The Employee Separation Policy is in keeping with City Charter Section 3.01 (12).
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- Brice Owen Black
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1 EMPLOYEE SEPARATION POLICY AUTHORITY The Employee Separation Policy is in keeping with City Charter Section 3.01 (12). POLICY STATEMENT The policy of the City of West Palm Beach is to follow a separation process which includes notification, completion of forms, return of City property, an exit interview and final payout to the employee. PURPOSE This policy sets forth guidelines and procedures for processing separations from employment. SCOPE OF APPLICABILITY This policy applies to all employees separating from the City. Where provisions of this policy conflict with a collective bargaining agreement, the collective bargaining agreement will prevail. DEFINITIONS City Property includes, but is not limited to keys, city-issued vehicles, ID cards, access cards, computer, cellular and all other communication devices and uniforms. COBRA means the Consolidated Omnibus Budget Reconciliation Act of This act provides for the option of health insurance continuation for a period of time following a person's separation from employment. puty Disability Retirement is when an employee leaves the employment of the City because s/he is physically unable to work as a result of an illness or injury arising out of and in the course and scope of employment, and is eligible to elect one of the options available to participants in one of the City's pension/retirement plans. Exit Interview is an opportunity to receive information from the separating employee. The options for an exit interview include: 1. A face to face interview with Employee Relations to complete the Employee Exit Survey Form. 2. Completion of the City's on-line Exit Survey Form 3. A phone interview with Employee Relations to complete the Exit Survey. Page 1 of 9
2 Good Standing is a status where the employee leaves the City voluntarily with no pending disciplinary or other adverse actions, gives proper notice and is eligible to be rehired or reinstated by the City. lnvoluntarv Separation occurs when the separation is not initiated by the employee and shall include, termination of employment by the City through disciplinary action, rejection of probation, layoff, medical discharge, or by death of the employee. Long Term Disability is an employment status in which an employee is physically unable to work for ninety (90) days or more due to an illness or injury that was not related to the employee's job. Non-Puty Disability Retirement is when an employee leaves the employment of the City because he or she is not physically able to work and is eligible to elect one of the options available to participants in one of the City's pension/retirement plans. Illness or injury in this type of retirement is not work related. Resignation is an oral or written statement from an employee who is choosing to leave employment with the City and is not eligible for retirement. Retirement Separation is the act of choosing to retire from employment with the City. Separating Employee is a person who either by resignation, retirement, rejection of probation, layoff or disciplinary action is terminating their employment with the City. Service Retirement is the act of choosing to leave employment with the City and being eligible to elect one of the options available to participants in one of the City's pension/retirement plans. Thjrd Party Administrator ltpal is an entity or organization contracted by the City to provide an administrative service. Voluntarv Separation occurs when separation is initiated by the employee and shall include written or oral resignation, job abandonment, or retirement. Workers' Compensation is an insurance program which compensates employees for medical costs and lost wages resulting from an injury or illness arising out of and in the course of employment. Page 2 of 9
3 STANDARDS AND PROCEDURES A. EMPLOYEE BENEFITS AT TIME OF SEPARATION 1. Annual Leave: Employees who leave during their first six (6) months of employment will forfeit any accrued annual leave. Employees who have completed six months of service will be paid for all accrued unused annual leave within two pay periods of their separation. 2. Earned Personal Leave: All unused accrued earned personal leave will be paid within two pay periods of their separation. 3. Compensatory Time: All earned and unused compensatory time will be paid within two pay periods of their separation. 4. Sick Leave: Employees who leave the City after ten (10) years of continuous service will be paid for earned sick leave based on City Code or applicable collective bargaining agreement. Employees who leave the City with less than ten (10) years of continuous service are not eligible for a payout of any accrued unused sick leave. 5. Other Types of Leave: Other unused leaves such as discretionary day, incentive sick days or management leave days are not paid out at separation. 6. Health Insurance: Under COBRA, a terminating employee may have the right to continue participation in the City's health benefits plan for a minimum of eighteen (18) months. Information on the costs for this benefit along with enrollment procedures is available from the Human Resources Department. Voluntary Employee Benefits ("VEBA") may also be available to eligible separating employees based on the governing plan documents. 7. Deferred Compensation: Employees who have participated in the City's Deferred Compensation program will have the funds released to them after the employee leaves the City. Employees should consult with the TPA of the plan and an accountant or financial counselor regarding tax implications and options for receiving deferred compensation funds. Page 3 of 9
