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R-35-26 Authorizing the Voluntary Employment Separation Incentive Program418 Main Street I Lemont, IL 60439 TO: Village Board Meeting FROM: Stacy Patrianakos, Administration THROUGH: SUBJECT: A Resolution Authorizing the Voluntary Employment Separation Incentive Program DATE: April 27, 2026 SUMMARY/BACKGROUND ANALYSIS Consistency with Village Policy STAFF RECOMMENDATION Approval of Resolution BOARD ACTION REQUESTED Approval of Resolution ATTACHMENTS 2026 VSP Program.pdf s RESOLUTION NO. R- t) -26 A RESOLUTION AUTHORIZING THE VOLUNTARY EMPLOYMENT SEPARATION INCENTIVE PROGRAM BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COOK, WILL AND DUPAGE COUNTIES, ILLINOIS, as follows: WHEREAS, The Village of Lemont, Counties of Cook, Will and DuPage, Illinois (the "Village"), acting by and through its Village President and Board of Trustees (the "Village Board"), is a municipal corporation operating pursuant to the Illinois Municipal Code; and WHEREAS, the Village seeks costs savings by adopting the Voluntary Employment Separation Incentive Program for certain employees who have accumulated years of credible service; and WHEREAS, the adoption of the Voluntary Employment Separation Incentive Program will provide the Village with a way to reduce payroll costs to meet the goal of cost savings for the Village; and WHEREAS, the President and Village Board find that it is in the best interest of the Village and its residents to adopt a new early separation incentive program: NOW THEREFORE, BE IT RESOLVED BY THE VILLAGE BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COOK, WILL & DU PAGE COUNTIES, ILLINOIS that: SECTION ONE: The foregoing recitals are hereby adopted and incorporated into and made a part of this Resolution as if fully set forth herein. SECTION TWO: The Village Administrator is authorized to administer the Voluntary Employment Separation Incentive Program, attached hereto as Exhibit 1, and to execute any other agreements and documentation as well as to take any other steps necessary to carry out this Resolution. SECTION THREE: This Resolution shall be in full force and effect from and after its passage and approval as provided by law. ADOPTED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL, AND DUPAGE, ILLINOIS, ON THIS 27TH DAY OF APRIL 2026. PRESIDENT AND VILLAGE BOARD MEMBERS: AYES: NAYS: ABSENT Samuel J. Forzley Janelle Kittridge Ken McClafferty Kevin Shaughnessy Rick Sniegowski Ron Stapleton Attest: `v�G,E OF�� ip- 0 ABSTAIN: John Egofske, Village President /"1170iS EXHIBIT 1: VILLAGE OF LEMONT INTER -OFFICE MEMORANDUM To: Regular Full -Time Village Employees From: George Schafer, Village Administrator Date: March 13, 2026 Subject: Voluntary Employment Separation Program BACKGROUND In 2022, the Village offered a Voluntary Separation Incentive Program to regular full-time employees as a way to provide a meaningful benefit to employees while also achieving long- term cost savings for the Village. Since that time, a number of employees have asked whether a similar opportunity might be offered again. I am pleased to report that the Village Board has approved offering the Voluntary Separation Incentive Program (VSIP) once more in 2026. While comparable programs were previously offered in 2018 and 2022, they are offered only periodically and should not be viewed as a recurring or guaranteed benefit. Employees who may be approaching retirement or considering a transition from Village service are strongly encouraged to carefully review this opportunity and determine whether participation may be advantageous for them. Programs of this type represent a significant benefit to eligible employees, and there is no assurance that the Village will offer a similar program again in the future. The following is the general outline of the Voluntary Employment Separation Program: ELIGIBILITY The Voluntary Employment Separation program is available to any non -bargaining unit current regular full-time employee that has completed with the Village of Lemont at least five (5) years of continuous full-time service by December 31, 2026, or at separation date, whichever is earlier. It is not mandatory that you immediately be eligible to receive a retirement pension under the Illinois Municipal Retirement Fund (IMRF) or the Police Pension Fund. It is only mandatory that you permanently separate from Village service. The Village, in its sole discretion, may consider arrangements that allow a participant to work on any basis after separation as a full-time employee, duly taking into consideration any requirements under the IMRF or Police Pension Fund. AMOUNT OF VOLUNTARY EMPLOYMENT SEPARATION INCENTIVE The amount of the Voluntary Employment Separation Incentive will be as follows: (1) Payment by the Village of 100% of the total cost for six months of the employees' health insurance premium in effect as of May 1, 2026, and (2) Lump sum payment to the employee of three months of the employee's base pay in effect as of May 1, 2026, or at separation date, whichever is higher. No overtime, compensatory pay, specialty payments, stipends, or other compensation provided for in the Personnel Policy Manual, collective bargaining agreement, contract, or other Village documents will be included in the base pay calculation. The Village will withhold required deductions and taxes from the lump sum payment at time of payment. The Village will pay 100% of the cost of the employee's health insurance premiums with no contribution from the employee for six months of coverage. The type (HMO, PPO, or HDHP) and level (single, single plus one, or family) of health insurance coverage in effect as of May 1, 2026, will be used to determine the cost of the coverage paid for by the Village at separation. The employee and eligible dependents may remain on the Village's health insurance plan (either as an IMRF or Police Pension Fund retiree or via COBRA coverage) for six months after separation of service. The Village will assume 100% of the cost of health insurance premiums (and the 2% COBRA administration fee, if applicable) for six months after separation. The Village will not continue to make any Village contributions to the employee's Health Savings Account, if applicable, after separation of service with the Village of Lemont. APPLICATION PROCESS: An eligible employee interested in this program must complete the attached application indicating your interest in this program. At this point in the process, your application is non -binding. The purpose of the application process is to formalize your interest in the program, allow the employee and the Village to engage in discussions regarding pension, insurance and other related issues, and to discuss the date you will separate from Village service. Once your application is received and these discussions have taken place, the Village will prepare a Separation Agreement that will include the amount of your incentive, your separation date, and a number of other legal conditions. SEPARATION DATE: The completed application must include a requested date that you would like to separate from service, which can be no later than December 31, 2026. Once your application is received, the Village will consider the date requested by the employee as well as the needs of the Department and the Village in order to minimize the disruption on Village operations and to maximize the amount of savings that are generated by this program. The final separation date will be determined in the sole discretion of the Village Administrator, and depending on the response to the program, the Village reserves the right to propose a separation date beyond the separation deadline. APPLICATION DEADLINE: Applications for the Voluntary Employment Separation Program must be submitted to Stacy Patrianakos, HR Manager, no later than April 15, 2026. As it is impossible to gauge the level of response to this program before formally accepting applications, the Village reserves the right to limit the number of Voluntary Employment Separation incentives given. The ultimate decision as to whether to separate from Village service is significant. An employee should carefully consider before submitting this application and/or accepting a separation incentive. Village of Lemont Voluntary Employment Separation Program Name Department Position Title Hire Date Requested Separation Date By signing below, I acknowledge that this non -binding application is submitted in order to formally express my interest in the Village's Voluntary Employment Separation Program. I request that the Village of Lemont estimate the amount of the incentive and set a proposed separation date. I further acknowledge that the Village of Lemont reserves the right to propose a separation date that is in the best interests of the Village as well as limit the number of Voluntary Employment Separation Program applications accepted. I understand that the decision as to whether my application is accepted or alproved rests solely with the Village, Employee's Signature Date Department Head's Signature Date This application must be submitted to Stacy Patrianakos, Human Resources Manager, by April 15, 2026. Any applications received after this date will not be accepted.