Human Resources

This program allows you to postpone receiving a portion of your salary during your working years. Since you do not receive it in your paycheck, you do not have to pay Federal or state taxes on the amount you defer until you receive it.

You do pay FICA (Federal Insurance Contribution Act) taxes i.e., social security taxes.

No. Government employees are regulated under Section 457 of the Internal Revenue Code. Private employers have Section 401(K) programs.

You do pay FICA (Federal Insurance Contribution Act) taxes i.e., social security taxes.

All full-time permanent employees may join the program upon date of hire. Deferrals will begin on the earliest payday following receipt of the enrollment form in the Department of Human Resources based on payroll closing deadlines.

You may contribute up to $13,000 each calendar year. The City requires a minimum of $5.00 each pay period in order to join the program.

This depends on the amount you defer and your own personal tax situation. It is usually at least 20% of the amount you defer.

No. There is no City match.

There are over 25 investment funds available to you. The vendor also sets up different portfolios of funds to assist you. More details about the funds, earnings rates, investment fees and risk factors are available in the brochures.

The City cannot give you investment advice. You must make your own investment decisions.

Yes. You may change your deferral amount (increase, decrease, start or stop) by completing a change form. You may do this each pay period.

You may change your investments directly with the vendor by telephone or Internet. Some restrictions may apply when transferring between funds.

Funds may be withdrawn when you leave City service either upon retirement or service termination. Should you die, your beneficiary will receive the funds.

You do not need to take the money. You may leave it with the City until age 70.

A variety of payment options are available to you and are described fully in the withdrawal package.

You may also transfer the funds tax free to another government employer if that employer has a Section 457 program. You may also transfer the funds tax free to a 401(k) or an IRA.

If you have not had deferrals for two years and your account is under $5,000, you may have your funds while still working. This is a one time only offer. You may rejoin the program at any time.

You will pay the Federal and state taxes upon distribution.

It is extremely difficult to receive your funds while working. An emergency withdrawal may be made for medical reasons or crises such as floods, fire, hurricanes etc. The event must be unforeseen. It must not be a budgetable expense. It must represent a last resort. It must be fully documented.

Funds will not be released for bankruptcy, divorce, unpaid taxes, unpaid rent or mortgage, unpaid utility bills, to purchase or repair a vehicle, loans or credit card bills or routine dental bills.

Yes. The minimum loan amount is $1,000.00 and the maximum is the lesser of $50,000 or ½ of your account at the time of loan request.

You are covered for two times your salary rounded to the highest thousand dollars. In the event of accidental death, you are covered for four times your salary.

The City shares the cost of this program. We are currently on a premium holiday. The deduction is taken the second pay period of each month. Unclassified employees do not pay for this coverage.

All full time permanent employees are covered upon date of hire.

The City joined the State program for life insurance only in 1962. The current carrier for the program is Minnesota Life Insurance Company.

When the City joined the state program, all employees were given the option to waive coverage. The State then mandated all new employees must be enrolled.

There is a section of the Internal Revenue Code (Section 79) that mandates that the value of coverage in excess of $50,000 in taxable income to employees. The taxable amount is based on your coverage and age less any premiums you pay.

Coverage continues upon early or normal retirement and ceases for service terminations. You may convert your policy upon service termination.

Once you retire, the coverage reduces 25% each year until it is 25% of the pre-retirement amount. This takes three years. You do not have to pay for the coverage once you retire.

Yes. You may buy additional coverage for you, your spouse and your child(ren).

The amount and cost of coverage is outlined in a brochure available from the Department of Human Resources.

You must buy this within 30 days of date of hire. You may add a spouse to your optional policy within 30 days of marriage. You may add a newborn within 30 days of the date of birth.

If you do not purchase coverage as a new employee you may later request the coverage. Each family member to be covered must complete a health status declaration. Based on this information, Minnesota Life will decide whether or not to issue a policy.

The additional coverage ceases upon service termination (you may convert) and upon retirement. You may continue coverage after retirement by applying within 30 days with the VRS.

If you do not receive a paycheck, you are responsible for paying your life insurance premiums by check or money order payable to the City of Richmond. Your payment needs to be sent to the Department of Human Resources. Payment is due on the payday in which a deduction would normally process. Failure to remit premiums will result in cancellation of coverage.

No. This is term insurance. Your beneficiary receives the "face value" of the policy i.e., the amount of coverage in force. It is group insurance and the State is the master policyholder.

If you are hired between the first and fifteenth of the month, coverage begins the first of the following month.

If you are hired the sixteenth through the end of the month, coverage begins the first of the second following month.

The Department of Human Resources must have the forms to the vendor within 30 days of your date of hire. Otherwise, you must wait for an open enrollment season to join the program.

No. If you wish to have dental coverage you must purchase a separate plan.

A rate table is available from the Department of Human Resources or your departmental payroll personnel. Deductions are processed the first and second pay period of each month. Deductions are on a pre-tax basis.

Yes. The City contribution is shown on the rate table.

You will receive an identification card from the vendor in about 15 days after the Department of Human Resources sends your enrollment/change form.

