 Definition of Continuous Employment 11.4 Discharge Restrictions 11.5 Amount of Unused Sick Leave Days Credit 11.6 Sick Leave Bank Days 11.7 Contributions to Other Accounts 11.8 Contributions from Other Accounts iii
4 TABLE OF CONTENTS CONTINUED ARTICLE PAGE 11.9 Rate of Compensation Payment Benefits in the Event of the Death of a Director State and Federal Requirements 12.0 ADMINISTRATIVE IMPROVEMENT PLAN Benefit 12.2 Restrictions 12.3 Payments 12.4 Balance Carry Over 13.0 PROFESSIONAL DUES AUTOMOBILE ALLOWANCE PERFORMANCE PAY CONTINUATION OF BENEFITS AFTER TERMINATION OF EMPLOYMENT TERMINATION OF EMPLOYMENT CONTRACT OTHER PROVISIONS SALARY SCHEDULE iv
5 1.0 POSITIONS The purpose of this document is to provide the positions listed below in the District with information about the general terms and conditions of their at-will employment with the District. This document does not create an express or implied contract between the District and any employee. The District may change this document, and the terms and conditions of employment outlined in this document, at any time and for any reason. Directors of: Community Engagement Research and Assessment Special Services Teaching and Learning Assistant Directors of: Community Education Finance Human Resources Information Technology 2.0 DEFINITIONS The term employee(s) Director(s), or Assistant Director(s) as used in the text of the Directors Benefit Handbook, refers to only positions considered as Directors For the purpose of this handbook the Assistant Director(s) listed in Section 1.0 are considered Directors. 3.0 DUTY YEAR The specific duty days for the calendar period July 1 st to June 30 th each year shall be established by each Director subject to the approval of the Superintendent, including those legal holidays on which the School District is authorized to conduct school, and pursuant to such authority as determined to conduct school. 3.1 Intent It is the intent of the Directors and the School Board to acknowledge the Duty Day and Duty Year that Directors must work in order to fulfill contractual requirements. It is also the intent of both parties to acknowledge the additional time required by Directors in order to properly perform their assigned job responsibilities. As acknowledgment for the additional time that Directors work beyond their normal Duty Day and/or Duty Year, Directors will be provided Compensation Leave for a portion of the additional time Directors work. Providing Compensation Leave is intended to recognize the additional time Directors work beyond the normal Duty Day and/or Duty Year and may not equal the actual amount of additional time Directors actually work. 3.2 Duty Day 1
6 Directors may be required to work more than eight (8) hours per day in order to properly perform their assigned job responsibilities. Additional time worked beyond the Director s regular work day will be compensated to the Director as Compensation Leave (see Section 7.6: Compensation Leave). 3.3 Duty Year The duty year for all full time Directors shall be a minimum of two hundred sixty (260) days in a normal work year and a minimum of two hundred sixty-one (261) days in a work year occurring in a leap year, of which thirty (30) days are vacation days and eleven (11) days are holidays. Directors are required to work on all duty days unless on an approved leave of absence. Directors may be required to work more than their regularly scheduled work days in order to properly perform their assigned job responsibilities. Additional days worked beyond the Director s regular work schedule will be compensated to the Director as Compensation Leave (see Section 7.6: Compensation Leave). 4.0 INSURANCE COVERAGES AND ANNUITIES 4.1 Eligibility Requirements For All Insurance Programs A Director is eligible for any insurance benefit coverage only if the Director qualifies for and enrolls in the School District plan(s). A Director must meet insurance carrier qualifications in order to be eligible for any insurance benefit plan coverage. If increases in insurance benefits occur, those increases will be in force after the proper applications are completed and submitted to the insurance carriers and after the insurance carriers have approved the applications and all requirements and waiting periods are met. 4.2 Qualification In order to qualify for any insurance coverage, the Director must meet the requirements and qualifications established by the insurance carrier. For all insurance programs, it is understood that the School District s only obligation is to purchase an insurance policy and pay such amounts as agreed to herein and no claim shall be made against the School District as a result of a denial of insurance benefits by an insurance carrier. A Director is eligible for School District contribution as provided herein as long as the Director is employed and on paid status by the School District. Upon termination of employment, all School District contribution shall cease. 4.3 Health and Hospitalization Coverage and Benefit 2
7 The School District shall provide a group health and hospitalization insurance plan for its Directors Single Policy The School District shall pay the full premium for single plan hospitalization and medical insurance for Directors who qualify for and are enrolled in any School District group health and hospital plan. The School District shall contribute a pro-rata amount for part-time Directors. The School District s contribution towards single coverage for hospitalization and medical insurance for Directors who qualify and enroll in any School District group health and hospital plan shall be up to, but not exceed six hundred ten and 00/100 dollars ($610.00) per month. Any additional cost of the premium shall be borne by the Director and paid by payroll deduction Dependent Policy The School District shall pay ninety-four percent (94%) toward the premium for dependent coverage for