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2010-2672010-267 Resolution to Adopt the 2010 Retirement Incentive Program At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County, New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on August 26, 2010. The meeting was called to order by Christopher Colsey, Supervisor, and upon roll being called, the following were present: PRESENT: Supervisor - Christopher J. Colsey Councilmembers - William H. Beale Ismay Czarniecki Joseph P. Paoloni ABSENT: Vincent F. Bettina The following Resolution was introduced by Councilwoman Czarniecki and seconded by Councilman Beale. WHEREAS, the Town of Wappinger Town Board held a public Special Meeting on August 26, 2010 at the Town of Wappinger Town Hall, 20 Middlebush Road, Wappinger Falls NY; and WHEREAS, such meeting was noticed to the Town Board in accordance with the Rules of the Town Board of Wappinger; and WHEREAS, the matter of adopting the 2010 Retirement Incentive Program held an expiration date of August 31, 2010; and WHEREAS, the Town Board does hereby elect to provide the benefits of Part A of Chapter 105 of the Laws, 2010, commencing on September 1, 2010, for all eligible employees who retire with an effective date of retirement set during the ninety (90) day period beginning with and immediately following the commencement date and who are otherwise eligible as specified by Part A of Chapter 105, Laws of 2010. NOW, THEREFORE, BE IT RESOLVED: 1. The recitations above set forth are incorporated in this Resolution as if fully set forth and adopted herein. 2. The Town Board does hereby elect to provide the benefits of Part A of Chapter 105 of the Laws, 2010, commencing on September 1, 2010, for all eligible employees who retire with an effective date of retirement set during the ninety (90) day period beginning with and immediately following the commencement date and who are otherwise eligible as specified by Part A of Chapter 105, Laws of 2010. 3. The Town Board hereby directs the Town Clerk to issue a certified copy of this resolution upon adoption to the New York State and Local Retirement System, Employees' Retirement System, 110 State Street, Albany, New York 12244. The foregoing was put to a vote which resulted as follows: CHRISTOPHER COLSEY, SUPERVISOR Voting: AYE WILLIAM H. BEALE, COUNCILMAN Voting: AYE VINCENT F. BETTINA, COUNCILMAN Voting: ABSENT ISMAY CZARNIECKI, COUNCILWOMAN Voting: AYE JOSEPH P. PAOLONI, COUNCILMAN Voting: AYE Dated: Wappingers Falls, New York 8/26/2010 The Resolution is hereby duly declared adopted. JOHN C. �MASTERS ONTOWN CLERK The. 2010 Retirement Incentive Program (Chapter 105, Laws of 2010) is a temporary program for certain,New York State and Local Employees' Retirement System (ERS) members. This program does not apply to Police and Fire Retirement System members. The Program has two distinct parts. Part A is a targeted incentive. Employers must identify eligible titles. Part A provides one additional month of service credit for each year of credited service an eligible member has at retirement. The maximum additional incentive service credit is three years. Part B is not targeted. It is open to all eligible Tier 2, 3 and 4 members unless you deem a member's position critical to the maintenance of public health and safety. Part B allows members who are at least age 55 and have 25 years or more of service credit to retire without a benefit reduction. Members whose employer offers both parts of the program, and who meet the eligibility requirements of both parts, must choose between the two. They can participate in either part, but not both. Open Periods Employers must also choose open periods — windows of time within which a member must retire, if you choose to participate in the program. Employers must establish a 30 -to -90 -day window for Part A and/or a 90 -day window for Part B. (Educational employers' Part B windows can be less than 90 days.) If you offer both Parts A and B, the open periods may overlap, but they do not need to be concurrent. If you have employees who are also eligible for the incentive for members in NYSUT represented positions, please advise them they must choose the NYSUT incentive or either Part A or Part B of the 2010 Retirement Incentive Program. Employers can contact Employer Services for assistance with questions not covered in this presentation. Members should contact their human resources office with questions about their employer's participation, targeted positions or open periods New York State Office of the State Comptroller Thomas P. DiNapoli New York State and Local Retirement System Employees' Retirement System 110 State St., Albany, NY 12244 • Fax (518) 474-8357 Resolution to Adopt the 2010 Retirement Incentive Program Part A At the meeting of the held at of the (Governing Body*) (Name of Employer) New York, on ' , 2010, the following resolution was offered: `BE IT RESOLVED that the (Governing Body) does hereby elect to provide the benefits of Part A of of the (Name of Employer) Chapter 105 of the Laws, 2010, commencing on 2 , 2010 for all eligible employees who retire with an effective date of retirement set during the 3 day period beginning with and immediately following the commencement date and who are otherwise eligible as specified by Part A of Chapter 105, Laws of 2010." STATE OF NEW YORK ) COUNTY OF clerk of of the (Name of Clerk) (Governing Body) of the State of New York, do hereby certify that I have (Name of Employer) compared the foregoing with the