Early Retirement Incentive Program

Early Retirement Incentive Program

EARLY RETIREMENT INCENTIVE PROGRAM

EARLY RETIREMENT INCENTIVE PROGRAM
5/15/2009 / Early Retirement Incentive Program for Haywood County Government Employees
The goal of the program is to reduce the workforce of the County for the fiscal year 2009-2010 due to the current economic crisis. The Early Retirement Incentive Program (ERIP) is being offered to Haywood County employees that are age fifty (50) or more with twenty (20) years or more of creditable service with the North Carolina Local Government Employee Retirement System (LGERS) and seven (7) consecutive years of service with the County as specified in the 2009 Haywood County Personnel Policy Manual. The ERIP is also being offered to those employees that are a minimum age of sixty-five (65) with five (5) creditable years of service with the LGERS. The ERIP is a County sponsored plan that provides an incentive to an employee in return for a voluntary decision by the employee to retire sooner than previously planned by the employee.The decision to approve or disapprove an employee’s intent to participate in the ERIP must provide a significant benefit to the County from a financial perspective to meet the goal of workforce reduction, meaning the vacated position will not be filled or a comparable position must be eliminated within the same department/agency/office.
The ERIP requirements for retirement eligible employees are as follows:
1)Must be eligible for either full or partial retirement from the Local Government Employee Retirement System.
2)Must have been employed by Haywood County for at least seven (7) consecutive years at time of retirement or those that are a minimum age of sixty-five (65) with five (5) years or more of creditable service with the LGERS.
3)Must be eligible by August 1st, 2009 to take retirement.
4)Must notify Human Resources in writing of your intent to retire byJune 1st, 2009.
The ERIP incentives for retirement eligible employees are as follows:
1)All eligible employees who notify Human Resources of their intent to retire early with less than thirty (30) years of creditable service by August 1st will receive five percent (5%) of their annual salary for each year that the planned retirement is reduced as severance to be paid in a separate check run on August 14th, 2009.
Example: Employee “A” volunteers for ERIP with 20 years of creditable service with an annual salary of forty thousand dollars ($40,000) will receive twenty thousand dollars ($20,000) as severance pay.
2)Those employees eligible for longevity pay with more than twenty (20) years and less than thirty (30) years of creditable service that volunteer to participate in the ERIP will receive their longevity pay at the scheduled percentage amount for FY 2010 in a separate check run on August 15th, 2009.
Example: Employee “A” volunteers for ERIP with 20 years of creditable service with an annual salary of forty thousand dollars ($40,000) will receiveone thousand four hundred dollars ($1,400).
3)Employees who take early retirement and are age fifty (50) or above with twenty (20) years of creditable service years with seven (7) consecutive years of service at time of retirement with Haywood County will receiveemployee insuranceas outlined in the Personnel Policy Manual Appendix I paid by the County until Medicare supplement eligibility at age 65.Spouse or dependent coverage will not be covered by the County.
Example: Employee “A” volunteers for ERIP with 20 years of creditable service will continue to have employee insurance paid by the County up toten years at the rate outlined for their years of service in the Personnel Policy Manual Appendix I as shown below.

Appendix ICounty Employee Hospitalization Insurance

after Retirement

Retire with 30 years service in the North Carolina State or Local Government Retirement System with a minimum of seven ( 7) years continuous Haywood County service immediately preceding retirement100% of Medical Coverage up until age 65 (at that time, the employee will need to submit a Medicare Supplement Application). At the time of retirement, the employee must be enrolled in the County’s insurance plan.
Retire with fewer than 30 year’s service (Including accrued sick leave)
MIN AGE 50 to 59
Years of Service Employer Rate % of EE Rate
20 67%33%
21 70%30%
22 73%27%
23 77%23%
24 80%20%
25 83%17%
26 87%13%
27 90%10%
28 93%7%
29 97%3%
30 100%0%
MIN AGE 60 to 64
Minimum of 5 year’s of service up to 14 yearsEE Pays 100%
Minimum of 15 year’s service up to 19 yearsEE Pays 50%
Minimum of 20 year’s service & up to 30 years.See age 50 schedule
Supplement to Medicare:
MIN AGE 65(unless waived by Social Security/Medicare due to disability) within 60 days of eligibility
As of 5/14/08
Minimum of 5 years of service and up to 19 years. EE Pays 50%
Minimum of 20 years of service and up to 29 years.EE Pays 33%
Minimum of 30 years service.EE Pays 0%
NOTE: Employee pays full premium for allowable dependents coverage until age 65. New dependents cannot be added at time of or after retirement.
4)Employeeswho elect to retire that have thirty (30) years of creditable service as of August 1st, 2009 with seven (7) consecutive years of service with Haywood County or employees that are a minimum age of sixty-five (65) with five (5) creditable years of service with the LGERSwill receive five percent (5%) of their annual salary as severance to be paid in a separate check run on August 14th, 2009. These employees will receive longevity pay at the scheduled percentage amount for FY 2010 in a separate check run on August 14th, 2009.
Example: Employee “B” volunteers for ERIP with 30 years of creditable service with an annual salary of forty thousand dollars ($40,000) will receive twothousand dollars ($2,000) as severance pay and one thousand four hundred dollars ($1,400) longevity pay.
Example: Employee “C” volunteers for ERIP age 65 or more with 5 years of creditable service with an annual salary of forty thousand dollars ($40,000) will receive twothousand dollars ($2,000).
5)Employees shall be paid for vacation leave accumulated to the date of separation, subject to a maximum of 240 hours less any deductions for debts outstanding against the County. Accumulated sick leave is factored into the employee’s retirement formula. The Human Resources department shall deduct and withhold from the final paycheck any amount owed the County for group insurance premiums. Any final payment for unused vacation leave will be combined with the last paycheck. (N.C. G.S.§. Section 95-25.7)
6)Intent to retire must be received in writing byHuman Resources byJune 1st, 2009. All paperwork required to retire must be completed and submitted to the LGERS byJune 1st, 2009.
All other Personnel Policies as they relate to retiring employees will apply. This is a one-time offer and in no way changes the existing Personnel Policiesof Haywood County. If you have any interest, please contact Human Resourcesand ask them to assist you with an estimate of your retirement benefits.

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