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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office / HR |
Commission Meeting Date: 11/15/2016 |
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Staff Contact: |
Marlo Cohen, Management Analyst II |
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Recommendations/Options/Action Requested: |
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Make a discretionary[1] longevity payment in December to employees who have completed five or more continuous years of regular employment as of January 1 of the current fiscal year. Longevity payments vary according to length of service, and are calculated using the following formula:
Completed years of service (as of December 31 of the current fiscal year) x rate/year = Longevity payment
Example: 20 years of service x $48/year = $960
The 2016 adopted budget includes funding for longevity payments based on a rate of $48/year. The maximum estimated total longevity payment amount, if approved, is $429,243.82 and will be adjusted downward for employees who separate from service prior to the payment date, or December 16, 2016. While longevity payments have existed for a longer period, the history of the program since 1997 is provided in Table 1.
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Executive Summary: |
City Commission Suggested Parameters and Options for Consideration of 2016 Longevity Compensation The following are general pay parameters that have historically been utilized regarding the calculation of employee longevity payments:
1) Longevity is a discretionary payment considered by the City Commission each year. 2) If approved, longevity payments: a) Commence January 1 of the year following the fifth (5th) year of employment. (2016: full-time and part-time regular employees with a service date of 1-1-2012 or earlier) b) Be issued in December and paid by direct deposit or payroll card. (2016: December 16, 2016) 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. 3) Periods of military leave will not constitute a break in consecutive service, as long as the employee returns to work immediately after discharge. 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 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 payments are issued, the following payroll items will apply: a) All required federal and state deductions including i) Federal income tax withholding ii) State income tax withholding at iii) KPERS and KP&F contributions (including double and triple deductions) for active employees iv) KPERS & KP&F contributions will NOT apply for retirees b) Garnishments and tax levies currently in force.
2016 Timeline Longevity payments considered by City Commission on November 15, 2016 Longevity checks issued (if approved) on December 16, 2016
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Strategic Goal Area: |
Other |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is $429,243.82 net increase. This item was in the 2016 operating budget. |
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Attachments: |
See Table 1 below. |
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Table 1. History of Longevity Payments, 1997-2015 |
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Date Paid |
Amount Pd/Mo |
Amount Pd/Year |
Latest Date of Service Eligible |
Cap on Years of Service |
# of Emp Rec Pmt |
Change in Amount |
Change in Percent |
Total Amount Paid |
Change in Amount |
Change in Percent |
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12/19/97 |
$3.50 |
$42 |
1/1/93 |
25 |
410 |
Unknown |
Unknown |
$229,120.43 |
Unknown |
Unknown |
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12/18/98 |
$3.50 |
$42 |
1/1/94 |
25 |
412 |
2 |
0.5% |
$232,809.57 |
$3,689.14 |
1.6% |
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12/17/99 |
$3.50 |
$42 |
1/1/95 |
25 |
417 |
5 |
1.2% |
$237,854.92 |
$5,045.35 |
2.2% |
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12/15/00 |
$4.00 |
$48 |
1/1/96 |
25 |
424 |
7 |
1.7% |
$279,507.96 |
$41,653.04 |
17.5% |
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12/14/01 |
$4.00 |
$48 |
1/1/97 |
None |
431 |
7 |
1.7% |
$294,583.80 |
$15,075.84 |
5.4% |
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12/13/02 |
$4.00 |
$48 |
1/1/98 |
None |
449 |
18 |
4.2% |
$300,859.89 |
$6,276.09 |
2.1% |
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12/12/03 |
$4.00 |
$48 |
1/1/99 |
None |
472 |
23 |
5.1% |
$319,135.93 |
$18,276.04 |
6.1% |
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12/23/04 |
$4.00 |
$48 |
1/1/00 |
None |
480 |
8 |
1.7% |
$333,279.96 |
$14,144.03 |
4.4% |
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12/23/05 |
$4.00 |
$48 |
1/1/01 |
None |
502 |
22 |
4.6% |
$347,251.92 |
$13,971.96 |
4.2% |
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12/08/06 |
$4.00 |
$48 |
1/1/02 |
None |
533 |
31 |
6.2% |
$363,588.00 |
$16,336.08 |
4.7% |
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12/07/07 |
$4.00 |
$48 |
1/1/03 |
None |
563 |
30 |
5.6% |
$380,727.85 |
$17,139.85 |
4.7% |
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12/07/08 |
$4.00 |
$48 |
1/1/04 |
None |
558 |
-5 |
-0.9% |
$389,815.89 |
$9,088.04 |
2.4% |
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12/04/09 |
$4.00 |
$48 |
1/1/05 |
None |
561 |
3 |
0.5% |
$392,763.75 |
$2,947.86 |
0.8% |
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12/03/10 |
$4.00 |
$48 |
1/1/06 |
None |
564 |
3 |
0.5% |
$396,743.70 |
$3,979.95 |
1% |
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12/02/11 |
$4.00 |
$48 |
1/1/07 |
None |
583 |
19 |
3.4% |
$411,904.32 |
$15,160.62 |
3.8% |
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11/30/12 |
$4.00 |
$48 |
1/1/08 |
None |
597 |
14 |
2.4% |
$423,372.00 |
$11,467.68 |
2.8% |
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12/13/13 |
$4.00 |
$48 |
1/1/09 |
None |
586 |
-11 |
-1.8% |
$420,507.85 |
($2,864.15) |
-0.7% |
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12/12/14 |
$4.00 |
$48 |
1/1/10 |
None |
574 |
-12 |
-2% |
$424,531.90 |
$4,024.05 |
1% |
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12/11/15 |
$4.00 |
$48 |
1/1/11 |
None |
559 |
-15 |
-2.6 |
$425,715.84 |
$1,183.94 |
0.3% |
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12/15/16 |
$4.00 |
$48 |
1/1/12 |
None |
559 |
0 |
0.0% |
$429,243.82 |
$3,527.98 |
0.8% |