COUNTY OF RIVERSIDE

1
VOLUNTARY FURLOUGH PROGRAM

• COUNTY OF RIVERSIDE
• December 23, 2008

2
GOALS OF THE PROGRAM

• Reduce Countys Salary Benefits expenditures
  Keep Savings w/in Dept.
• Maintain County services and operations with
  minimum disruption
• Offer flexibility and options to employees who
  may wish and be able to reduce their schedule
• Avoid/minimize layoffs mandatory furloughs

3
ELIGIBILITY

• All regular County employees (Seasonal and
  Temporary employees are NOT eligible)
• Must have completed at least 2 pay periods of
  employment
• Subject to approval by agency/
  department head and
• Must be on a paid status at
  enrollment and on the workday
  prior to taking time off.

4
Voluntary Time Off
Two ways to participate

• Reduction of scheduled workday or work week or
• Schedule a block of time off as unpaid leave
  (requires a minimum of two consecutive workdays
  off).
• FLSA exempt employees may not select the reduced
  workday option, but they may reduce their work
  week on a bi-weekly basis.

5
BENEFITS SERVICE CREDITS
Voluntary furlough hours will not affect the
following benefits

• Flexible benefit allowance
• Medical/dental/vision/life insurance
• eligibility and coverage
• Retirement eligibility and benefit level
• Rate of differential and premium pay
• included in the compensation base or
• Paid holidays
• However, it may affect credits if an employees
  retirement date is within twelve months, or if an
  employee takes
• more than 160 hours of unpaid time off within a
  six month period.

6
BENEFITS SERVICE CREDITS (contd.)

• No Break In Service
• No Reduction In Service Credit (unless off for a
  full pay period) For
• Seniority
• Probationary Period
• Retirement
• Leave Accumulation
• Anniversary Date/Merit Salary Adjustment
• In most cases, it will not affect retirement
  credits. However, it may affect credits if an
  employees
• retirement date is within twelve months or if
  an employee takes more than 160 hours of unpaid
  time off
• within a six month period.

7
TRACKING

• Special Time Entry Code Established To Capture
  Voluntary Time Off Hours Taken
• Continuation Of Service Credits And Benefit
  Accruals Facilitated by Coding
• Easy Reporting Through Regular Time Entry Process
• Tracked In PeopleSoft For Reports
• The Voluntary Furlough Program shall be recorded
  with the voluntary furlough time
• entry code VFP. The VFP time entry code will
  capture all voluntary hours taken
• under this program, and to facilitate
  continuation of seniority, health and retirement
• benefit accruals, contributions, and payments.

8
SAVINGS/ADVANTAGES

• Savings For the County/Departments
• Direct Salary Savings
• Reduction In FICA/Medicare Taxes
• Reduction In PERS Pension Contributions - Both
  Employer Portion Employee Pick-Up

Additional Advantage Help with Cyclic Workload
Changes
9
SAVINGS/ADVANTAGES (contd)

• Advantages For The Employee
• Reduction In Work Hours To Accomplish Other Goals
• No Loss Of Employee Benefits
• For All
• Payroll Savings Will Lessen Or Avert The Need For
  Layoffs
• May Avoid Mandatory Furloughs
• Participation in the Furlough program will
  reduce immediate take home pay. If an employee
• elects a block of time off greater than one pay
  period, the employee needs to arrange payment
• of the normal required employee contributions
  for benefit plans.

10
Disadvantages

• Can increase cost/unit of work
• (Fixed Cost/Hour is Higher)
• May adversely affect work production
• May reduce employee contributions available from
  PERS if employed lt 5 yrs.
• In most cases, it will not affect retirement
  credits. However, it
• may affect credits if an employees retirement
  date is within
• twelve months or if an employee takes more than
  160 hours of
• unpaid time off within a six month period.

11
Savings Example Block of Unpaid Leave

• Assumed Hourly Rate 19
• Hours Reduction 80 (two weeks)
• Total Pay Lost 1,520
• County Savings/FICA 94
• County Savings/PERS 272
• Total County Savings 1,886

12
Savings Example Reduction in Work Week

• Assumed Hourly Rate 19
• Hours Reduction 52 (4 x 13)
• Total Pay Lost 988
• County Savings/FICA 61
• County Savings/PERS 177
• Total County Savings 1,226

13
Enrollment Process

• Agency/department heads determine which options
• based on operational needs of department
• not based on individual merit
• Reduced work schedule requires a three-month
  participation period.
• Signed agreement between employee and department
  head.
• The appropriate Department Representatives will
  notify employees who have been approved to
  participate and ensure all forms are forwarded
  to Human Resources.
• Approved requests must be submitted to Human
  Resources by 500 p.m. on pay week Thursday to
  begin participation in the following pay period.

14
Voluntary Furlough and Contribution Changes

• Agreement may not be changed or canceled except
  
• if employee transfers to another dept
• if s/he terminates County employment
• if s/he demonstrates personal hardship or
• has participated for three months in the program.
  

(Forms must be submitted to HR by 500 p.m. on
pay week Thursday to change or cancel
participation for the following pay period.)
15
Voluntary Contribution Participation

• Methods
• Waive Contribution of Flexible Benefit Credits
• Waive Contribution toward the County car
  allowance
• Reasons
• County Savings without Reduction in Work Hours
• Allows Participation for Those Unable to Reduce
  Hours
• In the case of flexible benefits the employees
  benefit
• elections remain unchanged.

16
Example of Voluntary Contribution Participation
(3 months)

• Flex Contribution Amount
• 300.00 x 6 pp 1800.00
• Equivalent Pre-Tax Deduction 1800.00
• Savings to County 1800.00
• Estimated Impact on Paycheck
• (1800 x 70) 1260.00