Agenda 12/16/2008 Item #16F 9
Agenda Item No, 16F9
December 16, 2008
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EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners authorizes a second
offering of the Voluntary Separation Incentive Program, empower the County
Manager to implement the program, and authorize the Chairman to sign the
enabling Resolution.
OBJECTIVE: To obtain approval from the Board of County Commissioners to authorize a
second offering of the Voluntary Separation Incentive Program, empower the County Manager
to implement this program, and authorize the Chairman to sign the enabling Resolution in an
effort to assist the County Manager's Ageney in meeting its financial goals,
CONSIDERATIONS: The County Manager's Agency is committed to continuing efforts to
identify cost-saving opportunities and implement programs that will successfully reduce
recurring fiseal eosts throughout the organization while minimizing the impact to our employees
and each operating department. We eontinue to seek opportunities to streamline budget costs
for FY2009 and in preparation for further budget reductions in FY2010. As a result, the County
Manager wishes to provide a second offering of the Voluntary Separation Incentive Plan with
the intent of benefitting the organization as well as employees who elect to participate.
Over the years, the County Manager's Agency has provided a comprehensive benefit package
offering to its employees. Compensation is more than monetary, as it also includes medical,
,- dental and other benefits that are afforded by employment with our agency. Under this plan. the
County will continue to pay the full premium costs for the individual employees' health and
dental benefits for a period of up to three years, or will provide a financial incentive in lieu of
benefits if the employee so chooses, The County Attorney's Office may choose to opt-in to the
program,
DEFINITIONS AND GUIDELINES: The option to join the Voluntary Separation Incentive
Program will be extended to any regular full- or part-time employee scheduled to work 30 or
more hours per week who meets the eligibility criteria outlined by the Florida Retirement System
for Pension Plan members. making them eligible to retire without penalty under FRS as of
January 1, 2009 or who will meet the FRS eligibility criteria no later than June 30, 2009, This
does not mean that an employee must be a member of the FRS Pension plan, The eonditions
for eligibility are being applied to determine the group of employees who will be covered by this
program offering, Based on current projections. approximately 142 employees of the County
Manager's Agency would be eligible to participate in this program,
The enrollment period is Wednesday, December 17, 2008 through Friday, January 30, 2009,
Employees may not meet the FRS eligibility criteria to participate in the program until after this
window closes, however, if they will become eligible before June 30, 2009, they must still elect
to participate in the program within the enrollment period,
Eligibility for FRS Pension is defined as the following:
.:. Anyone enrolled in the Deferred Retirement Option Program (DROP),
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Agenda Item No. 16F9
December 16, 2008
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.:. In Regular Class, Eleeted Officers Class and Senior Management Service Class
Pension (defined benefit) Plan, anyone age 62 with a minimum of 6 years of service. or
30 years of service at any age under these categories
.:. In Special Risk Class Pension service. anyone age 55 with a minimum of 6 years of
speeial risk class service; OR anyone with 25 total years of special risk class service
AND age 52; OR 25 years of special risk class service regardless of age; OR 30 years of
any creditable serviee,
The structure of the plan is as follows:
(1) The duration of participation in this plan is up to three years. Once an employee has
confirmed enrollment. he/she will begin a notiee period and will separate from service
with the County at the end of that notice period, Generally, an employee's notice period
to the County will be two weeks, Exceptions to the two week notice period will only be
granted when approved in writing by the County Manager, In no event will an
employee's notice period extend beyond July 15. 2009,
(2) While eligibility to participate in this program is determined by criteria outlined by FRS,
employees who elect to participate in this program are not required to retire under the
FRS Pension Plan or withdraw funds from their FRS Investment account
(3) This will be a limited period- offering,
(4) Eligible employees may elect from three options: (1) Medical & Dental insurance
coverage for a period of three years. (2) an up front one-time cash payment in lieu of
three years of coverage, or (3) a combination of both insurance coverage and a cash
payment
(5) Cash payments are calculated by averaging the rates for single and family medical plan
premiums and averaging the rates for all dental plan premiums, Employees eleeting a
cash incentive in lieu of medical and dental coverage would receive a payment equal to
50% of calculated value in each of these plans, less applicable payroll taxes, Premium
costs are defined as total combined costs for the employee and employer portions of
coverage for medical and dental insurance,
(6) A blended option will include medical and dental insurance coverage, together with a
partial cash payment Cash payments will be made at the time the insurance coverage
ends,
(7) The employee will be able to continue health and dental insurance coverage at their
current participation level (Single or Family Medical and Single, Single +1, or Family
Dental) as of the date the program takes effect If the employee has waived his/her right
to coverage by the County, he/she will have the option to elect medical & dental Single
Coverage (under the Select Medical plan and Basic Dental Plan) or take the cash
payment equal to 50% of calculated value as outlined in #5 above,
(8) If an employee becomes re-employed by the County during the three year period and is
covered by the County Benefit Plan, there will be no premium charges to the employee
until that period ends if he/she elects to be covered by Medical and Dental insurance, If
the employee elected the cash payment during that period, he/she 'Nould be eligible to
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'^o.;;mda item No, 16F9
"December 16, 20GB
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re-enroll under the benefit plan, but would be required to pay 50% of the Medical and
Dental premium costs,
(9) Employees who eleet the insurance eoverage for a period of three years, or who would
be covered for a period two years or more with a cash incentive to eomplete the third
year will waive their rights to benefit continuation under COBRA, as the offering period
exceeds that required by COBRA regulations, Employees electing insurance coverage
for a period less than two years with cash incentives, or full cash incentive for three
years will be eligible to continue participation in the group insurance plan should they
choose to do so under COBRA,
(10) Eligible employees will have a period of forty-five (45) days in which to enroll.
