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COMPENSATION AND BENEFITS SUMMARY
CITY OF MOUNTAIN BROOK, ALABAMA
Updated 30-Jan-2009 |
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INTRODUCTION
The City of Mountain Brook, Alabama is proud to offer its employees a quality, comprehensive, and competitive compensation plan. The City is confident that its total compensation plan including benefits is among the top tier of plans offered in the Merit System and the Birmingham area. View the current salary schedule.
Following are some of the major employee benefits offered by the City. This information is not intended to be a Summary Plan Description as required by the ERISA of 1974. If a discrepancy exists between the information presented in this document and the actual plan documents, the provisions specified in such plan documents shall govern. The City reserves the right to add, change, or terminate specific benefit features and plans at any time. |
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RETIREMENT BENEFITS
It is never too early to plan for retirement. Your retirement income will generally be derived from three sources: personal savings, social security, and retirement benefits.
Personal Savings Incentives
The City offers its employees a variety of Section 457 or deferred compensation plan options whereby employees set aside a portion of their salary as a means of saving for retirement. Because the elections reduce your taxable wages, these salary deferrals reduce both federal and state income taxes which means that more of your money goes to work for you as opposed to paying taxes. Employees may elect to save up to 25% of their gross income up to a maximum of $16,500 annually for retirement.
These plans enable the employee to determine how their monies are invested by allowing them to choose from a variety of well known investments.
Social Security
For most people, social security benefits will provide a significant portion of total retirement income. The City contributes an amount equal to your social security (FICA) payroll deduction or 7.65% of your taxable wages (6.2% for old-age, survivors, and disability insurance (OASDI) and 1.45% for hospital insurance (Medicare)). For more information about your social security benefits, contact the Social Security Administration at (800) 772-1213.
Retirement Plan
In addition to the above personal savings incentive options and social security, the City offers a defined benefit pension plan through the Retirement Systems of Alabama (RSA). Participation in the RSA plan is mandatory for all full-time City, Park Board, and Library employees. Employees are required to contribute (by way of payroll deduction) 5% of their earned income (6% for policemen and firefighters). As an added bonus, these payroll deductions reduce each member’s federal taxable income thereby lowering the federal income tax liability. Employees are fully vested with respect to their payroll contributions into the plan meaning that upon separation of service with the City, these contributions may be refunded subject to a federal income tax penalty. Members who separate after three years of service will also receive some interest. Your pension service and benefits are also portable meaning all of your creditable service with any RSA participating employer is counted in determining your pension benefit.
In addition to the employee contributions, the City pays into the plan monthly an amount determined by the RSA. The City’s contribution stated as a percentage of eligible compensation is currently 9.06% (6.15% and 6.27% for Park Board and Library Board personnel, respectively).
A member is eligible to receive retirement benefits at any age upon completing 25 years of creditable service, or at age 60 upon completing 10 years of creditable service.
The plan provides:
- Retirement benefits equal to 2.0125% of the average
compensation for the three highest years out of the last
ten (10) worked
- Survivors’ pension benefits
- Pre-retirement death benefits
- Disability retirement benefits available upon completion
of 10 years of creditable service |
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COMPENSATED ABSENCES
Holidays
The City provides the following 13 paid holidays for all full-time employees:
- Personal holiday (as determined by employee subject to
approval by Department Supervisor)
- New Year’s Day (January 1)
- Martin Luther King Day (3rd Monday in January)
- Presidents’ Day (3rd Monday in February)
- Good Friday (Friday before Easter Sunday)
- Memorial Day (last Monday in May)
- Independence Day (July 4)
- Labor Day (1st Monday in September)
- Veterans’ Day (November 11)
- Thanksgiving Day (4th Thursday in November)
- Day after Thanksgiving Day
- Christmas Eve (December 24)
- Christmas Day (December 25)
Vacations
Full-time employees are eligible to take earned vacation leave upon completing one year of service. Following is a summary of the vacation benefits earned by full-time employees:
Length of Amount of
Continuous Paid Vacation
Service Leave Earned
0 to 12 years 1 day per month
12 to 25 years 1-1/2 days per month
Over 25 years 2 days per month
Vacation time earned but not taken during a calendar year may be accumulated up to a maximum of forty (40) days.
