CITY OF ROCKVILLE SUMMARY OF EMPLOYEE BENEFITS

The following is a brief summary of the major benefits provided to new full-time, regular employees. Part-time, regular employees working more than 20 hours per week may be entitled to these benefits on a pro-rated basis in accordance with Rockville City Laws and personnel policies and procedures. Certain designated seasonal employees (working 9 months, 20 hours per week) are entitled to a limited benefits package. With the exception of Sick and Safe Leave, benefits are not available to temporary employees. Details about benefits and costs for full-time and part-time employees are available from the Human Resources Department.

Group Insurance Plans

Health Insurance Participation is available in one of six health insurance plans, with Aetna or Kaiser Permanente (listed below). The City contributes toward the premium for each plan. Start date of coverage is the date of hire or the first of the month following date of hire.

Visit www.aetna.com to locate participating providers in the Open Access Plus network. Visit www.kp.org to locate participating providers in the Maryland/Virginia/Washington DC area.

➢ Aetna Open Access Plus $30/$40 ➢ Aetna Open Access Plus $30/$40 90%/Deductible ➢ Aetna Open Access Plus Health Reimbursement Account ➢ Aetna Open Access Plus Point of Service ➢ Kaiser Permanente HMO ➢ Kaiser Permanente Point of Service

Dental Insurance Participation is available in one of two dental insurance plans with Guardian. Visit www.guardiananytime.com to search for providers within the DentalGuard Preferred network. The City contributes a portion of the cost of each employee's dental coverage. If dental coverage is waived, the City's contribution is reallocated toward the employee's health insurance cost. Start date of coverage is the first of the month following date of hire.

Vision Insurance City of Rockville offers a voluntary vision plan with VSP. Visit www.vsp.com to locate a participating provider. Members have a $130 allowance (in-network) for lenses/frames or contacts. For exams, frames, lenses, or contact lenses obtained out-of-network, members will be reimbursed for a portion of their expenses.

Group Life Insurance The City provides basic life insurance, through MetLife, equal to one and one-half times an employee's base salary, to a maximum benefit of $250,000. The City pays the premium for this benefit.

Employees have the option of purchasing supplemental life insurance coverage for themselves and their spouse and/or dependent child(ren). New employees electing coverage within their first 30 days will not be required to provide evidence of insurability for certain levels of coverage.

Long-Term Disability (LTD) Insurance Employees who have been employed at the City for 12 months will be eligible for LTD insurance coverage. After meeting a 15 calendar day waiting period and exhausting all of their own leave. employees will be eligible to receive leave from the Short-Term Disability Leave Bank. This process allows for continuity of pay during the elimination period.

For approved claims, LTD insurance will pay 60 percent of an employee’s salary, to a maximum monthly benefit of $10,000. Employees may supplement the LTD benefit with their own leave, for up to 9 months of LTD benefits. Between LTD payments and employees’ own leave, an employee may not receive more than 100% of their pay. The benefit for approved LTD claims may continue to Social Security Normal Retirement Age (SSNRA) or for a maximum benefit period (for employees who are age 60 or over), whichever is later.

Retirement Plans

The City's retirement program consists of a defined benefit (pension) portion and a defined contribution (thrift) portion.

Defined Benefit (Pension) Plan The defined benefit portion of the retirement plan is based on a percentage of average annual salary multiplied by length of credited service. Administrative employees are required to contribute 1.0% of their earnings on a pre-tax basis to the plan. Union employees do not contribute to the plan. Normal retirement age is 65 for employees hired on or after July 1, 2011. Vesting occurs after ten (10) years.

Sworn police officers are required to contribute 8.5 percent of their earnings on a pre-tax basis to the defined benefit plan. Normal retirement for police officers is permitted at the earlier of age 60 or after 25 years of service, regardless of age. Benefits at retirement are based on a percentage of final average earnings multiplied by length of credited service.

