Residential Services of NE MN, Inc.

RSI offers a variety of benefits for its employees. Some benefits are available to all employees and others are available only to those in benefit-eligible positions. Statutory benefits are those that all employers are required to offer by law. Voluntary benefits are not required by law but are voluntarily offered by RSI to its employees.

Statutory Benefits

COBRA

Under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), employees who are covered by a group health plan are eligible for temporary extension of the health coverage in certain instances. Continuation of coverage is available if an employee loses group health coverage because of a reduction in hours of employment or the termination of employment for reasons other than gross misconduct. Family members are also eligible for continuation coverage in the event of an employee’s death, divorce or legal separation, a dependent ceasing to meet the plan's definition of dependent child, the termination of employment, or entitlement to Medicare benefits.

It is your responsibility to promptly notify RSI of any family event that would qualify you or your dependent(s) for COBRA coverage. COBRA normally only applies to those who have health insurance coverage at the time of the qualifying event. More details are available from Human Resources. The "Initial Notice of Continuation Coverage" is distributed to eligible, benefited employees. You may obtain another copy of this notice at any time.

HIPAA

Under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), COBRA has been modified to extend coverage to COBRA participants who become disabled after termination, but within the first 60 days of COBRA continuation coverage. HIPAA also extends COBRA coverage to include children born to a covered employee during a period of COBRA continuation coverage.

HIPAA restricts the extent to which group health plans may impose pre-existing condition limitations and increases your right to information about the health plan as well as material modifications to the plan.

Voluntary Benefits

Employee Assistance Program

Available for all employees

The Employee Assistance Program (EAP) is a confidential resource available to all RSI employees. Personal stresses affect not only an individual’s life, but also the quality of an individual’s work. The goal of the EAP is to minimize the effects of personal stresses on both your life and your work.

The confidential number for this service is 1-888-243-5744. Counselors are available by phone 24 hours a day, 7 days a week. To schedule an appointment to meet with a counselor in person, call the day staff between 7:30 a.m. and 5:00 p.m. Central Standard Time.

Flexible Benefit Plan (125 Cafeteria Plan

• Dependent Care Reimbursement Account
  Available for all benefit-eligible employees
  A dependent care reimbursement account is an avenue for setting aside money pre-tax for dependent care expenses while you are at work (i.e. day care). Dependents include children up to 13 years of age and other eligible dependents (regardless of age) who require such care. Funds not used during the calendar year will be forfeited in accordance with IRS regulations and official Plan Documents.
• Healthcare Reimbursement Account
  Available for all benefit-eligible employees
  A health care reimbursement account is an avenue to set aside money pre-tax for eligible medical and dental expenses that are not covered by insurance. RSI’s health care reimbursement account may also be used for eligible medical and dental expenses for a legal spouse and/or eligible dependents, even if they are not covered by RSI’s medical and/or dental plans. Funds not used (services not rendered) during the calendar year will be forfeited in accordance with IRS regulations and official plan documents.

403(b) Retirement Savings Plan

Available to all employees

RSI offers a 403(b) Retirement Savings Plan to its employees. Under the plan, employees may contribute a portion of their salary in a tax-deferred retirement account. Tax-deferred means the contributed portion of the salary is exempt from Federal and State personal income tax. Employees direct the investment of the contributions into professionally managed investment funds. All employees are eligible to enroll upon hire, or any quarterly enrollment thereafter – January 1, April 1, July 1, or October 1.

• Matching
  For participants who have attained the age of 20½, RSI will match 50 % of the contribution (up to a maximum of 6% of the employee’s annual salary) based on years of service. To be eligible for RSI matching contributions an employee must work at least 1,000 hours in the plan year (January 1 – December 31) and have one year of service with the company. Matching contributions will be applied at the end of the plan year and eligible participants must be employed on December 31 to receive matching contributions for that plan year.
  