original resolution passed by such at a legally convened (Governing Body) meeting held on the day of , 2010, on file as part of the minutes of such meeting, and that the same is true copy thereof and the whole of such original. I further certify that the full consists of members and that of such members (Governing Body) (Number) (Number) were present at such meeting and that of such members voted in favor of the such resolution. (Number) IN WITNESS THEREOF, I have hereunto set my hand and the seal of the (Name of Employer) on this day of , 2010 (Signature of Clerk) * The resolution must be adopted by the governing body and be approved by any other body or officer required by law to approve resolutions of such governing body. 1 Must be enacted on or before August 31, 2010 2 Commencement date must be on or before December 2, 2010 3 Open period (minimum 30 days, maximum 90 days) may not extend beyond December 31, 2010 New York State office of the State Comptroller Thomas P. DiNapoli 40 New York State and Local Retirement System Employees' Retirement System 110 State St., Albany, NY 12244 • Fax (518) 474-8357 List of Members Eligible for 2010 Retirement Incentive Program Part A Note: If this document is faxed, we still require the original signed document. Employer Name Location Code Total Number of Persons on List Prepared By (Name) (Title) (Signature) The following persons are eligible for the 2010 retirement incentive. New York State Office of the State Comptroller Thomas P. DiNapoli 40 New York State and Local Retirement System Employees' Retirement System 110 State St., Albany, NY 12244 • Fax (518) 474-8357 Affidavit Pursuant to the 2010 Retirement Incentive Program Part A — Chapter 105, Laws of 2010 State of New York County of (Name of Chief Executive Officer) Employer Location Code , being duly sworn, deposes and says: 1. That (s)he is the chief executive officer or appropriate official (hereafter referred to as the employer). (Name of Employer) 2. That, by action of its governing body, the employer has determined to provide a Retirement Incentive Program as authorized by Chapter 105, Laws of 2010. 3. That the employer provide a separate local retirement incentive program for (Does/Does Not) its eligible employees under a collective bargaining agreement or other arrangement. This refers to an employer-provided retirement incentive other than Chapter 105 of the Laws of 2010. If you provide a local retirement incentive, you must choose one of the options below. a. The employer elects to allow its employees to accept both the local and the State - provided incentive. b. The employer does not elect to make both the local and State -provided incentive available. Then: 1. (S)he will send to the Retirement System, by the commencement of the open period, a list of all employees eligible for the separate local retirement incentive who also meet the eligibility criteria for the Retirement Incentive provided by Chapter 105. The list will in- clude the name, social security number and Retirement System registration number of each person. AND 2. That (s)he will forward to the Retirement System copies of all waivers completed by employees eligible for a separate retirement incentive who elect the Retirement Incentive Program provided by Chapter 105. 4. That the employer will fund the Retirement Incentive Program provided by Chapter 105, Laws of 2010 by paying to the New York State and Local Employees' Retirement System in (one or five) annual payments the amount of which shall be determined by the Retirement System Actuary, the first payment for which is due February 1, 2012. (Signature of Chief Executive Officer) Sworn before me this day of , 2010 Title Notary Public, State of New York (Please affix stamp or seal) Counties, Cities, Towns & Villages Targeted Incentive (Part A) Employers that participate in the New York State and Local Employees' Retirement System can elect to provide Part A incentive benefits to certain members on or before August 31, 2010. Employers that elect to participate in Part A must target positions as eligible for the incentive. If there are more employees interested in the incentive than positions targeted in that title, the law requires that eligibility shall be determined by seniority. Employers are not required to eliminate the targeted positions if they have developed a savings plan. The plan must demonstrate that ' combined Benefit Description two Part A provides eligible employees with one additional month of service credit for each year of service credit as of the date of retirement. The maximum amount of additional service credit provided under Part A is three years. The Open Period Any employer that adopts Part A of Chapter 105 must establish an "open period" during which eligible employees can retire and be entitled to incentive benefits. The open period must be at least 30 days but not more than 90 days. Additionally, it cannot begin before June 2, 2010 and cannot extend beyond December 31, 2010. Please note that the commencement date you list in the local law to adopt the incentive is the first day of your open period (day number 1). For example, a 30 -day open period commencing on December 2, 2010 will end on December 31, 2010. Formal Adoption Procedures Counties, cities, towns and villages must enact a local law in accordance with Municipal Home Rule Law, and the rules and regulations established by the New York State Department of State. The enactment must be completed no later than August 31, 2010. Local