4 B. GENERAL GUIDELINES FOR PROCESSING SEPARATIONS These general guidelines apply to all separations unless otherwise specified. Employees should refer to the applicable section for processing separations once the type of separation is determined. 1. All terminations require completion of the Checklist for Returning City Property by the employee's supervisor. 2. The final pay for all separations will be processed within two pay periods of the employee's separation. 3. The employee's final payout will be reduced by any amounts owed to the City. 4. All requests for employment references on separated employees will be referred to and responded to by the Human Resources Department. C. PROCESSING A VOLUNTARY SEPARATION 1. Employee shall: a. Submit a letter of resignation to the Supervisor, Division Manager or Department Director with at least two weeks notice prior to their final workday in order to separate in good standing. Retirement separation letters are to be submitted a minimum of sixty (60) days in advance of retirement. b. Make an appointment with a Human Resources Benefits representative to discuss health and insurance benefits, retirement and final payout of eligible accruals. c. Contact the retirement plan provider to determine options under the Summary Plan Document. d. Complete the Employee Exit Survey Form (and forward it to the Human Resources, Employee Relations Division) or the on-line employee exit survey. e. Return all City's issued property to the department supervisor and sign the Checklist for Returning City Property prior to the last workday. 2. Employee's Department shall: a. Hand deliver or the written resignation notice to the Human Resources Department as soon as notice is given by the employee. b. Complete the Separation Form and final timecard. Page 4 of 9
5 c. Collect all City-issued property, ID Badge, and complete the Checklist for Returning City Property which shall then be forwarded to the Human Resources Department, Benefits Division. d. Forward all paperwork to the Human Resources Benefits Division as soon as possible, but no later than the Wednesday prior to the end of the pay period in which the employee is separating from the City. e. Immediately notify the Information Technology Department (l.t.) via creation of an l.t. help desk ticket advising l.t. of the employee's separation date. f. Immediately notify Parking Administration of employee's separation date. g. Immediately notify Finance Department Officials upon notification of separation if employee has been issued a Procurement Card. 3. Human Resources Department shall: a. Verify with the separating employee's supervisor that all City property has been returned. b. Schedule a meeting date with declared retirees to discuss retirement benefits and procedures. c. Process the separation in the Oracle payroll system, turn off the timecard and stop any direct deposit or pay access. d. Calculate the final accrual payout due to the employee and forward the amount to the Finance Department for verification and processing. e. Notify the TPA for COBRA that the employee separated from the City. The TPA will send an informational packet to the employee containing information for continuation of health insurance. f. Send the employee information on conversion of life insurance. g. For disability retirements, track the time off for illness or injury and advise the employee of insurance, social security disability, and/or retirement options. h. Schedule an exit interview for the separating employee on or before the employee's last workday. i. Maintain the completed Employee Exit Survey Form in Human Resources. Page 5 of 9
6 Chapter4 4. Finance Department shall: a. Determine whether the employee owes any reimbursements for higher education assistance, relocation expenses, training or any other reimbursements due the City. b. Verify the final payout and prepare the employee's final check. The final pay will be paid by check. c. Cancel the employee's Procurement Card. 5. Information Technology shall: a. Coordinate with the employee and their department to retrieve any l.t. issued City property. b. Terminate the departing employee's systems access on employee's last day of employment. 6. Parking Administration shall: a. Disable the employee's parking access on employee's last day of employment, once employee has removed their vehicle from the City's property/garage. b. Update their records to discontinue the monthly parking fees charged to the employee's department. D. PROCESSING AN INVOLUNTARY SEPARATION 1. Department shall: a. Consult with the Human Resources Employee Relations Division prior to notifying an employee of termination of employment to ensure proper procedures are followed. b. Submit the final timecard and Checklist for Returning City Property noting property to be returned to the Human Resources Employee Relations Division. c. Make arrangements to meet with employee, after hours if necessary, to remove personal property from work area. d. Immediately notify l.t. and Parking Administration that the employee has been separated from City employment. e. If the employee has been issued a City Procurement Card immediately notify the Finance Department that the employee has been separated from City employment. Page 6 of 9