all full-time Directors who qualify for and are enrolled in any of the School District's group health and hospitalization plans and who qualify for dependent coverage. The School District shall contribute a pro-rata amount for part-time Directors. Any additional cost of the premium shall be borne by the Director and paid by payroll deduction. When a husband and wife are both employed by the School District and elect to be covered by one (1) dependent policy, the maximum contribution by the School District shall not exceed the contribution for one (1) single policy and one (1) dependent policy High Deductible Medical Plan As an alternative to the group health and hospitalization insurance plan options described in sections and , Directors may elect a high deductible medical plan tied to a Health Savings Account ( HSA ) Single Policy For Directors who qualify and enroll in the high deductible single medical plan, the School District will contribute a monthly amount equal to the amount the School District contributes to the Open Access Choice $25 3
8 Copay Plan (or its equivalent) described in section The contribution will first be applied toward the insurance premium and any additional amount will be deposited into the Director s HSA, not to exceed the annual plan deductible, subject to statutory and regulatory limits and requirements Dependent Policy For Directors who qualify and enroll in the high deductible dependent medical plan, the School District will contribute a monthly amount equal to the amount the School District contributes to the Open Access Choice $25 Copay Plan (or its equivalent) described in section The contribution will first be applied toward the insurance premium and any additional amount will be deposited into the Director s HSA, not to exceed the annual plan deductible, subject to statutory and regulatory limits and requirements. If an employee submits evidence of a hardship, the School District will make the remainder of the annual contribution to the Health Savings Account at that time and stop all monthly contributions for the remainder of the year Coverage After Retirement Directors who terminate employment and who have had a minimum of ten (10) continuous years of employment with the School District immediately preceding their termination of employment shall be allowed to participate in the School District health insurance plans upon paying the School District the full policy premium thirty (30) days in advance of the period of coverage. This article is subject to the insurance policy provision requiring participants to maintain Medicare coverage with the School District's health insurance policy being supplementary thereto Right of Survivorship In the event of the death of a Director who had completed a minimum of ten (10) continuous years of employment with the School District immediately preceding death, if coverage was in effect for eligible dependents at the time of the Director s death, eligible dependents may continue to participate in the School District's health insurance plans subject to the approval of the carrier and by paying the full premiums for such coverage thirty (30) days in advance of the period of coverage Restrictions 4
9 4.4 Life Sections and are in effect only if coverage is available to the School District. Both sections are subject to insurance carrier requirements and state and federal laws Benefit After Termination The School Board will contribute toward the cost of the premium for health insurance for a Director, and the Director s spouse and dependents, if elected, for a period of twelve (12) months, for a Director who terminates employment and who has had a minimum of ten (10) continuous years of employment with the District. To qualify for the benefit, the Director, spouse, and dependents must be eligible for and enrolled in a District sponsored health insurance plan. The maximum District contribution to a health insurance premium shall be the same amount the District contributed during the Director s last year of employment Definition Of Continuous Employment Continuous employment shall be defined as a period of uninterrupted employment with the School District. A paid leave of absence approved by the School Board shall count towards a Director s service credit. An unpaid leave of absence approved by the School Board shall not sever continuous employment with the School District Director or Estate In the event of the death of a Director, who has met the eligibility requirements of Section 4.3.6, the deceased Director s estate will be entitled to the same benefit as though the Director had terminated employment. In the event of the death of a Director, who terminated employment and was receiving benefits under Section 4.3.6, the deceased Director s estate will be entitled to the remaining benefit. The School District shall provide group term-life insurance coverage for its Directors in an amount that is twice the amount of the Director s salary to a maximum benefit of four hundred thousand and 00/100 dollars ($400,000.00). The cost of the insurance premium will be paid by the School District. A Director will have the option to purchase additional amounts of term-life insurance in multiples of five thousand and 00/100 dollars ($5,000.00) subject to 5