The enrollment period for this plan will begin on Wednesday,
December 17, 2008 at 8am and will elose at 5pm on Friday, January 30. 2009, Once
enrolled in the plan, an employee will have a period of seven (7) calendar days in which
they may revoke their choice or amend their enrollment election, After the revoeation
period, the election will stand, no changes will be allowed, and the election is considered
final. The date the election is finalized will start the employee's notice ending their
employment with Collier County,
(11) Employees who are not eligible during the enrollment period under the conditions
outlined above, but who will meet the FRS eriteria by June 30, 2009 may also elect to
participate in this program, In order to do so. the employee must provide written notice
of their intent to leave the County during the enrollment period (between 12/17/08 and
1/30/09), with a resignation date effective on or before June 30. 2009, Once they have
submitted their notice, they will be enrolled in the plan, After enrollment, the employee
will have a period of seven (7) calendar days in which they may revoke their choice or
amend their enrollment election, After the revocation period, the election will stand, no
changes will be allowed, and the election is considered final. For employees in this
group, the date on which he/she becomes eligible under FRS guidelines will start the
employee's notice ending their employment with the County,
(12) Eligible employees who elect to participate in the program will be asked to enter
into an Agreement and Release with Collier County, The Agreement will include the
details of the program and specifically identify and explain the benefit that the employee
selected under the program, The Agreement will also include a Release as required by
the Age Discrimination in Employment Act (ADEA), This Release will place the
employee on notice of his/her rights under the ADEA and ask the employee to consent
that the Agreement and Release is entered into "knowingly and voluntarily,"
LEGAL CONSIDERATIONS:
This item has been reviewed and approved by the County Attorney's Office, This item is not
quasi judicial, and as such ex parte disclosure is not required, This item requires majority vote
only, This item is legally sufficient for Board action, - CMG
FISCAL IMPACT: Fiscal impact for this program will depend on many factors. including the
number of employees who opt to participate, the salaries of these employees, whether the
employee elects benefits continuation or the monetary incentive, and other separation costs.
Based on current projections, approximately 142 employees of the County Manager's Agency
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Agenda item r~o. 16F9
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would be eligible to participate in this program. In order to address the potential impact, two
scenarios have been identified for review and are provided below for informational purposes,
The average fully burdened salary for a full time employee eligible to participate in this program,
is approximately $77,100 per year. Based on this figure, total burdened personnel serviees
costs per employee for a period of three years would be $231,300, The average liability should
an employee elect coverage under the Medical and Dental insurance for three years would be
approximately $10.250 per year. or $30)50 over a period of three years, This level of savings
assumes the vacated position remains unfilled, A reduced amount of annual savings would be
realized if the position is subsequently filled at a future time at a salary level less than that of the
separating employee, Under this scenario, the County Manager's Agency could realize a
personnel services eost savings of approximately $200,550 over a period of three years, or
$66,850 per year per participating employee,
If an employee elected the cash incentive plan in lieu of partieipation in the Medical and Dental
insurance program, the liability would be greatly reduced, Again, the total burdened personnel
services cost would be $231.300 for a period of three years, The value of the cash payment is
$5,500 per year, whieh would provide the employee a one-time payment of $16,500, less
applicable payroll taxes, Based on these figures, the County Manager's Agency could realize a
personnel services cost savings of approximately $214,800 over a period of three years. or
$71.600 per year per participating employee,
The figures above represent an estimated cost savings; employees electing to participate will
have will have several options available from which to choose, and actual cost savings to the
County Manager's Agency will vary based on the incentive option selected by each participant
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this Executive Summary,
RECOMMENDATION: That the Board of County Commissioners authorizes a second offering
of the Voluntary Separation Incentive Program. empowers the County Manager to implement
this program and authorizes the Chairman to sign the enabling Resolution in an effort to assist
the County Manager's Agency in meeting its financial goals.
