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Johnson County Offers Early Retirement Option
Budgetary shortfalls have prompted the Johnson County Commission to offer early retirement incentive options for employees to help curb the shortfalls.
According to discussions during their most recent meeting, the commission is expecting to have to look at cutting employees during this year’s budget sessions, and are offering the retirement option to reduce employment costs.
Reports from local elected officials as well as from the state are showing reduced revenue across the board, which is also a factor in the commission’s decision for the offer, according to Commission Chair Bill Novotny.
The program will offer various cash incentives for employees to consider, based on age, years of service, and other factors.
Employees will be given from May 1st through June 1st to make a decision to take the retirement incentives.
We have provided text of the incentive program here:
Johnson County COVID-19 Early Retirement Incentive Program
Section 1.
Purpose: The early retirement program is an offer to qualified employees who have served Johnson County. It is a retirement incentive providing Johnson County the opportunity to realize financial savings generated by a reduction in workforce in uncertain financial outlooks caused by COVID-19.
Section 2.
Eligible Employees: Those employees who are actively employed by Johnson County, in a regular full-time, benefit eligible, at-will position. State or Federally funded positions are not eligible for the retirement incentive.
Section 3.
Retirement Offerings:
Immediate Separation: County employees who have reached retirement age of 60 and are fully vested in retirement are eligible for an immediate buyout of $5,000 if they agree to retire by June 1, 2020. Employee agrees they will not be eligible to return to full time employment with Johnson County. They may be eligible to return on a part time or contractual basis with the approval of the Commissioners. These employees will be eligible for COBRA insurance if they are presently enrolled in the county health insurance program.
Approximate benefit: $5,000.
Voluntary Separation within One Month:
County employees who will reach retirement age of 60 and will be fully vested in retirement are eligible for an immediate buyout of $2,500 if they agree to retire between May 1, 2020, and June 1, 2020. Employee agrees they will not be eligible to return to full time employment with Johnson County. They may be eligible to return on a part time or contractual basis with the approval of the Commissioners. These employees will be eligible for COBRA insurance if they are presently enrolled in the county health insurance program.
Approximate benefit: $2,500.
Separation for Employees not at Retirement Age:
An employee must be at least 45 years of age and must have worked for Johnson County at least five (5) years upon the date of separation. An employee would receive one (1) of the following incentives (depending on their eligibility):
A) Employees with less than fifteen (15) years of service to Johnson County: County employees who have worked between five and 15 years and who agree to voluntarily separate from county employment by June 1, 2020, are eligible for a lump sum payment of $10,000 paid to employee. The employee has the option to have the amount up to the 457(b) deferred comp limit contributed to their 457(b) fund and any amount over would be paid directly to employee and taxed appropriately. Employee agrees they will not be eligible to return to full time, part time, or contract employment with Johnson County. These employees will be eligible for COBRA insurance if they are presently enrolled in the county health insurance program.
Approximate benefit: $10,000.
B) Employees with fifteen (15) years or more of service to Johnson County County employees who have worked more than 15 years and who agree to voluntarily separate from county employment by June 1, 2020, are eligible for a lump sum payment of $15,000 paid to employee. The employee has the option to have the amount up to the 457(b) deferred comp limit contributed to their 457(b) fund and any amount over would be paid directly to employee and taxed appropriately. Employee agrees they will not be eligible to return to full time, part time, or contract employment with Johnson County. These employees will be eligible for COBRA insurance if they are presently enrolled in the county health insurance program.
Approximate benefit: $15,000
