90-2299 counci l Fi le # � - .? �?''�
Green Sheet # v2���
RESOLUTION
CITY O SAINT PAUL, MINNESOT
. .
Presented By � '`�z"
Referred To Comnitt Da
•'�
________________________�________________________________________________________________
Resolved, That the Council of the City of Saint Paul does
hereby approve the severance pay incentive plan adopted by the
Police Department for the year 1991, and the administration is
hereby authorized and directed to implement the plan as set forth
on the attached document.
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Yeas Na s Absent Requeste�b par,tment of:
D i mon �.�
Goswtt2
Lon
Macca e
Rettman �-
Thune '�. �j f .j .
Wi son BY� �(��.��A�d.•./lic-�
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Adopted by Council• Date
DEC 2 '7 1990 Form A ro�ed by Cit Attorney�
Adoption Certified by CounCil Secretary ey. /��
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BY� A oved � by Mayor for Submission to
Q�� `� � 1990 ��� ;`
Approved �Mayor: Date � �' �
��''%����/�'��� BY. .._ G4� f`--�T�,
By:
� C�E F��°k> ,� ( t !�
_ __��,o,�.� /
� �a -a�z ��
December 26, 1990
EARLY RETIREdII?NT INCENTNE PROGRAM
The City is facing a diffacult financial time. The budget reductions
in 1990 and the projected fiscal difficulties in the 1991 budget cycle
require the City to reduce its cost of operation. One strategy for
achieving a balanced budget is to encourage personnel who are nearing
retirement to consider the possibility of leaving early. An early
voluntary retirement decision will help the City to balance its budget.
The City wishes to offer an early retirement incentive program to
facilitate reinstatement of employees who are subject to demotion or
layoff on January 11, 1991.
The incentive program is designed to ease the transition from
employment to retirement. Participation in the program is completely
voluntary. The program is offered as fallows:
1. The !City of Saint Paul will pay to any sworn officer who is
eligible for retirement and who has 20 or more years of
service a severance pay bonus, provided that such retirement
leads in an unbroken causal chain to the reinstatement of
an employee who would otherwise be demoted or without
employment on January 11, 1991, as a result of the permanent
personnel reductions.
2. The severance bonus shall be 15% of salary at time of
retirement plus an additional 1 o for each year of service over
20 years. For purposes of determ;n;ng the total amount of the
incentive, fractions of a year of service will be awarded 1% of
salary if that fraction is 6 months or more, 0% if less than six
months and shall be available for retirement dates through
February l, 1991. For example, a Sergeant retiring on
Janu�ry 15, 1991, with 29 years, 7 months of service would
earn 15 0 of salary plus 9% (one for each year of service over
20) plus 1% (fraction of a year 6 months or more) for a total
of 25% of salary at time of retirement.
3. The incentive is available to any eligible employee during the
period of December 19, 1990, to January 18, 1991, if all
employees within this bargaining unit who are affected by the
permanent personnel reductions are reinstated. The incentive
offer terminates the day of the reinstatement of the last
affected employee.
4. Any employee wishing to take advantage of this incentive xnust
submnt his or her request for retirement, alang with necessary
supporting documents, to his or her appointment afficer within
the t�me period mentioned above. The em�loyee must notify
his or her appointment officer of the date �f retirement, which
must be on or before February 1, 1991.
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5. The, date of retirement, for purposes of calculating the amount
of the incentive, shall be the date the employee actually
retires, not the date that intent io retire is communicated to
the ,appointing officer. If there is a delay between the
employee's desired retirement date and the actual retirement
date, and if such delay is caused by circumstances outside the
emplayee's control, the date of retirement, for purposes of
calculating the amount of the incentive, shall be the date the
employee desired to retire.
6. The City shall pay the severance bonus to each retiree in a
single payment within thirty (30) days after the date of
retirement or in four (4) installments over the course of the
year, at the option of the employee.
7. The City will provide free of charge post-retirement counseling
thr4ugh the City's Employee Assistance Program for a perind of
up to 6 months following the dates of retirement. This service
will most likely consist of counseling for the employee and
spouse, resume writing assi.stance, financial advice, future job
couriseling and skill assessment.
Employees interested in the early retirement program will receive a
packet of infarmation prepared by the Personnel Office as well as the
customary personal consultation availa►ble to retiring employees and their
spouses. The information packet will include Police Pension details and
filing information, as well as information about other benefits retirees
receive such as health insurance, life insurance, and severance pay. (The
City's offer of an early retirement severance bonus has no affect on
other benefits due a retiree.)
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� _ 12 8 3 2
o i GREEN SHEET
CONTACT PER30N&PHONE INITIAUDATE INITIAUDATE
�DEPARTMENT DIRECTOR �CITY COUNCIL
ASSION CITYATTORNEY CITYCLERK
WTIl. McCutcheon 2 — NUMBER FOR �BUDGET DIRECTOR �FIN.&MOT.SERVICES DIR.
MUST BE ON COUNCIL AOENDA BY( TE) ROUTIPIG
ORDER MAYOR(OR ASSISTAN� �
12 27 9
TOTAL#OF SIGNATURE P GES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
Process the attac ed C uncil Resolution authorizing the proper city officials
to proceed with t e im lementation of an Early Retirement Incentive Program.
RECOMMENDATIONS:Approve(A)or eJect(R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWIN(i QUESTIONS:
_PLANNINf3 COMMISSION CIVIL ERVICE COMMISSION 1. Hes this person/firm ever worked under a contrect for thfs departmentl
_CIB COMMITTEE YES NO
2. Has this person/firm ever been a city employee?
_STAFF YES NO
_DI3TRIC7 CouRT 3. Does this person/firm possess a skill not normally possessed by any current city employee7
SUPPOHTS WHICH COUNCIL OB,IE IVET YES NO
Explsin all yss answera on sepante ahest and attach to green sheet
INITIATINCi PROBLEM,IS3UE,OP RTUNITY o,What,When,Where,Why):
The budget reduc ions in 1990 and the projected fiscal difficulties in the 1991 budget
cycle require th Cit to reduce its cost of operation.
ADVANTAOES IF APPROVED:
The attached Ear y Re irement Incentive Program will help the City balance its budget,
facilitate reins atem nt of employees who are subject to demotion and ease the
transition from mplo ment to retirement.
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D13ADVANTA�ES IF APPROVED:
None.
DISADVANTAGES IF NOT APPROV :
Layoff and demo ion f sworn employees of the Police Department.
TOTAL AMOUNT OF TRANS CTION COST/REVENUE BUDOETED(CIRCIE ONE) YES NO
FUNDINti SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXP IN)
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