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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 l"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 into their vacation bank until the amount of <br /> their vacation bank is reduced below the maxim Lim cap. Even though an employee <br /> is not permitted to accrue vacation into their vacation bank above the maximum <br /> they can accrue as addressed in paragraph C below, employees are permitted to <br /> make an irrevocable election by December 31 th of the prior calendar year (i.e., by <br /> December 31, 2025 for calendar year 2026) that if at any time in the upcoming <br /> calendar year, their maximum vacation cap is reached, the City shall convert the <br /> hours over the vacation cap to the employee's RHS or 457 account. Employees <br /> need to designate as part of their irrevocable election whether they want the hours <br /> contributed to their RHS or 457 account. if no irrevocable election is made in the <br /> prior calendar year, if the employee's vacation cap is reached, they shall neither <br /> accrue additional vacation until they use vacation to bring their accrual below the <br /> cap nor have the hours above the cap placed in their 457 or RHS account. <br /> 2025 MOU City of Santa Ana&SEW Full-Time Employees Unit Page 45 <br />