Chapter 6 | Separation

Each rule and each section of the Personnel Policy Manual is an independent rule. The holding of any rule or section to be void, invalid or ineffective for any reason does not affect the validity of any other rule or section. In the event that any of the policies in this Personnel Policy Manual are found to be in conflict with the laws of the State of Illinois, the rules of the Fire and Police Commission or any current collective bargaining agreement between the Village and some of its employees, the laws, rules or agreements shall take precedence. 

6.1 Retirement & Resignation

Policy
The Village makes every effort to provide a smooth transition for employees retiring or resigning from Village employment.

Guidelines
A. Retirement

  • Employees are included in one of three separate pension funds: Illinois Municipal Retirement Fund for general employees; Police Pension Fund for sworn police officers; and Fire Pension Fund for sworn fire fighters. Detailed information concerning these pension funds can be obtained from the Human Resources Department or the chair or secretary of the respective police or fire pension boards.
  • For employees covered under IMRF, a service retirement is a voluntary termination after an employee has satisfied both the age and length of employment requirements.
  • For employees covered under IMRF, you may qualify to receive your accrued vacation paid over 4 months prior to retirement in order to benefit your IMRF pension.
  • A disability retirement is a voluntary termination necessitated by an injury or illness which renders the employee incapable of performing the essential functions of the job. The termination must be preceded by a letter from the employee to his supervisor advising the supervisor of the date of termination and supporting documentation for employees covered under the police and fire pension funds, including a ruling by the appropriate entity verifying the disability and approving the retirement.
  • All employees except police officers and firefighters are covered by Social Security. Police officers and firefighters hired subsequent to April, 1986, are required to pay the Medicare tax required by federal law.
  • All employees who are eligible for retirement from their applicable pension plan as they retire from the Village will receive a fully paid life insurance policy on themselves for the face value of $2,500. 

B. Resignation

  • Any employee wishing to resign shall provide adequate notice to the Village in order to allow time for any replacement or restructuring of work assignments. Department directors and deputy directors are expected to provide a minimum of four calendar weeks’ written notice of their last working day. Employees below the level of deputy director are expected to provide a minimum of two calendar weeks’ written notice of their last working day. These notice provisions must be met in order to resign in good standing.
  • An employee’s resignation date will be the last day the employee actually worked. 

C. Whether retiring or resigning, the employee must forward the original letter to the employee's department director, who shall forward a copy of the letter to the Human Resources Department as soon as practicable.

D. All departing employees will be asked to participate in an exit interview.

E. The employee's supervisor shall collect all Village property from the employee prior to the employee's receipt of the employee's final paycheck.

6.2 Reductions in Force

Purpose
To establish procedures for termination of employment with the Village due to a reduction in force.

Policy
The Village will make appropriate reductions to the work force when deemed necessary due to a lack of work, lack of funds, abolishment of a position or when reorganization necessitates.

Guidelines
A. When determining the order of the reduction in force of employees with regular status, the Village will consider, on a consistent and equitable basis, qualifications, performance evaluations, work record, conduct, job responsibilities, and seniority. In applying this provision, where qualifications, experience, and performance are equal, seniority will govern. Every effort will be made for transfers to other departments if a position is open for which the employee qualifies.

B. When a reduction in force occurs, the separation date is the last date worked. If the reduction in force occurs during a disability leave, the date will reflect when the reduction in force occurred. This does not include any accrued vacation time, compensatory time, floating holidays, or severance pay days. Group insurance benefits will stop the last day of the month in which the reduction in force occurred.

C. The Village will make every effort to provide employees at least two weeks notice of a reduction in force.

D. The following schedule of severance pay shall apply for employees who are terminated because of a reduction in force:

  • Years of Service: 1 through 5; 5 paid days
  • Years of Service: 6 through 10; 10 paid days
  • Years of Service: 11 through 15; 15 paid days
  • Years of Service: 16 through 19; 20 paid days
  • More than 19 Years of Service; 25 paid days
6.3 Re-Employment

Policy
The Village may give preference to hiring former employees who retired or who resigned in good standing, provided they are qualified for the position they are seeking. This policy applies to all former Village employees who apply for subsequent employment with the Village, regardless of the reason for the cessation of prior employment.

Guidelines
A. Individuals interested in re-employment must fill out an application form and participate in the same job application process as all other candidates.

B. For any employee who is re-employed by the Village, all benefit eligibility will be based on the new hire date. There is no credit for any benefit for prior Village employment.

C. Credit for prior service for sworn officers and firefighters will be determined by the Board of Fire and Police Commissioners. Pension credit will be pursuant to the applicable pension funds rules and regulations.

D. All re-employed employees must complete a new probationary period. E. This policy does not apply to reclassifications, promotions or position changes.

6.4 Continuance of Medical Insurance Coverage

Policy
The Village complies with the requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA) concerning the continuation of medical insurance for employees ending their employment with the Village and their covered dependents.

Guidelines
A. Employees presently covered by the Village's medical insurance plan may continue coverage for up to 18 months from the date employment terminates or status changes to a non-insured status, provided that the employee pays the full cost of the premium and any administrative fee that may be imposed.

B. The spouse of an employee covered by the medical plan may elect to continue coverage if the employee is terminated or changed to non-insured status, or if a divorce or legal court-decreed separation from the employee takes place. Coverage under these circumstances may continue for a period up to 36 months provided that the spouse pays the full premium plus any administrative fee that may be imposed.

C. Dependent children of an employee covered by the medical plan have the right to continue coverage if group health coverage under the plan is lost because of termination of a parent's employment or change to non-insured status, parents' divorce or legal court- decreed separation or the dependent ceases to be a "dependent child" under the medical plan. Coverage under these circumstances may continue for a period up to 36 months provided that the children pay the premium in full and any administrative fee that may be imposed.

D. An 11-month disability extension is available to a qualified beneficiary who timely notifies the plan administrator of a Social Security Administration disability determination.

E. The cost for the insurance is subject to periodic rate changes. Employees are not required to show that they are insurable (by taking a medical exam) to continue the coverage.

F. Continued coverage may be terminated earlier than the 18 or 36-month period if group medical plans for all other employees are terminated or if the employee or eligible spouse or dependent fails to remit the required monthly payments within 31 days of the due date or if the qualified beneficiary becomes entitled to Medicare.

G. For additional information, employees may contact Employee Benefits.