This Interim Personnel Guideline is designed to provide employees with information about the Presidio Trust's employee benefits and personnel policies and procedures until a final Personnel Guideline is adopted. The Guideline applies to all employees, though some benefits apply only to specific categories of employees as indicated.

The Guideline describes employee responsibilities and outlines the programs developed by the Trust to benefit employees. The Trust is built on its people and we rely on our employees to consistently deliver the highest quality work possible. In turn, our objective is to provide a work environment that is conducive both to personal and professional growth.

No employee guide can anticipate every circumstance or question about personnel policy. We will address situations as we become aware of them, and we expect and encourage every employee to bring to our attention any employment issues that need to be addressed. All employees should feel free to speak to their supervisors or the Executive Director about any questions, comments, or concerns that have about their employment.

The Presidio Trust (which came into existence on July 9, 1997), was formed pursuant to Public Law 104-333, which established the Presidio Trust as a wholly-owned government corporation.

The Trust's enabling legislation authorizes the Board of Directors of the Presidio Trust to "appoint and fix the compensation and duties of an Executive Director and such other officers and employees as it deems necessary" without regard to certain provisions of Title V, U.S. Code.

The Trust is committed to equal employment opportunity. We do not discriminate based on an individual's race, religion, color, national origin, ancestry, physical or mental disability, medical condition, marital status, veteran status, sexual orientation, age or sex. The policy governs all aspects of employment at the Trust, including hiring, assignments, training, promotions, compensation, employee benefits, employee discipline and discharge, and all other terms and conditions of employment.

The Trust will reasonably accommodate an individual's physical or mental disability when appropriate. For additional information relating to reasonable accommodations, employees may speak with their supervisors.

The Trust is committed to evaluating each applicant and employee on the basis of personal skill and merit. The Trust will make every effort to ensure that both the letter and spirit of applicable laws prohibiting employment discrimination are fully implemented in all of our working relationships.

Employment with the Trust is voluntarily entered into and we recognize that an employee is free to resign at any time. Similarly, it should be recognized that we are free to conclude an employment relationship at any time. In the unfortunate event that such a course of action were required, the Trust would provide a reason for the termination and reasonable advance notice.

Government Service is a public trust and each employee has the responsibility to place the Constitution, law, ethical principles, and the interests of the Trust above private interests or personal gain. In order to maintain the confidence of the public, each employee must avoid even an appearance that would reflect unfavorably upon the employee's ability to perform assigned duties in a fair and objective manner, or that would compromise the integrity of the Trust's programs. As employees of the Federal government, employees of the Trust are subject to the standards of conduct, rules and regulations of the Office of Government Ethics.

1. General Harassment

The Trust strives to provide a work environment where all employees can work together comfortably and productively, free from harassment. The Trust prohibits the harassment of any of its employees, regardless of whether that harassment is targeted specifically to the employee, based on an individual's race, religion, color, gender, age, national origin, ancestry, marital status, medical condition, sexual orientation, or physical and mental disability.

Prohibited harassment may include, but is not limited to, epithets, slurs, derogatory comments or jokes, intimidation, negative stereotyping, threats, assault or any physical interference with the employee's normal work or movement, directed at an individual employee, his or her relatives, friends or associates. Harassment may also include written or graphic material placed on walls, bulletin boards or elsewhere on the Trust's premises or circulated in the work place that denigrates, shows hostility or aversion towards an individual or group because of the characteristics identified above.

Whether or not the offending employee meant to give offense, or believed his or her comments or conduct were welcome is not significant. Rather, the Trust's policy is violated when other employees, whether recipients or mere observers, are in fact offended by comment or conduct which are based on race, religion, color, gender, age, national origin, ancestry, marital status, medical condition, sexual orientation or disability.

2. Sexual Harassment

The Trust also is committed to providing a work place free of sexual harassment. Sexual harassment is defined as unwelcome sexual conduct of any nature that creates an offensive or hostile working environment or unwelcome sexual conduct that is made a condition of working at the Trust.

