HomeMy WebLinkAboutResolution 2009-068 amending the Separation Incentive Plan (SIP)MARANA RESOLUTION N0.2009-68
RELATING TO PERSONNEL; AMENDING THE SEPARATION INCENTIVE PLAN (SIP)
APPROVED BY RESOLUTION NO. 2009-55 TO EXPAND THE PLAN TO APPLY TO
ELIGIBLE EMPLOYEES WHO VOLUNTARILY RETIRE OR RESIGN EFFECTIVE
APRIL 29, 2009 THROUGH AUGUST 31, 2009; CLARIFYING THE SICK LEAVE PAYOUT
PROVISION OF THE SIP; AUTHORIZING STAFF TO IMPLEMENT THE SIP AS
AMENDED AND CLARIFIED; AND DECLARING AN EMERGENCY
WHEREAS the Town Council is authorized by A.R.S. § 9-240 (A) to control the finances
of the Town; and
WHEREAS on April 28, 2009, by Resolution No. 2009-55, the Town Council approved
implementation of the Separation Incentive Plan. (SIP) for fiscal year 2010 as described in the SIP
program outline; and
WHEREAS the SIP as approved by Resolution No. 2009-55 applies to eligible employees
who voluntarily retire or resign from Town employment between July 1, 2009 and
August 31, 2009 and who notify the Town of their decision to retire or resign by May 19, 2009;
and
WHEREAS the Town Council finds that it is in the best interests of the Town to expand
the SIP to apply to eligible employees who voluntarily retire or resign from Town employment
between April 29, 2009 and August 31, 2009 and who notify the Town of their decision to retire
or resign by May 19, 2009; and
WHEREAS the SIP as approved by Resolution No. 2009-55 provides that eligible
participants in the program will receive a 50% payout of their accrued sick leave; and
WHEREAS the Town Council finds that it is in the best interests of the Town to clarify
that the provision of the SIP regarding payout of accrued sick leave refers only to sick leave
actually earned and accrued by the participating employee and not to any leave donated to the
participating employee by other employees under the Town's leave donation policy.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Town of Marana hereby amends the Separation Incentive Plan (SIP)
approved by Resolution No. 2009-55 and described in the SIP program outline, attached to and
incorporated by reference to Resolution No. 2009-55 as Exhibit A, to expand the plan to apply to
eligible employees who voluntarily retire or resign from Town employment with an effective
retirement or resignation date between Apri129, 2009 and August 31, 2009.
Marana Resolution 2009-68 -1-
SECTION 2. The Town of Marana hereby clarifies that the sick leave payout provision
of the Separation Incentive Plan (SIP) approved by Resolution No. 2009-55 and described in the
SIP program outline, attached to and incorporated by reference to Resolution No. 2009-55 as
Exhibit A, refers only to sick leave actually earned and accrued by the participating employee
and that the Town will not payout any portion of leave donated to the participating employee by
other employees under the Town's leave donation policy.
SECTION 3. All other provisions of the SIP, as described in the SIP program outline
attached to Resolution No. 2009-55, remain the same, including the provision that to be eligible
for the SIP program, employees must notify the Human Resources Department of their decision
to elect retirement or to resign by May 19, 2009.
SECTION 4. The Town's Manager and staff are hereby directed and authorized to
undertake all other and further tasks required or beneficial to implement the Separation Incentive
Plan, as amended and clarified in this resolution, to include the execution of separation
agreements in compliance with the provisions of the Separation Incentive Plan as described in
the SIP program outline.
SECTION 5. Since it is necessary for the preservation of the peace, health and safety of
the Town of Marana that this resolution become immediately effective, an emergency is hereby
declared to exist, and this resolution shall be effective immediately upon its passage and
adoption.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 12a` day of May, 2009.
~^
May Ed onea
ATTEST:
~/
;~/ ii'~fi' i
~ocelyn C~°Bronson, Town Clerk
Marana Resolution 2009-68 -2-
APPROVED AS TO FORM:
MARANA RESOLUTION N0.2009-55
.RELATING TO .PERSONNEL; APPROVING- AND AUTHORIZING STAFF TO
IMPLEMENT THE SEPARATION INCENTIVE PLAN (SIP) FOR FISCAL YEAR 2010; AND
DECLARING AN EMERGENCY
WHEREAS the Town Council is authorized by A.R.S. § 9-240 (A) to control the finances
of the Town; and
WHEREAS the Town Council finds that authorizing staff to implement the Separation
Incentive Plan (SIP) for fiscal year 2010 as described in the SIP program outline is in the best
interests of the Town and its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL. OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Town of Marana hereby approves the Separation Incentive Plan (SIP)
for fiscal year 2010 as described in the SIP program outline, attached to and incorporated by this
reference in this resolution as Exhibit A.
