Agenda 01/29/2008 Item #10H
Agenda Item No.1 OH
January 29, 2008
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EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners establish a 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 establish a
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 Agency 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 fiscal costs throughout the organization while minimizing the impact to our employees
and each operating department. This has been an issue of primary focus as we labor to meet
the mandates outlined in Tallahassee, requiring the County to enact budget cuts in FY2008 and
beyond. As a result, the County Manager has developed the Voluntary Separation Incentive
Plan with the intent of benefitting the organization as well as employees who elect to participate.
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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 pension 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 three years, or will provide a financial incentive in lieu of benefits if
the employee so chooses.
DEFINITIONS AND GUIDELINES: The option to join the Voluntary Separation Incentive
Program will be extended to any regular full time employee who meets the eligibility criteria
outlined by the Florida Retirement System for Pension Plan members, making them eligible to
retire without penalty under FRS. This does not mean that an employee must be a member of
the FRS Pension plan. The conditions for eligibility are being applied to determine the group of
employees who will be covered by this program offering. Based on current projections,
approximately 140 employees of the County Manager's Agency would be eligible to participate
in this program.
Eligibility for FRS Pension is defined as the following:
.:. Anyone enrolled in the Deferred Retirement Option Program (DROP).
.:. In Regular Class, Elected 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
special 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 service.
The structure of the plan is as follows:
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Agenda Item NO.1 OH
January 29, 2008
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(1) The duration of participation in this plan is three years. Once an employee has
confirmed enrollment, he/she will begin a two week notice and will separate from service
with the County at the end of the notice period.
(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, one time 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 would be calculated by averaging the rates for single and family medical
plan premiums and averaging the rates for all dental plan premiums. Employees
electing 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 for a period of one
or two years, 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 $500 deductible 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 would be eligible to
re-enroll under the benefit plan, but would be required to pay 50% of the Medical and
Dental premium costs.
(9) Employees who elect the insurance coverage for a period of three years, or a two year
period with a cash incentive for the third year will waive their rights to benefit
continuation under COBRA, as the offering period exceeds that required by COBRA
regulations. Employees electing a one year insurance coverage with two years of 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 sixty (60) days in which to enroll. The
enrollment period for this plan will begin on Thursday, January 31, 2008 at 8am and will
close at 5pm on Monday, March 31, 2008. Once enrolled in the plan, an employee will
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Agenda Item No. 10H
January 29, 2008
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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. The date the election is
finalized will start the employee's two week 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 criteria by June 30, 2008 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 1/31/08 and
3/31/08), with a resignation date effective on or before June 30, 2008. 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 two week 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 program has been reviewed and approved by the County
Attorney's Office and for legal sufficiency.
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 140 employees of the County Manager's Agency
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 salary for a full time employee, fully burdened, is approximately $71,500 per year.
Based on this figure, total burdened personnel services costs for a period of three years would
be $214,500. The average liability should an employee elect coverage under the Medical and
Dental insurance for three years would be approximately $12,200 per year. or $36,600 over a
period of three years. Under this scenario, the County Manager's Agency could realize a
personnel services cost savings of approximately $177 .900 over a period of three years, or
$59,300 per year per participating employee.
If an employee elected the cash incentive plan in lieu of participation in the Medical and Dental
insurance program, the liability would be greatly reduced. Again, the total burdened personnel
services cost would be $214,500 for a period of three years. The value of the cash payment is
approximately $6,100 per year, which would provide the employee a one time payment of
$18,300, less applicable payroll taxes. Based on these figures, the County Manager's Agency
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Agenda Item No. 10H
January 29, 2008
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could realize a personnel services cost savings of approximately $196,200 over a period of
three years, or $65,400 per year per participating employee,
The figures above represent an estimated cost savings; employees electing to participate
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 will establish a Voluntary
Separation Incentive Program, empower the County Manager to impiement this program and
authorize 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.1 OH
January 29, 2008
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COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Meeting Date:
10H
Recommendation that the Board of County Commissioners establish a Voluntary Separation
Incentive Program, empower the County Manager to implement the program and authorize
the Chairman to sign the enabling Resolution, (Len Price, Administrative Services
Administrator)
1/29/20089:00:00 AM
Item Number:
Item Summary:
Approved By
Amy Lyberg
Employment Operations Manager
Date
Administrative Services
Human Resources
1/18/20084:19 PM
Approved By
Len Golden Price
Administrative Sen/ices Administrator
Date
Administrative Services
Administrative Services Admin.
1/18/20084:25 PM
Approved By
Michael Smykowski
Management & Budget Director
Date
County Manager's Office
Office of Management & Budget
1/22/2006 8:44 AM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
1/22/20089:46 AM
file://C :\AgendaT est\Export\99-J anuary%2029, %202008\ 1 0.%20COUNTY%20MANAGE...
1/23/2008
Agenda Item NO.1 OH
January 29, 2008
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RESOLUTION NO. 2008-_
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, ESTABLISHING A 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 Fiorida,
desires to create a Voluntary Separation Incentive Program for 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 establishing and
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 establishes the Voluntary
Separation Incentive Program;
1. The Program is designed as a cost-saving opportunity for the County
Manager's Agency due to anticipated budget issues,
2. This Program will only be available for a limited time frame, specifically
\Thursday, January 31, 2008 to Monday, March 31, 2008. Employees must confirm
participation within this 50-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
Agenda Item No.1 OH
January 29, 2008
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(7) day revocation period ends, the employee's two week notice to separate from
County employment will start.
3. Program notice letters and required documentation will be provided to
eligible employees on or before Thursday, January 31, 2008.
4. Eligible employees are those regular full-time employees who meet the
eligibility criteria outlined by the Florida Retirement System (FRS) for Pension Plan
members, making them eligible to retire without penalty under the FRS. An employee
may participate in either the Pension or Investment Plan to be eligible. A more detailed
description of eligible employees is attached as part of the Program Definition and
Guidelines.
5. The benefit of this Program extends for three years. An eligible employee
may choose from three incentive options. The options include (1) County 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 include medical and
dental insurance coverage for a period of one or two years, together with a partial cash
payment.
6. Eligibie 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 seiected under the Program. The Agreement will also inciude 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 voiuntarily."
7. The County Manager shall be authorized to sign the Agreement and
Release on behalf of Collier County.
8. This Resolution shall take effect immediateiy 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
By:
TOM HENNING, CHAIRMAN
Deputy Clerk
Agenda Item No, 10H
January 29, 2008
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Approved as to form and
legal sufficiency:
Colleen M, Greene
Assistant County Attorney
07-HU\1-00036i2