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REDUCTION IN FORCE

Putting It All Together

March 2015

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OBJECTIVES Understanding Reduction-in-Force

Process Understanding effects on

Retirement Process and Group Insurance

Understanding Office of Human Resources/Department Placement Efforts

Understanding the Timeline

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Outline of Topics Governing Authority/MCPR Provisions RIF Rights/Policy Seniority Retirement and Group Insurance Notification OHR Responsibilities Placement Efforts Salary Considerations Severance Pay Priority Rights Appeal Rights Timeline Reorganizations Labor/EEO

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Governing Authority Article 27 of the collective bargaining

agreement between Montgomery County Government & MCGEO referencing AP 4-19 (November 7, 1991), Reduction in Force (represented employees-OPT/SLT)

Montgomery County Personnel Regulations, Section 30 (non-represented employees)

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MCPR Provisions RIF can be based on service needs, seniority,

or performance. Full-time and part-time positions are treated separately.

If a position is abolished in a department or agency, only the employees in the same occupational class in that department are subject to the RIF.

Vacancies in the same class within a department must be abolished and probationary and temporary employees in the same class within a department must be terminated before merit system employees.

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MCPR Provisions Employees are displaced by inverse seniority. Departments may request from OHR a service needs

exception to the use of inverse seniority to maintain employees within a class that require unique knowledge, skills, and abilities that are not required for every position in the class and that cannot be acquired by other employees in 6 months or less.

An nonrepresented employee who is RIFed as a result of a service needs exception has the right to appeal to MSPB.

The Union may appeal on behalf of a represented employee with merit system status under Article 10 of the Collective Bargaining Agreement.

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Expanded RIF Process (MCGEO POSITIONS ONLY) No represented merit employee in an affected job class will

be terminated if there is a probationary, temporary, or seasonal employee in the same represented job class in another department;

Once all alternatives to RIF are exhausted (transfers, demotions, DSRs) OHR will determine if there are any probationary, temporary, seasonal employees in affected job classes. If there are probationary, temporary, or seasonal employees in an affected job class, then the employees will be terminated to create vacancies;

Such vacancies will be made available to affected employees in that class who qualify for the positions;

The least senior employees in the affected class where the RIF is taking place will be offered a transfer to the vacant positions (provided they qualify for the position).

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RIF Rights

Priority Consideration Reinstatement Salary Considerations Effect on Benefits

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RIF Rights (continued)

Applies to all affected merit employees.

Does not apply to probationary or temporary employees.

Applies to “term” employees only if the term is not completed or position was not created for specified period of time or term.

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RIF Policy

Affected class includes all classes in occupational series at or below the budget level (ie., HR Specialist III,II, I and PAI).

Positions identified by common work year (full-time, part-time, year-round, school-year, etc.).

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Seniority Seniority credits for affected employees

must be calculated by the department and verified by OHR based on: County employment (including any past

periods if the employee had a break in service).

Performance (non-represented employees only) – overall 3 year period.

May include time in a non-pay or LWOP status in certain circumstances.

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Seniority (continued)County Employment: The total length of time that an individual has

been a County employee in a full-time and part-time position. This does not include:

time spent as a temporary employee time in a non-pay or LWOP status that exceeds 10

workdays, unless the employee was in a non-pay or LWOP status while:

on FMLA leave under Section 19; on military leave under Section 22; performing the duties associated with the employee’s

elected position as a member of the Maryland General Assembly while the General Assembly is in session; or

on a furlough day under Section 30.

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Seniority (continued) Part-time employees’ seniority will be

pro-rated on the basis of the number of hours worked per week.

Seniority will be calculated to the day. In the event of a tie relating to seniority,

OHR will determine seniority based on AP 4-19 and/or Personnel Regulations Section 30, depending on the appropriate circumstance.

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Seniority and PerformancePerformance:

Performance may only be used in calculating seniority for non-represented employees.

The department director must not give affected employees seniority credit or deduct seniority credit based on performance unless the performance evaluation plan used by the department for the last 3 years:

Included 4 rating categories Was used uniformly to evaluate the performance of

employees in the affected class Is consistent with Section 11 of the Personnel

Regulations for non-bargaining unit employees

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Discontinued Service Retirement (DSR)

Members of the Retirement Savings Plan/Guaranteed Retirement Income Plan are not eligible for DSR.

Department requests for DSR will be considered prior to conducting the RIF.

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DSR Conditions

No vacant positions in affected class. No temporary employees in affected class. Employee expressing interest in DSR is the

most senior in the class, or the most senior employee(s) in the class have indicated that they are not interested in DSR.

