Loading...
10.1. SR 07-01-2019 EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 10.1 Agenda Section Meeting Date Prepared by Work Session July 1, 2019 Cal Portner, City Administrator Item Description Reviewed by Discuss Compensation Plan Amendment and IT Lauren Wipper, HR Manager Division Staffing Reviewed by Lori Ziemer, Finance Director Action Requested Discuss and provide direction regarding a phased retirement opportunity. Background/Discussion During our budget review, the IT Manager indicated a desire to exercise a PERA Phased Retirement Option and discussed future department staffing needs. PERA Phased Retirement allows for the collection of retirement benefits in exchange for a decrease in annual work hours and a defined term of employment. One disadvantage to Phased Retirement is the number of hours worked does not qualify for full health benefits. The Council is asked to consider an amendment to the Compensation Plan, the staffing impacts and IT support for the organization and provide direction. Financial Impact N/A Attachments ■ Staff Report 3.4 12-13-2010 ■ Comp Plan 2019 The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 i city -f Eli REQUEST FOR ACTION Rive TO ITEM NUMBER City Council 3.4. AGENDA SECTION MEETING DATE PREPARED BY Consent December 13, 2010 Lauren Wipper, Human Resource Representative ITEM DESCRIPTION REVIEWED By Resolution Authorizing PERA Phased Retirement Option Lori Johnson, City Administrator REVIEWED BY ACTION REQUESTED Approve the attached resolution authorizing the Public Employees Retirement Association (PERA) Phased Retirement Option and designating the Human Resource Representative to manage this program. BACKGROUND/DISCUSSION Legislation passed in 2009 allows certain eligible employees the opportunity to begin receiving a PERA pension without formally retiring. Called the Phased Retirement Option, eligible employees include those age 62 or older that meet all other requirements for a pension from PERA and have worked a minimum of 1,044 hours in each of the prior five years. Street Superintendent Phil Hals has asked to begin Phased Retirement in March 1, 2011. Under Phased Retirement, an employee must agree to reduce their hours worked by at least 25 percent, and not exceed 1,044 hours worked per year. The employee and employer must file a Phased Retirement Option Agreement with PERA. This agreement is valid for one year and may be renewed annually for a total of no more than five years. The administration of benefits under Phased Retirement is left to the City's discretion. City Administrator Lori Johnson and I have discussed this and feel that it is reasonable to allow employees working 20 hours per week under the Phased Retirement Option to continue benefits on a prorated basis. Benefits under this option include participation in the Flexible Benefits Plan and vacation, sick, and holiday leave. I have confirmed with our insurance plan administrators that, where necessary, our plans can be amended to allow employees participating in the Phased Retirement Option to be eligible for coverage. The City Council is being asked to approve the attached resolution which designates the Human Resource Representative to enter into Phased Retirement Agreements with eligible staff and manage the details of the Phased Retirement Option program. FINANCIAL IMPACT The Phased Retirement Option is a cost savings to the City in both salary and benefits. ATTACHMENTS ■ Resolution ■ PERA Phased Retirement Brochure Action Motion by Second by Vote Follow Up RESOLUTION 10- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING PHASED RETIREMENT OPTION, DELEGATING AN OFFICIAL OR STAFF POSITION TO COORDINATE WHEREAS, the City of Elk River recognizes that it may be to the city's benefit to offer a phased retirement option to certain city staff either to enhance knowledge transfer to other staff, retain a key staff person until a replacement can be found, or to reduce the hours of some staff for budgetary savings, WHEREAS, the City of Elk River recognizes that the Public Employees Retirement Association (PERA) now offers a phased retirement option available to certain city staff who meet criteria outlined in statute, WHEREAS, the City of Elk River recognizes the need to designate a city official or staff person to identify eligible staff, determine whether there is a benefit to the city to offering the phased retirement option to those staff and coordinate communication and implementation of the program to eligible staff, NOW, THEREFORE, BE IT RESOLVED the City Council of Elk River hereby appoints the Human Resource Representative as the designated coordinator for the PERA phased retirement option program and authorizes the Human Resource Representative to identify employees eligible to participate in the phased retirement option program, determine whether there is a benefit to the city to offering the program to each of those employees and to coordinate communication and implementation of the program to the persons determined eligible and suitable for the program. Passed and adopted by the City Council of the City of Elk River, Minnesota this 13'h day of December 2010. Stephanie Klinzing, Mayor ATTEST: Tina Allatd, City Clerk A 9 PHASED RETIREMENT: option forrr r r .r membersrr• 62 and over If you, as a Coordinated mem- ber, are age 62 or over, you may be able to ease into retirement under something called a Phased Retirement. This option is entirely at the discretion of your employer. Under legislation passed this year, PERA's normal termination requirements and earnings limits are waived if you meet the require- ments of the special provision. Requirements wTo qualify; you must be age 62 or over and a vested member of PERA. You must also have worked a minimum of 1,044 hours in each of the five years immediately preceding the offer of a phased retirement by your employer or another PERA-cov- ered employer. wYou must agree that your hours of work will be reduced by at least 25 percent and will not exceed 1,044 hours per year. wThe initial phased retirement agreement cannot exceed one year. However, it maybe renewed for up to an addi- tional year. The total period of phased retirement may not exceed five years. wYou and your employer (or a new PERA-covered employer) must sign a Phased Retirement Agreement form provided by PERA. This is used in place of PERAs normal Termination Verification form. The benefits of the plan Normally; in order to receive a pension, members must formally terminate employment and have no prior agreement, either verbal or written, that they will be reem- ployed at a later date. In addi- tion, there must be a minimum 30 -day break in public service (paid or unpaid) if a member does return to work for a PERA-cov- ered employer. Members who return to PERA-covered employ- ment are subject to earnings limits if they are under Social Security's normal retirement age—exceeding the limits results in a reduction of the PERA pension. These restric- tions are eliminated under phased retirement. You will receive the full PERA pension you have earned, based upon your years of service, age at retirement, and high -five average salary. In addition, neither you nor your employer are required to make future contributions to PERA. Since you are now receiv- ing a pension, all further accrual of service credit or adjustment of the high -five average salary ceases. Employer's discretion Your employer is under no obli- gation to offer you a phased retire- ment or to renew any agreement that is made. You should also investigate the impact a reduction of hours may have on your other employee benefits. (Continued on reverse side) The procedure Phased retirement requires a written agreement between you and the PERA-covered employ- er offering you the option. You must file both a Phased Retirement Agreement form and an Application for PERA Retirement Benefits with PERA. All other PERA benefit and appli- cation requirements must be met. If your phased retirement agreement is not renewed, your employer must report your ter- mination of public employment to PERA. You may not return to work for your employer or another PERA-covered employer for a minimum of 30 days. If you later rejoin PERA-covered employment and are under Social Security's full retirement age, you will be subject to PERA's annual earnings limit. Not for retirees Phased retirement is not avail- able to PERA members who are already receiving a retirement benefit. Retirees who return to PERA-covered work remain sub- ject to the Association's earnings limits. Su nset Currently, the phased retire- ment option is set to end on June 30, 2014. Until then, PERA will be evaluating the program's effectiveness and its impact on the pension fund. Continuation of the option would require legislative action. This document is available in alternative formats to individuals with disabilities by calling 1 800 652-9026 or through the Minnesota Relay Service at 1 800 627-3529. This brochure is meant to explain the Public Employees Retirement Association of Minnesota law as simply and accurately as possible. If there is any discrepancy between this publication and the actual law, the provisions of the law will govern. &A Public Employees Retirement Association of Minnesota 60 Empire Drive, Suite 200 St. Paul, Minnesota 55103-2088 800 652-9026 ♦ (651) 296-7460 www, nanpera. org 1 June 2010 in option for Coordinated iembers age 62 and over Public Employees Retirement Association of Minnesota City of k :El --.� River Resolution 18-72 A Resolution of the City of Elk River Adopting the 2019 Compensation Plan for Non-Organized Employees NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: The attached Compensation Plan was approved and adopted effective December 23, 2018, and amended on January 7, 2019, and June 3, 2019. Passed and adopted this 71h day of January,2019. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk NAtUREJ CITY OF ELK RIVER 2019 COMPENSATION PLAN FOR NON-ORGANIZED EMPLOYEES PAY Pay Ranges 1. All current pay ranges of the approved City Pay Plan shall increase three percent (3%) effective the first pay period of January 2019 which begins on December 23, 2018. 