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REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: Consider Resolution Adopting Voluntary Early Retirement Program <br />DEPARTMENT HEAD’S APPROVAL: <br />CITY MANAGER’S APPROVAL: <br />No comments to supplement this report ___ Comments attached ___ <br />Recommendation: Approve Resolution Adopting Voluntary Early Retirement Program <br />Legislative History: 2009 was the last time the City of New Brighton instituted an early retirement <br />program. <br />Financial Impact: The financial impact will depend on the number of eligible employees that <br />choose to enroll in the program. The City will be able to realize cost savings in <br />the long run through this program. <br />Explanation: <br />The City is proposing that the following benefits be provided to employees that elect to participate in <br />the City’s Voluntary Early Retirement Incentive Program: <br />(1)The City will contribute an incentive equivalent to 120 hours of gross salary at the <br />employee’s current rate of pay. The 120 hours of payment will be taxable and paid <br />directly to the employee. <br />(2)The City will make a one-time contribution of $10,000 to an employee’s post-retirement <br />health saving’s account. <br />(3)The normal vacation and sick pay that an employee would receive at regular retirement <br />based off of the City’s handbook and respective Union contracts. <br />Based on the City’s data of eligible employees and incentive numbers, the average length a position must <br />be held open to realize cost savings is 1.7 months. All positions will be held vacant for at least two months <br />to ensure we experience cost savings in 2020. Most positions will be held vacant for longer than that. <br />The employees that are able to participate in this program are at the top of their pay in their respective <br />grades. The City will be able to save on personnel expenses in 2021 by budgeting for those positions at <br />a lower wage than we would have otherwise with a longer term employee in a given position. <br />The proposed program is attached. <br />Report Number: 10 <br />Agenda Section: Consent <br />Report Date: 5/21/20 <br />Council Meeting Date: 5/26/20