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HomeMy WebLinkAbout2003-069 CCRMember Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2003-69 RESOLUTION AUTHORIZING RETIREMENT INCENTIVE PROGRAM IN RESPONSE TO PENDING CUTS IN LOCAL GOVERNMENT AID WHEREAS, reduced State assistance to the City of Brooklyn Center will occur in 2003 and 2004; and WHEREAS, the City has few meaningful ways in which to replace lost State aids in 2003 and must therefore rely on cuts in its General Fund operations to balance its budget; and WHEREAS, voluntary retirements avoid costs of layoffs such as payment of unemployment compensation; and WHEREAS, voluntary retirements have the potential to restructure jobs or replace a position at a lower cost than a senior employee; and WHEREAS, employees have suggested that the City consider a retirement incentive program as part of the preparation and implementation of budget reduction measures necessitated by the impending reduction of Local Government Aids to the City of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Retirement Incentive Plan attached hereto and incorporated herein by reference as Exhibit "A" be and hereby is approved. April 14, 2003 Date A Mayor i ATTEST: ~A/M _ City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2003-69 EXHIBIT "A" RETIREMENT INCENTIVE PLAN In addition to any other payments to which an employee would otherwise be entitled pursuant to the City's Personnel Policy or collective bargaining agreement as are applicable to an individual employee's separation from employment in good standing upon retirement, the City Manager is authorized to approve a retirement incentive equal to 60% of the employee's accumulated sick leave on the date of his/her retirement. This incentive shall be in lieu of the payment for accumulated sick leave that the employee would otherwise be entitled to receive upon retirement. In order to receive a retirement incentive, the City Manager must determine that: 1. The employee is eligible for a reduced or full PERA pension as of the date of his/her resignation from the City. 2. The employee's resignation is voluntary. 3. The City will be able to recoup the amount of the incentive by one, or a combination of the following means: a. Leaving the position unfilled: i. Indefinitely or permanently ii. Until the incentive has been recouped in salary and other cost savings. b. Reorganization of duties resulting in a net savings that will recoup the amount of the retirement incentive. Additionally, the employee must: 1. Submit his/her application for a retirement incentive by May 1, 2003. 2. Retire on or before the latter of August 1, 2003 or the 2' day after first eligible to retire with a full, unreduced PERA pension in 2003 3. Retire on or before the latter of August 1, 2003 or the 2' day eligible to retire with a PERA pension in 2003 who would not be eligible for a full Rule of 90 pension or full police/fire pension in 2004. 4. Retire in 2004 on or before the 2' day when the employee would be eligible to receive a full Rule of 90 PERA or full police/fire pension. 5. Retire in 2004 on or before the 2id day when the employee would be become eligible to receive a PERA pension. 6. Receive written approval of a retirement incentive from the City Manager based on the City's Manager's determination of eligibility for the retirement incentive as set forth in this policy before June 1, 2003.