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2003_0630_packet
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2003_0630_packet
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4. Establish a `endow of opportunity' in which employees can take advantage of the <br />early reffimment incentive (e.g., between 6/l/2003 and 10/1/2003). This will <br />ensure that the city does not forget to "close the door'" on the prow once it is no <br />longer needed. <br />5. Avoid early retirement incentives that are tied too directly to age requirements or <br />that cap at a certain age. For example, an early retirement incentive that pays the <br />city's contribution toward health insamnce until age 65 or until Medicare-eligible <br />may be challenged as disc_r_mimtory based on age. Instead, the city should offer a <br />flat dollar amount (e.g., 5,000). <br />6. Avoid early retirement incentives that have uncertain/uncapped costs to the city <br />(e.g., paying health insurance prerniums until the employee finds another job with <br />group health insurance). Instead, cap the costs at a limited number of months or a <br />dollar amount. <br />7 Consider the impact of losing a substantial number of highly experienced <br />employees all at once (e.g., losing the most experienced police officers who help <br />train new reerdts). At rnim'murn, the city should plan for the loss of that <br />expertise, perhaps by asking the experienced employees to conduct training or <br />write manuals before they leave employment. <br />8. Consider employees who are not yet 65 but are eligible for a public pension fund <br />and how that might impact continuation of health and dental benefits. State law <br />typically requires the city to provide indefinite group Health and dental coverage to <br />early retirees who qualify to receive a public pension. <br />G. Carefully consider voluntary termination programs, <br />The city may want to consider offering employees a severance benefit if they agree to a <br />voluntary termination of their employment, It is important that the city offer an additional <br />severance benefit (one that is not available under ordinary circumstances) to the employee in <br />return for their agreement to voluntarily t to employment. In the private sector, the <br />severance benefit often tapes the form of a dollar arnount (or one week's pay) multiplied by <br />the number of years of service (e.g. } $1 .000 x # of years of service or I week of pay for each <br />year of se ice). It is equally important that the city require the employee to sign a waiver of <br />all rights to sue* to file a complaint of dismirnination against the city, or to request a Veteran's <br />Preference hearing in return for the additional severance benefit, Also, the Age <br />Discrimination in Employment Act requires certain waiting periods (see section on early <br />retirement incentives) during which the employee can change his or her mind before the <br />agreement is final. Finally, it is important to notify the employee of his or her right to consult <br />an attorney before signing the agreement. The best practice is to offer this opportunity across - <br />the- board or within selected job classes and to be prepared to give a business reason why <br />certain job clas= have been selected and others have not' The city should work with an <br />attorney on the agreement to be signed by participating employees. <br />H. Carefully consider voluntary leave and other cost - saving measures. <br />Another fairly painless way to sage personnel costs is to implement a voluntary unpaid leave <br />program or reduce work hours for ali employees across- the - board. while there may be a <br />
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