2. Waste Water Treatment Operators shall qualify for regular annual step increases with satisfactory performance. Operators may qualify for earlier step increases based on obtaining a higher level license as follows: License Step - A D B C C B D-E With satisfactory performance and once a license has been obtained, the employee shall immediately move to the lowest step for that license. Employees who receive a step increase for obtaining a higher license are not eligible for an annual step increase until after one year of receiving the license-based step. Annual steps will be given in accordance with item #3 below. Starting Pay 3. The city has discretion to negotiate a higher starting rate within the pay range as deemed appropriate based on experience, education/training, or the market. Step Increases 4. All non-union full-time and eligible part-time employees hired or promoted before July 1, 2018, and receiving a satisfactory rating on their performance review will move up one step in their pay range effective the first pay period of July 2019,which begins June 23, 2019. All non-union full-time and eligible part-time employees hired or promoted July 1, 2018, or later and receiving a satisfactory rating on their performance review will move up one step in their pay range on their anniversary date. All orientation period employees will receive increases as stated in their employment letter. If no special provision was outlined in the employment letter, the employee shall receive the first step increase on the date noted above provided they have successfully passed Orientation and are performing satisfactorily. Part-Time Pav 5. Effective January 1, 2019, Paid On-Call Firefighters shall be paid in accordance with the following schedule: Position Hourly Probationary Firefighter $ 9.86 Firefighter $14.30 Lieutenant $14.80 Captain $15.30 District Chief $15.80 Assistant Chief $16.30 Additional Educational Incentive Pay shall be paid as approved by the City Council on October 27, 1997. Officers who serve on-call as Duty Officer shall be paid $4.50 for each hour of on-call duty. 6. Fire Academy Instructors shall be paid according to the following schedule: Assistant Instructor $25.00 per hour Lead Instructor $30.00 per hour 7. Part-time Cablecaster shall be paid $14.94 per hour effective December 23, 2018. 8. Part-Time Police Reserves are required to serve in both a volunteer and a paid capacity. Effective January 1, 2019, Police Reserves shall be paid $15.94 per hour for the hours that are to be paid as determined by the Police Chief. 9. Part-Time, Seasonal and Temporary Park and Recreation and Public Works employees shall be paid in accordance with the following schedule: Maximum Annual Hourly Position Hourly Increase Recreation Program Assistant $9.86 - 11.00 $ .25 Recreation Program Lead $10.50- 15.00 $ .50 Recreation Program Supervisor $12.00- 17.00 $ .50 Warming House Attendant $9.86 Recreation Building Supervisor $12.00- 17.00 $ .50 Office Worker-Activity Center $12.00- 17.00 $ .50 Seasonal Park Laborer $12.00- 15.00 $ .75 Seasonal Street Laborer $12.00- 15.00 $ .75 Winter Public Works Laborer $15.00 - $17.00 $ .75 Seasonal Snow Plow Operator $18.00 - $21.00 $ .75 Seasonal Wastewater Laborer $12.00- 15.00 $ .75 Ice Arena Worker/Ice Resurfacer $12.00- 15.50 $ .50 Ice Arena Worker $10.50- 12.00 $ .50 Ice Arena Cashier $11.00- 14.00 $ .50 Ice Arena Concession Clerk $10.75 - 13.75 $ .50 Ice Arena Concession Lead $11.75 - 14.75 $ .50 Hockey Instructor $10.00- 13.00 $ .50 Hockey Pro (player at college level) $20.00-22.00 $ .50 Skating Academy Instructor One $11.50- 13.00 $ .50 Skating Academy Instructor Two $13.00— 17.00 $ .50 Skating Academy Instructor Three $17.00—22.00 $ .50 Skating Academy Director $22.00—28.00 $ .50 Starting Pam At the city's discretion,when hired, employees may be granted an amount equivalent to the Maximum Annual Hourly Increase for each year of related education or previous work experience. Annual Hourly Increase Recreation Program Assistant,Program Lead,Program Supervisor,Building Supervisor, and Office Worker—Activity Center employees may receive an increase once per year at the City's discretion. Seasonal Park Laborer, Seasonal Street Laborer,Winter Public Works Laborer, Seasonal Snow Plow Operator, and Seasonal Wastewater Laborer employees may receive an increase at the beginning of the season at the city's discretion. If an employee returns for another season in the same calendar year, they are not eligible for another increase. Ice Arena Worker/Ice Resurfacer,Ice Arena Worker, Cashier, Concession Clerk, and Concession Lead employees may receive an increase for each additional year the employee works for the Ice Arena. Increases will be given on the first day of the first full pay period of the calendar year at the city's discretion. Skating Academy and Hockey Program employees may receive an increase for each additional year the employee works for the Ice Arena. Increases will be given at the beginning of each summer program session (June) at the city's discretion. Skating Academy Assistant Skating Academy Director—At the beginning of each session, the Skating Academy Director shall assign one instructor to be Assistant Skating Academy Director. Off Ice Time—Includes time spent planning lessons and skating programs,meetings, and any other activity that is not performed on the ice. The Skating Academy Director shall be paid 60% of his/her regular wage for off ice time which shall not exceed one half hour for each hour spent on ice. The Assistant Director shall be paid 50% of his/her regular wage for off