Explanation
In light of the extraordinary challenges facing the City of Columbus' 2009 general fund budget, City Council passed legislation Ordinance No. 1622-2008 on October 27, 2008. This legislation authorized the Human Resources Department to enter into contract with Educators Preferred Corporation (EPC) to design and implement a one-time voluntary employee severance plan.
Sixty-five (65) city employees elected to participate in the plan resulting in a cost savings to the City of approximately $3.3 million in 2009. Plan participants received either a one-time lump sum payment or incremental payments for a period of up to 5 years (depending on age).
As a component of the plan implementation process EPC utilized Metropolitan Life Insurance Company (MetLife) to secure monthly payments to participants and establish a severance plan "Funding Account" from which payments and appropriate withholdings are made for plan participants. On March 9, 2009 City Council passed Ordinance No. 0294-2009 which, among other things, authorized the Human Resources Department to establish the city's funding account into which these payments and appropriate withholdings are made for the severance plan participants. As a result, in 2009, the Human Resources Department made the first of three payments to EPC, totaling $1,657,875.89.
This ordinance authorizes the expenditure of $515,000.00, or so much thereof as may be necessary, from the Human Resources Department General Fund in order that payments may be made through the second year of the plan.
This ordinance is submitted as an emergency so as to allow the financial transaction to be posted in the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Contract compliance number: Educators Preferred Corporation (EPC): 382365785
Subcontractor: Metropolitan Life Insurance Company (MetLife): 135581829
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