Medical Insurance
Employees have two medical plan options to choose from. The first is Cigna Open Access Plus (OAP). The Town pays 100% of the employee premium and 50% of any dependent premium.
| Medical Benefits | CIGNA OAP PLAN
In-Network | CIGNA OAP Plan
Out-of-Network |
| Deductible |
$1000 Individual, $3000 Family |
$3000 Individual, $9000 Family |
| Co-Insurance |
80% |
50% |
| Out-of-Pocket Maximum |
$4000 Individual
$12000 Family |
$12000 Individual
$36000 Family (Includes Deductible) |
| Inpatient Hospital |
80%* |
50%* |
| Outpatient Surgery |
80%* |
50%* |
| Office Visit Co-pay |
$25 PCP, $50 Specialist |
50%* |
Lab/X-ray
MRI, CAT, etc. |
100%
80%* |
50%*
50%* |
Emergency Room
Urgent Care |
$150 co-pay/100%
$50 |
$150 co-pay/100%
|
Mental/Nervous
In-patient
Out-patient |
80%*/ No Visit Limit
$50/ No Visit Limit |
50%*/ No Visit Limit
50%*/ No Visit Limit |
Alcohol/Drug
In-patient
Out-patient |
80%* / No Visit Limit
$50/ No Visit Limit |
50%* / No Visit Limit
50%* / No Visit Limit |
| Prescription |
$20 Generic, $40 Preferred
$60 Non-preferred |
Out of network pharmacies are not covered |
| Wellness |
$25 / $50 |
50%* |
| Vision |
Discounts Only |
Not Covered |
| Chiropractic |
$50 |
50%* |
| Lifetime Maximum |
$5,000,000 |
$5,000,000 |
| Pre-existing |
6/12 |
6/12 |
| |
*After Deductible |
*After Deductible |
The second option is a Cigna Health Savings Account (H.S.A.). A H.S.A. is a consumer-owned, tax-advantaged savings account, created to pay medical expenses, that is combined with a High Deductible Plan. An H.S.A. allows you tax-free contributions, tax-free growth of interest, tax-free disbursement of principal and interest to pay for qualified medical expenses, accumulation (rollover) of unused funds and portability between employers, flexible use – you choose whether or when to use the account for health expenses, now or after employment. The Town of Fountain Hills pays 100% of the employee premium and 50% of any dependent premium. The difference between the employer paid OAP premiums and the H.S.A. premiums is deposited into the employee’s Health Savings Account.
| Medical Benefits | CIGNA H.S.A. PLAN
In-Network | CIGNA H.S.A. PLAN
Out-of-Network |
| Deductible |
$2,500 Individual, $5,000 Family |
$5,000 Individual, $10,000 Family |
| Co-Insurance |
90% |
50% |
| Out-of-Pocket Maximum |
$5,000 Individual
$10,000 Family (Includes Deductible) |
$15,000 Individual
$30,000 Family (Includes Deductible) |
| Inpatient Hospital |
90%* |
50%* |
| Outpatient Surgery |
90%* |
50%* |
| Office Visit Co-pay |
90%* |
50%* |
Lab/X-ray
MRI, CAT, etc. |
90%*
90%* |
50%*
50%* |
Emergency Room
Urgent Care |
90%*
90%* |
90%*
90%* |
Mental/Nervous
In-patient
Out-patient |
90%*/ No Visit Limit
90%*/ No Visit Limit |
50%* / No Visit Limit
50%* / No Visit Limit |
Alcohol/Drug
In-patient
Out-patient |
90%*/ No Visit Limit
|
50%* / No Visit Limit
50%* / No Visit LImit |
| Prescription |
30%* Generic, 40%* Preferred, 50%* Non-preferred |
Out of network pharmacies are not covered |
| Wellness |
100% - No deductible |
50%* |
| Vision |
Discounts Only |
Not Covered |
| Chiropractic |
90%* |
50%* |
| Lifetime Maximum |
$5,000,000 |
$5,000,000 |
| Pre-existing |
6/12 |
6/12 |
| |
*After Deductible |
*After Deductible |
Dental Insurance
The dental plan has a calendar year maximum of $1,500 for each covered person. Orthodontic coverage for adults and children is provided under this plan with a lifetime maximum of $1,500 per patient. The Town of Fountain Hills pays 100 percent of the employee premium and 50 percent of any dependent premium.