Prohibited sexual harassment includes unwelcome sexual conduct such as: Verbal harassment (e.g., sexual requests, comments, jokes, slurs);

• Physical harassment (e.g., physical contact); and

• Visual harassment (e.g., posters, cartoons or drawings of a sexual nature).

While the legal standards and consequences of sexual harassment are still evolving, the Trust's policy has been and remains clear and more all encompassing than the law's requirement. This is because the Trust's policy rests on the fundamental precept that each employee must treat all others with respect, dignity and professionalism. Deviation from that standard will not be tolerated. Whether or not the offending employee meant to give offense, or believed his or her comments or conduct were welcomed, is not significant. Rather, the Trust's policy is violated when other employees, whether recipients or mere observers are in fact offended by comments or conduct which are sexual in nature.

Our work place is not limited to the Trust's facilities, but may also include client and vendor facilities, as well as anywhere a business-related function is taking place. In fact, anytime that employees and their supervisor are together, it is likely to be seen as the work place.

3. Complaint Procedure

If an employee believes that he or she has been harassed by any Trust employee, vendor, client, or other business contact, the employee should immediately report the incident to his or her supervisor. If the immediate supervisor is involved in the reported conduct or, for some reason, the employee feels uncomfortable about making a report to that supervisor, the employee should report directly to the Administrative Officer.

Any supervisor who sees or hears about conduct that may constitute harassment under this policy should immediately contact the Administrative Officer.

The Trust will not retaliate, nor will it tolerate retaliation, against employees who complain in good faith about harassment in the work place. The Trust will investigate any such report and will take whatever corrective action is deemed necessary, including disciplining or discharging any individual who is believed to have violated these prohibitions against harassment and retaliation.

All employees and supervisors have a duty to cooperate in the Trust's investigation of alleged harassment. Failure to cooperate or deliberately providing false information during an investigation shall be grounds for disciplinary action, including termination.

Whether it is through hiring or promotion, it is the policy of the Presidio Trust that we strive to select from the highest caliber of applicants we can possibly obtain and in so doing reward our employees with opportunities for innovation, recognition, career growth, monetary achievement and personal satisfaction. We seek to create a workforce which is of the highest quality, is customer-oriented, competent, motivated, empowered, accountable, culturally diverse, and committed to partnership, teamwork and reinvented government.

There are three basic types of appointments to the Presidio Trust:

• Temporary - Employees hired on a temporary basis for a specified period usually not exceeding six months. Temporary employees can be extended as needed. Unless required by law or specifically stated in this Guideline, temporary employees are not eligible for the benefits in this Guideline.

• Detail/IPA Employees - Employees detailed from federal agencies, federal or non-federal staff working under authority of the Intergovernmental Personnel Act (IPA) and individuals hired under private contracts for personal services may be used on occasion to accomplish certain work for the Trust

• Regular - Full-time/part-time employees are called "regular" employees. All such employees are employed at-will.

1. Full-time regular employees are regularly scheduled to work 40 hours or more per
   week.
2. Part-time regular employees are regularly scheduled to work fewer than 30 hours
   per week.

Each of the above listed appointments confers specific employee benefits. These benefits are as follows:

• Regular employees are eligible for retirement, health insurance, life insurance, and sick and vacation leave accrual.

• Temporary employees Temporary employees are not eligible to enroll for health insurance until they have completed three months of current continuous employment, excluding any break in service of five days or less. Once they are eligible, they must pay the entire cost of the coverage.

The Trust maintains a personnel file on each employee. All documents regarding employment status, job history, election forms for health and life insurance benefits and other relevant and appropriate personal information is contained in this file.

It is the employee's responsibility to inform the Administrative Officer of any changes in name, address, changes in dependents, changes in income tax withholding, information on beneficiaries, emergency contacts, etc. Pursuant to applicable law, the Trust will maintain the confidentiality of such personal data.

The sensitivity of the data contained in the personnel file requires that access to the file is limited to only those officials who have a need for the record in the performance of their duties. Employees are granted access to review all information and documentation maintained in their file upon reasonable notice.

