Title
Amendments to the City's Pension Plan(s) to Provide for a Voluntary Early Separation Incentive Program, Temporary Service Purchase Program and Technical Updates (NB)
This item requests authorization to draft an amendment the City's Pension Plan(s) to authorize a Voluntary Early Separation Incentive Program, Temporary Service Purchase Program and technical updates to ensure the Plan(s) is consistent with current Federal and State laws as they may apply.
Explanation
A voluntary early separation program provides additional flexibility to proactively address economic and fiscal conditions facing the organization. The intent of this program is to create vacancies that will provide the opportunity to eliminate budgeted positions. A successful program should reduce the need to consider layoffs at this time. In order to generate recurring budgetary savings it should be understood that a certain number of positions vacated will be eliminated from the budget.
Employees eligible for the separation incentive would generally be those in operational areas where reduction in forces are likely needed to address the projected budget deficits. Eligibility may be restricted as to specific employee classifications, organizational functions, departments, or particular skill sets. The determination of final eligibility criteria will be set after consultation with all Charter Officers.
Generally, the plan would provide three (3) years of pension credited service for those eligible individuals who would otherwise have in excess of 17 years of credited service as of August 1, 2010. This would generally make such employees eligible for retirement and retiree health. For eligible "ICMA", 457 or Defined Contribution Plan only employees, three (3) years of service credit would be given for the purpose of calculating eligibility for, and subsidy amount of, Retiree Health Insurance benefit. A separate early separation incentive would be made available to employ...
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