2016-04 Leave Benefits Special Pay PlanRESOLUTION NO. 2016 -04
A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA; AMENDING
PERSONNEL POLICIES AND PROCEDURES; APPROVING A MANDATORY
METHOD OF PAYMENT FOR ACCUMULATED ANNUAL AND SICK LEAVE;
APPROVING A SPECIAL PAY PLAN TO DEPOSIT SIIIS1XUTHORIZED
ANNUAL AND SICK LEAVE UPON SEPARATION OF EMPLOYMENT WITH
THE CITY OF OKEECHOBEE INTO AN INVESTMENT PLAN WITH THE
STANDARD, AND AN AUTHORIZED FINANCIAL GROUP TO ADMINISTER
THE FUNDS, ITS INVESTMENT AND DISTRIBUTION TO FORMER
EMPLOYEES; PROVIDING FOR CONFLICT; PROVIDING SEVERABILITY;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, current policy and procedures within the City of Okeechobee, Florida, in Chapter
Four Leave Benefits, Personnel Policy and Procedures manual, calls for payment to a
former employee upon separation from employment of all authorized accumulated
annual and sick leave; and
WHEREAS, the City of Okeechobee, Florida, has identified a provider who has established a
program of investment that accepts receipt of the employee's accumulated annual and
sick leave, and invests same with a financial group to maximize investment and return
on the funds for the benefit of employees; and
WHEREAS, the diverting of an employee's annual and sick leave into this investment plan
upon separation of employment has a decided advantage of avoiding these funds being
considered "income" at the time of transfer, thereby postponing an employee's
obligation to pay income tax and withholding on these funds, and further by avoiding the
obligation of the City and employee of paying Social Security and Medicare taxes on the
funds; and
WHEREAS, the plan also provides the former employees the ability to manage these funds, to
receive the funds when so directed by the former employee, to borrow against these
funds, and to generally provide flexibility in the management of their benefits, all without
cost to the City or the former employee.
NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee,
Florida; presented at a duly advertised public meeting; and passed by majority vote of
the City Council; and properly executed by the Mayor or designee, as Chief Presiding
Officer for the City that Chapter Four Leave Benefits, Personnel Policies and
Procedures manual be amended, and approving the special pay plan for accumulated
annual and sick leave, as approved by majority vote of the City Council for the City of
Okeechobee, Florida, as follows:
SECTION 1: CHAPTER FOUR LEAVE BENEFITS, PERSONNEL POLICIES AND
PROCEDURES MANUAL FOR THE CITY OF OKEECHOBEE, FLORIDA IS
AMENDED AS FOLLOWS:
PAYMENT FOR UNUSED ANNUAL LEAVE
In certain situations payment is made for unused annual leave. A regular employee may
be paid through the last fully completed calendar month of service. The City will pay
only two hundred forty (240) hours annual leave. There is no payment to employees
who have not completed their evaluation periods. Upon separation from employment
with the City, all authorized and accumulated annual leave shall be withheld from the
final paycheck to the employee by the Finance Director, and deposited for the
employees benefit with THE STANDARD, or such other entity that provides such
services, as approved by the City Council, to be administered, and distributed as set
forth in the special pay plan approved and on file within the City of Okeechobee.
For those employees enrolled in the DROP program, upon entry into that deferred
retirement program the City shall commence to annually withhold and divert ten (10)
percent of the employee's annual leave into the special pay account until termination of
the DROP enrollment.
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Resolution No. 2016 -04 - Page 1 of 2
a) Resignation in good standing. This requires a minimum of six (6) months
continuous service and two (2) weeks' notice.
b) Layoff.
c) Retirement
d) Death.
PAYMENT FOR UNUSED SICK LEAVE
An employee is eligible for payment of unused sick leave upon either of the following:
1. Ten (10) years or more of continuous service upon leaving the City employment
in good standing (is not discharged for cause).
2. Death of employee who has ten (10) years or more of continuous service.
3. Normal retirement as provided by the City Pension Ordinance.
A conversion rate of fifty (50) percent will be applied to the employees unused sick
leave balance in determining the payment amount due.
Upon such separation from employment with the City of Okeechobee, Florida, all
authorized accumulated sick leave shall be withheld from the final paycheck of the
employee by the Finance Director, and deposited for the employees or beneficiary's
benefit with THE STANDARD, or such other entity that provides such services, as
approved by the City Council, to be administered, and distributed, as set forth in the
special pay plan approved and on file within the City of Okeechobee.
For those employees enrolled in the DROP program, upon entry into that deferred
retirement program, the City shall commence to annually withhold and divert ten (10)
per cent of employee's annual sick leave into the special pay account until termination
of the DROP enrollment.
SECTION 2: APPROVAL AUTHORIZATION FOR SPECIAL PAY PLAN.
1. The City Council hereby authorizes the City Administrator and Finance Director
to execute an agreement with THE STANDARD to initiate the special pay plan
for deposit of annual leave and sick leave for employees upon their separation
from employment with the City of Okeechobee, Florida.
2. That in the event a provider other than THE STANDARD is anticipated to provide
these services for the City; such matter shall be brought before the City Council
for prior evaluation and approval.
SECTION 3: CONFLICT.
All resolutions or parts of resolutions in conflict herewith are hereby repealed.
SECTION 4: SEVERABILITY.
That if any portion of this resolution should be judicially determined to be unenforceable, then
the balance thereof shall continue to remain in full force and effect.
SECTION 5: EFFECTIVE DATE.
This Resolution shall take effect immediately upon its adoption.
INTRODUCED AND ADOPTED in regular session this 19th day of July, 2016.
(1)Motion to Amend Title during Adoption Carrie
ATTEST:
ce/yLe
Lane Gamiotea, CMC, City Clerk
REVIEWED FOR LEGAL SUFFICIENCY:
John R. Cook, City Attorney
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Resolution No. 2016 -04 - Page 2 of 2
James E. Kirk, Mayor