Sick Leave
Upon completing one year of service, full-time employees are eligible to use accumulated sick leave. Sick leave is earned at the rate of one day for each month of service. Sick leave earned during the year may be accumulated and carried forward without any limitations. Upon completing five years of service, eligible separating employees may receive a lump sum payment equal to one-half of their accumulated sick leave balance limited to 30 days pay. |
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MEDICAL AND DENTAL PLANS
Group Health and Dental Insurance
The City provides its full-time employees with group medical insurance coverage. Presently, this coverage is provided through the Local Government Health Insurance Plan (LGHIP) sponsored by the State Employees Insurance Board. The plan offers Blue Cross and Blue Shield of Alabama.
The City pays the majority of the health insurance premiums on behalf of its employees. Presently, the monthly Blue Cross premiums are shared as follows:
City Employee Total
Single coverage $333 $ 0 $333
Family coverage $545 $ 266 $811
The City’s health plan includes generally the following “In-Network (PPO)” benefits:
- Physician office visits (100%) with $30 co-payment
- Hospitalization (100%) with $100 deductible/pre-certified
inpatient admission plus $50 co-payment for days 2-5,
100% coverage for outpatient diagnostic and surgery
facility services with $100 co-payment
- Emergency room (100%) with $100 co-payment
- $200 annual major medical deductible which includes
prescriptions
- Vision care
- Home health care
- Allergy
- Chiropractic
- Skilled nursing facility
- Mental health/substance abuse
- Dental
In addition, employees who are eligible for medical coverage through their spouse’s employer may elect to decline coverage under the City’s medical plan. As an incentive to decline coverage under the City’s medical plan, the City offers a monthly incentive payment of $50. Contact the Payroll Office for more details.
Dental Plan
The City also offers a comprehensive dental plan to its employees and their dependents (available only to those persons who decline medical/coverage under the LGHIP). Presently, dental benefits are offered at no cost for single coverage and at a cost of $15.00 per month for family coverage. The City’s dental plan offers the following features:
- No network restrictions or limitations regarding eligible
dentists
- $50 deductible per person per year with a maximum
family deductible of $150 per year
- No deductible for diagnostic and preventive services
- Orthodontics, $1,000 lifetime maximum benefit per
dependent up to age 19 subject to a $50 deductible
(expenses are reimbursed at 50%)
- $1,500 maximum benefit per person per year for covered
expenses
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TERM LIFE INSURANCE
The City provides all full-time employees with term life insurance coverage. The premiums are paid entirely by the City. Employees with less than one year of service are provided a $20,000 death benefit. Employees with one year or more of service are provided a $50,000 death benefit. Dependent coverage in the amount of $2,000 per dependent is also available at no cost to the employee. The plan also provides for accidental death and dismemberment and accelerated death benefits.
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DISABILITY INSURANCE
The City provides all full-time employees with one year of more of service with long-term disability coverage. The premiums are paid entirely by the City. The benefit is payable monthly in an amount equal to 66-2/3% of the disabled employee’s compensation limited to a maximum benefit of $5,000 per month after completion of a 90-day waiting period. |
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WORKERS' COMPENSATION
The City provides its employees with workers’ compensation coverage for work-related injuries and illnesses. During a qualifying injury or illness, the disabled worker’s medical and prescription bills incurred as a result of the injury or illness are covered. In addition, the disabled worker will receive compensation equal to their base salary or wage. During the period of disability, the employee is required to pay their share of the retirement, medical, dental, and voluntary, supplemental insurance premiums, if any. |
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EMPLOYEE ASSISTANCE PROGRAM
The City has contracted to provide its full-time employees with confidential diagnostic, counseling, and treatment services. Some of the services included are alcoholism, other chemical dependency, mental/emotional problems, marriage and family conflicts, legal difficulties, medical problems, financial problems, and stress. All services are provided at the provider’s offices and are rendered free of charge to the employee and their family members. When the provider determines that an outside referral is appropriate or necessary, the treatment options and alternatives are thoroughly explained to the employee. Many of the community agencies that employees may be referred to are either free or based on the patient’s ability to pay. |
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EDUCATIONAL INCENTIVES
Tuition Reimbursement
The City recognizes that its workforce constitutes one of its greatest assets and that the skills and knowledge of its employees contribute to the overall success of the organization. The tuition reimbursement program encourages personal development through formal education in order that employees can maintain and improve work-related skills and enhance their ability to advance their careers within the City.