Defined Contribution (Thrift) Plan Administrative and Union employees must contribute between one (1) and five (5) percent of their base salary, on a pre-tax basis, to the defined contribution plan. The deferral election is made at the time of employment and may not be changed. Therefore, employees are advised to give considerable thought to their decision of what percent to contribute. The City will make a matching contribution of fifty (50) cents for each dollar contributed.

Employees have different investment fund options in which to direct contributions. The investment direction may be changed. Vesting occurs after three (3) years.

Deferred Compensation (457) Plan The deferred compensation plan is an optional plan, which is funded through employee contributions only. The plan makes it possible to defer income and the payment of income taxes on the deferred investment. Employees are eligible to enroll at any time and may change contribution amounts at any time. Employees may defer, on a pre-tax basis, a minimum of $10.00 per pay period up to the current IRS limit. The plan is not meant for short-term savings or investment purposes as monies deferred are generally not available until termination or retirement.

Roth 457 Plan The Roth 457 is an optional plan, funded through employee contributions only. Employees are eligible to enroll at any time and may change contribution amounts at any time. Employees may defer, on a post-tax basis, a minimum of $10.00 per pay period up to the current IRS limit.

Flexible Spending Accounts (FSAs) FSAs allow employees to set money aside on a pre-tax basis for eligible unreimbursed health care, dependent care, and/or commuter expenses. Upon hire and prior to the beginning of each 2 calendar year, employees have the opportunity to estimate the amount of their eligible expenses and have that amount deducted from their pay. Employees avoid paying federal, state, and Social Security taxes on the total amount of their deferral. An employee may use an FSA debit card to pay for eligible expenses, or may pay out of pocket and submit receipts in order to be reimbursed from their account. Below are the 2020 participation limits:

➢ Health care: $300 annual minimum; $2,750 annual maximum ➢ Dependent care: $500 annual minimum; $5,000 annual maximum ➢ Commuter expenses: $270 monthly parking maximum; $270 monthly transit maximum

Additional Benefits

Legal Resources City of Rockville offers a voluntary pre-paid legal plan through Legal Resources. By electing coverage and selecting a participating law firm, many legal services are covered at 100% for employee, spouse, and qualifying dependents. Additional services are covered at a 25% discount off the law firm’s hourly rate. The 25% discount is also available to participating employees’ parents and parents-in-law.

Employee Assistance Program (EAP) The City provides free (up to 6 sessions), confidential counseling, assessment, and referral services to help employees deal with personal problems. Trained, certified employee assistance counselors are available 24 hours a day, 7 days a week. The EAP is also available for family members.

Leave

Annual Leave Annual leave ranges from 16 to 23 days per year depending upon the length of service with the City. Leave may be used as it is accrued with the permission of the employee's supervisor. Annual leave is paid at separation if the employee has completed at least six months of service. An employee normally accrues annual leave in the following manner:

Months of Service Monthly Vacation Accrual in Hours (37.5 hrs/wk)/(40 hrs/wk)

1-24 Months 10.00 / 10.40

25-60 Months 11.53 / 12.40

61-96 Months 13.08 / 14.00

97+ Months 14.23 / 15.20

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Holidays Employees generally receive the following 10 holidays per year.

New Year's Day Election Day Martin Luther King, Jr. Day Veterans' Day Presidents' Day Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day The City also observes all days of general and congressional elections throughout the State of Maryland. This holiday falls on even numbered years. Union employees and certain other employees may receive different holidays in accordance with the terms of a contractual agreement.

Sick and Safe Leave Regular full-time and part-time employees earn leave monthly at the rate of 1.25 days per completed month of service. Seasonal and temporary employees who work at least 24 hours in a pay period accrue leave as it is earned (i.e., 1 hour of leave for every 30 hours worked) but may not use the leave until employed for 106 calendar days.

Social Security Regular employees receive employer contributions to Social Security (also known as FICA). Social Security benefits are available in accordance with Federal law.

Credit Union Employees may participate in the Montgomery County Employees Federal Credit Union, conveniently located at Courthouse Square in Rockville. This credit union also participates in Family Service Center with shared branches available throughout the metropolitan area. Services include savings and checking accounts, loans, payroll deduction, and direct deposit.

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