10 the approval of the insurance carrier. The cost of any additional insurance will be paid for by the Director. The maximum amount of combined benefit of the group term-life insurance that the School District purchases on behalf of the Director and the additional group term-life insurance that the Director purchases shall not exceed four hundred thousand and 00/100 dollars ($400,000.00). 4.5 Long-Term Disability 4.6 Dental The School District shall contract for benefits under its long-term disability insurance coverage to provide for two-thirds (2/3) of the Director s gross salary, to a maximum annual gross salary limit of approximately one hundred sixty-five thousand and 00/100 dollars ($165,000.00) and a maximum monthly benefit payable of nine thousand one hundred sixty-six and 00/100 dollars ($9,166.00). This coverage shall be effective upon the issuance of the respective policy by the insurance carrier but in any event not before June 1, The School District shall continue to pay the School District s portion of any Director s insurance premiums due (dental insurance, health insurance, life insurance, long-term disability insurance, etc.), per each long-term disability insurance claim, for a Director who is collecting long-term disability insurance payments under the School District s insurance plan, for a period up to a maximum of twenty-four (24) calendar months. The effective date of commencement of this benefit will begin with the first day of the Director s leave of absence. This benefit is in addition to the School District s payment towards insurance premiums as provided under state and federal law Coverage and Benefit The School District shall offer group dental insurance and contribute the cost of the single or dependent premium for all full-time Directors and a pro-rata portion for all part-time Directors, who qualify for and enroll in the School District group dental insurance plan Coverage After Retirement Directors who terminate employment and who have had a minimum of ten (10) continuous years of employment with the School District shall be allowed to participate in the School District dental insurance plans upon paying the School District the full policy premium thirty (30) days in advance of the period of coverage. 6
11 4.6.3 Right of Survivorship In the event of the death of a Director who had completed a minimum of ten (10) continuous years of employment with the School District, if coverage was in effect for eligible dependents at the time of the Director s death, eligible dependents may continue to participate in the School District's dental insurance plans, subject to the approval of the carrier and by paying the full premiums for such coverage thirty (30) days in advance of the period of coverage Restrictions Sections and are in effect only if coverage is available to the School District. Both sections are subject to insurance carrier requirements and state and federal laws Definition of Continuous Employment Continuous employment shall be defined as a period of uninterrupted employment with the School District. A paid leave of absence approved by the School Board shall count towards a Director s service credit. An unpaid leave of absence approved by the School Board shall not sever continuous employment with the School District. 4.7 Worker s Compensation Directors are covered by the provisions of the Worker s Compensation Act and as such entitled to its benefits. It is the responsibility of the Director to report to the Operations Manager Health and Safety or Superintendent, within twenty-four (24) hours, or as soon as possible, of any accident or injury in which such Director may have been involved and which accident occurred during the performance of their duties. Such accident or injury shall be reported by the Director of Support Services or the insurance agent. A Director collecting Worker s Compensation Insurance may use their sick leave, on a pro-rata basis, to make up the difference between the insurance payment and their normal salary. The School District shall continue to pay the School District s portion of any Director s insurance premiums due (dental insurance, health insurance, life insurance, long-term disability insurance, etc.), per each worker s compensation insurance claim, for a Director who is collecting worker s compensation insurance payments under the School District s insurance plan, for a period up to a maximum of twenty-four (24) calendar months. The effective date of commencement of this benefit will begin with the first day of the Director s leave of absence. This benefit is in addition to the School District s payment towards 7
12 insurance premiums as provided under state and federal law. 4.8 Liability and Property The School District shall procure insurance against liability of the School District and its officers and employees for damages resulting from its torts and those of its officers, employees, and agents pursuant and subject to Minnesota Statutes Section through The insurance shall be for the purposes stated in Section requiring the School District to indemnify any of its officers and employees provided that the officer or employee was acting in the performance of the duties of the position and was not guilty of malfeasance in office, willful neglect of duty, or bad faith. 4.9 Tax-Sheltered Annuities 5.0 VACATION Directors may request the School District to contribute a part of their salaries, not to exceed the legal limit, to an insurance company or a tax-sheltered annuity program. A list of eligible companies for tax-sheltered annuity programs will be provided by the School District office. 5.1 Amount Directors shall be granted thirty (30) vacation days, with pay, during each contract year. Vacation will be prorated for part-time and newly employed Directors starting employment after July 1 st in a fiscal year. 5.2 Approval The use of vacation must have prior approval by the Superintendent, or designee. 5.3 Carry Over Vacation Vacation may be carried over from one fiscal year to the next fiscal year that it was provided. Any unused vacation must be used by June 30 th of the following fiscal year or it will be forfeited by the Director. There will be no direct payment for vacation that is not used. 5.4 Payment Upon Termination Vacation Upon termination of employment, the Director shall be entitled to payment for any unused, non-forfeited vacation days accrued and earned pursuant to the provisions of this section. 8
