SECTION 7. EMPLOYEE BENEFITS

7.1 Salary and Pay

A. Salary Scales
All salary scales for City employees are listed in one (1) of three (3) documents: (1) Administrative & Professional Salary Schedule - movement between steps are allowed at the discretion of the Mayor. (2) Non-Union Salary Schedule - movement between steps are at six (6) months intervals (exceptions apply). (3) All other salary amounts are listed in the contractual agreement that covers the position.

B. Payroll Information
Paychecks are issued every Friday morning from the Treasurer's Office. The payroll period runs from Sunday to Saturday. Payroll checks issued on Friday reflect the amount of pay earned during the previous Sunday through Saturday period.

C. Updating Payroll/Personnel Information
Most people experience changes in their personal lives during their working years, ranging from change of name or address to a change in family composition. These changes may require that adjustments be made to your payroll/personnel record in order to increase or decrease insurance coverage, change a designated beneficiary, or to change the number of tax withholding deductions. It is important to you, to your family, and to the City, that you take the responsibility for keeping your record up-to-date with the Supervisor of Benefits in the Human Resources Department. You can e-mail her at MPfifferling@CityofHaverhill.com

7.2 Benefits and Deductions

Particular information on all plans is available through the Supervisor of Benefits located in the Human Resources Department. All City benefit information is available at www.ci.haverhill.ma.us/departments/hr/index.htm

A. Group/Health Insurance
Employees who work twenty (20) hours or more a week are eligible to elect group health, life or dental insurance. The City of Haverhill offers two health coverage plans, and employees are urged to review the plans carefully prior to making a choice.

If an employee does not sign up for the group health, life and dental insurance within the first thirty (30) days of employment, he/she must wait until the annual open enrollment period to join. Open enrollment also offers employees the opportunity to change plans.

Changes in address, number of dependents or marital status should be reported no later than thirty (30) days from the date of the qualifying event.

B. Health Insurance
The City subsidizes seventy-five percent (75%) and the employee pays twenty-five percent (25%) of the Blue Cross Blue Shield Preferred Provider Organization premium rate.

The City subsidizes eighty percent (80%) of any Health Maintenance Organization (HMO) plan and employee contributions are twenty percent (20%) of the premium rate.

As of June 2, 2005 all new employees hired or re-hired after said date shall pay twenty-five percent (25%) of the cost of a Health Maintenance Organization and the City of Haverhill shall pay seventy-five percent (75%), unless otherwise negotiated.

All Administrative & Professional positions shall pay twenty-five percent (25%) of the cost of a Health Maintenance Organization and the City of Haverhill shall pay seventy-five percent (75%), unless otherwise negotiated.

C. Dental Insurance
Two dental plans are offered to eligible City employees where the employee pays the full premium.

D. Disability Income Insurance
A disability income (salary protection) is offered to all full-time employees where the employee pays the full premium.

Offered benefits range between $75.00 and $500.00 per week depending on your current income level. There is at least a 30 day waiting period (self-insuring) period before benefits are paid for total disability due to injury or sickness. Maximum benefit period is 24 months. You can receive up to $5,000 per month in benefit payment (not to exceed 70 percent (70%) of your basic monthly income for up to two (2) full years should you suffer a disabling injury due to an accident.

A medical application is required for completion and subject to the acceptance by the Insurance Carrier. Once approved for coverage, your payroll authorization will be submitted by the Insurance Carrier's Agent to the City of Haverhill to begin deductions. Coverage begins on the first deduction date.

If you leave the employ of the City of Haverhill and continue full-time employment, a conversion can be executed through the Insurance Carrier.

This disability plan is administered by ISI New England a division of Insurance Specialists, LLC. For more information you can contact Nathan Gardner directly at 1-888-ISI-1959

E. Life Insurance
Basic Life Insurance
A group life insurance policy on the life of the employee is offered to all active employees. The City shares fifty (50%) of the premium. Employees are covered by a $5,000 Life Insurance policy and are allowed to carry this policy after retirement.

Optional Life
In addition, an active employee has the option of voluntarily selecting an optional insurance which is age banded. The premium is determined by age and amount of coverage desired. You may purchase one times your salary rounded down to the nearest multiple of $5,000, to a maximum of $75,000. This insurance terminates when you are both retired and aged 75.

Both Spousal coverage of $5,000 and Dependent coverage of $2,000 (up to age 19 or age 25 if a full time student) are offered.

If you leave the employ of the City of Haverhill a conversion can be executed through the Insurance Carrier.

Permanent Life Insurance
The term Life insurance offered has age-banded rates (the rates go up as you get older) has no cash value, your premiums will not accumulate towards a possible future cash value, if you were to leave the city the term life is portable but with much higher rates. The permanent life option is yours to keep at the rates you are offered when your policy is accepted. The permanent life policy has flexible level premiums, guaranteed cash values and guaranteed death benefits.

