LA City Members: SIP Program Enrollment Extended

Update September 9, 2020, 5:00PM

Last week the Los Angeles City Council voted to remove the minimum threshold of 1300 participants and approve the Separation Incentive Program (SIP) with 1277 participants. They also established an additional SIP enrollment period for those that qualify to apply. In accordance with our agreement, the CAO re-opened

enrollment into the SIP to eligible employees for a two week period beginning September 8, 2020 at 9 a.m. and ending on September 22, 2020 at 3 p.m.

In addition,  LACERS will not accept or process any non-SIP retirement applications during the three-month SIP period from November 1, 2020, through January 31, 2021, as proscribed by the City Council ordinance. This includes any person applying for normal, early or deferred retirement and those eligible to retire with Reciprocity — visit the LACERS page for more information. 

FOR THOSE THAT WANT TO ENROLL IN SIP THIS TIME AROUND:

The SIP will re-open enrollment to eligible employees for a two-week period beginning September 8, 2020, at 9 a.m. and ending September 22, 2020, at 3 p.m. Eligible employees are defined consistent with the original SIP agreement. Newly enrolling employees shall be permitted to rescind SIP applications filed during this two week enrollment by 3:00 p.m. of the day which falls seven (7) business days after they have submitted a completed SIP application, but in no event later than 3:00 PM on September 29, 2020. Employees who have already enrolled in the SIP do not need to re-enroll.

Completed, signed forms may be submitted in one of three ways:

• • Emailed to CityofLASIP@lacity.org

• • Delivered via US Certified Mail to:

• • • City of Los Angeles Office of the CAO, Employee Relations Division
    • James Kenneth Hahn, City Hall East
    • 200 N Main Street, Suite 1200
    • Los Angeles, CA 90012
    • Attn: Dana Brown, Chief Labor Relations Officer

• Returned in person to the reception counter at the James Kenneth Hahn City Hall East Building, 200 N Main Street, Suite 1200, Los Angeles, CA, 90012. The reception area is open between 9 a.m. and 4 p.m. Monday through Friday (except holidays).

Separation Incentive Program (SIP) Application and Employee Agreement

ENROLLED, BUT HAD A CHANGE OF HEART?

Employees who have already enrolled in the SIP during the original enrollment period will be allowed to rescind SIP applications from Tuesday, September 8, 2020, at 9:00 a.m. through Thursday, September 10, 2020, at 3:00 p.m. A separate communication will be sent to these employees from the CAO with details related to that rescission period.

Separation Incentive Program Letter to Rescind Participation

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WHAT IS SIP?

In response to our City’s budget crisis during the COVID19 pandemic, our union worked diligently to negotiate a strong Separation Incentive Program (SIP) with the City of Los Angeles to help create savings in our city budget. This SIP was just approved and it packs a punch when it comes to monetary incentives for those who qualify (see lists below) and sign up!

Download Separation Incentive Program Informational Overview

THE PERKS

Cash incentive Formula:  Figure out bonus by multiplying annual salary, times years of service and then multiply that by 2% (0.02) AND ADD in another $7,500!!  Cash incentives are capped at $80,000.

Unbeatable Tax Break:  The “Cash in Formula” we negotiated will result in a big pay out. So, to keep you from being pushed into a higher tax bracket, we negotiated for you to get the initial $10,000 of the incentive with your last check after retirement (the check containing your payoff of unused vacation and sick time) and then the balance 12 months later in the next tax year. This will help keep Uncle Sam away from the bulk of your incentive pay out.

WHO QUALIFIES:

Normal Retirement Eligibility: To qualify for the Separation Incentive Program you must be eligible for a normal retirement by January 31, 2021.  A normal retirement is defined as age 55 with 30 years of service; or age 60 with at least 10 years of service; or age 70 with any years of service.

Employees Furlough Exempt: The City was not willing to offer the SIP to those employees who were not designated to be furloughed in the Mayor’s budget, which took effect on June 2, 2020. So, if you work in Sanitation, the Library, Building & Safety or in a proprietary department including the LAFPP or LACERS, the Harbor of LAWA or if you are a detention officer in the LAPD you are not eligible.

Since this program will create a surge in retirements for LACERS to process, you may not be able to be retired within the usual 30 to 90 days.  It may take LACERS longer to get that many people off the books.

Eligibility Lists:

SEIU 721 SIP Eligible LIST

MOU 17 Eligible

SEIU LAPMA Eligible LIST