13 6.0 HOLIDAYS Directors shall be granted eleven (11) holidays per year, with pay, coinciding with the school calendar as adopted by the School Board and which fall during the work year of such Directors. Those holidays shall be: New Years Day Good Friday Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Day Day before Christmas Day Christmas Day One (1) other day to be selected By the School Board, traditionally President s Day. One (1) Floating Holiday If any holiday falls on a weekend day, the Superintendent will designate another holiday. Directors will be allowed to select the day on which they can use their floating holiday if the leave does not conflict with the needs of the School District. The superintendent or designee must approve floating holidays. Directors must use their floating holiday during the school year that it is provided. Floating holidays cannot be carried over from one school year to the next school year. Any legal holiday that falls within an employee s vacation period shall not count as a day of vacation. 7.0 LEAVES OF ABSENCE 7.1 Sick Leave All full-time Directors shall earn Sick Leave at the rate of fourteen (14) days per year of service in the employment of the School District. Unused Sick Leave may accumulate to a maximum credit of two hundred sixty (260) days of Sick Leave per Director. Sick Leave with pay shall be allowed by the School District whenever a Director s absence is found to have been due to illness or injury which prevented their attendance at their job and performance of duties on that day or days. 9
14 The School Board may require a Director to furnish a medical certificate from a qualified physician or dentist as evidence of illness, indicating such absence was due to illness or injury in order to qualify for Sick Leave pay. However, the final determination as to the eligibility of a Director for Sick Leave is reserved to the School Board. In the event that a medical certificate will be required, the Director will be so advised. 7.2 Illness of Immediate Family Sick Leave may be granted for absences due to an illness of or injury to the employee s child, adult child, spouse, sibling, parent, grandparent, or stepparent for reasonable periods of time as the employee s attendance may be necessary as required by Minnesota law. Sick Leave pay shall be approved only upon submission of a signed request upon the authorized sick leave pay request form available at the School District office. 7.3 Bereavement Leave Bereavement Leave, without the loss of pay, shall be granted for the death of immediate family members. The immediate family shall include spouse, child, parent, grandparent, grandchild, sister, brother, parent-in-law, daughter-in-law and son-in-law of the Director. Bereavement Leave shall also be granted for a period of up to three (3) days depending upon the distance to travel, for the death of the Director s sister-in-law, brother-in-law, aunt, uncle, niece, nephew or cousin or the Director s spouse's grandparent, sister, brother, sister-in-law, brother-in-law, aunt, uncle, niece, nephew or cousin. If the distance to travel is greater than five hundred (500) miles one (1) way, or if the Superintendent deems the circumstances merit, a fourth (4th) day will be granted. One (1) day per year may be used to attend the funeral of a close friend. The Superintendent or designee may approve Bereavement Leave under other circumstances. Bereavement Leave allowed shall be deducted from the accrued sick leave days earned by the Director. 7.4 Emergency Leave A full-time Director will be granted two (2) days of leave, each fiscal year, for emergency business of an urgent nature. Emergency Leave pay shall be approved 10
15 only upon submission of a signed request upon the authorized request form available at the School District Office. The request must be made to the Superintendent and receive approval prior to the day the leave is taken. Unused Emergency Leave shall accrue to a maximum of ten (10) days. Upon termination of employment, the Director shall be entitled to payment for any unused, nonforfeited Emergency Leave days accrued and earned pursuant to the provisions of this section. 7.5 Personal Leave A full-time Director will be granted three (3) days of Personal Leave each fiscal year. Personal Leave pay shall be approved only upon submission of a signed request upon the authorized request form available at the School District office. The request must be made to the Superintendent and receive approval prior to the day the leave is taken. Unused Personal Leave shall accrue to a maximum of ten (10) days. Upon termination of employment, the Director shall be entitled to payment for any unused, non-forfeited Personal Leave days accrued and earned pursuant to the provisions of this section. 7.6 Compensation Leave Directors will be granted five (5) days Compensation Leave, each fiscal year, for all additional hours and/or days worked beyond their normal work schedule, regardless of the number of additional hours and/or days the Director worked beyond their normal work schedule. Compensation Leave is to be considered full and complete payment for all additional hours and/or days worked beyond the Director s normal work schedule. Upon termination of employment, the Director shall be entitled to payment for any unused, non-forfeited Compensation Leave days accrued and earned pursuant to the provisions of this section. 7.7 Maternity Leave Directors may be granted leaves of absence with or without pay and fringe benefits, according to School Board policy and state and federal law, with the approval of the School Board. A Director shall notify the Superintendent in writing no later than the end of the fourth (4th) month of pregnancy, and also at that time, provide a physician's written statement indicating the estimated date of delivery of the child. The Director may submit a written request to the Superintendent for a Maternity Leave including commencement date and return date, or if the Director so elects, a written resignation pursuant to the dates recommended by the Superintendent. The effective beginning date of the leave and its duration shall be submitted by 11