  

  403(b) Matching at RSI

  Years of Service	RSI Match
  One to Three	50% up to 4% of compensation
  Four to Five	50% up to 5% of compensation
  Six or more	50% up to 6% of compensation

• Vesting
  Employees participating in the 403(b) Retirement Savings Plan become fully vested after five years of employment. For the purposes of the plan, vesting means the amount of RSI's matching contributions that may be withdrawn from the employee's 403(b) account upon termination of employment. The vesting schedule is as follows:
  
  

  403(b) Vesting at RSI

  Length of Employment	Vested Percentage
  1 year	20%
  2 years	40%
  3 years	60%
  4 years	80%
  5 years	100%

  
  Employees are fully vested in their own contributions and entitled to those contributions upon termination of employment regardless of the length of employment. All contributions made by the employee to the Plan are available for withdrawal, subject to IRS penalties.

Holiday Compensation

RSI recognizes seven holidays annually even though the vital nature of our work precludes us from work stoppage for the observance of a particular holiday.

RSI Observed Holidays
The following holidays are observed by RSI:

• New Years Day
• Easter
• Memorial Day
• Independence Day (July 4th)
• Labor Day
• Thanksgiving
• Christmas

Time off without pay may be granted to employees who desire to observe a religious holiday which is not recognized by RSI, provided undue hardship is not introduced to the company.

Holiday Not Worked
Full-time employees in benefit-eligible positions who do not perform direct care at least 50% of the time will receive the holiday off at their regular rate of pay. The reason they receive the holiday off (in lieu of working the holiday and receiving holiday pay) is because it is not necessary that their shift be replaced. If the holiday falls on a Saturday, employees will receive the previous Friday off as the holiday. If the holiday falls on a Sunday, employees will receive the following Monday off as a holiday.
For the Easter holiday, employees are allowed to take a day off during the pay period immediately before, during or immediately following the Easter holiday in lieu of the actual Easter holiday.
Holidays will not be paid to employees on any type of unpaid leave. Holidays falling within an approved scheduled vacation will be recorded as holiday pay.
Holiday pay will not be considered as time worked for the purpose of overtime calculations.

Life and Accidental Death and Dismemberment (AD&D) Insurance

Available for benefit-eligible employees

For information, contact Human Resources for a “Benefits Summary” or consult the specific insurance plan documents. All statements are subject to the contract with the respective insurance carrier. In the event of a conflict between the Handbook and the insurance plan document, the latter governs.

Long-Term Disability (LTD)

Available for benefit-eligible employees

For information, contact Human Resources for a “Benefits Summary” or consult the specific insurance plan documents. All statements are subject to the contract with the respective insurance carrier. In the event of a conflict between the Handbook and the insurance plan document, the latter governs.

Medical and Dental Coverage

Available for benefit-eligible employees

RSI currently offers health and dental insurance to benefit eligible employees.
For more detailed information, contact Human Resources for a “Benefits Summary” or consult the specific insurance plan documents. All statements are subject to the contract with the respective insurance carrier. In the event of a conflict between the Handbook and the insurance plan document, the latter governs.

Paid Time Off (PTO)

Available for benefit-eligible employees

RSI believes that employees should have opportunities to enjoy time away from work to help balance their lives and recognizes that employees have diverse needs for time off from work. RSI has established this paid time off (PTO) policy to meet those needs. The policy contains provisions for vacation time and sick leave. The benefit of PTO is that it promotes a flexible approach to time off.

PTO is accrued upon gaining full-time status or transfer into a benefit-eligible position. Eligible employees must be scheduled to work at least 35 hours per week on a regular basis. Employees working less than 35 hours per week on a regular basis and temporary employees are not eligible to accrue PTO. Failure for non-exempt staff to maintain the minimum number of hours required for full-time status averaged over the pay period could result in a loss of PTO accrual for that pay period.

Availability
PTO is available for use in the pay period following completion of six months of employment. All hours accrued thereafter are available for use in the pay period following the pay period in which they are accrued.

