Memorandum
City of Lawrence
Human Resources
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TO: |
David L. Corliss, City Manager |
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FROM: |
Diane Stoddard, Assistant City Manager Lori Carnahan, Human Resources Manager Marlo Cohen, Management Analyst |
|
CC: |
Casey Toomay, Assistant City Manager Mark Heim, Assistant Finance Director |
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DATE: |
November 12, 2014 |
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RE: |
2014 Longevity Payments |
Background
Each November, the City Commission considers whether to make a discretionary[1] longevity payment in December to employees who have completed five or more continuous years of full-time 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 2014 adopted budget includes funding for longevity payments based on a rate of $48/year. The maximum estimated total longevity payment amount, if approved, is $424,531.90, and will be adjusted downward for employees who separate from service prior to the payment date, or December 12, 2014. While longevity payments have existed for a longer period, the history of the program since 1997 is provided in Table 1.
City Commission Suggested Parameters and Options for Consideration of 2014 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. (2014: full-time regular employees with a service date of 1-1-2010 or earlier)
b) Be issued by a special paycheck in December. (2014: December 12, 2014)
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 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) KPERS & KP&F contributions will NOT apply for retirees
b) Garnishments and tax levies currently in force.
2014 Timeline
Longevity payments considered by City Commission: November 25, 2014
Longevity payments processed in payroll: December 8, 2014
Longevity checks distributed (if approved): December 12, 2014
Table 1. History of Longevity Payments, 1997-2014 |
||||||||||
|
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 |
|
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 |
0.5% |
$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 |
2.2% |
|
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 |
$14,144.03 |
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 |
-0.9% |
$389,815.89 |
$9,088.04 |
2.4% |
|
12/04/09 |
$4.00 |
$48 |
1/1/05 |
None |
561 |
3 |
0.5% |
$392,763.75 |
$2,947.86 |
0.8% |
|
12/03/10 |
$4.00 |
$48 |
1/1/06 |
None |
564 |
3 |
0.5% |
$396,743.70 |
$3,979.95 |
1% |
|
12/02/11 |
$4.00 |
$48 |
1/1/07 |
None |
583 |
19 |
3.4% |
$411,904.32 |
$15,160.62 |
3.8% |
|
11/30/12 |
$4.00 |
$48 |
1/1/08 |
None |
597 |
14 |
2.4% |
$423,372.00 |
$11,467.68 |
2.8% |
|
12/13/13 |
$4.00 |
$48 |
1/1/09 |
None |
586 |
-11 |
-1.8% |
$420,507.85 |
($2,864.15) |
-0.7% |
|
12/12/14 |
$4.00 |
$48 |
1/1/10 |
None |
574 |
-12 |
-2% |
$424,531.90 |
$4,024.05 |
1% |
[1] The 2012-2015 Memoranda of Understanding with the IAFF Local 1596 and the Lawrence Police Officers Association (LPOA) acknowledge the discretionary nature of the longevity payment.