County Proposes Voluntary Separation Incentives, Voluntary Furlough Program and Sharewell Opt-out
Dear OCEA member,
The County is evaluating possible COVID-19 related budget shortfalls and intends to propose incentives to workers to voluntarily leave the County workforce, a voluntary furlough program, and the ability to opt out of the Sharewell PPO Health Plan. The Board of Supervisors is scheduled to review and possibly approve these proposals, including a Voluntary Incentive Program, at its meeting on July 14, 2020.
Before I briefly discuss the incentive program the County intends to offer, 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 is that any hasty County 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 has developed its Voluntary Incentive Program.
Briefly, the proposed Voluntary Incentive Program provides incentives to workers in two categories - those who are retirement eligible and those who are not yet retirement eligible.
The County proposes to offer workers who are retirement eligible a "Retirement Health Incentive" (RHI). This would be a one-time contribution to an individual County of Orange Health Reimbursement Arrangement (HRA). The contribution would be equal to either: (a) a pre-tax amount approved by the Board of Supervisors, or (b) a percentage of base annual salary approved by the Board of Supervisors, 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 proposes to offer workers who are NOT retirement eligible a "Voluntary Separation Incentive" (VSI). This would be a one-time cash payment equal to a percentage of base annual salary approved by the Board of Supervisors. Workers in all classifications are eligible to participate in both 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.
Retirement eligible workers cannot be given the option to receive the cash incentive. Moreover, workers who are not retirement eligible may only receive the VSI cash incentive. Remember, both of these proposed programs are voluntary.
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 staff report also includes a Voluntary Furlough Program, which is not part of the Voluntary Incentive Program addressed above. The Voluntary Furlough Program 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. The County has had a long-standing policy which requires each County employee to be enrolled in a County health plan. Those employees who have coverage elsewhere, such as on a spouse’s plan, were still required to enroll in a County plan such as Sharewell. The County will propose to the Board of Supervisors to eliminate that requirement beginning next plan year and allow employees to opt out of health plan participation altogether.
As of today, we don't know whether the Supervisors will approve these programs or in what form. We do know that by standing together, we put ourselves in the best position possible to protect our safety, stability, and security. 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 10, 2020
