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HomeMy WebLinkAboutResolutions - 2002.10.10 - 26957September 19, 2002 MISCELLANEOUS RESOLUTION # 02236 BY: Personnel Committee — Nancy Dingeldey, Chairperson IN RE: DEPARTMENT OF PERSONNEL/ INCENTIVE PROGRAM FOR RETIREMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Department of Management and Budget has projected a significant budget shortfall for fiscal year 2004 as a result of the combined impact of anticipated reductions in State funding, as well as reduced investment income and increased health care costs; and WHEREAS, one means of addressing the projected shortfall while simultaneously creating opportunities for reorganization and position deletions is to provide a strong incentive for County employees to retire; and WHEREAS, a retirement "incentive window" to currently eligible employees and an "early out window" to certain employees not yet eligible for retirement could generate an estimated annual savings of $7.4 MILLION; and WHEREAS, the stated savings is predicated on an estimated 50% of employees retiring who are currently eligible or newly eligible to retire under the proposal and refilling only 50% of positions vacated through this retirement proposal; and WHEREAS, the proposed Incentive Program For Retirement has been reviewed and recommended by the County Executive. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes implementation of the following INCENTIVE PROGRAM FOR RETIREMENT to be offered to non-represented Retirement System members, who will be eligible to retire by December 31, 2002 or whose age and service, including military service credits and Michigan Reciprocal Retirement Act service time, will total 75 by that date, with a minimum service of twenty (20) years and a minimum age of fifty (50) years. BE IT FURTHER RESOLVED that the INCENTIVE PROGRAM FOR RETIREMENT be offered during a one hundred thirty-seven (137) day window of opportunity beginning November 15, 2002 and ending March 31, 2003, with a lump sum retirement incentive pay of 26 weeks salary determined as of September 30, 2002 to apply only to retirements that take place during that period. Personnel Committee Vote: Motion carried on a roll call vote, with Brian voting no BE IT FURTHER RESOLVED that funding for the INCENTIVE PROGRAM FOR RETIREMENT shall be obtained from surplus funds available in the existing Oakland County Employees Retirement System retirement account. BE IT FURTHER RESOLVED that employees on the defined benefit and defined contribution retirement plans desiring to participate in the INCENTIVE PROGRAM FOR RETIREMENT must file written application no less than 30 days in advance of their requested retirement date with the Retirement Commission, on the appropriate form, but in no event no later than January 31, 2003. BE IT FURTHER RESOLVED that the lump sum Retirement Incentive pay will not be included in the final average compensation (FAC) for employees on the defined benefit plan and no additional contributions will be made to the employees defined contribution plan by the County or the employee as a result of this lump sum payment. BE IT FURTHER RESOLVED that the Personnel Department be authorized to offer these changes as a package to all represented groups excluding the employees represented by the Oakland County Deputy Sheriff's Association and Oakland County Command Officer's Association whose contracts already provide a means of early retirement; BE IT FURTHER RESOLVED that elected officials are not eligible for the INCENTIVE PROGRAM FOR RETIREMENT. BE IT FURTHER RESOLVED that in order to achieve the projected savings, the fifty (50%) reduction in the cost of positions vacated through the Incentive Program For Retirement Proposal, excluding special revenue positions, shall be adhered to prior to the filling of these retirement vacancies. Chairperson, on behalf of the Personnel Committee, I move the adoption of the foregoing resolution. PERSONNEL COMMITTEE L ( Resolution #02236 September 19, 2002 The Chairperson referred the resolution to the Finance Committee. There were no objections. FISCAL NOTE (M.R. #02236) October 20, 2002 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: DEPARTMENT OF PERSONNEL/RETIREMENT INCENTIVE PROGRAM To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Department of Management and Budget has projected a revenue shortfall for FY 2004. 2. Providing an incentive for County employees to retire will address the projected shortfall, and create reorganization opportunities within various departments. 3. This Retirement Incentive program could generate estimated annual savings of $7.4 million, based on 50% participation of current employees eligible to retire, and the subsequent refilling of only 50% of the positions vacated through this retirement program. 4. Eligible employees wishing to retire can submit an application through the Personnel Department beginning October 15, 2002. Additional emergency salaries, overtime and temporary change of rate will offset anticipated savings in FY 2003. 5. The FY 2004 Budget will be amended at a time when the specific number of eligible employees opting for retirement under this incentive plan is known. 6. To achieve the projected savings, the fifty (50%) reduction in the cost of positions vacated through the Incentive Program for Retirement Proposal, excluding those funded by special revenue (i.e. grants and enterprise funds), shall be adhered to prior to the filling retirement vacancies. FINANCE COMMITTEE A'f/tA. (---"•%.. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Obrecht and Friedman Appel absent. G. William Caddell, County Clerk - Resolution #02236 October 10, 2002 Moved by Dingeldey supported by Suarez the resolution be adopted. AYES: Douglas, Garfield, Gregory, Law, McPherson, Melton, Middleton, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel, Brian, Buckley, Causey-Mitchell, Coleman, Dingeldey. (22) NAYS: None. (0) A sufficient majority having voted therefore, the resolution was adopted. L. Brooks Patt HE FORE(n'Ns r,LUTION z Date County Executive STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 10, 2002, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 10th day of October, 2002.