HomeMy WebLinkAbout6-40 Early Retirement Incentive Program Police
Cape Breton Regional Municipality
Human Resource Services
Policy
Category:
Workplace Benefits
Number: 6-40
Date:
February 15, 2002
Approved by Council: February 19, 2002
Page:
10f3
Early Retirement Incentive Program - Police
1.0 Purpose
In response to a need for substantive budget cutbacks and improved management
efficiencies, Cape Breton Regional Municipality is offering an early retirement incentive
program (ERIP). The objective of this Human Resources initiative is to reduce the numbers
of staff in the police organization with minimal layoffs and subsequently lead to lower
payroll costs.
Under this program, each early retirement must produce a permanent reduction in the police
staff level or other cost savings as approved by the CAO. An essential component of this
initiative is the commitment by the municipality to provide training and development to
employees in order to meet the changing demands of the workplace.
The window period for this program is March 31, 2002 to December 31,2002.
2.0 Eligibility
To be eligible for the Early Retirement Incentive Program (ERIP), employees must be at
least 54 years old during the window period with a minimum of 20 years of service as a
regular employee.
Employees must apply no later than March 1, 2002 If approval is given, employees shall
retire on the first (is) day of the month following their 55th birthday. Employees who are
currently aged 55 years of age shall retire no later than March 31st. Subject to CBRM's ability
to provide required information such as pension actuarial and HRDC acceptance of the
policy.
Employees on Long Term Disability benefits are not eligible for this incentive. That is the
elimination period for approval of LTD benefits commenced prior to August 1, 1995.
Employees on Long Term Disability benefits through the CBRM plan, may be considered
for an ERIP.
To accomplish the staff reduction, the position of the retiring employee must be eliminated
or result in other cost savings as approved by the CAO.
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2.01 Employees who do not meet the age requirement by March 31, 2002, but who qualify by
December 31,2002, may be considered in accordance with this incentive program, provided
that they terminate employment with CBRM no later than March 31, 2003. Subject to
approval, the incentive program detailed in Paragraph 3.0 shall be paid effective the first day
of the month following the employee's 55th birthday.
3.0 Incentive
Employees who are accepted for the ERIP shall be provided with an incentive as follows:
(i) Continuation in the group benefit plans to age sixty five (65) or date of death
whichever is the earlier, at 50% cost to the employee and 50% cost to the employer.
Coverage as follows:
(a) Life insurance at 1 x salary at date of retirement.
(b) Medical and dental insurance provided that the employee is registered in the
medical and dental plans effective January 1, 2002.
Group benefit coverage does not include continuation of optional insurance.
Employees who have optional benefits will be provided with the opportunity to
convert their optional coverage within 30 days of early retirement.
For employees who qualify in accordance with Paragraph 2.01, 100% cost of group
benefits shall be paid by the employee from date of termination to first of the month
following their 55th birthday.
(ii) Financial Incentive:
Qualification
Based on Age plus Service = 85 years or
eater
Based on Age plus Service = 84 years
Incentive
$12,500 per year to age 60
$ 6,250 er ear to a e 65
$12,000 per year to age 60
$ 6,000 per year to age 65
$11,500 per year to age 60
$ 5,750 er ear to a e 65
$11,000 per year to age 60
$ 5,500 er ear to a e 65
$10,500 per year to age 60
$ 5,250 per year to age 65
$10,000 per year to age 60
$ 5,000 er ear to a e 65
Based on Age plus Service = 83 years
Based on Age plus Service = 82 years
Based on Age plus Service = 81 years
Based on Age plus Service = 80 years or less
Service/age shall be calculated as at December 1, 2001 for employees aged 55 years
or greater or effective on the employees 55th birthday for employees qualifying
during the window period.
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Employees who qualify in accordance with Paragraph 2.01 service/age shall be
calculated on date of termination of employment.
The incentive program is applicable to the employee and shall not continue as a
spousal plan in the case of death of the employee
Employees shall be entitled to payment for all accumulated benefits normally paid on
retirement as detailed in their collective agreement or CBRM policy.
4. 0 Procedure
4.01 Review Committee
A review committee will be formed to:
1. Consider the operational requirements of the police department.
2. Identify areas where reductions are required and identify target figures.
3. Assess the impact of reductions on service delivery by department and/or bargaining
unit.
4.02 Offer of Retirement Incentive
The ERIP will be voluntary and will be offered to employees within the Police Department.
Where an offer to a group of employees results in more volunteers than required, the
decision as to who receives the incentive will be determined on the basis of years of service,
provided that this meets the criteria of obtaining savings in accordance with Clause 2.0.
Employees who qualify for the incentive during the window period must notify the Human
Resource Department in writing of their interest in the ERIP by March 1, 2002. The
numbers making application for ERIP will be compared to the target figures. A provisional
acceptance subject to operational requirements will be forwarded to senior employees who
fall within the target figures. Where more volunteers than required apply, they will be
provided with a letter advising that they have been placed on a holding list.
4.03 Acceptance of Offer
Within 10 days of receiving the provisional acceptance, the employee must accept or reject in
writing the offer of early retirement. Where an employee rejects an offer, the senior
employee on the holding list subject to meeting the criteria of obtaining savings will be
contacted.
4.04 No Re-employment By CBRM
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Employees, who receive the ERIP, will not be eligible for future employment with the
municipality.
4.05 Early Retirement Planning
To prepare employees for early retirement, CBRM will offer retirement planning sessions
during the incentive period.
4.06 Training and Development
Department heads, in consultation with the Human Resource Department, will be required
to look at training and development requirements within their departments for the five year
operational planning period. CBRM is committed to providing employment opportunities
to its employees. Where manpower planning targets identify reductions in classifications the
municipality should ensure wherever possible, that its employees have the appropriate
qualifications, skills and ability to fill vacant positions.
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