LEGISLATIVE HISTORY
Personnel Committee
ORDINANCE NO. BL2004-180
An ordinance amending the Metropolitan Employee Benefit System to provide a limited, one-time early retirement incentive to employees of the Metropolitan Government who otherwise qualify for retirement as of June 30, 2004.
WHEREAS, the Metropolitan Government has the obligation to operate on a sound fiscal basis and by law must conduct its operations within available revenues; and,
WHEREAS, based upon current revenue projections for fiscal year 2004-2005, it will be necessary to reduce expenses in order to adopt a balanced budget; and,
WHEREAS, the salaries paid to employees of the Metropolitan Government are a major expense that must be budgeted annually; and,
WHEREAS, the Metropolitan Government would realize a fiscal benefit in its budget for FY 2004-2005 and beyond from reducing employee salaries through a limited retirement incentive program; and,
WHEREAS, it is in the best interest of the Metropolitan Government to enact a limited, one-time retirement incentive program.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY,
Section 1. Limited Retirement Incentive Program.
a) Notwithstanding any provision of Title Three of the Metropolitan Code, an
employee of the Metropolitan Government shall be granted a retirement incentive
equal to $500 for each year of employment with the Metropolitan Government
who is eligible to retire on or before June 30, 2004, and qualifies pursuant
to the conditions herein under any of the following provisions of the employee
benefit system;
(1) 3.32.020-Division A-Normal Retirement Pension.
(2) 3.32.030-Division A-Early Retirement Pension.
(3) 3.33.020-Division B-Normal Retirement Pension.
(4) 3.33.030-Division B-Early Retirement Pension.
(5) 3.36.020-Division A Police and Fire-Normal Retirement Pension.
(6) 3.36.030-Division A Police and Fire-Early Retirement Pension.
(7) 3.37.020 Division B Police and Fire Normal Retirement Pension.
(8) 3.37.030 Division B Police and Fire Early Retirement Pension.
b) The $500 payment provided herein shall be prorated for any part of a year
the employee has worked. Accrued sick leave cannot be used to increase the
years of service for calculation of the retirement incentive.
c) The retirement incentive shall not be paid from any trust fund established
for the Employee Benefit System but shall be paid from the savings generated
in the departments in which the retirees were employed by holding their former
positions vacant until the savings needed to fund the retirement incentive
are generated. The appointing authority may request an exception to holding
the position vacant from the Director of Human Resources and the Director of
Finance by presenting an alternative that the Director of Human Resources and
the Director of Finance determine will result in an equivalent savings.
d) This retirement incentive is further conditioned as follows:
(1) An eligible employee must apply between April 5 and May 15, 2004, (“Retirement
Incentive Application Dates”) by filing a signed agreement provided by
the Metropolitan Government and in accordance with the procedures established
by the Director of Human Resources and completing all the necessary steps to
retire.
(2) An employee must have been in continuous, active, full-time employment
for at least one complete year immediately preceding the date upon which the
application for the incentive is filed. For purposes of this retirement incentive,
an employee whose Last Work Day was on or before March 9, 2004, has clearly
conveyed the intention to retire by signing a Request for Service Pension and
has begun taking vacation leave with the intent to use the remainder of such
vacation leave before signing the final retirement documents is not considered
to be an active employee and is not eligible for this retirement incentive.
(3) The retirement incentive payment will not be included in the calculation
of the employee’s average earnings for the purpose of calculating the
pension.
(4) The retirement incentive shall be paid within 30 days of the Effective
Retirement Date (the last date on which the employee is on the payroll of the
Metropolitan Government).
(5) Any employee who accepts this retirement incentive shall be ineligible
for rehire with the Metropolitan Government. If, notwithstanding the provisions
herein, an employee who received this retirement incentive returns to full
or part-time employment with the Metropolitan Government, the full amount of
the retirement incentive must be repaid immediately or deducted from the employee’s
salary at the maximum amount permitted by law.
