Agenda - Council - 06/26/2012 - Laserfiche WebLink

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CC Regular Session Meeting Date: 06/26/2012 By: Kathy Schmitz, Administrative Services Information 7. 10. Title: Consider a Resolution to Offer a Voluntary Early Separation Program. - This item was added to the Agenda. Background: Due to budget concerns, the city of Ramsey may desire to establish a voluntary early separation program in order to reduce salary expenses and to meet business needs in tough economic times. Staff analyzed several program design options and has determined the following program to be the most cost-effective. If approved, the program would be strictly voluntary and open only to those City employees who meet the requirements listed below: • Must be a regular employee of the City with a minimum of 10 years of regular service AND: o Who is at least age 55 years and eligible for a full or reduced PERA Coordinated Plan annuity; or o Who is at least age 50 years and eligible for a full or reduced PERA Police and Fire Plan annuity; or o Meet the above age requirement for your PERA plan and are receiving PERA disability benefits. Employees must submit a letter of interest to Human Resources by July 2, 2012. Employees must agree to leave employment with the city on or before July 31, 2012 o The City will provide the terminating employee, a payout of $10,000. For each additional full year of service above 10 years, an employee will receive an additional $500 for each year of service, to a total maximum of $22,500 (35 years of service) and, o The cash equivalent of nine (9) months of the city's contribution towards the employee's selected health premium in effect at the time the incentive program is adopted, or the cash equivalent of 9 months of the $290 waiving benefits. If authorized, all employees approved for this program would continue to receive the normal separation benefits available through current labor agreements or the non -represented vacation and sick leave program. Note: If too many employees were to choose to retire form one department and it created a hardship for the department to operate, employees may be required to stagger their retirement date as determined by their department. Recommendation: To approve a voluntary early separation program. Funding Source: Funding required to offer this voluntary early separation program would come from the 2012 general fund Council Action: Motion to approve resolution 12-06-XXX to offer a voluntary early separation program. Res Voluntary Early Separation Attachments Form Review Form Started By: Kathy Schmitz Started On: 06/28/2012 01:24 PM Final Approval Date: 06/28/2012