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HomeMy WebLinkAboutAgenda 09-07-1993 - III-E 1 ORANGE C O U N T Y BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 7, 1993 Action Agenda Item # 1/ 1-E SUBJECT: Personnel Ordinance Revision - Longevity Pay DEPARTMENT: Personnel PUBLIC HEARING: Yes X No ATTACHMENT(S) : INFORMATION CONTACT: 1- Draft Revised Article IV, Elaine Holmes, Personnel Director Section 19.0, "Longevity Pay" 2- Draft Revised Article II, TELEPHONE NUMBERS: Section 8.7, "Reinstatement" Hillsborough - 732-8181 3- Current Article IV, Section Durham - 688-7331 19 .0 Mebane - 227-2031 Chapel Hill - 967-9251/968-4501 PURPOSE: To revise the Longevity Pay section of the Orange County Personnel Ordinance to extend Longevity Pay eligibility to permanent employees with 10 years Orange County service and to consider making this change effective July 1, 1993. BACKGROUND: During the Fiscal Year 1993-1994 budget process, the Board of County Commissioners decided to extend Longevity Pay eligibility to permanent employees with 10 years of service beginning effective January 1, 1994 at 1.50% of base annual salary. Previously, Longevity Pay eligibility began at 15 years of service. To implement this change, the draft revised Personnel Ordinance section on Longevity Pay (Attachment 1) has been developed. In addition to the 10 year eligibility change, the attached draft Personnel Ordinance revision includes the following changes: 1) Total County Service - Item 19. 1 has been revised to clarify that Longevity Pay is based on the employee' s total Orange County service as a permanent employee and not continuous County service. This does not represent any change in the policy application. 2 ) Five Year Waiting Period - Article II, Section 8.7 has been revised to eliminate the five year waiting period before Longevity Pay eligibility is restored when an employee terminates and later returns to work for Orange County. This provides for the same application of the Longevity Pay policy as the Vacation Leave 2 earning policy for employees with prior service. It greatly simplifies Longevity Pay administration. Approximately four employees not presently eligible for Longevity Pay would become eligible. 3) Effective Date - Item 19.4 has been added to provide a clear effective date as to when payments are made. This change allows for more consistent salary administration between Longevity Pay and Merit Pay policies. It also is proposed the Board consider making the Longevity Pay change effective July 1, 1993 rather than January 1, 1994. The approved budget for Fiscal Year 1993-94 included funding for up to a 14 percent health insurance increase effective January 1, 1994 . The actual health insurance renewal rates for 1994 now have been received and the rate increase is approximately six percent. The improved renewal rate results from several factors including a shift in enrollment from the Blue Cross Personal Care Plan (a health maintenance organization) , the improved health cost experience under the Personal Care Plan and the lower trend generally in health care cost increases. The resulting estimated cost savings in health insurance for Fiscal Year 1993-94 over the amount budgeted is approximately $45,000. In adopting the 1993-94 budget, the Board approved extending Longevity Pay eligibility to permanent employees with 10 years County service effective January 1, 1994. The Board- budgeted $28,935 for this purpose. The Board considered an effective date of July 1, 1993, but was not able to fund this within the funding amount targeted for compensation. The additional funding required to begin Longevity Pay at 10 years effective July 1, 1993 rather than January 1 is estimated at approximately $18, 700. It is recommended that the Board consider using a portion of the budget savings in health insurance to begin the Longevity Pay change to 10 year eligibility effective July 1, 1993. RECOMMENDATION: The Manager recommends the Board adopt the Longevity Pay revision to the Personnel Ordinance effective July 1, 1993. 3 Attachment 1 PERSONNEL ORDINANCE REVISION 19.0 LONGEVITY PAY 19. 1 General (Old The County provides Longevity Pay to recognize 19.0 long-term service of Permanent employees, both Revised) Full Time and Part Time (regularly, scheduled at least 20 hours each workweek) who have completed at least 10 years of total Orange County service as a permanent employee. 19.2 Calculating Longevity Pay (Old Longevity Pay is calculated by multiplying the 19. 1 employee' s base annual salary by the appropriate Revised) percentage as follows: Years of Total Orange Longevity County Service Pay Rate 10 but less than 15 1.50% 15 but less than 20 2.25% 20 but less than 25 3.25% 25 or more years 4.50% 19.3 Payment (Old 19.3. 1 To receive Longevity Pay, the employee 19 .3 must be in active employment status on and the effective date. (Payment is not 19.4 made on a pro-rated basis for a Revised) terminating employee or an employee on an extended leave without pay. ) (Old 19.3.2 The Longevity payment is made in a lump 19.2 sum on the payday for the pay Revised) period in which effective. (New) 19.3.3 Applicable deductions are made for Social Security, retirement, state and federal taxes. 19.4 Effective Date (Old 19.4 . 1 Longevity Pay is effective on the pay 19.2 period beginning date following the Revised) employee' s most recent employment anniversary date. If the employee' s 4 anniversary date falls on the pay period beginning date, Longevity Pay is effective on that pay period beginning date. Note: If the employee has prior service as a permanent employee with Orange County, this service is used in determining the employee' s eligibility for Longevity Pay and the amount for which eligible but does not change the effective date. 19.5 Longevity Pay is not considered a part of base (Old annual pay for classification or other pay 19.2 record purposes. Revised) 5 Attachment 2 8.0 REINSTATEMENT 8. 1 A permanent employee who resigns while in good standing, or who is dismissed because of reduction in force, may be reinstated within one ( 1) year of the date of separation with the approval of the Manager. 8 .2 An employee who enters extended active duty with the Armed Forces of the United States, the Public Health Services, or as a member of a Reserve component of the Armed forces will be granted reinstatement rights commensurate of Chapter 43 of Public Law 93-508. 8.3 An employee who is reinstated may be credited with previous service and previously accrued sick leave and will receive all benefits provided in accordance with this policy and under supplementary rules and regulations. 8.4 Before being reinstated, the individual must meet the current minimum qualifications for the class to which appointed. 8.5 The salary paid a reinstated employee will be as close as reasonable possible, given the circumstances of each employee' s case, to the salary step previously attained by the employee in the salary range for the previous class of work. 8. 6 Employees granted leave without pay, maternity leave, military leave, etc. , will be reinstated into the same or similar position, classification, seniority, and pay, unless such a position is no longer available due to budgetary reduction in staff. 8.7 Former employees- who re L uL ii to -work for -tire County a- ter the -one year r nste Cement period, shall receive Deleted credit for-their previous employment years, if they remain employed for -a- peed of no mss titan five CCMS ative- years. 6 Attachment 3 19 . 0 LONGEVITY PAY (New 19.1 The Longevity Pay Plan is an important part of the County ' s Revised) program of service appreciation. It recognizes the long- term service of full-time permanent , and part-time permanent employees who have completed at least 15 years of continuous County service . (New 19.2 19 . 1 Longevity is computed by multiplying the employee ' s Revised) base annual salary at the appropriate percentage : 15 but less than 20 years - 2 . 25% 20 but less than 25 years - 3 . 25% 25 and more years - 4 . 50% (New 19.3.2, 19 . 2 The Longevity payment is made in a lump sum on the 19.4, and payday for the pay period in which eligibility date 19.5 occurs and annually in succeeding years . It is not Revised) considered a part of base annual pay for classification or other pay record purposes . (New 19.3.1 19 . 3 Employees must be in an active employment status on the Revised) date of issuance of longevity paychecks . (New 19.3.1 19 . 4 Employees who have officially submitted their Revised) resignation before the date of issuance of longevity paychecks shall not be eligible for longevity pay.