(6) Any employee who receives the retirement incentive must agree:
i. To relinquish any right to continued employment with the Metropolitan Government;
ii. To effectively retire such that the Last Work Day (the last day the employee
actually works before using accrued vacation leave, if any) is on or before
June 30, 2004;
iii. Not to return to full-time or part-time employment with the Metropolitan
Government; and
iv. To release any pre-retirement, employment related claims and any claims
related to ineligibility for future employment that the employee might have
against the Metropolitan Government.
Section 2. Public Safety Extension
a) The Metropolitan Government shall have the right to extend the date of the
Last Work Day of some personnel past June 30, 2004, under the following conditions:
(1) A large number of personnel directly involved in providing public safety
services choose to accept this retirement incentive;
(2) As a result of this, the appointing authority and the Director of Human
Resources determine that there is the probability of inadequate staffing to
assure public safety, and
(3) Such adequate staffing can be provided by extending the date of the Last
Work Day as provided in this Section to allow additional time to fill some
vacancies arising due to this retirement incentive.
b) In no event shall the Last Work Day for such public safety personnel be
later than December 31, 2004.
c) Except as modified in this Section, the public safety personnel shall be
required to meet all the conditions set out in Section 1 including compliance
with the Retirement Incentive Application Dates.
d) The retirement incentive payment for any such public safety employee shall
be paid after the Effective Retirement Date and within thirty (30) days of
the employee’s Effective Retirement Date.
e) The retirement incentive payment will not be included in the calculation
of the public safety employee’s average earnings for the purpose of calculating
the pension.
Section 3. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Michael Kerstetter, Brenda Gilmore, Rip Ryman
AMENDMENT NO. 1
TO
ORDINANCE NO. BL2004-180
Mr. President:
I move to amend Ordinance No. BL2004-180 by adding the following language
at the end of Section 1, subsection (d)(6)(iv):
This shall not include the release of any claim for any employee who is currently
a plaintiff in either of the following litigation matters: Faust, et al. v.
Metropolitan Government, Docket No. 96-3238-III and Amos, et al. v. Metropolitan
Government, Docket No. 02-2622-I.
Sponsored by: Michael Kerstetter, Rip Ryman, Parker Toler
AMENDMENT NO. 2
TO
ORDINANCE NO. BL2004-180
Mr. President:
I move to amend Ordinance No. BL2004-180 by deleting the wording in Section 1, subsection (d)(5) in its entirety and replacing it with the following language:
Any employee who accepts this retirement incentive shall be ineligible for rehire with the Metropolitan Government for a period of one year from the Effective Retirement Date. After one year the employee will be permitted to work for the Metropolitan Government on a part time basis. Part time shall be construed as the maximum number of hours that can be worked per week that does not qualify for pension benefits. The employee who works part time must be paid at the base rate of the part time job classification. In no event may the employee receive pay that is equal to or greater than the hourly rate the employee was receiving at the time the employee accepted the retirement incentive. If, notwithstanding the provisions herein, an employee who received this retirement incentive returns to full or part time (in excess of the permitted amount) employment with the Metropolitan Government, the full amount of the retirement incentive must be repaid immediately or deducted from the employee’s salary at the maximum amount permitted by law.
I move to further amend Ordinance No. BL2004-180 by adding the following language
at the end of Section 1, subsection (d)(6)(iii):
… except to the extent permitted in Section 1, subsection (d)(5) of this
ordinance.
Sponsored by: Michael Kerstetter, Rip Ryman, Parker Toler
Amendment
No. 3
To
Ordinance No. BL2004-180
Mr. President:
I move to amend Ordinance No. BL2004-180 by adding the following provision at the end of subsection (d)(5):
“Notwithstanding the foregoing provisions to the contrary, this subsection shall not prohibit any employee who accepts this retirement incentive from being rehired as a part-time or substitute teacher by the Metropolitan Board of Public Education.”
Sponsored by: David Briley
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LEGISLATIVE HISTORY |
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|---|---|
| Introduced: | March 16, 2004 |
| Passed First Reading: | March 16, 2004 |
| Referred to: | Budget & Finance
Committee Personnel Committee |
| Amended: | April 6, 2004 |
| Passed Second Reading: | April 6, 2004 |
| Passed Third Reading: | April 20, 2004 |
| Approved: | April 21, 2004 |
| By: | |