The Trust's management team sets salary levels commensurate with similar positions within the Trust. The Trust strives to compensate equal work with equal pay. In setting salary levels, consideration is also given to level of relevant experience, special qualifications of each prospective employee, comparable rates of pay for similar positions in the private sector and the availability of funds.

Each January, Trust managers conduct annual written performance reviews with each employee under their supervision. Annual assessment of performance by the appropriate management staff is an integral part of the annual salary review process for all employees. This written evaluation provides a basis for identifying areas of performance in which an employee does particularly well and those where improvement is necessary, informing employees of their overall job performance, establishing plans to correct deficiencies where deemed appropriate and determining the amount of individual pay for performance salary increases.

The following criteria are considered in making employee specific pay adjustments, recommendations and decisions: 1) the employee's position responsibilities; 2) an assessment of performance in comparison to individual or unit work plans; 3) recency and amount of the last increase (e.g., a promotion or pay adjustment) and, 4) the level of current basic salary compared to the salaries of other employees in the unit who are performing work of a similar level and quality.

The Trust's public service office hours are 8:30 a.m. to 5:00 p.m., Monday through Friday (excluding Federal holidays). Employees are generally expected to work these hours unless they negotiate an alternate schedule in advance with their manager. As a general policy, the Trust seeks to promote "family friendly" scheduling policies and will consider various scheduling arrangements when they do not compromise the ability of the Trust to achieve its objectives.

A standard workday is eight and one-half hours with a minimum 30 minute unpaid lunch break during the middle of the day. The minimum 30 minute unpaid break is mandatory for all workdays of six hours or more.

Employees are responsible for recording all time worked and leave taken and submitting the sheet to their manager at the end of the pay period.

Trust employees are entitled to receive time off with pay for all Federal holidays.

Regular employees are eligible for paid vacation. Vacation may be used for whatever personal reason best suits each employee, or for those religious holidays that are not part of the Trust's holiday schedule. Part-time employees earn vacation on a pro-rated basis.

a. Vacation Accrual Schedule

Management may provide additional administrative leave or excused absence at its discretion.

b. Maximum Accrual

Employees are encouraged to take their vacation during the service year in which it is earned. If this is not possible, employees may accumulate up to 240 hours of vacation leave. Once employees have earned but not taken 240 hours of vacation accrual rate, they will not earn additional vacation until they use some vacation time. Vacation does not accrue while an employee is on an unpaid leave of absence. Any earned and unused vacation will be paid if an employee leaves the Trust.

c. Scheduling

Vacation time can be taken only with the permission of the employee's supervisor. A written request indicating the supervisor's approval must be submitted to the Administrative Officer. Vacation requests must be made as far in advance as possible to provide for alternate coverage, if necessary, during the requested vacation period.

During certain times of the year when numerous vacation requests are received, the possibility exists that not all requests can be granted. Generally, vacation requests will be accommodated according to the needs of the Trust.

An employee may not take vacation before it is accrued. If, despite this policy, a departing employee has taken more vacation than he or she has accrued, payment for such vacation will be deducted from the employee's final paycheck.

Full-time employees receive 4 hours of sick leave per pay period to care for themselves or ill family members.

Sick leave will accrue on a calendar year basis. If sick leave is needed that has not been accrued, accrued vacation or personal days may be used. Leave without pay will be granted on an emergency basis only and requires the approval of the employee's supervisor.

There is no limit to sick leave accrual. Unused accrued sick leave has no cash value and will not be paid at termination. At termination, if paid sick leave has been taken in excess of an employee's earned sick leave, the Trust will deduct the difference from the employee's final paycheck.

Employees who are medically unable to work for 4 or more consecutive calendar days may be required to provide medical certification and may be eligible to receive benefits under the family and medical leave policy described in this Guideline.

Administrative leave is a "catch all" category whereby the immediate supervisor has limited discretion to excuse employees from work without charge to sick or annual leave for appropriate reasons.

The Trust may provide personal leave for employees who need to take time off from work duties for compelling personal reasons and for whom no other leave is applicable. An employee may request personal leave after having been with the Trust for at least I year. The granting of a personal leave and any extensions is discretionary with the Trust.

