Title
Human Resources Policy L-7: Leave Bank (B)
This is a request for the City Commission to approve revisions HR Policy L-7: Leave Bank.
Explanation
Human Resources Policy L-7: Leave Bank is amended to standardize the maximum amount of service credit that may be donated to a dying or recently deceased employee, and to clarify what leave may be donated to a dying or recently deceased employee.
Policy L-7 currently requires that an employee have at least “80% of the credited service needed for normal service retirement” to be eligible to receive donated leave in order to achieve normal retirement eligibility. Recent changes to the City’s defined benefit plans resulted in three different ‘years of service’ requirements - twenty years, twenty-five years, and thirty years - depending on the plan and date of hire. As such, the “80%” requirement now means sixteen, twenty, or twenty-four years of service. In order to standardize the amount of credited service among all employee groups, staff recommends modifying the requirement to read “Utilization of donated vacation, sick leave, PTO or PCLB in this manner is limited to those situations in which the employee, at the time the authorization to create a Leave Bank is given, had all but two years or less of the credited service needed for normal service retirement…”
In 2012, 2013 and 2014, the City’s defined benefit plans were modified, in part, to comply with statutory limits on the use of accrued leave in the calculation of retirement benefits. Therefore, Section II of Policy L-7 has been revised to align with these limits. Specifically, only leave that may be applied to pension service credit or included as ‘earnings,’ as defined in the donating employee’s pension plan, may be donated.
Fiscal Note
There is no fiscal impact for the changes to HR Policy L-7.
Recommendation
The City Commission: approve revisions to Human Resources Policy L-7.