Title
Ordinance amending the Accelerated Retirement Option (ARO) Administrative Policy and authorizing the County Administrator to offer certain eligible employees the ARO.
Staff Summary
• On October 11, 2016, the County Board approved an Ordinance authorizing the County Administrator to implement the ARO program to reduce headcount, allow for planned department restructuring, and reduce on-going costs for the County.
• A long term benefit of the ARO is that the County could evaluate existing departmental operations along with vacancies created by the ARO; and then, consider opportunities to enhance customer service, gain efficiencies, and reduce expenses.
• Eligible employees will be allowed to continue health insurance and dental benefits for two years by making contributions at the same monthly rate as full-time regular employees; OR
• Eligible employees will be allowed to continue health and dental insurance benefits for one year by making contributions at the same monthly rate as full-time regular employees and will receive one week of pay for every two years of service above seven years.
• At this time, staff seeks to change the effective date in option two to allow the ARO to be based upon the rate of pay in effect as of fiscal year 2017, provided the employees separation date is in fiscal year 2017.
• Staff requests approval to eliminate provisions related to health and dental insurance as it applies to coverage provided by union sponsored plans.
• Staff seeks authority for the County Administrator to negotiate an agreement with the Collective Bargaining groups, provided the terms of the agreement results in a saving that is equal to or more then similarly situated non-union employees. The County Board Chairman shall authorize any negotiated agreement.
Body
ORDINANCE
WHEREAS, the County of Lake, in an effort to reduce the number of Full-Time equivalent employees, allow for planned restructuring and reduce on-going costs is implementing an accelerated retirement option that will provide: 1) an incentive to certain employees who have a desire to retire/separate employment early and; 2) a cost savings to the County in total wages by filling vacancies with employees at lower rates of compensation.
WHEREAS, the County of Lake approved an Accelerated Retirement Option Administrative Policy on October 11, 2016.
WHEREAS, the County of Lake will offer employees who contribute to the Illinois Municipal Retirement Fund (IMRF) with at least 8 years of service and who are at least 55 years of age and employees who contribute to Sheriff’s Law Enforcement Personnel (SLEP) retirement fund with at least 20 years of service and who are at least 50 years of age an accelerated retirement benefit; and
WHEREAS, the County of Lake will allow eligible employees to choose one of the two following options: 1) continue health and dental insurance benefits by making contributions at the same monthly rate as full-time regular employees for two years or; 2) continue health and dental insurance benefits by making contribution at the same monthly rate as full-time regular employees for one year and receive one week of pay, at the hourly rate in effect as of the date of this ordinance or December 15, 2016 (dependent upon the termination date), for every two years of service above seven years; and
WHEREAS, the County of Lake seeks to amends the Policy approved on October 11, 2016 to eliminate provisions regarding the payment of union sponsored health and dental premiums: and
WHEREAS, the County of Lake seeks to further amend the Policy approved on October 11, 2016 and give the County Administrator authority to negotiate an agreement with Collective Bargaining Groups, and have the County Board Chairman authorize any negotiated agreement, so that their members, who are eligible for the ARO, may participate, provided the agreement results in a savings for the County that is not less than or greater than a similarly situated non-union employee.
WHEREAS, the Finance and Administrative Committee of the County Board has reviewed the policy recommended for adoption by the County Administrator and the Director of Human Resources
NOW, THEREFORE, BE IT ORDAINED, by this the County Board of Lake County, Illinois, hereby authorizes the County Administrator to offer an accelerated retirement benefit as defined in this ordinance.
DATED, at WAUKEGAN, LAKE COUNTY, ILLINOIS, on this 8th day of November, A.D., 2016.