Title
Ordinance authorizing the County Administrator to offer certain eligible employees an Accelerated Retirement Option (ARO) in conjunction with the Accelerated Retirement Option Administrative Policy.
Staff Summary
• In 2009 and 2010, the County offered an ARO program to reduce headcount, allow for planned departmental restructuring, and reduce on-going costs for the County.
• A long term benefit of the ARO is that the County can evaluate existing departmental operations along with vacancies created by the ARO; and then, consider opportunities to enhance customer service, gain efficiencies, and reduce expenses.
• Based on the success of the past program, and in consideration of the projected budget challenges, it is recommended that the County offer a similar program during 2016/2017.
• 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.
• It is anticipated that this benefit may generate a first year average savings of up to $1,750 per employee and a second year average savings of up to $9,376 per employee, for a cumulated two-year average savings of $11,123 per employee.
• This option will be offered to employees beginning October 12, 2016 through December 19, 2016.
• Employees who choose this option may begin their retirement on a mutually agreeable date from October 31, 2016 through March 31, 2017 with some exceptions.
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, the County 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 will offer employees an accelerated retirement benefit to those 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; 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 for two years by making contributions at the same monthly rate as full-time regular employees; or 2) continue health and dental insurance benefits for one year by making contributions at the same monthly rate as full-time regular employees and receive one week of pay, at the effective hourly rate as of the date of this ordinance, for every two years of service above seven years; and
WHEREAS, the County of Lake may eliminate positions, reclassify positions, or delay the hiring of those positions vacated by employees who take the accelerate retirement benefit; employees filling the affected position vacancies may be paid at a lower rate of pay and shall accrue benefit time at a lesser rate, thereby creating a savings in annual wages and benefit time; and
WHEREAS, the County of Lake is offering this benefit to eligible employees for a specific period of time beginning October 12, 2016 through December 19, 2016, employees will be allowed to participate in the program provided they agree to one of the established options, methods of payment and sign an agreement to retire/separate employment at a time that is mutually agreeable between the employee and their Department Head prior to the expiration date of the Accelerated Retirement Options Administrative Policies; and
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 11th day of October, A.D., 2016.