Vision Insurance
The Town of Fountain Hills pays 100 percent of the employee premium and 50 percent of each dependent premium.
Basic Life Insurance
As a full-time employee of the Town of Fountain Hills, you have a 1 X salary basic life and accidental death coverage, up to a maximum of $150,000. The Town of Fountain Hills provides this benefit to full-time employees at no cost.
Voluntary Life Insurance
The Town of Fountain Hills offers a supplemental life insurance plan, which is designed to allow you to choose the amount of coverage you need and to pay for it conveniently through payroll deduction. Because the plan gives you the benefit of group rates, the price is better than you could get as an individual. Employee coverage costs are calculated on age and amount of insurance elected.
Retirement Plan
The Town of Fountain Hills does not deduct Social Security taxes from full-time benefited employees’ paychecks. Instead, the Town has a mandatory 401A Retirement Plan. This plan is administered by ICMA Retirement Corporation (ICMARC). Eligible employees contribute 11% of their gross pay to their retirement account. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. The Town of Fountain Hills will also contribute 11% of the eligible employee’s gross pay. These contributions are subject to a vesting schedule as follows:
| Years of Vesting Service | % Vested |
| Less than 3 |
0% |
| 3 |
20% |
| 4 |
60% |
| 5 |
100% |
Deferred Compensation Plan
The Town of Fountain Hills also provides an optional deferred compensation plan to eligible employees. Eligible employees become eligible on their first day of employment. This plan is administered by ICMA Retirement Corporation. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. There is no employer match of contributions.
Under Section 457 of the Internal Revenue Code, you may defer each year a maximum of 100% of your "gross compensation" or an annual dollar limit, whichever is less. The dollar limits are:
| Year | Contribution Limit |
| 2009 |
$16,500 |
| "Age 50" Catch-Up Limit |
$5,500 |
Our plan allows you to increase, decrease, stop or restart contributions as often as you wish, without fees or penalties.
Disability (Short-term)
The Town of Fountain Hills offers employees a voluntary short-term disability program. Short-term disability provides the employee with a weekly benefit should they become disabled due to a non-occupational accident or sickness. Benefits become payable on the first day of accident, eighth day of sickness, and are payable for a maximum of 13 weeks (excluding pregnancy, which is six weeks). Employees pay 100% of the short-term disability premium if they elect to participate.
Disability (Long-term)
The Town of Fountain Hills provides a long-term disability benefit for all full-time employees, at no cost to the employee. There is a 90 day elimination period and benefits are payable up to 24 months for the employee’s occupation or to age 65 for any occupation. The maximum monthly benefit is $6,000.
Section 125 and Flexible Spending Accounts
The Section 125 program allows employees to have their premiums for certain benefits deducted from their paycheck on a pre-tax basis, rather than after tax. Once the benefit elections are made, the employee must wait until the next open enrollment to make changes.
A Flexible Spending Account is a way for employee to pay out-of-pocket medical ($2,500 per family) and dependent care ($5,000 per family) expenses with pre-tax dollars. Once an employee makes their election, they must wait until the next open enrollment to make changes.
Holidays
The Town of Fountain Hills recognizes the following days as paid holidays:
- New Year's Day, January 1
- Martin Luther King, Jr. Day, third Monday in January
- President's Day, third Monday in February
- Memorial Day, last Monday in May
- Independence Day, July 4
- Labor Day, first Monday in September
- Veteran’s Day, November 11
- Thanksgiving Day, fourth Thursday in November
- Friday after Thanksgiving
- Christmas Day, December 25
Certain employees may be required to work on a holiday. These employees are paid one and one-half (1 1/2) times their normal rate of pay for the number of hours worked.