7 2. Human Resources Employee Relations Division shall: a. Complete the Separation Form and attach documentation with the reason for termination and any disciplinary action taken as justification for the dismissal. b. Coordinate with Risk Management if the separation is due to the employee's inability to perform the job due to injury or illness covered by Workers' Compensation. c. Collect all City property from the employee and complete the Checklist for Returning City Property. d. Forward all paperwork to the Human Resources Benefits Division for processing. e. Notify Finance, Procurement, and Support Services of the termination. 3. Finance Department shall: a. Determine whether the employee owes any reimbursements for higher education assistance, relocation expenses, training or any other reimbursements due the City. b. Verify the final payout and prepare the employee's final check. The final pay will be paid by check. c. Cancel the employees Procurement Card. 4. Information Technology shall: a. Coordinate with the employee's department to retrieve any l.t. issued City property. b. Immediately terminate the departing employee's systems and related access. 5. Parking Administration shall: a. Disable the employee's parking access once employee has removed their vehicle from the City's property/garage. b. Update their records to discontinue the monthly parking fees charged to the employee's department. Page 7 of 9
8 E. PROCESSING A SERVICE RETIREMENT 1. Employee shall: a. Notify the Department Director and Human Resources Benefits Division sixty (60) days prior to the retirement date. b. Meet with the TPA and Human Resources Benefits Division to make elections for retirement, health insurance, and life insurance. Retirement elections chosen at the time of retirement remain in effect for the life of the employee and cannot be modified at a future date. Retirees may elect to drop insurance coverage at a future date. F. PROCESSING A NON-DUTY DISABILITY RETIREMENT 1. Employee shall: a. Submit a copy of the physician's determination to the Human Resources Benefits Division stating the employee is not able to return to work. b. Apply for disability retirement with the TPA if participating in the City's defined benefit pension plan. c. Meet with the TPA of the City's defined contribution retirement plan, if participating, to discuss options prior to making a distribution selection. d. If eligible, complete the necessary paperwork for Long Term e. Disability and submit to the TPA. 2. Human Resources Department shall: a. Forward the Long Term Disability packet to the employee if it has been determined the employee will be out for ninety (90) days or more. G. PROCESSING A DUTY DISABILITY RETIREMENT 1. Employee shall: a. Submit a copy of the physician's determination stating the employee is not able to return to work to the Human Resources Department. b. Apply for disability retirement with the TPA if participating in the City's defined benefit pension plan. c. Meet with the TPA of the City's defined contribution retirement plan, if participating, to discuss options prior to making a distribution selection. Page 8 of 9
9 H. SEPARATION FORMS The following forms are used to document separating employees and are available on Lotus Notes: 1. The Separation Form is completed to initiate the separation process. 2. The Checklist for Returning City Property documents the return of all City property that was issued to and retrieved from the separating employee. 3. The Employee Exit Survey Form is completed by the employee or during an exit interview. I. DECEASED EMPLOYEES In the event of an employee's death the following shall occur: 1. The Department Director is to immediately notify the Chief Human Resources Officer. In the event of an employee death while on the job, the Department Director shall also immediately notify the Risk Manager. 2. The Chief Human Resources Officer or their designee will make arrangements with the City's Employee Assistance Provider (EAP) to assist the grieving department employees if necessary. 3. The Benefits Officer will contact the deceased employee's beneficiaries to schedule a meeting at their earliest convenience to review death benefits, EAP provisions, return of City property, and return of personal belongings to the family. The Benefits Officer will be the liaison between the City and the surviving family members. is effective on this 16 1 h of July, /Geraldine Muoio, Mayor Page 9 of 9
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