laws must be filed with of State in accordance with its regulations. Employers must file a certified copy of that local law with the Retirement System. (The original law must be filed with the Department of State.) Please indicate the type of incentive (Part A or Part B) on the local law. The certified copy of the local law must be accompanied by an affidavit stating whether employees are eligible for a separate, employer-provided incentive through a collective bargaining agreement, or by any other arrangement with their employer, and if the employer will allow employees to collect both benefits. The affidavit must also indicate the payment option selected by the employer (see Incentive Cost below). A sample local law form and affidavit can be found under Forms & Worksheets. Employers are also required to submit a list of the names, Social Security numbers and registration numbers of members eligible for Part A. If an employer does provide a separate incentive and will not allow their employees to collect both benefits, employees who wish to receive the benefits of Part A must waive their rights to the employer-provided incentive. The employer must send the Retirement System a list of the names, Social Security numbers and registration numbers of those employees along with a copy of each member's waiver. Retirement incentive payments will not be made until a copy of the waiver is on file with the Retirement System. Incentive Cost At the conclusion of the incentive program, the Retirement System will calculate the cost for each employer that participated in Part A. Employers can choose to pay the cost in one lump sum or in five annual instMime— nts with the first installment due February 1, 2012. The estimated annual cost may be determined by multiplying the annual salary of those anticipated to retire b the appropriate rate. TFat–figure should then be multiplied by five to determine the total five-year cost. Incentive worksheets containing the rates can be found under Forms & Worksheets. Age 55/25 -year Retirement Benefit (Part B) Employers that participate in the New York State and Local Employees' Retirement System can elect to provide Part B incentive benefits to certain members on or before September 1, 2010. Benefit Description Part B allows Tier 2, 3 and 4 members who are at least age 55 and have 25 or more years of service to retire without a benefit reduction. All employees who meet the age and service requirements and retire during the open period established by their employer are eligible for the benefit unless the chief executive officer or the governing board determines that the employee's position is critical to the maintenance of public health and safety. Any individual denied may request a review of that decision under Article 78 of the Civil Practice Law and Rules. Employers must submit a list of excluded employees by the beginning of their open period. If a list is not received by this date, employees who are otherwise eligible for this benefit will not be denied. The Open Period Any employer that adopts Part B will have an open period that begins on October 1, 2010 and ends on December 29, 2010, during which eligible employees can retire and be entitled to incentive benefits. Formal Adoption Procedures Counties, cities, towns and villages must enact a local law in accordance with Municipal Home Rule Law, and the rules and regulations established by the New York State Department of State. The enactment must be completed no later than September 1, 2010. Local laws must be filed with the Department of State in accordance with its regulations. Employers must file a certified copy of that local law with the New York State and Local Retirement System. (The original law must be filed with the Department of State.) Please indicate the type of incentive (Part A or Part B) on the local law. The certified copy of the local law must be accompanied by an affidavit indicating the payment option selected by the employer (see Incentive Cost below). Incentive Cost At the conclusion of the incentive program, the Retirement System will calculate the cost for each employer that participated in Part B. Employers can choose to pay the cost in one lump sum or in five annual installments with the first installment due February 1, 2012. The estimated annual cost may be determined by multiplying the annual salary of those anticipated to retire by the appropriate rate. That figure should then be multiplied by five to determine the total five-year cost. Incentive worksheets containing the rates can be found under Forms & Worksheets. Additional Information and/or Questions Detailed eligibility requirements are provided under Member Eligibility Requirements & Exclusions. For questions regarding the 2010 Retirement Incentive Programs provided by Chapter 105, email us at RTEmpSergosc.state.ny.us or contact Mary Ellen Kutey, Assistant Director, Member & Employer Services Bureau at (518) 474-0167. 3 1. How do I elect to participate in the incentive? You must enact a local law or, if you are not empowered to enact law, pass a resolution. The enactment/adoption must be on or before July 30, 2010 for educational employers or August 31, 2010 for State and other participating employers. You can download a Sample of a Local Law ti. Blank resolutions are available under Forms & Worksheets in the Table of Contents. 2. Do I have to adopt both Part A and Part B? No. You can adopt either or both parts. 