16 the Superintendent to the School Board for its action. In recommending the date of commencement and duration of the leave, the Superintendent shall review each case on its individual merits. Failure of the Director to return pursuant to the date determined without validated medical reason shall constitute grounds for termination of employment in the School District. An employee on Maternity Leave is eligible to participate in group insurance programs, if permitted under the insurance policy provisions, but shall pay the entire premium for such programs as she wishes to retain, commencing with the exhaustion of paid time off and the expiration of the applicable FMLA period. The right to continue participation in such group insurance programs, if the employee does not return to the School District, is subject to federal and state laws. Any Maternity Leave of absence shall in accordance with the Districts policy related to the use of sick or vacation pay Medical Leave A Director who has completed their probationary period and who is unable to perform their duties because of illness or injury and who has exhausted all sick leave credit available, or has become eligible for long-term disability compensation may, upon request, be granted a Medical Leave of absence without pay for up to twelve (12) months. This leave may be renewed at the discretion of the School Board. A request for a Medical Leave of absence or renewal thereof under this section shall be accompanied by a physician s written statement outlining the condition of health and estimated time at which the Director is expected to be able to assume responsibilities. 7.9 Jury Duty A Director called for Jury Duty shall be granted leave with regular pay less the amount paid to them as Jury Duty pay. The Director shall submit a request for leave with pay indicating the amount of pay earned while on Jury Duty. The difference between the regular pay and the Jury Duty pay will be paid to the Director at the next regular pay period. A Director, upon being called for such Jury Duty, is expected to inform their supervisor as soon as notice is received. 12
17 When relieved from Jury Duty during the day, the Director is to return to their place of work for the remainder of the regular shift for that day Other Leaves of Absence Directors may be granted leaves of absence with or without pay and fringe benefits, according to School Board policy and state and federal law, with the approval of the School Board. Commencing with the beginning of the leave, a Director who has been granted a leave of absence is eligible to participate in group insurance programs if permitted under the insurance policy provisions. The Director shall pay the entire premium for such programs as the Director wishes to retain. The right to continue participation in such group insurance programs will terminate if the Director does not return to the School District Request Restrictions Directors must make written requests for all leaves, in accordance with School District procedures, to receive prior approval from the Superintendent of Schools or their designee. Requests must be made at least three (3) work days in advance, if possible, for Vacation, Undesignated Holidays, Emergency Leave, Personal Leave and Compensation Leave. Vacation, Undesignated Holidays, Emergency Leave, Personal Leave, and Compensation Leave will be granted based upon the best needs for the operation of the Director s department and the School District Carry Over Other Paid Leaves All remaining Undesignated Holidays must be used during the fiscal year that it was provided and cannot be carried-over from one fiscal year to the next fiscal year. Any unused Undesignated Holidays not used by June 30 th in a fiscal year will be forfeited by the Director. There will be no direct payment for Undesignated Holidays that are not used. All Holidays, Emergency Leave, Personal Leave and Compensation Leave will be pro rated for part-time and newly employed Directors starting employment after July 1 st in a fiscal year (B) MATCHING RETIREMENT PLAN 8.1 Purpose The 403(B) Matching Retirement Plan provides a means for Directors to receive early retirement benefit money prior to actually retiring. Through this program, eligible Directors are encouraged to take greater control of their retirement by saving for retirement with the incentive of using pretax dollars and a matching contribution by the School District. Participants can invest in a variety of fund 13
18 options and the earnings are tax deferred until the time of withdrawal. Earlier investment with participation by the School District allows an opportunity for Directors to plan an earlier retirement than would be available to them than by relying solely on Teachers Retirement Association (TRA), Old-Age, Survivors and Disability Insurance (OASDI) and the Federal Insurance Contributions Act (FICA). 8.2 Eligibility A Director shall be eligible to participate in this 403(B) Matching Retirement Plan, pursuant to Minnesota Statute Subd For the purposes of Section 8.0 and to determine the amount of the School District's contributions, a full-time Director is someone who is employed for more than.5 FTE during any particular school year; a part-time Director is someone who is employed.5 FTE or less during any particular school year. Years of service for eligibility, matching contributions, and guaranteed maximum payments are determined as of July 1, 1993, and each July 1 thereafter. 8.3 Definition Of Continuous Employment Continuous employment shall be defined as a period of uninterrupted employment with the School District. A paid leave of absence approved by the School Board shall count towards a Director s service credit. An unpaid leave of absence approved by the School Board shall not sever continuous employment with the School District. 8.4 Matching Contributions The School District will contribute to a plan for each Director as permitted by Minnesota Statute Subd The School District will match the Director s contribution on a dollar for dollar basis to a maximum provided for in Section 8.6; however, the Director may contribute more than the School District's contribution. If the Director contributes less than the maximum amount specified for the School District in Section 8.5, the School District's portion will be equally reduced; however, the maximum payment amount in Section 8.6 will not be affected. The School District's contribution will be made at approximately the same time as the Director s contribution is deducted from the Director s pay check. 8.5 Matching Payment Schedule 14