ice time which includes off ice activities performed as Acting Director and required meetings with the Arena Manager and/or Skating Academy Director. If the off- ice wage falls below minimum wage, minimum wage will be paid for off ice time. 10. Effective December 23, 2018, Part-Time Liquor Store Clerks shall be paid in accordance with the following schedule: Hired before September 1, 2005: $19.54 Hired September 1, 2005 and after: A B C D E 12.12 13.21 14.30 15.39 16.48 Part-Time Liquor Store Clerks at the top of the 2018 pay scale will receive a 3% pay increase effective December 23, 2018, and will move to step E on June 23, 2019,based on satisfactory performance. All other Part-Time Liquor Store Clerks will be placed on step A or B according to current pay and seniority and move up one step on their anniversary date based on satisfactory performance. On Call Pay 11. Wastewater Operators are assigned on call duties for periods of one week. The on call operator will be compensated five hours of overtime/compensatory time on Saturday and five hours of overtime/compensatory time on Sunday. The on call duties include responding to after-hours emergency callouts and performing required duties at the Wastewater Treatment Facility on Saturday, Sunday,and any holidays that fall within the assigned week. Premium Pay 12. Non-union snow plow operators working on snow removal duties on Saturdays and Sundays will receive one and one half times their regular rate of pay for their hours worked. 13. Police department clerical employees required to type reports on a Sunday shall receive one and one half times their regular rate of pay for their hours worked. Out of Class Pav 14. Ice Arena Worker/Ice Resurfacers assigned as a shift leader when the Arena Manager, Arena Maintenance Supervisor, or Arena Lead Worker are not working will be paid an additional$2.00 an hour for serving as Arena Shift Leader. 15. Any employee who is assigned to operate a snow plow truck who does not operate a snow plow truck as part of his/her regular position with the city shall be paid at their current rate of pay or pay grade 5N of the City Pay Plan,whichever is greater, for these snow removal hours. Employees utilizing pay grade 5N for this provision shall begin at step A and receive a step increase at the beginning of each snow season that they are assigned to perform snow plowing duties. INSURANCE BENEFITS 16. All regular full-time employees are eligible for insurance benefits. Part-time employees scheduled to work 30 or more hours per week are eligible for prorated insurance benefits. Retired employees with a Phased Retirement Option Agreement are eligible for insurance benefits as identified in the Agreement. Seasonal and temporary employees are not eligible for insurance benefits. 17. Employees eligible for insurance benefits are eligible for participation in the city's Flexible Benefits Plan. The contribution levels shall be as follows: Health Insurance Election Monthl�ty Contribution Single $606.00 Employee & Child(ren) $1,116.00 Employee & Spouse $1,165.00 Family $1,601.00 Opt-out $300.00 18. Paid On-Call Firefighters who are not full-time city employees shall be provided $10,000 Life Insurance coverage. OTHER 19. The City Council may make adjustments in any section of the Pay Plan at any City Council meeting for any reason including performance incentives, state or federal law changes, the Pay Equity Law, or any other reason the Council deems appropriate. 20. All employees who are members of the Law Enforcement Labor Services, Locals 231 and 271, or the International Union of Operating Engineers, Local 49, shall receive compensation and benefits as outlined in the Master Labor Agreement between the city and the union. 21. A Wage Incentive Program is offered to employees holding a Captain position in the police department. Participation is on a voluntary basis. An employee will earn the following amounts provided that the employee meets the established guidelines for all the identified categories. After five (5) years of service—up to 3% of employee's base wage rate After nine (9) years of service—up to 4.5% of employee's base wage rate After thirteen (13) years of service—up to 6% of employee's base wage rate After seventeen (17) years of service—up to 7.5% of employee's base wage rate City of Elk River 2019 Pay Plan Effective December 23, 2018 Updated February 4, 2019 Grade A B C D E Levels Minimum Maximum 1E $141,146 $145,067 $148,988 $152,908 $156,829 2E $116,181 $119,409 $122,636 $125,863 $129,090 3E $114,282 $117,457 $120,631 $123,806 $126,980 4E $94,832 $99,015 $103,199 $107,383 $111,567 5E $83,967 $87,672 $91,376 $95,081 $98,785 6E $73,920 $77,181 $80,442 $83,703 $86,964 7E $68,554 $71,578 $74,603 $77,627 $80,652 8E $57,033 $59,549 $62,065 $64,581 $67,098 1N $90,705 $93,224 $95,744 $98,263 $100,783 $43.61 $44.82 $46.03 $47.24 $48.45 2N $68,949 $71,991 $75,033 $78,075 $81,117 $33.15 $34.61 $36.07 $37.54 $39.00 3N $55,068 $58,510 $61,952 $65,394 $68,835 $26.48 $28.13 $29.78 $31.44 $33.09 4N $51,077 $54,269 $57,461 $60,654 $63,846 $24.56 $26.09 $27.63 $29.16 $30.70 5N $47,919 $51,397 $54,875 $58,353 $61,831 $23.04 $24.71 $26.38 $28.05 $29.73 6N $39,649 $42,953 $46,257 $49,562 $52,866 $19.06 $20.65 $22.24 $23.83 $25.42