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LA City Members: Do you know about the SIP Program?

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!

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.

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? The CAO 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.

Sign up!  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. 

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.

HOW AND WHERE TO TURN IN APPLICATION

  1. 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  Reception area is open between 9 a.m. to 4 p.m. Monday through Friday (except holidays).

The Employee Relations Division will respond to all electronic paperwork submissions with an email receipt to verify the date and time that paperwork was received. Receipt of an application does not mean the application has been approved. Separate notification will be sent after the application has been reviewed and approved.

 

Eligibility Lists:

SEIU 721 SIP Eligible LIST

MOU 17 Eligible

SEIU LAPMA Eligible LIST

Application Forms and Documents You Might Need:

 

Separation Incentive Program Informational Overview

Separation Incentive Program (SIP) Application and Employee Agreement

Separation Incentive Program Letter to Rescind Participation

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Richard Humphrey

I work sanitation….i understand im not elligble….33yrs ….thats screwed up. Considering the amou nt of years ive put in…they should reconsider….im at the top pay…again thats screwed up….i would have jumped at that but the hell with it…im gonna keep going thanks for Nothing!!!

George Rivera

Part of this is so the people that are getting furloughed 26 days for 20-21 fiscal year ,208 hours or 10% of there salary may possibly not get furloughed. Proprietary departments don’t have to worry about this and you guys get overtime to we won’t and will lose 10%. It’s nothing personal and employees will not be flipping the bill to have them retire.

Sandy

Who will be paying for the SIP? The last ERIP, the employees are paying for it and we are still paying for it.

What is the incentive for the employees who are not eligible for SIP since there’s no backfills on those positions vacant due to SIP?

Thank you

J Pass

Hi why aren’t LA DWP employees part of the SIP?

George Rivera

You guy are a proprietary department and under a different retirement program.

Lee

Where is MOU 17?

ericnoreen

The SEIU 721 SIP Eligible list does not include MOU 17 (where the bulk of the eligibles should be for the sciencey folk.) Please add them. They really need to know they are eligible so they can retire in this program.
thanks

Alfred Chacon

I have 31 yrs of service and sanitation is getting no respect for its senior workers,
This is not a fair deal the union negotiated……..