IMPORTANT NOTICE

Retirement Plan Meeting For members of the Baltimore County Employees’ Retirement System (ERS) To provide information (including eligibility) on the following topics:

 Retirement Incentive Program (see attached list of BCPS exempted(not eligible) positions)  Buy Back Program & Deadlines  Deferred Retirement Option Program (DROP)

Eligibility for each of the programs varies and will be discussed at the meeting DATE: Monday, October 24, 2011 TIMES: 3:00-5:00 p.m. and repeated again from 6:30-8:30 p.m. LOCATION: Loch Raven High School Auditorium 1212 Cowpens Ave, Baltimore 21286 Representatives from ERS and BCPS will be present to provide information and answer questions.

BALTIMORE COUNTY RETIREMENT INCENTIVE PROGRAM 2012 The current economic crisis has put pressure on county finances and will continue to do so for the foreseeable future. The County has taken several steps to prepare for the crisis, most notably constraining personnel costs, which comprise the largest share of the Operating Budget. Those personnel actions have included:  not increasing the number of county general employees on payroll since the last severe crisis in the early 1990’s. In fact, the county’s Fiscal Year 2012 budget included the elimination of over 180 employee positions;  slowing down hiring;  not providing for employee cost -of -living allowances in the last several budget cycles;  negotiating increases in employee cost sharing as significant initial steps to assure the future of the retirement system and to provide for post-retirement health care. Yet, the county deems it necessary to offer a retirement incentive to certain employees in order to further reduce the number of county employees on payroll. However, such a retirement incentive will be granted only on the condition that a position will be eliminated for each retiree. Important Dates for Bill 67-11 – Retirement Incentive Program  Introduction Date: September 19, 2011  Council Vote: October 17, 2011  Effective Date: October 30, 2011  First Date Applications Accepted: October 31, 2011  Last Date Applications Accepted: December 30, 2011  Upon approval by County Council, informational meetings will be held.  Except for participants in the General Employee DROP, applicants must be off payroll by February 29, 2012. General Employee DROP participants must be off payroll by June 30, 2012. Incentive  Provide 1.5 months of additional creditable service (C/S) for each year of creditable service  Maximum additional C/S to be awarded is 3 years.  Early retirement penalty is eliminated for a retirement under the program. Definition  Creditable Service includes sick leave time and military time  Adjusted Creditable Service includes Creditable Service plus additional C/S awarded under this incentive program  The determination date for age and creditable service is February 29, 2012. General Eligibility  Age 60 with a minimum of 5 years of C/S or  Age 50 with a minimum of 20 years of C/S or  Minimum of 25 years of Adjusted C/S regardless of age (22 years, 3 months, C/S plus 2 years, 9 months additional C/S).  The retiree’s position, or a position within the same agency, can be eliminated from the FY 2013 budget. The Administrative Officer will make this determination.

Excluded From Eligibility  A sworn member of the police department on Pay Schedule IV  A sworn member of the fire department on Pay Schedule V  A sworn correctional officer on Pay Schedule I-C or VI  A sworn deputy sheriff on Pay Schedule VI or XIII  911 center personnel on Pay Schedule I, VI or XII  A public health nurse  A social worker  An appointed department head  Pertaining to School System - School nurses, bus drivers, grounds workers, building service workers, and cafeteria workers, cafeteria person-in-charge, cafeteria assistant managers, and cafeteria managers. General Employee DROP Participants  All members eligible for the General Employee DROP program as of July 1, 2007, whether or not they previously enrolled, will be eligible to retire with a 5-year General Employee DROP on June 30, 2012. These General DROP employees may participate in the Retirement Incentive Program and receive the adjustment to the member’s C/S time, but will not receive an adjustment to the number of years in the General Employee DROP period. 

General Employee DROP participants will no longer report to work after February 29, 2012. However, because General DROP participants must remain on payroll until 6/30/12, these employees will be required to expend any unused vacation, personal, or compensatory leave balances before June 30, 2012. Any gap in time between when leave balances are exhausted and 6/30/12 will be handled administratively.

Calculations  Additional creditable service years will be calculated at 1/55th of average final compensation for each year.  Additional C/S awarded through this Incentive will be included in the calculation of the health care subsidy in retirement. FAQ  How is this different from previous Retirement Incentive Programs offered by the County? o The 1992 Incentive was generally applicable to all employees, while the 1996 Incentive was specific to certain job classifications, but still open to all employees in that classification. Under the current incentive, a member may retire under this section only if, at the sole discretion of the County Administrative Officer: (1) the member’s position is eliminated from the County payroll or the payroll of the relevant county agency; or (2) another position in the member’s agency is eliminated from payroll. 

Will applications be considered on a strictly “first come – first served” basis? No. Because an agency must identify a position for elimination for each employee approved for retirement under this incentive, the agency head must develop an appropriate re-organization plan. Those plans must be approved by the Administrative Officer. In this way, the Administrative Officer will give final approval of Incentive participation, without regard to application date.



Must I receive my Retirement Exit Interview prior to submitting my application? o No. Due to the number of employees who may take advantage of this incentive, many interviews will not occur until January 2012. However, it is mandatory that application be made no later than 12/30/2011.



Can the additional C/S given through the Incentive be used to meet the minimum requirements for retirement? o Yes, depending on the basis for retirement:  An employee who is below age 50 would need 25 years of Adjusted C/S in order to retire under this program. For example, the employee is 47 with normal creditable service plus military time plus sick leave time that totals 24 years. The member can earn 3 years additional C/S under this incentive. The member’s Adjusted C/S would be 24 + 3 = 27 years and thus the member could retire.  An employee who is between age 50 and age 60 would need 20 years of creditable service in order to retire under this program. In this case, the 20 year minimum is absolute. For example, the employee is 54 with normal creditable service plus military time plus sick leave time that totals only 19 years. The member can not earn additional time. Therefore, the member would not be able to retire.



If I am not eligible to participate in the Incentive Program, can I still retire during this period? o Yes, normal retirement guidelines will apply.



What is the process to enroll in the Incentive Program? o The Retirement Office cannot prepare estimates until after the legislation is passed. The legislation will be voted on October 17, 2011. If approved by the County Council, the County will conduct informational meetings with employees. Applications will be accepted beginning October 31, 2011. BALTIMORE COUNTY RETIREMENT OFFICE 400 WASHINGTON AVENUE, ROOM 169 TOWSON, MARYLAND 21204 PHONE: 410-887-8246 FAX: 410-887-5788 E-MAIL: [email protected] HOURS: MONDAY THROUGH FRIDAY 8:00 A.M. TO 4:30 P.M.

October 18, 2011

BCPS’ List of Exemptions (Not eligible for retirement incentive)

Assistant Building Operations Supervisor Building Operations Supervisor II, III, IV, and V Building Service Worker Bus – Dispatcher Bus – Drivers I and II Bus – Driver Trainers Cafeteria – Manager – Assistant, I, II, III, and IV Cafeteria – Person in Charge Cafeteria – Worker Driver I and II Fleet Maintenance Technician Foreman, Grounds Grounds Worker II and III Maintenance Worker I and II Mechanic I, II, and III Nurses Preventive Maintenance Technician Transportation Routing Assistant