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2022-2025 MOU City of Santa Ana & SEIU Full-Time Employees Unit Page 48 <br />previously elected to cash-out (in the prior calendar year), the employee will <br />only receive payment for the amount of accumulated vacation leave <br />remaining at the time of the cash-out in either July or December. <br />6. If an employee makes an irrevocable election to cash-out vacation in the <br />following calendar year and uses vacation leave during that subsequent <br />calendar year, the vacation leave used will first come from vacation leave <br />the employee had earned (if any) prior to January 1st of the calendar year the <br />employee had elected to cash-out. The use of such earned, but unused, <br />vacation leave accumulated from previous calendar years shall not result in <br />a reduction in the amount of vacation hours the employee is eligible to cash- <br />out. <br />B. Separation from Service <br />Per Labor Code §227.3, the parties agree that an employee who leaves City <br />employment prior to completing six (6) months of service shall not receive any <br />payment for vacation. <br />Employees with at least six (6) months of service upon separation from service shall <br />be paid for all accumulated, but unused, vacation leave. <br />C. Rate of Payment <br />Payments shall be made based on the employee’s base rate at the time of the <br />payment. <br /> 9.7 Maximum Accumulation <br />A. The maximum vacation an employee may accumulate is what they could earn based <br />on their completed years of service. <br />B. An employee whose vacation bank is at the maximum of what they can accumulate <br />shall not continue to accrue vacation until the amount of their vacation bank is <br />reduced below the maximum cap. Effective the first full pay period following City <br />Council approval of this 2022-2025 MOU, if the maximum vacation cap is reached, <br />the City shall convert the hours over the vacation cap to the employee’s RHS or <br />457 account. Employees need to designate in advance whether they want the hours <br />contributed to their RHS or 457 account.