(a) Purpose. The purpose of this policy is to ensure uniform adherence to the established procedures for compensating eligible employees of the City for an annual increment.
(b) Definitions.
(1) “Eligible employee” means any permanent employee of the City including any probationary or provisional employee having prior qualifying service, whose position requires 12 months service per year, and who is eligible to receive the same benefits as other permanent employees. Employees who work less than full-time are not eligible to receive years of service credit for such employment.
(2) “Full years of service” means full years of total service as an employee of the City of Ripley (1 year equals 12 months).
A. Employment of less than full-time shall not be counted when computing full years of service.
B. This excludes any time during the year that an employee is off the payroll in no-pay status for unauthorized leave, leave of absence (personal, medical, or parental), Workers’ Compensation temporary total disability benefits, or suspension.
C. When a provisional appointee attains permanent status and the City elects to include such employment in the probationary period, the provisional appointment tenure shall be included in the years of service calculation.
(c) Policy.
(1) Effective the fiscal year beginning July 1, 1997, every eligible employee with three or more full years of service shall receive an annual salary increment equal to $50.00 times the employee’s years of service, not to exceed 20 years of service.
A. Subsequent to July 1, 1998 and in each fiscal year thereafter, all eligible employees shall receive an annual increment increase of $50.00 times the employee’s full years of service.
B. New employees becoming eligible as a result of meeting the 3 year service minimum requirement shall be entitled to the annual increment increase equal to $150.00 dollars. They shall receive a single annual increment thereafter of an additional $50.00 for each subsequent fiscal year up to the maximum of 20 full years of service (not to exceed $1,000 per year).
C. An increment increase shall not be paid to an employee until the employee has met the eligibility factors and after his/her services have been rendered to the City.
D. Increment increases shall be in addition to any across-the-board, cost-of-living, or percentage salary increases which may be granted in any fiscal year.
E. The increment increase shall not replace any other financial rewards or incentives as voted on by Council.
F. An eligible employee who is or has been on a leave of absence without pay during a fiscal year shall be paid concurrently with all other eligible City employees a pro rata share for the portion of time for which he/she worked regardless of whether or not the employee has returned to duty at the time the annual increment is paid.
Example: If an employee had 10 years’ service, he would be entitled to an annual increment of $500.00 (10 years x $50.00/year increment), as if he were being paid a salary of $500.00 per year. If that employee did not work (i.e. was in a no pay status) for 6 months in one year, he would not be entitled to a full year’s salary. Therefore, he would only be entitled to one-half of the $500.00 increment, or $250.00 for 6 months he actually worked.
G. When an employee with 3 or more years of previous service is re- employed during a fiscal year, the employee is eligible to receive a pro rata payment for the portion of time worked during the fiscal year following reemployment. However, if the employee returns during the same year that he had been paid a pro rata increment increase upon termination, he will only be eligible for the pro rata portion for the part of the year that he was on the payroll subsequent to his reemployment.
(2) The annual increment shall be paid on a pro rata basis for the portion of service rendered by the employee during the current year of employment.
A. Such service period shall include the tenure value of any and all accrued terminal leave regardless of the method elected for payment of the leave, i.e., lump sum payment or election to remain on the payroll.
B. The pro rata portion an employee receives upon separation prior to June 30, shall be based on his total full years of service, and shall be computed based on the months of service rendered in the year in which the employee terminates.
Example: An employee has 19 years and 6 months of qualifying City Service as of June 30 and receives an increment in the gross amount of $950.00, This employee later resigns effective December 31. At the time of his resignation, he is eligible to receive a pro rated increment for the 6 months he worked in the current fiscal year. Although the employee’s totaled eligible City service now equals 20 years, he worked for only 6 months of the current fiscal year and is eligible to receive an increment in the gross amount of $500.00.
• Total full years of City Service (20) x $50.00 per year = Annual Increment Entitlement ($1000).
• Annual Increment Entitlement ($1000) divided by 12= Monthly Rate of Entitlement ($83.333).
• Monthly Rate of Entitlement ($83.333) x Months Worked in the Fiscal Year (6 mos.) = Annual Increment ($500.00)
C. Employee entitlement to the annual increment compensation is expressly subject to and contingent on, an annual determination by Council for each fiscal year that adequate and sufficient moneys are available to fund the annual increment compensation policy and appropriates the moneys necessary to pay the annual increment compensation. In the event such determination and appropriation is not made for any year, no entitlement to such annual increment compensation shall vest in any employee or be payable at anytime by the City.
(3) The employee is responsible for obtaining verification of qualifying service and such service must be verified from each former employer. The verification shall specify if the service was full-time or a portion thereof.
(4) In accordance with the U.S. Department of Labor ruling of August 26, 1985, the increment increase payments shall only be included when computing the determined rate of pay for overtime payment for employees working in excess of 40 hours in any workweek.
(5) The increment pay shall be included when determining an employee’s daily rate to be reported to the Bureau of Employment Programs, and the Workers’ Compensation Division.
(6) The increment pay shall be included in an employee’s reportable income for Unemployment Compensation benefits.
(7) Compensation entitlement shall not be construed to mandate an increase in the salary of any elected City official.
(11-4-97)
(11-4-97)