2018/11/28 Council Agenda Packet

Ch No Employee shall have a contractual right to an incentive offered through this Program. D. Eligible Employees who apply and are approved for voluntary separation under the Program will receive a one-time severance payment in the form of either COBRA (Consolidated Omnibus Budget Reconciliation Act) benefits or a cash incentive payment as described below. Eligible Employees approved for voluntary separation may elect to receive one of the following: 1) Eighteen (18) months of enrollment in the City's self -insured medical plan for the Eligible Employee plus eligible dependents (eligible dependents include those dependents that are eligible under active employees' health benefits coverage) commencing on the date that the. Eligible Employee's existing coverage expires, based on the Date of Separation, at no cost to the Eligible Employee; or 2) A contribution equal to the cost of eighteen (18) months of enrollment in the City's self -insured medical plan (for the Eligible Employee plus eligible dependents) applied to eighteen (18) months of Kaiser Permanente coverage commencing on the date that the Eligible Employee's existing coverage expires, based on the Date of Separation, at no cost to the Eligible Employee; or 3) A one-time severance payment based on the Eligible Employee's current base salary, exclusive of longevity, out -of -class, lead pay differential, call out pay, and overtime, according to the following schedule: Years of Service Severance Payment Amount 10 — 19 years 3 months 20 — 29 years 4 months 30 or more years 5 months E. While the City acknowledges that Eligible Employees choosing to participate in the Program may apply for unemployment compensation benefits following separation from the City, the City will object to such claim on the basis that separation from the City was F. Voluntary separation payments will be paid in one lump sum within two weeks of the Date of Separation. Voluntary separation payments will not be considered excess compensation and shall not increase an Eligible Employee's monthly pension payout or the City's pension contribution rates. Voluntary separation payments are subject to applicable tax withholdings, but are not considered income (average final compensation) for retirement purposes. G. Eligible Employees who voluntarily separate under the Program and return to work at the City within five years of the Date of Separation in any capacity, including as an employee or as a contractor, must repay any separation payment received or the value N �01