Memorandum

City of Lawrence

Human Resources Division

Administrative Services Department

 

TO:

Frank Reeb, Director of Administrative Services/City Clerk

 

FROM:

Lori Carnahan, Human Resources Manager

 

CC:

David Corliss, City Manager

Cynthia Boecker, Assistant City Manager

Diane Stoddard, Assistant City Manager

Jonathan Douglass, Assistant to the City Manager

James Wisdom, Interim Director of Information Systems

Date:

November 19, 2008

 

RE:

Longevity Compensation, December 2008

 

 

Near the end of each fiscal year the City Commission considers whether or not to pay a one-time Longevity payment to full-time regular employees who have completed five or more full and continuous years of full-time regular employment as of January 1 of the current fiscal year.  This payment is considered a discretionary pay item for employees to be paid in December of any year it is approved for payment. 

 

The amount of the payment is determined by the number of complete years of service on December 31 of the current year multiplied by a predetermined amount of money for each month of service.  For 2008, the total amount of longevity payments, if approved, is $389,815.89.  Adjustments downward will be made to this amount for employees who terminate employment prior to the date paid.  There are budgeted funds available to cover this amount. 

 

Parameters for Payment of Longevity Compensation

 

1.  It is a discretionary payment considered by the City Commission each year.

 

2.  If approved, Longevity payments:

a.      Will commence January 1 of the year following the fifth (5th) year of employment.

(2008: full-time regular employees with a service date of 1-1-2004 or earlier)

b.      Be issued by a special paycheck in December.

(2008: December 5, 2008)

c.      Credited for all whole years completed as of December 31 at the established rate multiplied by the number of years of consecutive service with the City of Lawrence.

(2008: The established rate of $4.00 per month x 12 months = $48/year of service)

 

3.  Periods of Military leave will not constitute a break in consecutive service, as long as the employee returns to work immediately after discharge.

(2008: Two employees were on active duty in 2008 and one returned from active duty, one was called to active duty, therefore we currently have two employees on active duty at this time.)

 

4.  If Longevity is approved for payment, any employee who retires or is approved for long term disability during the current fiscal year shall receive Longevity Compensation at a pro-rated basis according to the following parameters:

a.      1/12 for each month worked in the current year multiplied by number of years of service multiplied by the annual rate as determined by 2c.

 

5.  Employees, who voluntarily terminate employment, are separated by the City, die, or leave City employment for any reason other than KPERS/KP&F retirement or approved long term disability during the year, are not eligible to receive longevity.

 

6.  If longevity is issued, the following will apply to the checks received:

a.      All required federal and state deductions including

                                                       i.      Income tax withholding

                                                      ii.      KPERS and KP&F contributions (including double and triple deductions) for active employees

                                                     iii.      NO KPERS & KP&F contributions for Retirees

b.      Garnishments and Tax Levies currently in force

 

Procedure for Consideration and Payment

 

a.  Administrative Services review MOUs and other documents to determine recommended pay level, develop list of retirees, those approved for disability and other necessary parameters.

b.  Information Systems run a list of employees, retirees, those approved for disability and payment amounts based on the information provided from Administrative Services.

c.  List is reviewed by Administrative Services and final amount submitted to City Commission for Consideration.

d.  If approved, it is processed as a separate payroll to be paid on the Friday that falls between the 3rd to last and 2nd to last payday in the current payroll year. 

 

 

 

 

 

 

2008 Information

 

·     2008 Longevity Compensation:                                     $389,815.89

·     Preferred date for City Commission to consider:               November 25, 2008

·     Date payroll process must begin to make timely payment: November 26, 2008

·     Date of Longevity payment (if approved):                      December 05, 2008

 

History of Longevity Payment

 

While the longevity payment program has existed for a longer period of time, the history of the program since 1997 is provided in the following table:

Date Paid

Amount Pd/Mo

Amount Pd/Year

Latest Date of Service Eligible

Cap on years of Service

# of Emp Rec Pmt

Amount Increase

Percent Increase

Total Amount Paid

Amount Increase

Percent Increase

12/19/97

$3.50

$42

1/1/93

25

410

Unknown

Unknown

$229,120.43

Unknown

Unknown

12/18/98

$3.50

$42

1/1/94

25

412

2

0.4%

$232,809.57

$3,689.14

1.6%

12/17/99

$3.50

$42

1/1/95

25

417

5

1.2%

$237,854.92

$5,045.35

2.1%

12/15/00

$4.00

$48

1/1/96

25

424

7

1.7%

$279,507.96

$41,653.04

17.5%

12/14/01

$4.00

$48

1/1/97

None

431

7

1.7%

$294,583.80

$15,075.84

5.4%

12/13/02

$4.00

$48

1/1/98

None

449

18

4.2%

$300,859.89

$6,276.09

2.1%

12/12/03

$4.00

$48

1/1/99

None

472

23

5.1%

$319,135,93

$18,276.04

6.1%

12/23/04

$4.00

$48

1/1/00

None

480

8

1.7%

$333,279.96

$14,168.03

4.4%

12/23/05

$4.00

$48

1/1/01

None

502

22

4.6%

$347,251.92

$13,971.96

4.2%

12/08/06

$4.00

$48

1/1/02

None

533

31

6.2%

$363,588.00

$16,336.08

4.7%

12/07/07

$4.00

$48

1/1/03

None

563

30

5.6%

$380,727.85

$17,139.85

4.7%

12/07/08

$4.00

$48

1/1/04

None

558

-5

-0.8%

$389,815.89

$9,088.04

2.3%