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CL- 2138 New Business   Item #:   J.    
City Council Regular Meeting
Meeting Date: 06/04/2019  
Subject:    Retiree Bonus
From: Cynthia Thomasson

First Reading:     06/04/2019
Final Adoption:   06/18/2019
A policy that governs the distribution of bonuses to retirees indicates that the criteria has been met to issue a bonus payment to qualified municipal retirees.  The associated cost will not exceed $275,000.  The accompanying ordinance amending the FY 2019 Budget Appropriation Ordinance to expend up to $275,000 from the various fund's Unassigned Fund Balance and authorizing payment of a retiree bonus is presented for first reading.  Two readings of the Ordinance are required.  If approved, a certain amount of work will be required to compute bonuses and test the system before payments can be issued.  It is expected that bonus payments would be incorporated into retirement checks issued this June.  Retirees will be properly informed.
Per Section 12 of the City of Danville's Financial Policies entitled Pay Adjustments for City Retirees, in the event criteria are met, City Council can approve a lump-sum bonus to qualified retirees.  The criteria necessary to approve a lump-sum bonus for retirees has been met; and based on the criteria as defined in the Pay Adjustments for City Retirees, at this time City Council can approve a lump-sum bonus up to one-fourth of the retiree's normal monthly benefit.

Per Pay Adjustments for City Retirees, retirees are not eligible for a bonus until the first year anniversary of their retirement date.  The retirement date is defined as the first day of the month following the employee's separation date.  Those retirees whose first year anniversary date is prior to the date the bonus is paid, will be eligible for a bonus.
Having expressed its intent to grant eligible retirees a bonus in accordance with its adopted Financial Policies, it is recommended that City Council approve the accompanying Ordinance to authorize and finance said bonuses.


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