3. If I adopt Part A and Part B, can my eligible employees receive both? No. Employees can be eligible for Part A and Part B, but can only receive one part of the incentive. If you adopt Part A and Part B and the open periods overlap, your eligible employees will receive the greater benefit. However, if the open periods do not overlap, your employees must choose the part they wish to receive. 4. How long must the open period be? An open period for Part A must be at least 30 days in length but not more than 90 days. Part B open periods must be 90 days in length. All open periods must occur during the time frames specified in the legislation. Please see the detailed information for your employer type in the navigation for specific dates. 5. If I target a position and the employee in that position retires, can I hire someone to fill that position? State employers must eliminate the position unless this position can be filled by the appointment, transfer or reassignment of another State employee. The former position of that State employee must then be eliminated. Please note, educational employers, municipalities, SUNYs for unclassified employees (faculty) and community colleges can rehire someone to fill that position, but they are required to demonstrate that they will achieve a 50 percent savings over a two-year period. 6. Under Part A, we are not required to eliminate targeted positions if we can show a 50 percent savings. How do we achieve this savings? Is it based on an individual's base salary or the total base salaries of all targeted, eligible members who retire under the incentive? It is based on the total of the base salaries of all your employees who retire under the incentive. For example, an employer has three employees who retire under the incentive. The employees will earn a total of $100,000 this year and would have been expected to earn $115,000 next year. The employer must demonstrate a savings of 50 percent of these employees' combined two-year salary during the next two years. $100,000 + $115,000 = $215,000 50 percent of $215,00 = $107,500 --- the savings required in two years 7. We are offering our own retirement incentive. Can our employees have both our local incentive and either Part A or Part B? Yes, if the employer elects to allow its employees to accept both the local and the State provided incentive. If an employer does not elect to allow its employees to have both, employees must file a written statement agreeing to waive any right to a local incentive with you. You must file a copy of this waiver with us. You can download a blank Local Incentive Employee Waiver form nfor this purpose. 8. Who determines whether an employee is eligible for Part A? As the employer, you determine whether an employee can participate in Part A. Only members in positions you target as eligible for Part A (and who meet the other eligibility requirements) can retire with Part A. 9. What is active service? For the 2010 Retirement Incentive Program, active service is defined as: o Being paid on the payroll o On a leave of absence with pay o On another approved leave without pay not to exceed 12 weeks from February 1, 2010 to the beginning of the open period o The period of time between the end of the June 2010 school term through August 31, 2010 if • The employee is employed on a school year basis • The employee was otherwise in active service on February 1, 2010 10. Is Part B a targeted incentive? No. However, if you elect to participate, you can deem certain positions critical to public health and safety. Members in these positions would be excluded from retiring under Part B. All other members who are at least age 55 and have 25 or more years of service credit can retire under Part B. 11. Will members retiring with the incentive receive any extra service credit? Only if they retire under Part A. Part B does not provide any additional service credit. 12. What should I consider in determining eligibility for inclusion in the incentive? Eligibility for inclusion in the incentive should be determined by seniority. 2 13. My secretary was appointed to her position. Is she excluded from participating in the incentive? Members appointed as secretaries and exempt employees who have a competitive classification are not excluded from the incentive. 14. Can an employee receive the NYSUT incentive and also receive Part A of this incentive? No. Employees can be eligible for the NYSUT incentive and Part A, but can only receive one incentive benefit. If you adopt Part A, the open periods overlap and an employee is eligible for both, that employee may choose the greater benefit. If the open periods do not overlap, employees must choose the incentive they wish to receive and retire during the appropriate open period. 15. Will an employee retiring under Part A receive a reduced benefit for retiring before age 62? Members who retire between ages 55 and 62 with fewer than 30 years of service credit will receive a reduced benefit. The additional incentive service and any service members may be eligible to receive under Article 19 can be used to reach the 30 years needed to eliminate the reduction. However, members retiring between ages 50 and 55 will receive a reduced benefit even if they have 30 years of service credit. Please refer to our Incentive Benefit Reduction Chart for approximate reductions. 16. Who do I contact if I have additional questions or need help? Please email our Employer Participation and Education unit or call them at 518-474- 0167. You can also contact our Call Center toll-free at 1-866-805-0990.