Each family member receives a card.

You need to check your identification card to ensure that your social security number, name and physician are shown correctly.

The card also shows co-payments for frequently used services, the vendor's member services number, your group number and the address needed to file claims.

You should carry this card with you at all times.

Yes. Just call the member services number on your identification card. Ask the vendor what the effective date of change is. Do not visit your new physician until the change is effective.

A directory of network doctors, hospitals, pharmacies and other services is available in the Department of Human Resources. This directory is printed twice a year. It is best to call the doctor or facility to ensure they are still in the network.

You may add a spouse within 30 days of marriage. You may add a newborn within 30 days of birth.

If your spouse loses employment, you may add your spouse (and eligible dependents covered by your spouse) within 30 days of the loss of coverage.

You may also add a dependent within 30 days of adoption or receiving custody.

If you do not add your spouse/dependents within 30 days, you may do so during an open enrollment season.

The City covers full time permanent employees and permanent part time employees working 20 or more hours a week. We cover spouses and unmarried dependent children through age 25.

Yes. You may cancel coverage for you or disenroll a spouse or dependent. The change form must be received by the Department of Human Resources by the 15th of the month to cancel coverage for the first of the following month. You may re-enroll during the open enrollment season.

You must cancel coverage for a spouse upon divorce.

You must cancel coverage if a dependent is no longer eligible.

If you do not receive a paycheck, you are responsible for paying your health care premiums by check or money order payable to the City of Richmond. Your payment needs to be sent to the Department of Human Resources. Payment is due on the payday in which a deduction would normally process. Failure to remit premiums will result in cancellation of coverage.

As long as you pay your premiums, the City will continue to contribute its share of the cost.

The Consolidate Omnibus Budget Reconciliation Act (COBRA) allows former employees, their spouse and dependents to continue coverage with the City upon service termination, divorce, death or loss of dependent status. You receive a notice when you first enroll in health care and when an event occurs. Your spouse and dependents will also receive a notice upon certain events such as divorce or death.

COBRA also applies to your dental coverage.

The City offers a dental health maintenance organization (DHMO) and an indemnity program.

The DHMO has a network of dentists and specialists and you must use the network. Each family member may select a different dentist.

The indemnity program allows you to use any licensed dentist. There is a preferred provider group as well. If you elect a preferred provider, your co-payments are reduced.

The DHMO has flat dollar co-payments and a 25% discount with network specialists.

The indemnity has percentage co-payments based on the services. If you do not use a preferred provider, you may have to file your own claims. Some dentists require that you make payment and then file a claim for reimbursement. The Department of Human Resources has claim forms available.

If you are hired between the first and the fifteenth of the month, coverage begins the first of the second following month.

If you are hired between the sixteenth and the end of the month, coverage begins the first of the third following month.

The Department of Human Resources must send the forms to the vendor within 30 days of your date of hire. Otherwise, you must wait until an open enrollment season to join the plan.

The Department of Human Resources and your department payroll personnel have a rate table available.

The City does not contribute to this program.

This is a prepaid program. We start deductions a month prior to your coverage effective date. Deductions are on a pre-tax basis.

You will receive an identification card from the vendor about 15 days after the Department of Human Resources sends your enrollment/change form.

Yes. Just call the member services number on your identification card. Ask the vendor what the effective date of change is. Do not visit your new dentist until the change is effective.

The City covers full time permanent employees and permanent part time employees working 20 or more hours a week. We cover spouses and unmarried dependent children under age 20 and unmarried children who are full time students to age 25.

You may add a spouse within 30 days of marriage. You may add a newborn within 30 days of birth.

If your spouse loses employment, you may add your spouse (and eligible dependents covered by your spouse) within 30 days of the loss of coverage.

You may also add a dependent within 30 days of adoption or receiving custody.

If you do not add your spouse/dependents within 30 days, you may do so during an open enrollment season.

Yes. You may cancel coverage for you or disenroll a spouse or dependent. The change form must be received by the Department of Human Resources by the 15th of the month to cancel coverage for the first of the second following month. You may re-enroll during an open enrollment season.

You must cancel coverage for a spouse upon divorce.

You must cancel coverage if a dependent is no longer eligible.

You have an agreement with the vendor under the DHMO that you will keep the coverage in force for one year. If you cancel and have received discounted services, the vendor reserves the right to bill you for the actual cost of the services.

If you do not receive a paycheck, you are responsible for paying your health care premiums by check or money order payable to the City of Richmond. Your payment needs to be sent to the Department of Human Resources. Payment is due on the payday in which a deduction would normally process. Failure to remit premiums will result in cancellation of coverage.

You may purchase the following individual policies within 30 days of your hire date or during on open enrollment season:

Short term disability
Cancer
Accident
Hospital Intensive Care
Hospital Indemnity
Long Term Care

Since these are individual policies and are designed for you, you must see a service representative to purchase them. The coverage and cost will depend on your selection. The policies are portable should you leave service.

The City also offers medical and dependent care reimbursement accounts. You must see a service representative to enroll in these accounts.

The City also offers a pre-paid legal program.