Use or scheduling of PTO for Illness, Family Emergency or other absences
Employees may use accrued PTO for sick days, funerals, children's school conferences, illness of or injury to the employee's child, medical appointments, family emergencies, etc. When using PTO for school conferences, medical appointments or other known, scheduled reasons, employees should notify their supervisor as far in advance as possible and may be asked to assist in making arrangements to replace the shift. Employees using PTO for illness or family emergencies should use the call-in procedures described in the Staffing and Attendance Policy.

Unscheduled absences will be monitored. An employee will be counseled when the frequency of unscheduled absences adversely affect the operations of the department. The supervisor may request the employee provide a statement from his or her health care provider at any time concerning the justification for an unscheduled absence. PTO may not be used for missed time because an employee reports late to work, except during inclement weather.

PTO is paid at the employee’s straight time rate. PTO hours are not hours worked and, therefore, are not included in overtime calculation. Employees are required to use available PTO when taking time off from work with the exception of an RSI required absence due to low workload or absences occasioned by RSI. When PTO is used, an employee is required to request payment of PTO hours according to his/her regularly scheduled workday. PTO is to be used to replace part or all of a scheduled shift that is missed due to illness or pre-approved time off. For example, if an employee works an eight hour day, he/she would request eight hours of PTO when taking that day off. If an employee only works ½ of their scheduled eight hour shift, they would request four hours of PTO.

Accrual and Payment of PTO
Length of service determines the rate at which the employee will accrue PTO. PTO does not accrue on unpaid leaves of absence. Employees become eligible for the new higher accrual rate on the first day of the pay period following the employee’s anniversary date.

PTO Accrual at RSI

Years of Service	Accrual Rate per Pay Period	Annual PTO Accrual*
Less than 1 year	3.33 hours	10 days (80 hours)
1-2 years	5.00 hours	15 days (120 hours)
3 years	5.67 hours	17 days (136 hours)
4 years	6.33 hours	19 days (152 hours)
5 years	6.67 hours	20 days (160 hours)
6-7 years	7.34 hours	22 days (176 hours)
8-9 years	8.00 hours	24 days (192 hours)
10+ years	8.34 hours	25 days (200 hours)

*Employees may carry unused PTO to the next year; however, PTO accrual will stop accruing once a balance of 180 hours is reached.

Minimum PTO Increments
The following rules apply to the minimum amount of PTO that must be taken:

• Hourly (Non-Exempt) – PTO must be taken in whole hour increments
• Salaried (Exempt) – PTO must be taken in ½- or whole- day increments

Payment upon Termination
Employees who separate employment from RSI or are laid off will receive unused time off with their last paycheck; however, the right to payment for PTO upon termination does not fully vest until the employee has worked for RSI for at least one full year*. Employees must be employed for at least 6 months in order to be eligible for payment for any unused time off. Employees who terminate or are laid off before one full year, but have more than six months of employment, will receive 67% of total accrued to date of PTO less any hours used.
*Eligibility is based on the first day of the pay period following the 6 or 12 month anniversaries.

Cash Out
Salaried (exempt) and hourly (non-exempt) employees who have been with RSI for over three years may cash out up to 80 hours per year of PTO leave balances in excess of 80 hours. Forms are available from the Payroll Department.

Short Term Disability

An employee who is classified as full-time and has been employed with RSI for a period of 6 months or longer is eligible for short term disability. Approval of the benefit is contingent upon the employees completing the following reporting requirements:

1. The employee must report to RSI that he/she will be absent from work 30 days prior to the requested leave date, unless circumstances prevent the employee from doing so such as sudden hospitalization due to accident or injury.
2. The employee must provide medical certification of the disability in writing to the Payroll and Benefits Manager within three days of the visit to the doctor. The certification must include the starting and expected ending date of the disability, the diagnosis, and the expected length of time the employee may need to recover. This certification will be reviewed by the Executive Director who will make a determination on benefit qualification.

Employees who are anticipating going out on a medical leave must contact Human Resources for the appropriate forms. Additional information regarding RSI’s Short Term Disability benefit is included in the Short Term Disability Policy.