City Of Everett To Offer Employees Early Retirement Incentive

In order to reduce compensation costs and staffing levels the City of Everett, Washington is proposing an incentive for employees to voluntarily separate or retire from the City. In briefing papers presented to city council members ahead of their meeting on Wednesday the City says the plan will facilitate redeployment, reorganization, and other efforts to make more efficient and effective use of the City’s limited resources.

The program is for eligible employees either full or part time who have at least 10 years consecutive employment with the City of Everett. Participation in the program is entirely voluntary. To be considered for the program an employee must apply by January 31, 2019. The date of separation from the City would be no later than March 31, 2019.

Eligible employees who apply and are approved for voluntary separation have a choice of three options for their retirement incentive.

• Eighteen (18) months of enrollment in the City’s self-insured medical plan for the eligible employee plus eligible dependents beginning on the date their coverage expires (based on date of separation) at no cost to the employee -or-
• A contribution equal to the cost of eighteen (18) months of enrollment in the City’s self-insured medical plan for the eligible employee plus eligible dependents applied to eighteen (18) months Kaiser Permanente coverage beginning on the date their coverage expires (based on date of separation) at no cost to the employee -or-
• A one-time severance payment based on the eligible employee’s current base salary (exclusive of extras)
  10-19 years of service = 3 months severance pay
  20-29 years of service = 4 months severance pay
  30 or more years of service = 5 months severance pay

  Employees who take the separation offer and then file for unemployment will have their unemployment claim disputed by the city as this program is not a layoff but a voluntary action on the part of the employee.

  Employees who take the separation and then return to work for the City of Everett within five years in any capacity including as a consultant or contractor would have to repay the incentive received unless given an exception in writing by the Mayor showing just cause.

  Positions vacated under the program will have to remain vacant for at least four months or result in another staff vacancy through staff reorganization that is expected to remain vacant for at least four months.

  Requests by department heads to backfill positions vacated through the program are subject to review and approval by a committee determined by the Mayor. Priority to fill vacant positions will be given to redeployment or reorganization that make more efficient and effective use of the City’s limited resources.

  The Everett City Council is just getting a briefing on the program this Wednesday and still has to vote on the plan. That vote along with any public comment period prior is expected to happen by Christmas.