COUNTY OF RIVERSIDE December 23, 2008 GOALS OF THE PROGRAM Reduce - - PowerPoint PPT Presentation

COUNTY OF RIVERSIDE December 23, 2008

GOALS OF THE PROGRAM

 Reduce County’s Salary & Benefits

expenditures –Keep Savings w/in Dept.

 Maintain County services and operations

with minimum disruption

 Offer flexibility and options to employees

who may wish and be able to reduce their schedule

 Avoid/minimize layoffs & mandatory

furloughs

ELIGIBILITY

 All regular County employees (Seasonal and

Temporary employees are NOT eligible);

 Must have completed at least 2 pay periods of

employment ;

 Subject to approval by agency/

department head; and

 Must be on a paid status at

enrollment and on the workday prior to taking time off.

Voluntary Time Off



Reduction of scheduled workday or work week*; or



Schedule a block of time off as unpaid leave (requires a minimum of two consecutive workdays off).

*FLSA exempt employees may not select the reduced workday option, but they may reduce their work week on a bi- weekly basis.

Two ways to participate:

BENEFITS & SERVICE CREDITS

 Flexible benefit allowance;  Medical/dental/vision/life insurance

eligibility and coverage;

 Retirement eligibility and benefit level*;  Rate of differential and premium pay

included in the compensation base; or

 Paid holidays

*However, it may affect credits if an employees retirement date is within twelve months, or if an employee takes more than 160 hours of unpaid time off within a six month period.

Voluntary furlough hours will not affect the following benefits:

BENEFITS & SERVICE CREDITS (cont’d.)

 No Break In Service  No Reduction In Service Credit (unless off for a full pay

period) For:

 Seniority  Probationary Period  Retirement*  Leave Accumulation  Anniversary Date/Merit Salary Adjustment

*In most cases, it will not affect retirement credits. However, it may affect credits if an employees retirement date is within twelve months or if an employee takes more than 160 hours of unpaid time off within a six month period.

TRACKING

 Special Time Entry Code Established To

Capture Voluntary Time Off Hours Taken*

 Continuation Of Service Credits And Benefit

Accruals Facilitated by Coding

 Easy Reporting Through Regular Time Entry

Process

 Tracked In PeopleSoft For Reports

*The Voluntary Furlough Program shall be recorded with the voluntary furlough time entry code VFP. The VFP time entry code will capture all voluntary hours taken under this program, and to facilitate continuation of seniority, health and retirement benefit accruals, contributions, and payments.

SAVINGS/ADVANTAGES

 Savings For the County/Departments:  Direct Salary Savings  Reduction In FICA/Medicare Taxes  Reduction In PERS Pension Contributions -

Both Employer Portion & Employee Pick-Up

• Additional Advantage: Help with Cyclic Workload

Changes

SAVINGS/ADVANTAGES (cont’d)

 Advantages For The Employee:

 Reduction In Work Hours To Accomplish Other Goals  No Loss Of Employee Benefits*

 For All:

 Payroll Savings Will Lessen Or Avert The Need For

Layoffs

 May Avoid Mandatory Furloughs

*Participation in the Furlough program will reduce immediate take home pay. If an employee elects a block of time off greater than one pay period, the employee needs to arrange payment

• f the normal required employee contributions for benefit plans.

Disadvantages

 Can increase cost/unit of work

(Fixed Cost/Hour is Higher);

 May adversely affect work production;  May reduce employee contributions available

from PERS if employed < 5 yrs*.

*In most cases, it will not affect retirement credits. However, it may affect credits if an employees retirement date is within twelve months or if an employee takes more than 160 hours of unpaid time off within a six month period.

Savings Example – Block of Unpaid Leave

 Assumed Hourly Rate:

$ 19

 Hours Reduction:

80 (two weeks)

 Total Pay Lost:

$1,520

 County Savings/FICA:

$ 94

 County Savings/PERS:

$ 272

 Total County Savings:

$1,886

Savings Example – Reduction in Work Week

 Assumed Hourly Rate: $ 19  Hours Reduction:

52 (4 x 13)

 Total Pay Lost:

$ 988

 County Savings/FICA:

$ 61

 County Savings/PERS:

$ 177

 Total County Savings:

$1,226

Enrollment Process

 Agency/department heads determine which options

 based on operational needs of department  not based on individual merit

 Reduced work schedule requires a three-month participation

period.

 Signed agreement between employee and department head.  The appropriate Department Representatives will notify

employees who have been approved to participate; and ensure all forms are forwarded to Human Resources.

 Approved requests must be submitted to Human Resources by

5:00 p.m. on pay week Thursday to begin participation in the following pay period.

Voluntary Furlough and Contribution Changes

 Agreement may not be changed or canceled except:

 if employee transfers to another dept;  if s/he terminates County employment;  if s/he demonstrates personal hardship; or  has participated for three months in the program.

(Forms must be submitted to HR by 5:00 p.m. on pay week Thursday to change or cancel participation for the following pay period.)

Voluntary Contribution Participation



Methods:



Waive Contribution of Flexible Benefit Credits*



Waive Contribution toward the County car allowance



Reasons:



County Savings without Reduction in Work Hours



Allows Participation for Those Unable to Reduce Hours * In the case of flexible benefits the employee’s benefit elections remain unchanged.

Example of Voluntary Contribution Participation (3 months)

 Flex Contribution Amount:

$300.00 x 6 pp = $1800.00

 Equivalent Pre-Tax Deduction:

$1800.00

 Savings to County:

$1800.00

 Estimated Impact on Paycheck:

($1800 x 70%) $1260.00