Employees who are absent from work due to service in the uniformed services, including but not limited to service in the armed forces of the United States or the armed forces reserves, the national guard, or other commissioned corps of public service, will be granted unpaid leaves of absence in accordance with federal and state laws governing such leaves. Unless otherwise provided by state law, employees on such leaves of absence are generally entitled to certain reemployment rights and benefits if they meet the following requirements:

Employees may contact the Administrative Officer for more details regarding military leave, e.g. what type of service qualifies for this leave entitlement, what constitutes timely reemployment, the circumstances under which the application for reemployment may be denied, and employee rights and obligations related to employment benefits while on leave and upon returning from leave.

The Trust will grant a regular employee up to the number of days of paid court leave per year as required by applicable law. Court leave is excused time when an employee serves on a jury or serves as a witness on behalf of the United States, a state or local government. Court leave is not granted when the employee is testifying on behalf of a private party even when a subpoena has been issued. Court leave is not granted when the employee is a party in the proceeding. When an employee appears in court as a representative of the Trust that is official time, not court leave. If a fee is paid for jury service, the employee must remit the fee check to the Trust for each day court leave was granted. The employee is entitled to retain any reimbursement by the court for parking, mileage and other out-of-pocket expenses.

a. Eligibility

An employee who has been employed by the Trust for 12 months or more and who has worked at least 1,250 hours during the preceding 12-month period is eligible for an unpaid family leave of absence under the following circumstances:

• For their own serious health condition;

• For the birth and care of a newborn child, or the placement and initial care of an adopted or foster care child; and

• To care for an employee's spouse, child or parent with a serious health condition.

b. Leave Request Procedure

Requests for family and medical leaves must be approved in advance by the employee's supervisor and the Administrative Officer. If the need for the leave is foreseeable, an employee must provide the Trust with at least 30 days advance notice before the leave is to begin. If the need is not foreseeable, and 30 days notice is not possible, notice must be given as soon as practicable, and within 1 to 2 days of learning of the need for leave.

A leave request should be made in writing and set forth the reasons for the requested leave, the anticipated duration of the leave and the anticipated start date of the leave. An employee requesting a leave extension should also do so in writing, if possible, 2 weeks prior to the end of the scheduled leave.

An employee planning medical treatment must consult his or her supervisor and make a reasonable effort to schedule the leave so as not to disrupt unduly the Trust's operations, subject to the approval of the health care provider. An employee is ordinarily expected to consult his or her supervisor and/or the Administrative Officer prior to the scheduling of treatment in order to work out a treatment schedule which best suits the needs of both the employee and the Trust.

Failure to comply with this notice requirement will be grounds for, and may result in, deferral of the requested leave until the employee complies with this notice policy.

c. Medical Certification

An employee who requests a medical leave to care for a family member with a serious health condition must submit a written medical certification from a health care provider to support the leave request. If there is a dispute about the initial medical opinion regarding an employee's serious health condition, the Trust may require a second opinion by a health care provider of its choice at its own expense. If a third opinion is necessary, a third health care provider may be selected, also at the Trust's expense.

An employee returning from a medical leave must provide medical certification of fitness to return to work. An employee requesting a leave extension must provide medical certification of the need for continued leave.

Under the Act, an employee who has completed 12 months of service in other than a temporary appointment may take up to 12 weeks of unpaid leave during any 12 month period for the birth of a child; the adoption or foster care of a child; or the serious health condition of the employee, spouse, child, or parent of the employee. An employee may substitute paid time off for any unpaid time taken under the FMLA. Employees must provide their supervisor with 30 days advance notice when the need for FMLA leave is foreseeable and may be required to furnish medical certification to support a request.

Medical certification forms are available from the Administrative Officer. The Trust also requires periodic updates to support continuing leave.

d. Duration of Family and Medical Leave

An eligible employee will be entitled to up to a cumulative maximum of 12 weeks of family and/or medical leave within a 12-month leave period. Any combination of family and medical leave may not exceed this maximum limit. The 12-month period is measured backwards from the date an employee's requested family and/or medical leave will begin. Parents who both work for the Trust are entitled to a combined total of 12 weeks leave in a 12-month period for the birth, adoption or foster care placement of their child.

