1997-21332-Order No. 97-102 Recorded 6/19/19979'7-21332
BEFORE TIIE BOARD OF COUNTY COMMISSIONERS FOR DESCIIUTES COUNTY, OREGON
An Order Establishing a Retirement Incentive * 't-�* '' '
Program for Deschutes County.
ORDER NO. 97-102
WHEREAS, this matter having come before the Deschutes County Board of Commissioners at a
regularly scheduled public meeting on Wednesday, June 18, 1997, to consider establishing a Retirement
Incentive Program (RIP) for Deschutes County; and
WHEREAS, pursuant to the authority granted to the Board of County Commissioners, the Board, after
having given due consideration to the issue of establishing a Retirement Incentive Program (RIP); now,
therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHU"I`ES COUNTY, OREGON, ORDERS
as follows:
Section 1. Deschutes County hereby establishes a Retirement Incentive Program (RIP) as set forth in
Exhibit A attached hereto and by this reference made a part hereof.
Section 2. The Board of Commissioners further Orders that the first RIP period is from 1.2:01 am, July
1, 1997 to 5:00 pm on August 15, 1997, a period of more than 45 calendar days.
Section 3. The Board of Commissioners reserves the right to establish another open period for a RIP,
but makes no legal or political commitments or guarantees to do so.
Dated this /9 day of June, 1997.
Recording Secretary
1 - ORDER NO. 97-102
BOARD OF COUNTY CO MISSIONERS FOR
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LINDA L. SWEARI issioner
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9'1997
A.
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C.
EXHIBIT `A'
RETIREMENT INCENTIVE PROGRAM (R�P� 01 b2~0257
2 �.
The primary goal of a RIP is to provide a means for reducing
fund expenditures. In addition, it may provide a way to
minimize hour reductions, layoffs, and other associated costs
(i.e. unemployment insurance, decreased morale, and service
reductions). Because of the severity of budget reductions, a
RIP will not eliminate the need for layoffs and other
reductions.
LIGIBILITY_REOUIREMENT
1. This program will only be offered to elected officials
and regular -status employees working half-time or
greater.
2. Participants must meet the PERS retirement eligibility
requirement no later than September 30, 1997. General
service employees must be at least age 55; police and
fire classified employees must be at least age 50 which
represents the minimum eligibility for PERS retirement
benefits.
3. The eligible persons will submit a RIP application form
and letter of resignation identifying retirement from
county service.
4. Employees or elected officials must have a minimum of
five years of current and continuous service with
Deschutes County.
WINDOW PERIOD
The Board of County Commissioners shall designate by Board
Order the period of time in which the program is available to
eligible persons. The Board Order will stipulate the
beginning and end of the window period. A minimum 45 -day
calendar period is recommended because this time period
reflects the ADEA's (Age Discrimination in Employment Act)
1990 rules for showing "voluntariness" of the employee's
acceptance of the early retirement incentive. It is
recommended that July 1, 1997, through August 15, 1997, as the
application period for accepting applications. The retiring
employee may specify the effective date of retirement which
must be prior to September 30, 1997. The employee must
provide the County with at least 15 calendar days advanced
notice of the effective date of retirement. The requesting
employee would be given seven (7) days in which to notify the
0162-025S
County to rescind the request. Following the seven day
period, the retirement would be effective on the date
requested.
1. Lump Sum Payment - Eligible persons will receive one week
of retirement incentive pay for each year of continuous
service with a minimum of 12 weeks and a maximum 36
weeks. This lump sum payment would be processed through
payroll and is subject to employer and employee taxes.
The lump sum payment would not count as salary for
purposes of PERS retirement calculations. This payout
could be made to a deferred compensation account (up to
the annual maximum limit) at the employee's request.
a. The weekly retirement incentive pay will be based
upon 40 hours per week.
b. Retirement incentive pay will be based upon the
eligible persons compensation as of June 30, 1997,
plus 4%.
2. Medical Insurance Allowance
a. The County will provide the same insurance coverage
as an active employee to retired county employees
collecting PERS who have worked for the County for
thirty (30) years or more on a full-time basis.
This benefit will be provided until the employee
reaches age 65 or is eligible for Medicare.
b. Employees who retire and are collecting PERS
benefits but have less than 30 years of service
will receive a County contribution toward their
monthly insurance premiums (medical only/no dental)
in accordance with the following schedule:
Years of Service (RIP) Contribution
5-10 50.00
10-15 100.00
15-20 150.00
20-25 200.00
25-29 250.00
This contribution will be provided until the
employee reaches the age of sixty-five (65) or is
eligible for Medicare.
E.
0162-0259
1. The program is a Board Policy, not a negotiated contract
item. When and if it is to be made available is at the
discretion of the Board of County Commissioners.
2. The program includes the stipulation that the vacated
position remains unfilled for a period equal to the cash
incentive paid to the employee (except in the case of
elected officials). On the average, retirement incentive
costs would be recouped by leaving the vacated position
unfilled for four months. Obviously, there would be
greater savings under the program if the position
remained unfilled. Departments are encouraged to leave
positions unfilled to increase further reductions of fund
expenditures.
3. The Board of Commissioners and the Department Director
may establish a limit in the number of employees who
could participate in the program. Such a limitation
would be based on departmental or county -wide seniority.
4. With final approval, eligible persons will be required to
sign a retirement incentive contract. By law, eligible
persons can take up to 45 days to decide if they want to
sign this document. Once they sign the contract, they
have seven (7) days to back out.
5. All decisions made on actions undertaken by the County
pursuant to this program are final and binding on all
parties and shall not be grievable or arbitrable.