19 An eligible Director will receive matching funds contributed by the School District each year the Director contributes to the Director s plan. The maximum matching contribution by the School District during any period of July 1 of one year through June 30 of the next year is three thousand one hundred fifty 00/100 dollars ($3,150) for a full-time Director and one thousand and 00/100 dollars ($1,000.00) for a part-time Director. The total accumulated contribution by the School District is subject to the maximum limits in Section Guaranteed Maximum Contribution The School District's obligation for contributions in matching funds shall cease after the School District has contributed a maximum amount equal to 55% percent of the Director s current annual salary in annual contributions according to Section 8.5. A Director who terminates employment with the School District prior to receiving the maximums provided in this section and who does not meet the eligibility requirements for a lump sum payment as set forth in Section is eligible for only the matching payments made by the School District to their 403(B) Matching Retirement Plan (annuity fund) up to the effective date of the Director s termination of employment. The Director is not eligible for any lump sum payments as stated in Section Guaranteed Lump Sum Payment Upon termination of employment from the School District, a Director who has completed fifteen (15) years of continuous full-time employment with the School District or ten (10) years of continuous full-time employment with the School District as an Administrator is guaranteed a lump sum payment of the difference between the total amount of funds contributed by the School District to a 403(B) Matching Retirement Plan (annuity fund) as matching funds on behalf of the Director and one-half (1/2) of the Director s current annual salary as determined on the Director s date of termination of employment. An eligible part-time Director s lump sum payment will be prorated. Directors and Assistant Directors hired by the District after January 1, 2016 will not be eligible for this benefit. The lump sum payment shall be placed in an account established by the District on behalf of the Director in the Minnesota State Retirement System Health Care Savings Plan (MSRS HCSP) within sixty (60) calendar days after termination of employment. The School District s annual contribution into the MSRS HCSP account must not exceed the Internal Revenue Service (IRS) contribution limit. If there is an amount remaining after the limit is reached, the School District will make the 15
20 remaining contribution(s) up to the Internal Revenue Service (IRS) maximum in the following year(s) until all remaining funds have been contributed. 8.7 Discharge Restrictions A Director who is discharged will not be eligible for any additional 403(B) Matching Retirement Plan nor the Guaranteed Maximum Payments (Section 8.6.1). Matching payments made by the School District which are deposited in the discharged Director s account at the time of the discharge are the property of the Director. 8.8 Benefits in the Event of the Death of a Director In the event of the death of a Director, who has met the eligibility requirements of Section 8.6.1, the deceased Director s estate will be entitled to the same benefit as though the Director had terminated employment. The benefit will be based upon the Director s current annual salary as determined on the Director s date of death. All lump sum payments will be made in January following the Director s death. 8.9 State and Federal Requirements It is the responsibility of the Director to qualify within state and federal laws and regulations governing the 403(B) Matching Retirement Plan. In no event will the School District be obligated to contribute any amounts greater than authorized by Minnesota Statutes Subd , , and other applicable statutes. It is understood that the School District's only obligation is to make the specified contributions and no claim shall be made against the School District as a result of this 403(B) Matching Retirement Plan. 9.0 SECTION 105 PLAN 9.1 Purpose The Section 105 Medical Savings Plan provides each Director an account with money contributed by the School District. The intent of the program is for the money to remain in the fund during the Director s career and eventually be used, by the Director for reimbursement of post-employment qualified health expenses.. The plan also allows the use of the money to pay for immediate medical needs. Planning and the proper use of the School District's Section 125 Flexible Benefits Program, would also be another financial approach to meet immediate medical needs. School District Contributions to a Section 105/Health Reimbursement 16