An employee on a workers' compensation leave of absence will be granted leave consistent with the Trust's obligations under workers' compensation law. If the employee's work-related injury also meets the criteria of a serious health condition for family and medical leave purposes, the leave for a work-related injury will be counted against the employee's family and medical leave entitlement. However, benefits provided under the family and medical leave policy will only be extended for a cumulative maximum of 12 weeks of leave. Additional benefits may be available under state workers' compensation law.

An employee disabled due to a pregnancy/maternity related condition may be entitled to additional leave under California law.

e. Intermittent and Reduced Schedule Leave

The Trust generally requires that a family or medical leave be taken in one consecutive period of time. Under certain circumstances, an employee may take leave intermittently or on a reduced work schedule. If an employee takes an intermittent or reduced work schedule leave, the Trust may temporarily transfer an employee to another position with equivalent pay and benefits in order to better accommodate the leave. If an employee requests such a leave due to medical necessity, the employee is required to submit certification from a health care provider stating the basis for the medical necessity and, if applicable, the anticipated schedule for treatment.

f. Compensation During Leave

Except as specified in this paragraph, accrued sick leave must he used during leave for an employee's serious health condition [and for leave to care for an ill family member.] Once an employee's sick leave is exhausted, the employee must use accrued vacation during medical leave [any family leave OR leave to care for a healthy child]. Consistent with federal law, accrued vacation, sick leave and other paid time off may not be used during any family and medical leave that also qualifies for workers' compensation benefits, state disability insurance or other paid leave under a temporary disability plan. When paid leave is exhausted, an employee may continue the balance of a family or medical leave of absence on an unpaid basis. [It is the responsibility of an employee on medical leave to apply for State Disability Insurance (SDI) benefits or workers' compensation benefits, as applicable. The appropriate forms are available from the Administrative Officer.]

The use of accrued vacation or sick leave, or receipt of workers' compensation or short-term disability [or SDI] benefits during a leave shall not extend the length of an employee's FML leave. Vacation and sick leave benefits will continue to accrue only during the paid portion (if any) of a family or medical leave. Length of service credits will continue to accrue only during the paid period (if any) of a family or medical leave. However, FML leave shall not constitute a break in service for purposes of longevity, seniority, or any employee benefit plan.

Vacation may not be taken immediately after a family or medical leave. Generally, an employee must return to work for 2 months before taking any vacation.

g. Coordination with Other Employee Benefits

The Trust will maintain an eligible employee's group health and dental insurance coverage during a family or medical leave for the first 12 weeks of leave under the same conditions as coverage would have been provided if the employee had been actively at work. An employee may elect to continue the same coverage for dependents under the Trust's group health insurance plans.

h. Return to Work

An employee returning from a medical leave must provide medical certification of fitness to return to work.

Upon return from a family or medical leave, an employee will be returned to the same position held prior to the leave or one that is equivalent in pay, benefits and the terms and conditions of employment, unless the job has ceased to exist. If the employee does not return to his or her original position or an equivalent one as soon as he or she is able, the Trust will consider the employee to have voluntarily resigned. Acceptance of other employment during a family/medical leave also will be considered a voluntary resignation. If the employee's prior position or an equivalent one is not available at the end of the leave, employment will be terminated.

An employee who does not return to work after taking a maximum of 12 weeks leave will be considered to have resigned.

For the period covered by this Interim Personnel Guideline, Trust employees will receive the standard package of employee benefits through the federal government. Questions regarding these benefits should be directed to the Administrative Officer of the Trust.

General employees will receive standard benefits for which the Trust contribution ranges from part of the cost to the entire cost. Brochures and information are available from the Administrative Officer. What follows is a summary of benefits that are available to Trust employees.

Regular employees are covered by one of two federal retirement systems. Information on retirement benefits is available from the Administrative Officer.

• Civil Service Retirement System (CSRS). This plan mainly covers employees who were hired by the Federal government before 1984 although it may cover an employee who was previously covered and returns to government after a break in service of less than one year. Employees who return to government after a break of greater than one year are covered by a plan called "Civil Service Offset" which is a combination of Civil Service Retirement and social security. Annuities are based on the average salary of the highest three years of earnings and length of service.