The employee meets all other requirements for a DSR (i.e., has at least 10 years of service).

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DSR Process Verified seniority lists will be returned to departments with notification

as to who is eligible for DSR; Department will meet with employees in affected classes 3/16/15 or

after to discuss budget; Department may indicate that DSR may be an option in classes where

there are employees eligible for DSR; Department indicates that OHR will contact eligible employees

regarding DSR process and DSR meetings; Department will provide OHR with required letter requesting DSR for

prospective employee (if applicable); Department inputs action in Oracle; DSR is confirmed and RIF is avoided. The number of DSRs given is equal to the number of position

abolishments (department/class).

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Retirement Savings Plan (RSP) and Guaranteed Retirement Income Plan (GRIP)

Entitled to vested balance upon separation Vested in member contributions and earnings RSP - vested in County contributions and

earnings at 3 years membership or age 62 GRIP - vested in County contributions and

earnings at 3 years membership Can leave account balance in the RSP/GRIP

up until the time age 70 ½; during that time, earnings accrue and funds may be transferred among investment alternatives

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Notification Process Notices of Intent will be issued April 15,

2015; letters prepared by OHR. Letters are hand delivered by

department representatives. For employees who may be on leave, letters will be sent via certified mail and regular mail prior to April 14, 2015.

Affected employees are given priority rights to any position they qualify for at their same grade or below.

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Notification Process (continued) Final Notices will be sent in late May

2015. Employees must be given at least 30

days prior written notice of termination. If the need for RIF is eliminated through

alternative placement or retirement, OHR will notify affected employees in writing and will rescind their priority consideration.

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OHR Responsibilities Assisting affected and displaced

employees find employment. Assisting department and agencies with

the RIF and DSR processes. Providing resume preparation and

interviewing skills. Providing job hunting strategies. Providing financial and benefits

counseling.

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Placement Efforts Once Notices of Intent letters are sent to employees, OHR

begins placement efforts to transition affected employees to vacant positions.

Departments will provide listing of all viable vacancies to OHR.

All vacancies will be posted on the County’s career site (www.montgomerycountymd.gov/careers).

We may utilize an abbreviated Requisition format for vacancies.

Any employee in an affected class may claim “priority consideration,” not necessarily the least senior employee.

RIFees must meet the minimum qualifications for positions. Employees apply for available vacancies; departments

interview and selections are made for candidates. Employees must use their County Single Sign On account to

apply and indicate that they are applying for RIF Priority.

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Placement Efforts (continued) If more than one RIFee applies for a position, the

Hiring Manager may select the RIFee with the overall qualifications best suited for the position.

Part-time employees have first priority to part-time jobs and full-time employees have first priority to full-time jobs.

All qualified RIFees should be interviewed. OHR will meet on a regular basis to coordinate

placement efforts. Last minute placements may be made without

interviews (ie., if the employee qualifies for a position, they are placed).

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Salary Considerations

If an affected employee accepts a voluntary demotion (position below their current grade/status), and their salary exceeds maximum salary of new pay grade, they will keep their salary for 2 years.

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Outcomes Employees may receive transfers (same position, grade,

status). They have no additional rights. Some employees may be demoted. If their salary

exceeds the maximum salary for the new pay grade, there is no reduction in salary for 2 years. These employees maintain priority consideration rights to their previous grade (refer to AP 4-19 and/or Personnel Regulations, Section 30).

If alternative placement is not found for an employee before the termination date, the affected employee may chose to be terminated or take LWOP for up to one year.

Employees terminated or demoted will be placed on a reemployment list for reinstatement. They:

Retain reinstatement rights for 2 years May be eligible for severance pay May be non-competitively reappointed for a 5 year period

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Severance Pay

Additional compensation granted to certain probationary employees and certain employees in the Retirement Savings Plan and Guaranteed Retirement Income Plan whose employment is terminated by a RIF or other administrative action.

