HomeMy WebLinkAboutDocumentation_Regular_Tab 11G_06/11/1998Memorandum
To: Village Council]
From: Thomas G. Bradford, Village Manager
Date: June 5, 1998
Subject: Early Retirement Incentive Program (ERIP); Agenda Item
The primary purpose of an ERIP is to save the organization money
both now and in the future. There are any number of ERIP options,
but none of the same are of any value to the Village unless they
accomplish having the applicable worker retire.
Keeping the forgoing in mind, the Village can only afford an ERIP
that meets its current source of funds capability. Current funds
cannot be completely depleted because funds for compensated
absences to be paid to employees upon separation must be kept in
reserve in anticipation of the same.
The Tequesta ERIP proposal would be for any employee currently
eligible for an FRS pension upon immediate retirement and Social
Security benefits, they will be given four (4) months base salary
and one full year of the Village current insurance
package(life,health dental). Howard Freiss and Laurie White would
be the only employees eligible. The maximum total cost of the
ERIP to Tequesta could be $35,498. However, next year's minimum
budgetary savings to Tequesta could be as high as $41,034, a
significant savings to the general fund budget. This proposal
would also leave an_estimated $79,502 in compensated absences to
pay any employee separation that can be anticipated through
regular attrition thereafter.
It is recommended that the Village Council approve the proposed
ERIP as contained herein. All rules of separation, such as
required notice before separation, would be suspended to
accommodate the retirement of the referenced employees. A copy
of a spreadsheet showing the alternatives reviewed and the
numbers referenced herein are attached for your review.
Additionally, a separation agreement and release which contains
provisions required by law are also attached for your review,
which will be required for each employee and the Village Manager
to execute in order to receive the ERIP.
Attachments
TGB/jar
council\060598.sam
VILLAGE OF TEQUESTA
ERIP WORKSHEET
SAVINGS PROJECTION 1st YEAR
;pFT mp:uFAIT owrizoL
EMPLOYEE
COMPLETED YOS CURRENT SALARY NEW HIRE SALARY SALARY SAVINGS CURRENT NEW HIRE RETIRE SAVINGS
RETIRE SAVINGS FICA SAVINGS W.COMP. SAVINGS TOTAL EST.SAVING
FRIESS, H.
$47,213 $15,738 $5,322 $409 $277 $21,746
FRIESS, H.
WHITE,L.
20 $47,213 $28,893 $18,320 25.32 14.73 10.59
24 $32,586 $22,509 $10,077 16.45 5.54 10.91
$7,698 $1,402 $1,463 $28,683
$1,247 $771 $56 $12,151
TOTAL
$35,498
TO AL
$28,397
$8,945 $2,173 $1,519 $41,034
COST PROJECTION
EMPLOYEE
CURRENT SALARY 4 MO. BASE SALARY HEALTH INS. DENTAL INS. LIFE INS. TOTAL
FRIESS, H.
$47,213 $15,738 $5,322 $409 $277 $21,746
WHITE,L.
$32,586 $10862 $2,471 $228 $191 $13,752
TOTAL
$35,498
File: TGB\L123\ERIP2
SEPARATION AGREEMENT AND RELEASE
This Separation Agreement and Release (hereinafter the
"Agreement") is made and entered into by and between the Village
of Tequesta, its elected officials, managers, supervisors,
employees, agents, assigns and successors (hereinafter referred
to collectively as "Tequesta") and (hereinafter
referred to as "Employee")
On the occasion of Employee's separation from Tequesta's
employment, the parties desire to settle fully and finally all
matters and potential differences between them arising out of
the Employee's employment with Tequesta and the termination of
that employment. Therefore, in order to achieve this result, the
parties agree to the following:
1. In consideration of the promises made by the Employee,
Tequesta will pay to the Employee four (4) months base salary
equal to the sum of $ subject to FICA and Federal
Income Tax withholding, and one (1) year of the current
Tequesta insurance package to include health, dental and life
insurance to be paid for by Tequesta directly to the coverage
providers, an amount to which Employee acknowledges he is not
already entitled.
2. In consideration of the promises of Tequesta, the Employee on
his own behalf and on the behalf of his executives, agents,
heirs, personal representatives, and assigns and each of them,
hereby agrees to terminate his employment with and hereby
releases and forever discharges Tequesta from any all claims,
actions, demands and causes of action in law or in equity
which Employee may have had or may now have, which are based
on or are in any way related to the employment and/or
termination of the Employee by Tequesta. Such causes of
action include, but are not limited to, actions arising under
the Age Discrimination in Employment Act, Title VII of the
Civil Rights Act of 1974, as Amended, the Florida Civil Rights
Act of 1992, the Americans with Disabilities Act, the Fair
Labor Standards Act, the Employee Retirement Income Security
Act, the Consolidated Omnibus Budget Reconciliation Act, the
Family and Medical Leave Act, and any and all actions Employee
may have had or may now have in tort or contract. The
Employee further promises and agrees not to file, cause to be
filed, and/or join in the filing of any grievance, charge,
claim or action as an individual or as a member of a class in
any federal, state or local court or agency, relating to his
employment with Tequesta, and he waives any right to legal or
equitable relief which might be claimed on his behalf by any
class representative or government agency with respect to his
employment with Tequesta.
1
3. The Employee acknowledges that, once executed, this document
becomes a public record and must be available for any person
for inspection and copying. As such, this document speaks for
itself regarding this Agreement, and Employee will not comment
or discuss the details of this Agreement with any person,
including representatives of the press or any other media.
The only exceptions to this obligation afforded Employee are
that he may communicate with his accountant regarding any tax
or financial implications of this Agreement; with his counsel;
and with his spouse.
4. Employee is advised to consult with an attorney of Employee's
choice prior to executing this Agreement.
5. Employee has been informed that he has the right to consider
this Agreement for a period of at least forty-five (45) days
prior to entering into this Agreement. Employee also
understands that he has the right to revoke this Agreement for
a period of seven (7) days following its execution by giving
written notice to:
Thomas G. Bradford
Village Manager
Village of Tequesta
P.O. Box 3273
Tequesta, Florida 33469-0273
6. Employee hereby acknowledges by his signature below that he
has received a written description of the class or group of
individuals covered by this group termination program, the
eligibility factors for such program, any time limits
applicable, the job title and ages of all individuals eligible
for the program, and the ages of all individuals in the same
job classification or organizational unit who are not eligible
for the program.
7. This Agreement shall not be construed as or deemed to be
evidence of an admission of any liability whatsoever on the
part of the Employee or Tequesta.
8. This Agreement contains the entire agreement and complete
settlement of the parties, and no other statements, promises
or understandings of any party may alter the plain meaning of
the terms of this Agreement.
Intending to be legally bound, the parties execute this
Separation Agreement and Release this day of , 1998.
V0
Employee
persoMsepagmt.sam
Employer Representative