Cancer Expense Plan
An active city employee can purchase individual or family cancer insurance policies. Benefits are paid based upon “Severity of Illness” as determined by diagnosis and course of treatment with no maximum. If you leave the employ of the City, this policy is portable (you own it) at the same rates as when you were an employee.
F. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985)
By law, the City of Haverhill is required to offer employees and their families a temporary extension on their health coverage (called "Continuation Coverage") at group rates, in certain instances where coverage under the plan would otherwise end such as termination of employment.

G. Medicare and Social Security
As of April 1, 1986, all employees are required to pay the Medicare portion of the Social Security Tax. This deduction of .0145 % of your gross pay allows eligibility for "Part B" of Medicare upon retirement. This does not constitute eligibility for a pension from Social Security. The City of Haverhill matches this contribution. This deduction is made weekly through automatic payroll deductions.

H. Retirement System
All City employees who are considered full-time or permanent part-time are required to join the Retirement System, except for elected City Officials who may voluntarily join the system.

Employees who became members of the Retirement System prior to January 1, 1975 contribute five percent (5%) of their regulation compensation. Employees whose membership commenced from January 1, 1975 to January 1, 1984 must contribute seven percent (7%). Employees whose membership commenced on or after January 1, 1984 must contribute eight percent (8%). Employees whose membership commenced on or after July 1, 1996 must contribute nine percent (9%). As a member of an uncapped system, any employee who joined the retirement system on or after January 1, 1979 and whose current regular compensation is $30,000 or more must contribute an additional two (2%) percent on any regular compensation in excess of $30,000. Any employee who is terminated before becoming eligible to collect a pension will be refunded all contributions within a sixty (60) day period from receipt of the Refund Application provided by the Retirement Board.

Retirement benefits are available in the case of death or incapacity prior to normal retirement. They include provisions for dependent children, widows, and disabled employees. Any employee completing twenty (20) years of service, regardless of age, or who has reached the age of fifty-five (55) with ten (10) years of service, may retire voluntarily. Maximum benefits are eighty (80%) percent of the average salary paid over the highest consecutive three year period of service. In all cases, however, entitlement to benefits, as well as level of benefits, are determined by the provisions of Chapter 32 of the Massachusetts General Laws.

For more specific information contact the Retirement Board at (978) 374-2358 or visit their website at haverhillretirement.org.

Employment Not Covered by Social Security
As an employee of the City of Haverhill your earnings are not covered under Social Security. When you retire, or if you become disabled, you may receive a pension based on earnings from this job. If you do, and you are entitled to a benefit from Social Security based on either your own work or the work of your husband or wife, or a former husband or wife, your pension may affect the amount of the Social Security benefit you receive.

The City of Haverhill has prepared a document which discuses your rights and requires your signature which will be kept on file in your personnel folder in the Human Resources Office.

I. ING Retirement Plan
All employees who work less than twenty (20) hours per week are required to join the ING 457 Deferred Compensation Plan for part-time employees. This ING Plan will provide retirement incomes for all plan participants.

For more specific information, contact the Supervisor of Benefits in the Human Resources Office.

J. Credit Union
All employees of the City of Haverhill are eligible to join the Haverhill Municipal Employees Credit Union. In addition, if eligible, employees may join the Teamsters Credit Union or the Haverhill Fire Department Credit Union. Credit Unions offer employees an opportunity for regular savings through automatic payroll deductions.

Information and forms, including payroll withholding forms, are available at the Human Resources Department or at the respective Credit Union.

For more detailed information regarding the Haverhill Municipal Employees Credit Union, visit their website at www.hmecu.net.

For more detailed information regarding the Haverhill Fire Department Credit Union, visit their website at http://www.havfirecu.org.

K. Deferred Compensation/ING Life Insurance and Annuity
To help you pursue your financial goals, the City of Haverhill is sponsoring a deferred compensation program, and has chosen the ING Life Insurance and Annuity Company as an annuity provider.

Particular information on covered circumstances is available through Terry Finnegan at ING at (781) 768-4806.

L. Direct Deposit
Direct deposit is a secure manner of ensuring that your paychecks are deposited into your checking or savings account each week. Your money will be available in your account on Friday morning. When you meet with the Supervisor of Benefits for new employee orientation, please bring a copy of a cancelled personal check (if the deposit is to be made to your checking account) or a deposit slip from your bank (if the deposit is to made to your savings account). You must also fill out a Direct Deposit Application Form. Processing of the direct deposit application may take a few pay cycles.

M. Allowances
Please refer to your individual contract for eligibility, payment amount and schedules for the following allowances:
Longevity
Clothing Allowance
Tool Allowance
Hazardous Material Pay