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Severance Plan-RSP/GRIPUnder COMCOR 33.140.01, Severance Pay for Certain Retirement Savings Plan Participants ,

the County must pay severance pay as shown in the table below to an eligible employee who participates in the Retirement Savings Plan or the Guaranteed Retirement Income Plan:

Severance Pay for RSP Participants Years of service completed: Severance benefit: 0 to 1 none over one to 5 6 weeks of employee’s final earnings over 5 to 7 8 weeks of employee’s final earnings over 7 to 9 10 weeks of employee’s final earnings over 9 12 weeks of employee’s final earnings

Severance Plan-Probationary Employees

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Severance Pay for Probationary EmployeesMonths of service completed:

Severance benefit:

0 to 2 months noneat least 3-8 months 1 week of payat least 9-11 months 2 weeks of pay

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Group Insurance Post Separation EligibilityERS Members must meet the eligibility requirements for:

Normal (as defined by ERS Group) Early (as defined by ERS Group) DSR (in the case of a DSR, group insurance benefits are

effective at the time of separation, even if the member has not yet met Early Retirement)

RSP/GRIP - In general, employees are eligible for post separation group insurance if they meet the ERS criteria for a Normal, Early or DSR

If the employee is not eligible for post separation group insurance, they may continue under COBRA.

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Priority Rights Represented employees – unlimited placements for

2 years or until they are made whole. Non-represented employees – 3 placements within

the 2 year period, to include the initial placement. An employee is entitled to priority consideration for

announced vacancies in the same branch of government as that from which the employee was affected or displaced. However, an employee of the Legislative or Judicial branches hired before 8/1/83 is entitled to priority consideration for announced vacancies in all branches.

A non-MLS employee may not claim priority to an MLS position.

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Appeal Rights An non-represented employee with

merit system status who is demoted or whose employment is terminated due to RIF may appeal under Section 34 and 35 of the Personnel Regulations.

The Union may appeal on behalf of a represented employee with merit system status under Article 10 of the Collective Bargaining Agreement.

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Timeline March 13, 2015 – Seniority lists provided to

departments. March 16, 2015 – Departments meet with

affected employees. April 15, 2015 – Notices of Intent letters sent

to affected employees. End of May – Final Notice letters sent. June 30, 2015 – Affected employees separated

if placement not found.

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Reorganization Consideration In the Collective Bargaining Agreement with the County and

MCGEO under Article 9.9(c)(1)   A total of 50 individual position studies were accepted for FY2015. OHR had not anticipated conducting position studies that are occupied by employees. Therefore and where necessary, it is recommended that  departments assign duties from an abolished vacated position to an employee in the same classification or grade of the abolished position.

OHR declines most special classification study requests.

If the Department absolutely must reorganize, they will need to obtain CAO’s authorization, then the department should:

Consider alignment with the County Executive’s Priorities and Values Consult Section 9-5 (Special Classification Studies) of the Personnel

Regulations and designated classification specialist Send memorandum from the Department Head to the Director of OHR

with objective, org. charts, and position descriptions  

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Labor Relations Until the budget is officially released by the County

Executive, the content is confidential. The County Executive’s recommended budget will be

released on March 16, 2015 when it is transmitted to the County Council for review and final approval. Until this date, Departments may not engage employees in any discussion of the content of the budget.

Before communicating with represented employees, the department must provide the Union and OHR Labor Relations with advance copies of any written correspondence that they plan to disseminate to employees and if the Department intends to meet with employees, the Union must be given sufficient advance notice and the opportunity to participate in the meetings.

Questions regarding union interactions may be directed to your OHR Labor Relations Specialist.

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EEO All employment actions must be conducted in accordance with

Federal, State, and local discrimination laws, as well as County discrimination regulations/policy.

The EEO Compliance Team will conduct an adverse impact analysis of affected positions.

Discriminatory intent versus impact Increase in complaints Retaliation The team will review the demographics of the affected employees

according to race, gender, and age. Please ensure that you make no reference to an employee’s protected

class, particularly age, or inappropriately broad statements regarding length of service when discussing retirement options.

You should instruct your management team to monitor the workplace to ensure against inappropriate comments, jokes, or other remarks which may be construed to relate to this issue and potential EEO violations.

All such complaints must be referred to the EEO Office immediately.

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Questions and Answers Please visit the OHR website under “Staffing and

Recruitment” then “Reduction-In-Force” for more information and resources.

Administrative Procedure 4-19, Reduction-in-Force Article 27 (MCGEO Collective Bargaining Agreement) Personnel Regulations, Section 30, Reduction-in-Force Severance Pay RIF FAQs Putting it All Together – RIF powerpoint Montgomery County Code, Discontinued Service

Retirement DSR Memo (3/13/15 OHR) DSR Sample Letter

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OHR Questions & Answers George Lacy – Labor (3-5008) Melissa Voight Davis –Recruitment and

Selection (7-5071) Angela Washington – EEO (7-5015) Kaye Beckley – Business Operations and

Performance Management (7-5041) Karen Bass – Benefits (7-5054) Anita Brady – Training (7-5066) MCERP – Retirement (7-8230)