• Federal Employees Retirement System (FERS). This plan generally covers all employees hired after 1984 and employees who elected to join FERS in 1987. Benefits are based on social security, highest three years of earnings combined with years of service and the Thrift Savings Plan (TSP) account.

Employees covered by FERS and employees not covered by any retirement will have social security taxes (FICA) deducted from biweekly pay. The Trust contributes an equal amount to the government to pay for social security benefits. In addition, all employees pay a percentage of salary for HITS, which pays for medicare coverage after age 65. These deductions are mandatory.

TSP is a voluntary tax deferred savings plan similar to a private sector 401 (k) plan. FERS employees receive an automatic one percent of their salary paid into a TSP account and their contributions to the plan are matched up to five percent of salary. They may contribute, by payroll deduction, up to 10 percent of salary, tax deferred. CSRS employees receive no government match and may contribute up to five percent of salary, tax deferred. Participants may designate where their money is invested from among three funds: A government securities fund; a stock market fund; and a bond market fund. Open seasons are held twice yearly for employees to enter the plan, change investment funds or raise their level of contributions.

Under the Federal Employees Health Benefits Program (FEHBP), employees may select from a wide range of participating plans which range from Health Maintenance Organizations (HMOs) to traditional fee-for-service plans. A biweekly premium is deducted depending on the plan elected and the level of coverage. The government pays the major share of the plan premium directly to the provider. An open season to enroll or change carriers is normally held annually from mid-November to early December. Other conditions that may permit a change in enrollment outside of open season is birth of a child, marriage, a spouse loses group coverage, or an employee in a plan covering a limited service area relocates to an area where the plan's services are not available. The Administrative Officer maintains copies of brochures from national plans.

Employees who separate from the government may extend their enrollment in the Federal Employees Health Benefits Program (FEHBP) for up to 18 months after separation. The Administrative Officer will provide employees a letter with rights and options upon separation from service. Employees may also elect TCC for up to three years for former spouses who lose eligibility under the employee's family coverage and children who lose coverage on their 22nd birthday. TCC requires that the subscriber pay the full cost of coverage (which includes what the government formerly contributed toward the premium) plus a two percent administrative fee. Upon expiration of TCC coverage, the plan will give the employee the option of subscribing to private non-group coverage.

Federal Employee Group Life Insurance (FEGLI) coverage is optional when an employee is first hired in the Federal government. If coverage is waived, an employee can later elect coverage only be furnishing proof of insurability. Unlike the health benefits program, open seasons to elect coverage are rare and are not held at scheduled intervals. Different levels of coverage are available, with corresponding costs to the employee.

When an employee is leaving the Trust, he or she should contact the Administrative Officer at least a week in advance so that he/she may be informed of the appropriate clearance process required. If he/she is leaving the Trust, he/she will be given an Exit Clearance Form to assist him/her in processing out. This process ensures that all keys, credit cards, and government equipment or property loaned to the employee can be returned to the appropriate official and provides the employee with a signed receipt for all returned property.

It is during this exit clearance process that any financial indebtedness must be resolved. If the employee has any outstanding debts which are owed to the Trust, they will be deducted from the final paycheck or lump sum payment.

Depending on whether the employee is going to another federal agency, private industry, or retiring, the employee will also receive information on his/her benefits and how they may be affected and how he/she will receive any money that may be forthcoming such as his/her last paycheck or lump sum payments for annual leave. The employee should provide the Administrative Officer with a forwarding address so that these payments can be made and supporting documents provided.

It is inevitable that new personnel policies will need to be written from time to time and old policies will need to be revised. While we reserve the right to make these changes without notice, we will strive to advise employees on a timely basis of any changes affecting their employment.

We have attempted to be as comprehensive as possible in preparing this Interim Personnel Guideline. However, the Guideline cannot possibly cover all situations that may arise. Should employees need further information, or if employees would like to discuss any policies in the Guideline, please feel free to speak to a supervisor or the Executive Director.