Vacation
Vacation with pay is available to eligible employees. The amount of paid vacation time an employee receives each year increases with the length of their employment. Vacation time begins to accrue with the employee’s first full bi-weekly pay cycle based on the table below:
Full-Time Employees
| Length of Service | Hours per Pay Period | Hours per year |
| Start date through completion of 3rd year |
4.00 |
104 |
| 4th year through completion of 7th year |
5.00 |
130 |
| 8th year through completion of 10th year |
6.00 |
156 |
| 11th year through completion of 15th year |
7.00 |
182 |
| 16+ Years |
8.00 |
208 |
Part-Time Employees
| Length of Service | Hours per Pay Period | Hours per year |
| Start date through completion of 3rd year |
2.00 |
52 |
| 4th year through completion of 7th year |
2.50 |
65 |
| 8th year through completion of 10th year |
3.00 |
78 |
| 11th year through completion of 15th year |
3.50 |
91 |
| 16+ Years |
4.00 |
104 |
Employees are encouraged to use vacation annually rather than accruing hours. The Town reserves the right to postpone or cancel vacations in the event of any emergency.
An employee is eligible to take accrued vacation after completing six months of employment. Termination of employment prior to completion of six months of employment voids accrued vacation.
Sick Time
Full-time employees accrue sick leave at the rate of four (4) hours each payroll period (104 hours per year). An employee who is in the introductory period may take sick leave with pay as soon as he/she has accrued any sick leave hours. An employee may accumulate a maximum 960 hours of sick time.
Employees with 10+ years of continuous full-time service who have a minimum of 480 banked sick time hours will qualify for a payout of 240 hours upon separation of service for any reason other than involuntary termination. Employees with 15+ years of continuous full-time service who have a minimum of 720 banked sick time hours will qualify for a pay out of 480 hours upon separation of service for any reason other than involuntary termination. Sick leave may not be counted toward the computation of overtime. Sick leave will not accrue for any payroll period during which an employee is absent for more than six (6) working days, except for absences during which the employee is being paid for accrued vacation time, personal time, sick time, and holidays. Sick leave should be treated as a form of insurance and not as extra days off from work.
Tuition Assistance
The purpose of the tuition reimbursement plan is to encourage the development of all full-time employees. Tuition reimbursement may be granted for courses that are work-related, that may be necessary to obtain a degree that may make the employee more valuable to the organization, that maintain or improve the skills required by employees in their employment, that may be necessary for the anticipated needs of the organization, or that may make employees more valuable to the organization. Courses must be taken at an accredited college, university, an approved trade school, or an approved technical school. When questions arise concerning whether or not a course qualifies under the plan, they will be reviewed by the Human Resources Administrator for recommendation to the Town Manager.
Before enrolling in a course, an employee must apply for education reimbursement and have it approved by his/her supervisor. The application shall be submitted to the Town Manager for final approval.
The maximum amount of reimbursement is based on an employee’s years of service and is subject to availability of appropriate funds on an annual basis. Employees must complete one year of full-time service before they are eligible for this benefit. The maximum annual (calendar year) reimbursement amount for undergraduate courses is $1,500 during the second year of service and $2,500 during the third year and each year thereafter. The maximum annual (calendar year) reimbursement amount for graduate courses is $2,500 during the second year of service and $3,000 during the third year and thereafter. The maximum dollar amounts will be reviewed on a regular basis in an effort to be comparable to credit hours at Arizona State University.
Reimbursable expenses include tuition only. Administrative fees, laboratory and technical fees, required textbooks, incidental fees such as parking permits, supplies, recreation fees/activity fees are not covered under this plan.
Reimbursement will be made upon successful completion of the course (a grade of “C” or better or a “pass” for a pass/fail course). In order to receive payment, the employee must provide a copy of the official grade report and all relevant receipts. To obtain reimbursement, the employees must still be employed by the Town of Fountain Hills at the time reimbursement is paid.
Because this benefit is offered to employees to maintain or improve their required skills and to encourage their further development while increasing their contribution to the organization, any employee who leaves the Town of Fountain Hills within two (2) years of receiving any tuition reimbursement will be required to repay any tuition paid on his/her behalf during the last twenty-four (24) months of employment. Any deficiency owed under this program becomes immediately due and payable at the time of termination. The organization has the right to deduct any deficiency from any monies due and owing the employee including, but not limited to paychecks or expense checks.