Employee Manual 2025 - Flipbook - Page 56
Year 1 – 20%
Year 2 – 40%
Year 3 – 60%
Year 4 – 80 %
Year 5 – 100%
All members shall have the option of making voluntary individual pre-tax contributions
between 0 – 20% into their respective 401a retirement plan with total contributions in
compliance with IRS rules. All new hires effective July 1, 2014 will be provided with a Health
Care Savings Program Account (HCSP) in lieu of full medical benefits upon retirement. The
HCSP shall be 5% of base wages until year 4. Upon starting year 4, the contribution amount
will change to 5% of gross wages. It shall be paid per pay period and managed by the
employee. It will be based on the following vesting period:
• 4 Years – 50%
• 7 Years – 100%
Effective July 1, 2014, any retirement benefits in this article provided to the spouse of the
employee, shall be limited solely to the employee’s spouse at the time of retirement. A spouse who
is divorced from a retiree, or who remarries after a retiree’s death, shall only be eligible for those
benefits which the spouse would be permitted to obtain, by providing the City of Plymouth with
the full premium costs, under Federal laws regarding extended health care coverage.
In the event, an active full-time employee passes away while still employed and have met all their
retirement requirements (i.e. years of services, vesting, etc.), they will be considered retired at the
time of death as if they officially retired. Further, if employee receives a Health Care Savings Plan
(HCSP) provided by the city, in lieu of retiree health care coverage, they will be considered fully
vested in the HCSP at the time of death. Lastly, surviving dependents will be provided medical
coverage (Health, Vision, Dental, Prescription) for currently covered spouse/dependents at time of
death – 6 Months. Collective Bargaining agreements may have provisions that supersede this
section and should be consulted for applicable differences for covered employees.
In all cases, insurance benefits will not commence until the employee begins receiving retirement
benefits through the Municipal Employees Retirement System or ICMA Retirement Trust. Said
insurance benefits will be coordinated with benefits received through Medicare or other sources.
For any employee that is eligible for retiree health benefits, and retirees after July 5, 2022, they will
not be required to begin receiving retirement benefits through Municipal Employees Retirement
System or ICMA Retirement Trust to be eligible for retiree health benefits.
The City reserves the right to modify the health insurance coverage provided to retirees at any
time.
Social Security:
Most employees of the City of Plymouth are covered by Social Security, a federally administered
plan for supplemental old age pensions and survivor's insurance. A percentage deduction is made
City of Plymouth Employee manual - Page 56 – May 2025
