HomeMy WebLinkAbout2.b. Advance Notice of Retirement Policy
EXECUTIVE SUMMARY
City Council Work Session: October 5, 2021
AGENDA ITEM: Advance Notice of Retirement Policy AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Emmy Foster, Assistant City Administrator AGENDA NO. 2.b.
ATTACHMENTS: Draft Policy APPROVED BY: LJM
RECOMMENDED ACTION: Discussion and feedback on the proposed policy.
BACKGROUND
Succession planning is critical to the continuance of good service and operations. Included in the
City’s 2021-2025 Strategic Plan is the development of an Advance Resignation Notice Program in
pursuit of the overarching goal of “Developing a High Performing Organization”. As such, City staff
is requesting that the Council provide feedback on the draft Advance Resignation Notice Program.
The proposed program is comparable to other cities in the metro area. The City has several pending
retirements anticipated over the next few years. Filling these vacancies prior to the incumbent
employee’s last day will reduce the loss of information and expertise that occurs when an employee
leaves employment.
Proposed Policy
This program was designed to improve the efficiency and stability of the City’s workforce by
encouraging employees to give the City advance notice of the intent to resign/retire. The purpose of
this program is to begin the process of replacing an employee who is leaving the City as soon as
possible after notice is received. Early notification of an employee’s plans also allows staff to fully
consider the most effective way to re-fill that position based on the needs of the organization. By
offering a one-time payment to employees who provide the City with an advanced resignation notice,
the City hopes to reduce the time that a position remains unfilled and reduce the costs associated with
addressing staff shortages while also maintaining excellent service to the public.
The key elements of the program include:
1. All regular employees who are in good standing and who have been employed with the City of
Rosemount for at least two years are eligible to participate in the program.
2. Expecting the employee to assist with training their replacement.
3. Limiting annual leave usage during the advance notice period.
4. Reserving the City’s right to refuse to enter into an Advan ce Notice Agreement with an employee.
5. Allowing employees 10 days to rescind their resignation submitted under the program.
6. Payment for a 90 day advance notice is $750; 120 day advance notice is $1000, and 180 day
advance notice is $1500.
7. Payment isn’t made until on or after the final day of work.
Impact on Budget and Organization
With an effective date of January 1, 2022, we anticipate that approximately three employees may take
advantage of this program in the next year at a direct cost of up to $4500. This includes one employee
2
who has given us a 10 month notice on their impending retirement in February of 2022. In addition,
there will be some overlap in salary and benefit costs due to the new hire starting work prior to the
final day of the employee they are replacing.
Staff has found that the ability to recruit and hire immediately, and even creating a small overlap of
service (within some roles), is key to maintaining the high level of customer service and quality work
that our residents have come to expect in our growing community.
RECOMMENDATION
Staff requests City Council feedback on the proposed policy. Based on that feedback, final Council
action would be anticipated on October 17.
City of Rosemount
Advance Resignation Notice Policy
Purpose
The City’s Advance Resignation Notice Program is designed to improve the efficiency and
stability of the City’s workforce by encouraging employees to give the City advance notice of
their intent to resign. The purpose of this program is to begin the process of replacing an
employee who is leaving the City as soon as possible after notice is received. This will reduce
the time that the position remains unfilled.
Eligibility
This program is available to active regular full-time employees who are in good standing and
who have been employed in a regular full-time position for a minimum of two years.
The City reserves the right to not replace any employee who resigns, and/or to modify the
position and duties prior to hiring a new employee. This decision will not affect a current
employee’s eligibility for an Advance Notice payment.
Notice & Use of Leave
In order to be eligible for an Advance Notice payment an employee must give at least 90
calendar days notice to the employee’s Department Director before his or her last day of work.
The last day of work is defined for this program as the last day that an employee will be actively
working for the City. The City reserves the right to approve or deny requests for use of accrued
Annual Leave during the 90-180 day period. It is the policy and intent that an employee
requesting an Advance Notice Incentive remains actively working for the City and limits the use
of benefited time off during the final 90-180 day period. Leaves of absence will not be
allowed/approved beyond the employee’s final day of actual hours worked.
City Expectations
In order to be eligible for the one-time payment noted below, the departing employee will be
expected to train the replacement or new hire to the extent possible by transferring knowledge
and preparing documentation of the position as necessary.
Agreement Acceptance
The agreement must be signed by the employee, the City Administrator, Department Director,
and Human Resources to be effective. The City reserves the right to refuse to enter into this
agreement with any employee. For purposes of this policy, the term day(s) shall mean calendar
day(s).
Payment
The City will provide the following one-time payment for advance notice:
Ninety (90) days: $750
One Hundred Twenty (120) days: $1,000
One Hundred Eighty (180) days: $1,500
Payment will be made on or after the employment termination date. Payment will not be made if
the employee or the City rescinds the resignation. Payment is subject to taxation and required
deductions.
Rescission Period
An employee has ten (10) calendar days from the date the employee signs the agreement to
rescind the Advance Resignation Notice. After the City has accepted the resignation and after the
duration of the Employee’s 10-day rescission period, the resignation become irrevocable and the
Employee may no longer rescind it without the City’s agreement to either permit rescission or
defer the resignation. Refusing to accept the Advance Notice payment will not void the
Agreement. In the event the Employee breaches this Agreement by terminating employment with
the City in advance of the agreed upon resignation date, the Employee forfeits all eligibility for
any advance resignation incentive. In addition, the Employee’s separation from employment may
be considered by the City as “not in good standing” and this determination may be relayed to the
Employee’s prospective employers. Breach of the Agreement may also serve as basis for
ineligibility from future employment with the City.
If a qualifying Family/Medical Leave Act (FMLA) event occurs during the effective period (90-
120 days) of the agreement, such event shall be characterized as breach for good cause and the
City shall release the employee from the agreement and disqualify the employee from the
incentive payment.
Effective Date
This program will go into effect on January 1, 2022.
Advance Resignation Notice
Date: ______________________________________
To: ______________________________________ (Supervisor)
From: ______________________________________ (Employee)
Re: Voluntary Resignation/Retirement Notice
Voluntary Resignation or Retirement
I, ___________________________, voluntarily resign my position of
Print Name
_____________________________, with the City of Rosemount.
Job Title
My last day of work will be: ____________________________________ (termination date).
By signing this document I am agreeing to the terms and conditions of the City’s Advance
Resignation Notice Program. I understand that in order to be eligible for an Advance Notice
payment, I must give at least 90days notice before my last day of work and that any payment will
be based upon the actual number of calendar days elapsed between the date of this notice and the
last day of work. I also understand that in signing this contract I am agreeing that there will no
longer be a position available to me after the agreed upon termination date.
I understand that I have ten (10) calendar days from the date I sign to rescind this resignation. A
rescission must be in writing, dated, signed, and delivered to Human Resources, City of
Rosemount, 2875 – 145th St W, MN 55068 within the 10 calendar day period. After the 10-day
period my resignation is irrevocable, unless rescinded by the City.
____________________________________ ___________________
Employee Signature Date
Resignation Acceptance
____________________________________ ___________________
Department Director Signature Date
____________________________________ ___________________
Human Resources Signature Date
____________________________________ ___________________
City Administrator Signature Date
Notice Payment eligible for: 90 days 120 days 180 days