SECTION 2. The Town's Manager and staff are hereby directed and authorized to
undertake all other and further tasks required or beneficial to implement the Separation Incentive
Plan, to include the execution of separation agreements in compliance with the provisions of the
Separation Incentive Plan as described in the SIP program outline.
SECTION 3. Since it is necessary for the preservation of the peace, health and safety of
the Town of Marana that this resolution become immediately effective, an emergency is hereby
declared to exist, and this resolution shall be effective immediately upon its passage and
adoption.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 28th day of April, 2009.
ATTEST:
' , /~~ l .n
°t.--~t..~ .~ ~..-
~..~ , J .~celyn C, ronson, Town Clerk
,1
Mayor Ed Honea
APPROVED AS TO FORM:
~.:. -~ ~ ~
'F ank Ca idy, Town orney
SEPARATION INCENTIVE PLAN (SIP)
PROGRAM OUTLINE
The purpose of the Separation Incentive Plan (SIP) is to provide incentives to
retirement-eligible and other employees who wish to voluntarily separate their
employment with the Town in order to facilitate reductions to the FY 2010 budget during
the current economic crisis. This program is being offered to afford the Town the
opportunity to reduce positions based on voluntary actions in lieu of mandatory
reductions, such as furloughs, job reductions or layoffs. The SIP, as described in this
program outline, shall apply for FY 2010 only, subject to the timelines described herein.
Eligibility
This program applies to all Town departments and to all classified and unclassified
employees who are retirement-eligible in either the Arizona State Retirement System or
the Public Safety Personnel Retirement System and to all benefit-eligible classified and
unclassified employees who elect to resign.
Definitions
1. Benefit-eli ig ble-regular full- and part-time classified and unclassified
employees. Part-time employees must have a normal schedule that is at least 20
hours but less than 40 hours per week.
2. ASRS-Arizona State Retirement System
3. COBRA-Consolidated Omnibus Benefits Reconciliation Act-provides that
covered employees and their qualified beneficiaries may continue health
insurance coverage under the Town of Marana's health plan when a qualifying
event such as loss of employment would normally result in the loss of eligibility.
4. FY 2010-July 1, 2009 through June 30, 2010.
5. Incentives-one-time financial assistance to support the retirement-eligible or
resigning employee in his or her transition.
6. PSPRS-Public Safety Personnel Retirement System.
7. Retirement-eli ible employees-employees who have accumulated the necessary
credited service in a public entity retirement system or in the military service
and/or attained the necessary age to qualify for ASRS or PSPRS retirement.
8. Timeline-the dates within which retirement-eligible and resigning employees
must notify the Town of their decision to retire and/or resign.
1
EXHIBIT A
Policies and Procedures
Election
1. Employees who decide to separate their employment and take advantage of this
program must notify the Human Resources Department of their decision to elect
retirement or to resign.
2. The Human Resources Department must receive the notification by May 19, 2009
and the retirement or resignation must be effective by August 31, 2009.
3. The Human Resources Department will respond to all employees who elect to
participate in this program and will contact ASRS or PSPRS as appropriate to
facilitate employee consultation.
Incentives
1. Sick-Leave Pa.~ Participants in the SIP will receive a 50% payout of their
accrued sick leave.
2. Life Insurance Continuation. Participants will remain on the Town's basic life
insurance plan at the Town's expense at one times their salary for one year.
3. Medical Plan Subsidv. Participants will receive a subsidy of $150 per month for
six months following their separation to offset the costs of COBRA continuation
coverage or coverage under the participant's retirement health care plan. This
subsidy shall be payable either directly to the participant's health care plan or to
the participant, as appropriate.
4. Severance Pay. Participants will receive severance pay in an amount equal to a
percentage of the participant's annual base salary multiplied by the participant's
length of service with the Town. The percentage of base salary that will be used
to calculate a participant's severance pay will be based upon the participant's
length of service with the Town as follows:
Length of Service % of Annual Base Salary
0 to 10 years 1.5
> 10 to 15 years 1.75
> 15 years 2.0
Examples:
• $40,000 annual base salary, 5 years of service:
$40,000 x .015 = $600 x 5 years = $3,000 severance pay
• $40,000 annual base salary, 11 years of service:
$40,000 x .0175 = $700 x 11 years = $7,700
• $40,000 annual base salary, 16 years of service:
$40,000 x .02 = $800 x 16 years = $12,800
2
EXHIBIT A
Participants will receive credit for partial years of service under this formula.
Notwithstanding this formula, the total amount of severance pay that will be
paid to any participant is capped at a maximum of $50,000.
Separation Agreement
Employees who elect to retire or resign and accept the SIP incentives will be required
to enter into a separation agreement with the Town.
3
EXHIBIT A