Under this program, the City will reimburse qualifying tuition costs incurred by its employees in pursuit of degrees, licensing, or certification programs related to the employee’s current job duties. The reimbursable expenses include tuition and books and are limited to the fees charged by state sponsored institutions. In order to qualify for reimbursement, the student must complete the course with at least a "C" average.
Education Premium Pay
In addition to tuition reimbursement, public safety personnel (police and fire) are eligible to receive premium pay for their technical certifications and formal degrees. Public safety personnel receive additional compensation of 5% for associates degrees, 10% for bachelors degrees, and also 5% for certain technical certifications. The maximum premium pay any employee is eligible to receive is 15%. Other skilled laborer positions are also eligible for premium pay for certain technical certifications. Interested persons should consult their supervisors for more detailed information. |
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FLEXIBLE BENEFIT PLANS
The City sponsors a flexible benefits program (commonly referred to as a cafeteria plan). This program allows employees to reduce their taxes (federal, state, and social security) by paying for certain qualifying expenses on a pre-tax basis. The program works by subtracting the elected deductions from the employee’s taxable wages thereby reducing the basis on which taxes are calculated. Included in this program are the following benefits:
Established health-related payroll deductions
- Medical insurance premiums
- Dental premiums
- Supplemental premiums including accident, cancer,
hospitalization, and intensive care
Other qualifying expenses (limited to $12,000 annually)
- Unreimbursed medical expenses (e.g., co-payments,
eyeglasses, mileage, non-covered medical
services, etc.)
- Disability insurance premiums
- Supplemental premiums including accident, cancer,
hospitalization, and intensive care
- Dependent care reimbursement (limited to $5,000
annually)
For more information about this program, please consult the Payroll Department or the Summary Plan Description.
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LONGEVITY PAY PLAN
The City has adopted a longevity pay plan which provides all full-time employees with six or more years of service as of September 30 a lump sum salary supplement generally paid during November. Longevity pay is calculated as follows:
Longevity Pay
as a Percentage
Years of Service of Base Pay
0 - 5 years 0%
6 years 1.5%
7 - 20 years 1.5% plus 0.5% per
year limited to 8.5%
The City intends to limit the annual aggregate longevity compensation to $420,000 (subject to change). In addition, longevity pay is prorated for retiring employees. |
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SERVICE AWARDS
The City further recognizes long-standing employees with service awards. Like longevity pay, service awards are prorated for retirees. Service awards are paid to qualifying employees upon completion of their fifth anniversary year and each five years thereafter. Service awards are generally paid during the spring and are determined as follows:
Years of Service Service
Completed Award
5 $ 20.00
10 50.00
15 112.50
20 200.00
25 250.00
30 300.00
35 350.00
40 400.00
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DIRECTORY:
Payroll Department . . . . . . . . . . . . . . . . . . . . . . . 802-3807
City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 802-3800
Director of Finance . . . . . . . . . . . . . . . . . . . . . . . 802-3825
Police Chief . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802-3851
Fire Chief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802-3838
Public Works . . . . . . . . . . . . . . . . . . . . . . . . . . 874-0626
Parks and Recreation . . . . . . . . . . . . . . . . . . . . 874-0619
City Clerk . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802-3825
Building Inspections . . . . . . . . . . . . . . . . . . . . . 802-3812
Emmet O’Neal Library . . . . . . . . . . . . . . . . . . . . 879-0459
Jefferson County Personnel Board. . . . . . . . . . . . 325-5550
Retirement Systems of Alabama . . . . . . . . (800) 214-2158
State Employee’s Insurance Board . . . . . . . (334) 833-5900
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