09-10208rRESOLUTION NO. 10208
RESOLUTION AUTHORIZING AONE-TIME EARLY RETIREMENT INCENTIVE
PROGRAM FOR CALENDAR YEAR 2009
WHEREAS, the City has determined that it will face significant state aid reductions
for calendar year 2009 and beyond, and
WHEREAS, such reductions in state aids represent a significant portion of the City
2009 budget, and
WHEREAS, such reductions in state aids will require significant cuts in the City
2009 budget including likely necessary staff reductions and reduction in services, and
WHEREAS, the City Council finds that ifs desirable to approach staff reductions
through attrition and retirement of existing employees to the extent possible in order to
minimize staff layoffs; and
WHEREAS, in order to facilitate the opportunity for eligible City employees to take
advantage of their respective retirement option, financial assistance be provided to help
defray the future costs associated with medical insurance premiums for such employees;
and
WHEREAS, a program providing for such an Early Retirement Incentive has been
prepared and. is ready for implementation.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Richfield hereby adopts the attached Early Retirement Incentive Program, dated January
27, 2009, and directs the City Manager to implement such program.
Adopted by the City Council of the City of Richfield, Minnesota this 27th day of
January, 2009.
D ie Goettel, Mayor
ATTEST:
~~~,
Nancy Gibbs, t Clerk
CITY OF RICHFIELD
EARLY RETIREMENT INCENTIVE PROGRAM
JANUARY 27, 2009
Eligibility
1. You are in a position that is eligible for this program.
2. You are afull-time benefit earning employee.
3. You must be eligible for an unreduced pension through PERA during calendar year
2009, through one of the following provisions:
a. Attain the Rule of 90 (Employees who started in PERA before July 1, 1989
are eligible)
b. PERA Coordinated employees who have attained the age of full retirement
(65 or 66 years of age depending on PERA start date).
c. PERA Police and Fire employees who have reached the age of 55
EARLY RETIREMENT INCENTIVE PROGRAM OPTIONS
A. The City will provide the following benefit to an eligible employee who voluntarily
elects to take advantage of the early retirement incentive, and retires on or before
April 30, 2009:
• The City will provide the retiring employee with a one time contribution of
$18,000 into the Employee's Health Care Savings Plan.* (The equivalent of
$500 for 36 months or $750 for 24 months.)
B. The City will provide the following benefit to an eligible employee who voluntarily
elects to take advantage of the early retirement incentive, and retires after April 30,
2009 and before June 30, 2009:
• The City will provide the retiring employee with a one time contribution of
$15,000 into the Employee's Health Care Savings Plan.* (The equivalent of
$625 for 24 months.)
* If the eligible employee does not have a Health Care Savings Plan (HCSP) the
City will assist the employee in obtaining an HCSP, if applicable under the terms of
the collective bargaining agreement or provide other arrangements for the payment
of the applicable incentive.
C. Annual leave balances will be paid in accordance with current labor agreements,
City Ordinance and/or Health Care Savings Plan Provisions, whichever is
applicable.
APPLICATION AND APPROVAL
• Applications for the early retirement incentive program can be obtained from Human
Resources and must be submitted to Francie Fletcher on or before February 20,
2009 at 4:30 p.m. to be eligible for option A, or April 3, 2009 by 4:30 p.m. to be
eligible for option 6.
• To be eligible for this early retirement program, pending application approval,
employees must retire prior to April 30, 2009 or June 30, 2009 depending on the
option chosen. The chosen retirement date must be recorded in writing on the
program application, and no changes may be made after approval.
ADDITIONAL CONSIDERATIONS
• Participation in this program is strictly voluntary.
• To accept this offer, you must sign a release agreement acceptable to the City,
which waives your right to pursue any legal claim against the City of Richfield or its
employees or Council Members.
• Program application forms must be completed and submitted within the timeframe
set for the program.
• All payments made are subject to customary payroll deductions.
• -All incentives contained in this incentive program' are supplemental to traditional
benefits of a retiring employee.
• The City reserves the right to decline any employee's request for the early
retirement incentive program based on the number of requests received, an
employee's critical skills,. or service delivery needs.
• Employees that terminate employment with the City during the early retirement
incentive program may not be rehired as abenefit-earning employee.
Any questions regarding this program may be directed to Pam Dmytrenko or Francie
Fletcher.