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Economic Vitality Incentive Plan “EVIP” Employee Compensation

Economic Vitality Incentive Plan “EVIP” Employee Compensation. Dennis Jordan Director of Employee Service April 23, 2012. History. P.A. 63 of 2011 - EVIP Requires certain conditions be met by local units in order to receive State Revenue Sharing Payments.

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Economic Vitality Incentive Plan “EVIP” Employee Compensation

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  1. Economic Vitality Incentive Plan“EVIP”Employee Compensation Dennis Jordan Director of Employee Service April 23, 2012

  2. History • P.A. 63 of 2011 - EVIP • Requires certain conditions be met by local units in order to receive State Revenue Sharing Payments. • Accountability and Transparency (10/1/11) • Consolidation of Services (1/1/12) • Employee Compensation (5/1/12)

  3. Employee Compensation • Caps annual amount employer contributes to retirement plans for new hires • Sets the maximum multiplier for the defined benefit pension plans • Defines the limits on calculation of the final average compensation (FAC)for the defined benefit pension plans • Sets limits on health care premium costs for new hires

  4. Retirement Caps for New Hires • Requires a maximum cap of 10% for employees eligible for social security • Requires a maximum cap of 16.2 % for non social security eligible employees • The City met these caps in 2001 with the introduction of the Defined Contribution plans

  5. Maximum Multiplier • 1.5% multiplier cap for employees eligible for social security • 2.25% multiplier cap for employees not eligible for social security Currently: Non public safety = 2.5% Public Safety 2.6% and 2.8% • The City is in negotiations with (3) bargaining units with proposed changes on the table

  6. Define Limits on FAC • Minimum of 3 years for calculation • No more than 240 hours can be added • No overtime can be included Currently: 3 years are used; all units exceed the hours limit; overtime is included • The City is in negotiations with (3) bargaining units with proposed changes on the table

  7. Health Care Costs for New Hires • Must pay 20 % of premium Or • City’s plan must be competitive with State Plans Currently: All employees and new hires contribute a dollar amount which is less 20% • The City is in negotiations with (3) bargaining units with proposed changes on the table

  8. What’s next? • Submit the City of Saginaw’s written plan to the State Treasure by May 1, 2012 • Post the Plan on the City Web Page • This completes the final phase for compliance with the EVIP State Revenue Share initiative.

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