21 Arrangement (HRA) will sunset effective December 31, Contribution The School District will annually contribute one thousand and 00/100 dollars ($1,000.00) per Director and a pro-rata portion for part-time Directors to an Internal Revenue Code Section 105 plan. 9.3 Balance Roll Over Should the IRS rule that such plans may not "roll over" the account balance from one year to the next, or should such "roll overs" be subject to income tax, or should restrictions otherwise not acceptable to one of the parties be promulgated by regulations, the parties will meet to mutually determine how the benefit will be extended to Directors. No plan shall be agreed to which denies the Directors the full benefit of the School District contribution. 9.4 Interest Earned on Funds The parties agree that any interest earned by these funds shall remain with the School District to pay administrative costs. 9.5 Transfer to Minnesota State Retirement System Health Care Savings Plan Upon resignation, the School District will contribute in one (1) lump sum payment to the Minnesota State Retirement System Health Care Savings Plan(MSRS HCSP) and amount that is equal to the employee s unused balance. The payment will be made within sixty (60) calendar days of the Director s School Board approved resignation date. 9.6 Benefits in the Event of the Death of a Director In the event of the death of a Director who has funds remaining in their Section 105 Plan account at the time of their death, the funds cannot be deposited into the MSRS HCPS. Instead the Section 105/HRA Plan Document will stipulate the allowable payment of remaining funds. 9.7 Responsibility Qualifications In no event will the School District be obligated to pay any amounts greater than authorized by applicable state statutes or regulations or federal laws or regulations. It is understood that the School District s only obligation is to make the specified payment on behalf of the Director to the appropriate fund and no claim shall be made against the School District as a result of the Minnesota State Retirement System Health Care Savings Plan. 17
22 10.0 MINNESOTA STATE RETIREMENT SYSTEM HEALTH CARE SAVINGS PLAN 10.1 Purpose The Minnesota State Retirement System Health Care Savings Plan provides each Director an account with money contributed by the School District. The intent of the program is for the money to remain in the fund during the Director s career and eventually be used, by the Director, to pay for the cost of health and/or dental insurance premiums during retirement. The plan originally became effective July 1, Benefit Amount Effective January 1, 2014, the School District will, on or about July 1 st of each contract year contribute one thousand three hundred and 00/100 dollars ($ ) ) for each full-time Director and a pro-rata portion for part-time Directors to an account established by each Director in the Minnesota State Retirement System Health Care Savings Plan (MSRS HCSP) Restrictions Should the Internal Revenue Service (IRS) and/or the Minnesota Department of Revenue rule that all or part of this contribution by the School District and/or this plan is in violation of state or federal laws, rules, or regulations, or should restrictions to the contribution or the plan be unacceptable to one of the parties, the parties will meet to mutually determine how the benefit will be extended to Directors. No plan shall be agreed to which denies the Directors the full benefit of the School District contribution COMPENSATION FOR UNUSED SICK LEAVE 11.1 Purpose Compensation for Unused Sick Leave is a severance pay program which allows eligible Directors to save their sick leave and if eligible, receive severance pay for the accrued sick days upon retirement to be used for the reimbursement of postemployment qualified health expenses after termination of employment. Directors and Assistant Directors hired by the District after January 1, 2016 will not be eligible for this benefit 18
23 11.2 Eligibility Upon termination of employment from the School District, a Director who has completed fifteen (15) years of continuous full-time employment with the School District, ten (10) years or five (5) years of continuous full-time employment with the School District as an Administrator shall be eligible for compensation for unused sick leave as defined in 11.9 An eligible part-time Director s compensation for unused sick leave will be prorated Definition of Continuous Employment Continuous employment shall be defined as a period of uninterrupted employment with the School District. A paid leave of absence approved by the School Board shall count towards a Director s service credit. An unpaid leave of absence approved by the School Board shall not sever continuous employment with the School District Discharge Restrictions Compensation for unused sick leave shall not be granted to any Director who is discharged by the School District Amount of Unused Sick Leave Days Credit A Director shall receive payment for all unused sick leave that they have in their personal accumulated sick leave account on the effective date of their termination up to a maximum total of two hundred sixty (260) days Sick Leave Bank Days Sick Leave Bank days shall not be credited to a Director s personal accumulated sick leave account for purposes of payments under Section 12.0 Compensation for Unused Sick Leave Contributions to Other Accounts Sick leave days that the Director has contributed to a Sick Leave Bank or to other accounts shall not be credited back to a Director s personal accumulated sick leave account for purposes of payments under Section 12.0 Compensation for Unused Sick Leave Contributions from Other Accounts A Director shall not receive compensation for sick leave days that a Director may have had contributed to their personal accumulated sick leave account from other 19
