NONREPRESENTED EMPLOYEE BENEFITS SUMMARY

This is a summary of benefits and is not meant to be all inclusive. Please refer to City policies and plan booklets for details.

WORK HOURS
The normal work week is five (5) consecutive days of not more than eight (8) hours per day, exclusive of lunch period. Where appropriate, alternative work schedules may be established, providing that not more than forty hours are scheduled per week.

OVERTIME/COMPENSATORY TIME
All overtime must be specifically authorized by the employee's supervisor in advance. Overtime pay is calculated at 1½ times the employee's regular rate of pay for all time worked in excess of 40 hours per week. Compensatory time may be granted, and is encouraged, in lieu of overtime pay.

SALARY INCREASES
Upon successful completion of an annual performance evaluation and annually thereafter, an employee may receive a salary increase based on merit or performance. However, no employee may exceed the maximum of their salary range.

COST OF LIVING ADJUSTMENT
The City Council determines a cost of living adjustment (COLA) annually during the budget process. The COLA is based on factors such as: Consumer Price Index, market trends, Implicit Price Deflator, and the City's financial situation.

HOLIDAYS

Employees accrue one floating holiday on their anniversary date, which must be used within the following 12 month period.

COMBINATION LEAVE
Combination leave is a benefit granted to regular employees to continue normal compensation during approved absences. Approved absences include, but are not limited to, short term sick leave and vacation leave. Combination leave may be used after 60 days of employment. Leave may be accumulated for succeeding years; however, the maximum accrual shall not exceed two times the amount of the employee's current accrual rate.

Accrual Rate:

• During the 1^st year 120 hours of leave per year
• After the 1^st thru 2^nd year 128 hours of leave per year
• After the 2^nd thru 4^th year 136 hours of leave per year
• After the 4^th thru 9^th year 152 hours of leave per year
• After the 9^th thru 14^th year 184 hours of leave per year
• After the 14^th thru 20^th year 216 hours of leave per year
• After the 20^th thru 29^th year 232 hours of leave per year
• After the 29^th year 240 hours of leave per year

MAJOR MEDICAL LEAVE
Major medical leave is a benefit granted to regular employees to continue normal compensation during absences exceeding the length of an employee's regularly scheduled work day, provided combination leave is used for the first part of the absence. Qualifying purposes include personal illness or a family member's illness requiring the employee's attendance. Major medical leave is accrued at 8 days per year. It is available for use after 90 days of employment.

MILITARY LEAVE
Employees who are members of any federal military reserve unit or the Washington National Guard will receive up to twenty-one working days of paid leave during each year beginning October 1 and ending September 30, while engaged in active training duty or active duty.

JURY DUTY LEAVE
Employees will be paid their regular compensation while serving on jury duty provided they forfeit the juror's daily stipend to the City.

RETIREMENT PLAN
Employees and the City make contributions to an International City Management Association - Retirement Corporation (ICMA-RC) 401A plan. The employee contributes 5.08% and the City contributes 7.62% of the employee's salary. The employee chooses how contributions are invested. Investment choices range from conservative (low risk) to aggressive (high risk) opportunities. The 401A plan has a 20% per year vesting schedule. Prior service credit in Washington State Department of Retirement Systems plans will be credited towards the vesting schedule.

Under Social Security's Government Pension Offset, any Social Security spouse's or widow's or widower's benefits you may be entitled to will be reduced based on any pension you receive from the City's retirement plan.

SOCIAL SECURITY REPLACEMENT
In lieu of Social Security, the City provides an alternative plan through the ICMA Retirement Corporation. The employee contributes 6.20% and the City contributes 4.77% of the employee's salary. The employee's investment choices range from conservative (low risk) to aggressive (high risk) opportunities. Employees are immediately 100% vested in the plan.

Under Social Security's Windfall Elimination Provision, any Social Security retirement or disability benefits you may be entitled to will be reduced based on any pension you receive from this replacement plan.

