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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 6V;SCHUTES 061UNTY OUEGON N7Z 'SCI{[LA� N`Chair U RO#LRT L . NIPPPER, lCo' si ner LINDA L. SWEARI issioner t1':CRCr'! Mf? E 1_ g 9'1997 A. a 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.