County adopts voluntary incentives for worker resignations, retirements

Dear OCEA member,

On Tuesday, the County Board of Supervisors adopted a Voluntary Incentive Program (VIP) that establishes incentives to workers to voluntarily leave the County workforce. The Board also approved a voluntary furlough program, and the ability to opt out of the Sharewell PPO Health Plan. Today, County Human Resources held two information seminars via Zoom to explain the new program. 

I want to state very clearly that OCEA has not negotiated the Voluntary Incentive Program, nor were we interested in doing so. OCEA’s position, which we shared with the County, is that any hasty response to its possible future fiscal challenges (such as threats of layoffs or furloughs), is not only premature, it is unnecessary given the County's strong financial reserves and the realistic possibility of additional federal aid. OCEA has insisted that any budget management strategies impacting OCEA-represented workers be strictly voluntary in nature. This is the context in which County staff developed VIP.   

Workers eligible for retirement under OCERS rules are being offered a "Retirement Health Incentive" (RHI). This is a one-time contribution to an individual County of Orange Health Reimbursement Arrangement (HRA). The Board of Supervisors approved the following contribution formula and schedule:

• Last day in paid status with the County from July 14, 2020 through August 13, 2020 = 20% of base salary or $18,000 (whichever is greater);
• Last day in paid status with the County from August 14, 2020 through September 10, 2020 = $15,000 or 15% of base salary (whichever is greater);
• Last day in paid status with the County from September 11, 2020 through October 8, 2020 = $12,000 or 10% of base salary (whichever is greater).

Every worker's situation is different, so determining the option that provides the most benefit to you and your family will require some homework in consultation with an HR representative. 

The County is offering a "Voluntary Separation Incentive" (VSI) to those workers NOT elibible for a service retirement. This would be a one-time cash payment equal to a percentage of base annual salary approved by the Board of Supervisors as follows:

• Last day in paid status with the County on or before August 13, 2020 = 20% of base salary;
• Last day in paid status with the County from August 14, 2020 through September 10, 2020 = 15% of base salary;
• Last day in paid status with the County from September 11, 2020 through October 8, 2020 = 10% of base salary.

Non-retirement resignations are only eligible for the Cash Incentive not the Health Reimbursement Arrangement incentive. Retirement eligible workers cannot be given the option to receive the cash incentive and workers who are not retirement eligible may only receive the VSI cash incentive. Remember, both of these programs are voluntary. 

Workers in all classifications are eligible to participate in either the RHI and VSI, except in the event an exemption for critical or hard-to-fill positions is requested by a Department Head and approved by the County Executive Officer.

For details on these incentive programs, you can review the County's Zoom presentation slides here. The County's Voluntary Incentive Program web page can be found here.  

Again, these proposed incentives are not part of any OCEA negotiation or agreement. You should work with a County Human Resources representative to help you determine if any incentive is right for you and your family. If you feel you are being treated unfairly in this process, we want to know about it and request you contact your OCEA Steward or OCEA Labor Relations Representative. 

The Board of Supervisors also approved a separate Voluntary Furlough Program, which may be offered at the discretion of each department or agency.  Similar to the 2009/2010 Voluntary Furlough Program, anyone who is approved for a voluntary furlough will preserve health and retirement benefits as well as service credit hours.  OCEA has not agreed to any level of mandatory furloughs. 

The County has also proposed a change regarding the Sharewell PPO Plan that ends a long-standing policy requiring each County employee to be enrolled in a County health plan including those employees who have coverage elsewhere, such as on a spouse’s plan. That requirement will be eliminated beginning the next plan year.

OCEA will continue to work on your behalf to ensure that any burden of dealing with the economic consequences of the pandemic won’t fall on the backs of working families.

In Solidarity, 

Charles Barfield
OCEA General Manager

Publication Date: July 16, 2020