24 sources Rate of Compensation The rate of compensation for Directors with fifteen (15) years of continuous fulltime employment with the School District or ten (10) years of full-time employment as an Administrator will be two hundred fifty and 00/100 dollars ($250.00) for each unused sick leave day in their personal accumulated sick leave account. The rate of compensation Directors with between five (5) and ten (10) years of full-time employment as an Administrator will be one hundred fifty and 00/100 dollars ($150.00) for each unused sick leave day in the personal accumulated sick leave account Payment Upon resignation, the balance of a Director's Unused Sick Leave and Personal Leave Account will be converted to a defined benefit by dividing the balance of the Account by the single monthly premium of the health plan in effect at the time of resignation, adjusted for inflation, to provide a specified number of months of single health insurance coverage in the District s plan. Such plan will be converted to the District Medicare Supplement plan at the age of Medicare eligibility. Upon resignation, the balance of the Director s Unused Sick Leave Account will be deposited in one (1) lump sum payment to a qualifying medical premium only Health Savings Account (HSA). The payment will be made within sixty (60) calendar days of the Director s School Board approved resignation date. Directors and/or Assistant Directors who retire prior to June 30, 2016 may elect to have the lump sum payment divided equally between a qualified medical premium only HSA and the MSRS HCSP Benefits in the Event of the Death of a Director In the event of the death of a Director, who has met the eligibility requirements of Section 12.2, the deceased Director s estate will be entitled to the same benefit as though the Director had terminated employment. A payment will be made to the estate of the Director State and Federal Requirements It is the responsibility of the Director and/or the School District, whomever it is deemed appropriate, to adhere to state and/or federal laws or regulations that may govern the payments of unused sick leave. 20
25 12.0 ADMINISTRATIVE IMPROVEMENT PLAN 12.1 Benefit Directors will be allowed up to a maximum of one thousand five hundred and 00/100 dollars ($1,500.00), per school year, for the purchase of equipment, materials, services, and supplies that are used. Effective July 1, 2008, Directors will be allowed up to a maximum of one thousand five hundred and 00/100 dollars ($1,500.00), per school year for the pursuit of professional improvement as approved by the Superintendent. The funds can be used for the tuition of college/university courses and other seminars and workshops of the Director s choice Restrictions Credits earned at college/university courses and other seminars and workshops that are paid for under Section 13.0 will not be eligible for use in any salary or other compensation method paid to a Director by the School District Payments Payments will be made by the School District to the vendor or the Director upon submission to the School District of a copy of the original receipt indicating payment Balance Carry Over Directors shall be allowed to carry over any unspent administrative improvement plan dollars for two (2) contract years. This may be done by a written request to the Superintendent by June 30 th of the contract year. However, no more than three thousand and 00/100 dollars ($3,000) may be carried over from year to year. Any amount that is carried over in excess of three thousand and 00/100 dollars ($3,000.00) shall be forfeited PROFESSIONAL DUES The School District shall contribute up to a combined maximum total of one thousand and 00/100 dollars ($1,000.00) per Director, each school year, for the purpose of paying the cost of membership in one (1) state association, one (1) national association, and one (1) additional association that is relative to their position. All organizations are to be jointly selected by the Directors and the Superintendent. Surplus funds cannot be applied to additional memberships or carried over to another school year. Additional costs will be paid for by the Director. Payments will be made by 21
26 the School District to the association upon submission of an invoice from the association to the School District AUTOMOBILE ALLOWANCE Directors will be paid actual mileage at the rate allowed by the Internal Revenue Service for business use of the Director s private automobile PERFORMANCE PAY Directors will be paid at a minimum the salary as indicated in Section 20.0 (Salary Schedule. For full-time Directors only, the Superintendent or designee(s) in his/her sole discretion may approve an additional two and one-quarter percent (2.25%) of salary as Performance Pay. Performance Pay shall either be granted or denied in its total amount; partial Performance Pay shall not be granted. The payment of Performance Pay shall be totally within the discretion of the Superintendent or designee(s). The granting of Performance Pay shall occur on or after May 1 st of the respective year but before June 30 th of the respective year. Performance Pay is in addition to the Director s annual salary and shall not be included in the following base year salary CONTINUATION OF BENEFITS AFTER TERMINATION OF EMPLOYMENT The benefits agreed to in this Director s Benefit Handbook cannot be changed, traded, or negotiated away in future agreements between the School Board and the Directors to the detriment of a Director who has left employment without the Director s written consent or the written consent of the Director s legal guardian or estate, whichever is applicable TERMINATION OF EMPLOYMENT CONTRACT The employment of the Director may be terminated at any time upon thirty (30) calendar day notice by the School Board for any reason deemed to be in the best interest of the School District as determined in its sole discretion by the School Board OTHER PROVISIONS Directors who are contracted to work less than twelve (12) months and/or less than eight (8) hours per workday, which includes all paid leave such as vacation and holidays, will receive benefits on a pro-rata basis 19.0 SALARY SCHEDULE 22
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