Separation Incentive Program Provides Cash to Retire

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We negotiated a strong Separation Incentive Program (SIP) with the City of Los Angeles to help create savings in their budget to help them get through the recession started by the COVID 19 Pandemic. This SIP packs a punch when it comes to monetary incentives for those who qualify and sign up!

Cash incentive Formula: You can calculate your bonus by multiplying your gross annual salary by your years of service and then multiply that by 2% (0.02) AND ADD in another $7,500!! Your cash incentive is capped and cannot exceed $80,000. For example: If an employee has 30 years of service and is making $121,000 per year including pensionable bonuses, after adding in the $7,500, they will max out at the $80,000 cap. 

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. In order for the program to be implemented, the City of Los Angeles requires a minimum of 1,300 LA city workers to sign up. If you qualify you will receive information from the City.

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 or a PSR, or Fire Department Psychologist you are not eligible. Again you must be on the list to be furloughed to be eligible.

Application Deadline: You must apply for the SIP within the period from July 6, 2020 to August 3, 2020. The earlier you apply the sooner LACERS could start processing your retirement, so apply early in the window period.

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.

Where do I sign up? Department heads will be mailing out a notice of the SIP along with an enrollment form for you to complete. Look for this package prior to the July 6, 2020 start of enrollment date. You can also find the application by clicking here. You may also visit the CAO website or call your Union Representative.

Sign up! Unions representing LA City workers urge any and all members who qualify for the Separation Incentive Program to give it due consideration. This is a once in your career opportunity for you to sign up for retirement and get a large cash payout.

Take advantage of this great incentive program and secure that extra money in your pocket. Sign up today.

In unity and in solidarity,
Your AFSCME Local Presidents

Carmen Hayes-Walker         Dr. Raymond K. Hsu                            Lisa Palombi
Local 3090                             Local 2006                                             Local 2626

Cesar Valera                          Leticia Gonzalez                                   Novell Thompson
Local 901                               Local 3672                                             Local 741