11/23/2010 - Personnel CommitteeNOVEMBER 23, 2010
NOON
FERN'S RESTAURANT - -400 SELBY AVENUE, ST. PAUL
AGENDA
I. AGENDA ADOPTION
II. SUCCESSION PLANNING
a. PERA PHASED RETIREMENT OPTION (PRO)
III. OTHER BUSINESS
IV. ADJOURNMENT
PERSONNEL COMMITTEE MEETING
4 116 City of Eagan WeMo
TO: PERSONNEL COMMITTEE (MAYOR MAGUIRE AND
COUNCILMEMBER FIELDS)
FROM: CITY ADMINISTRATOR HEDGES
DATE: NOVEMBER 19, 2010
SUBJECT: PERSONNEL COMMITTEE MEETING / TUESDAY, NOVEMBER 23,
NOON AT FABULOUS FERN'S RESTAURANT
A Personnel Committee meeting is scheduled on Tuesday, November 23 at noon at Fabulous
Fern's Restaurant (400 Selby Avenue St. Paul, MN). The purpose of the meeting is to discuss the
interest of the Personnel Committee in further exploring the use of PERA's Phased Retirement
Option for certain positions within the City. The attached document provides a brief overview of
the Phase Retirement Option provided by PERA, which can be further discussed on Tuesday.
Please contact me if you have any questions in advance of Tuesday's committee meeting.
/s /Thomas L. Hedges
City Administrator
PERA Phased Retirement Option (PRO) Summary
Elements to be Negotiated:
* Length of agreement (no more than one year at a time).
* Availability of any leave time benefits (sick leave, vacation, holidays, etc.).
* Premiums for insurance coverage.
* Work schedule, job assignment adjustments, etc.
19- Nov -10
Agreement between employer and employee at sole discretion (if and to whom) of employer.
Standard Elements:
* Employee must be age 62 or over and a vested PERA member.
* Employee must have worked a minimum of 1,044 hours in each of the five years
immediately preceding the offer of a phased retirement.
* Employee must reduce hours by at least 25% and cannot exceed 1,044 work hours
per year. (Full time employees must go to no more than 60 hours per pay period and
cannot work more than 1,044 total hours annually.)
* The initial phased retirement agreement cannot exceed one year; however, it may be
renewed annually for a period not to exceed five years.
* The employer is under no obligation to renew the agreement.
* Employee applies for PERA retirement benefits which are paid by PERA as if the
employee had terminated service. Full benefits based on years of service and age.
* No formal termination of employment (pension collected without formally resigning).
* There is no further accrual of PERA service credit and no change to the high -five
average salary.
* Per current law, the option to enroll (complete agreement) sunsets June 30, 2014.
Benefits to Employer:
* Employer makes no additional contributions to PERA.
* Can be utilized as an effective transitional strategy for certain positions or combinations
of positions. (Transfer of knowledge base, mentoring, etc.)
* Workforce planning tool - potential opportunity to reduce the overall workforce.
Benefits to Employee:
* Employee makes no additional contributions to PERA.
* Income can be maintained by combining PERA benefits with employer paid salary.
* Work schedule can be reduced.
* PERA's normal termination requirements and earnings limits are waived.
Challenges:
* Should the program be offered to all eligible employees (fairness /business purpose).
* Scheduling of work hours and availability for meetings, etc.
* May prolong transition to new staff leadership.
* May result in significant time periods with key leadership absent from City Hall.
* Requires clear expectations as to work responsibilities and employee availability.