PREPARED BY:
Amy Lyberg, Interim Director, Human Resources
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Agenda item No, 16F9
December 16, 2008
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COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
16F9
Item Summary:
To obtain approval from the Board of County Commissioners to authorize a second offering
of the Voluntary Separation Incentive Program, empower the County Manager to Implement
this program, and authorize the Chairman to sign the enabling Resolution In an effort to
assist the County Managers Agency in meeting its financial goals
12/16/2008 90000 AM
Meeting Date:
Prepun:d B)'
Amy Lyberg
Administrative Services
Employment Operations Manager
Date
Human Resources
12/5/20084:15:52 PM
Approved By
Amy Lyberg
Employment Operations Manager
Date
Administrative Services
Human Resources
12/5/20084:15 PM
Approved By
Len Golden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
12/5/20084:40 PM
Approved By
OMS Coordinator
Applications Analyst
Information Technology
Date
Administrative Services
12/8/2008 12:49 PM
Approvl'd By
Colfeen Greene
County Attorney
Assistant County Attorner
County Attorney Office
Date
12/9/20081:16 PM
Approyed By
John A. Yonkosky
County Manager's Office
Director of the Office of Management
Date
Office of Management & Budget
12/912008 3 :46 PM
Approved By
Laura Davisson
Management & Budget Analyst
Office of Management & Budget
Date
County Manager's Office
12/9/20083:48 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
12/9/20087:58 PM
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RESOLUTION NO. 2008-_
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, PROVIDING A SECOND OFFERING OF
THE VOLUNTARY SEPARATION INCENTIVE PROGRAM AND
AUTHORIZING THE COUNTY MANAGER TO IMPLEMENT THE
PROGRAM IN COMPLIANCE WITH THE COUNTY MANAGER'S
ORDINANCE NO. 93-72, AS AMENDED, AND THE PERSONNEL
ORDINANCE NO. 96-40, AS AMENDED.
WHEREAS, the Board of County Commissioners of Collier County Florida,
desires to provide a second offering of the Voluntary Separation Incentive Program to
certain eligible County employees;
WHEREAS, the Board of County Commissioners is committed to continued
efforts to identify cost-saving opportunities to and implement programs that will
successfully reduce recurring fiscal costs while minimizing the impact to County
employees and departments;
WHEREAS. the Board of County Commissioners has the exclusive authority to
establish personnel policies;
WHEREAS, the County Manager is authorized to implement the board's policies
and to create any necessary rules, practices and procedures for the administration of
the Board's policies;
WHEREAS. the Board of County Commissioners finds that implementing this
Voluntary Separation Incentive Plan serves a valid public purpose,
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY. FLORIDA, that
The Board of County Commissioners hereby authorizes a second offering of the
Voluntary Separation Incentive Program:
Agenda Item No, 16F9
December 16, 2008
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1. The Program is designed as a cost-saving opportunity for the County
Manager's Agency due to anticipated budget issues.
2. The County Attomey's Office may choose to opt-in to the program as a
cost-saving opportunity due to anticipated budget issues.
3. This Program offering will only be available for a limited time frame,
specifically Wednesday, Deeember 17, 2008 to Friday, January 30,2009. Employees
must confirm participation within this 45-day election period with the Human Resources
Department Once enrolled in the plan. an employee will have a period of seven (7)
calendar days in which they may revoke their choice or amend their enrollment election,
After the seven (7) day revocation period ends, the employee's notice to separate from
County employment will start.
4. Generally. the notice period will be two weeks. Exceptions to the two
week notice period will only be granted when approved in writing by the County
Manager, In no event will an employee's notice period extend beyond July 15. 2009.
5. Program notice letters and required documentation will be provided to
eligible employees on or before Wednesday, December 17,2008.
6. Eligible employees are those regular full-time and eligible regular part-time
employees who meet the eligibility criteria outlined by the Fiorida Retirement System
(FRS) for Pension Plan members. making them eligible to retire without penalty under
the FRS, An employee may be a member of either the Pension or Investment Plan to
be eligible. but is not required to be an FRS participant.
7. The benefit of this Program extends for up to three years, An eligible
employee may choose from three incentive options. The options include (1) County
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paid medical and dental benefits for three years, (2) fifty percent of the cash equivalent
of medical and dental benefits for three years, or (3) a combination that will indude
medical and dental insurance coverage, together with a partial cash payment.
8. Eligible employees who elect to participate in the Program will be asked to
enter into an Agreement and Release with Collier County, The Agreement will include
the details of the Program and specifically identify and explain the benefit that the
employee selected under the Program. The Agreement will also include a Release as
required by the Age Discrimination in Employment Act (ADEA). This Release will place
the employee on notice of his/her rights under the ADEA and ask the employee to
consent that the Agreement and Release is entered into "knowingly and voluntarily,"
9, The County Manager Shall be authorized to sign the Agreement and
Release on behalf of Collier County.
10, This Resolution shall take effect immediately upon adoption,
PASSED AND DULY ADOPTED by the Board of County Commissioners of
Collier County, Florida, this ~ day of
.2008.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
Deputy Clerk
By:
TOM HENNING, CHAIRMAN
Approved as to fonn and
~ gal sufficiency:
Colleen M, Greene
Assistant County Attorney