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Employee Compensation Plan

City of Flat Rock Employee Compensation Plan

               

April 9, 2012

In order to meet the requirements of State of Michigan Public Act 63 of 2011 and qualify for payments under the Economic Vitality Incentive Program (EVIP) established by the Act, the City of Flat Rock has developed this employee compensation plan.

The City intends to implement this plan with any new, modified, or extended contracts or employment agreements for employees not covered under contract or employment agreement.  The plan is currently posted on the City’s website and available at City Hall.

Beginning September 1, 2011, non-union new hires will be placed on a defined compensation benefit with a multiplier of 1.3.  All new hires for union contracts that are new, modified or extended will be placed on a retirement plan that caps annual City contributions at 10% of base salary.  For defined benefit pension plans, the maximum multiplier will be 1.3%.  Final average compensation (FAC) for all employees will be calculated using a minimum of 3 years up to a maximum of 5 years of compensation and shall not include more than a total of 240 hours of paid leave.  Overtime hours shall not be used in computing the final average compensation for an employee.  The City intends to implement a “bridge” program for the defined benefit retirement through the Michigan Municipal Employees Retirement System (“MERS”) with the multiplier of 1.5% for current employees employed prior to September 1, 2011.

Health care premium costs for employees shall include a minimum employee share of 20% on a per-employee basis.  In addition, the City shall pay no more of than 80% of the annual costs and any payments payments for reimbursement of co-pays, deductibles, or payments into health savings accounts, flexible spending accounts, or similar accounts used for health costs for a medical benefit plan coverage year beginning on or after January 1, 2012. 

Beginning September 1, 2011, new hires will not be provided medical benefit plan at retirement.  The City shall establish a healthcare savings program through the Michigan Municipal Employees Retirement System (“MERS”) which all employees will fund with mandatory salary reduction contributions of 1% of gross base pay on a bi-weekly basis; with a mandatory leave conversion contribution to the healthcare savings plan. 

This plan intends to amend the most recent versions of the following documents which are components of the plan:

·         City of Flat Rock Pension Plan

·         MERS Plan Document

·         City of Flat Rock Administrative Officers and Employees Policy

·         Police Officers Association of Michigan Collective Bargaining Agreement, expires

June 30, 2012

·         Command Officers Association of Michigan Collective Bargaining Agreement, expires

June 30, 2012

·         Technical, Professional and Officeworkers Association of Michigan (DPS) Collective Bargaining Agreement, expires June 30, 2012

·         Technical, Professional and Officeworkers Association of Michigan (Clerical) Collective Bargaining Agreement, expires June 30, 2012

·         Michigan Association of Firefighters Collective Bargaining Agreement, expires

June 30, 2013

The application of amendments will be subject to any collective bargaining responsibility the City has with the labor organizations representing employees.

Approved by Council – April 16, 2012