VOLUNTARY 457 DEFERRED COMPENSATION PLAN
Participation in a 457 deferred compensation plan is available to all employees through payroll deduction. This is an optional investment program offered through the ICMA Retirement Corporation or Washington Department of Retirement Systems. The City matches an employee's contribution up to 2% of the employee's base monthly pay rate. Investment choices are similar to 401A options.

VOLUNTARY SECTION 125 FLEXIBLE SPENDING ACCOUNT
The Section 125 Flexible Spending Account is an optional tax savings program which is offered to employees annually. It allows employees to reduce taxable income by using part of their salary on a pretax basis to pay for one or more of the following qualified benefits: medical and dental insurance premiums, out of pocket expenses for health care, and dependent care costs.

MEDICAL INSURANCE
Two medical plans are offered to employees and dependents through the Association of Washington Cities (AWC): the AWC HealthFirst plan and Group Health Cooperative of Puget Sound $10 Copay plan. The City pays 90% of the premium, and the employee pays 10%.

Regular part-time employees are also eligible for medical insurance and the City pays 50% of the employee's premium. The employee is responsible for the full cost of dependents' premiums.

VISION INSURANCE
A separate vision plan provides for annual eye examinations for regular full-time employees and dependents. A $25 deductible benefit is also provided for lenses, frames and contact lenses.

DENTAL INSURANCE
Washington Dental Service (WDS) insurance is provided for full-time employees through AWC. WDS Plan E covers the majority of employees, while employees of the Finance & Information Systems Department and the Parks & Recreation Department are covered by WDS Plan F. The City pays the entire Plan E premium cost for employees and dependents. Plan F employees pay a minimal monthly premium. These are incentive based plans - 70% to 100% of Class I and Class II benefits (routine exams, basic cleaning, x-rays, fillings, etc.) are covered. Class III benefits (crowns, inlays and onlays) are paid at 50% for Plan E, and at the incentive level for Plan F. The dental plan pays a maximum of $2,000 (Plan E) or $1,500 (Plan F) per individual annually for covered benefits per incentive period (a calendar year). A separate orthodontia plan provides a one time orthodontia benefit of $1,000 for eligible children.

EMPLOYEE ASSISTANCE PROGRAM
The Employee Assistance Program (EAP) is paid for by the City, and is a voluntary, confidential resource available to Regence Blue Shield insured employees, dependents and household members. The EAP provides professional assistance in addressing a variety of concerns ranging from substance abuse to family counseling.

LIFE & LONG TERM DISABILITY INSURANCE
The City provides the following insurance coverage for employees through Standard Insurance (a copy of each plan certificate will be provided during orientation):

SURVIVOR INCOME LIFE INSURANCE
A monthly survivor income benefit is paid to an employee's eligible spouse and children upon the employee's death. Prior to any reduction for Social Security survivor's benefits, a benefit amount equal to 30% of the employee's insured earnings is paid to the spouse or children, and 60% is paid if both spouse and children survive.

BASIC LIFE INSURANCE/ACCIDENTAL DEATH & DISMEMBERMENT
A benefit equal to the employee's annual salary rounded up to the next thousand to a maximum of $100,000.

LONG TERM DISABILITY (LTD)
Effective after 90 days of continuous disability. Maximum amount of LTD benefit is 60% of earnings or $5,000 per month, whichever is less.

VOLUNTARY SUPPLEMENTAL LIFE INSURANCE
Employees may elect to apply for $30,000 to $300,000 in supplemental life insurance coverage. Spouses may be insured for an amount up to 50% of the employee's coverage. Premiums are paid entirely by the employee.

VOLUNTARY SHORT TERM DISABILITY (STD)
Short term disability insurance provides benefit payments to help replace lost income when an employee is disabled due to a non-occupational accident or illness. Pregnancy or its complications are covered provided enrollment in STD insurance is prior to conception. Benefits are payable for a maximum of 13 weeks. This benefit is offered to employees at the time of hire and annually thereafter.

ADDITIONAL VOLUNTARY INSURANCE PLANS
Additional insurance plans are available to employees through AFLAC, such as accident/disability, cancer, STD, dental and hospital intensive care.