VOLUNTARY INCENTIVE PROGRAMS FREQUENTLY ASKED QUESTIONS Revised August 20, 2010

1. Will I qualify for unemployment? Since the State of Colorado Department of Labor and Employment is responsible for reviewing all claims for unemployment, we cannot answer this question with certainty. HR contacted the State and asked this question. We were told each claim is reviewed on a case-by-case basis. If HR is notified of a claim, we will respond with the reason for the person’s separation, including any payments received. It will be up to the State to make a final determination. 2. If I changed my withholding allowances on my W-4 can I get more money? Please consult a tax advisor or http://www.paycheckcity.com/ to make these tax decisions. Keep in mind withholding changes can result in additional taxes due at year end on your tax return. However, if you change your Federal and/or State withholding to a higher number of allowances (i.e. S-1 to S-2), you will have less taxes taken from your paycheck. You can change your withholding via HRSS any time (or use the irs.gov form at http://www.irs.gov/pub/irs-pdf/fw4.pdf). You and the payroll system will receive a notice of the change. If you want to change your withholding for Colorado also, you will need to complete the State Withholding form as well, found on the BBoard (at http://bboard.larimer.org/forms/lchr-64.pdf). Your tax withholding change will remain in effect until you change it again. 3. Can I determine EXACTLY how much taxes will be deducted? Keep in mind certain deductions are taxed differently ~ 401(a), 457, and Health/Dental premiums, etc. Some deductions are subject only to FICA tax and others are not subject to Federal, State, or FICA tax. Consult a tax advisor for assistance. 4. Can I get net estimates on my payout if I contribute all or a portion of my payout to the 457 deferred compensation plan? Please consult a tax advisor or http://www.paycheckcity.com/ to make these tax decisions. 5. Can I get my incentive payment as a check or will it be direct deposit? Direct Deposit only. You will receive a printout of your final pay slip in the mail at your current address on file.

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6. If I wanted to reapply at the County do I have to apply for the same position or can I apply for a different position? A person who leaves County employment pursuant to the Voluntary Separation Incentive Program cannot be reemployed in any capacity with the County for 12 months. After 12 months, the person can apply for any position he or she wishes. 7. Does past employment with Larimer County count towards an employee’s years of service for the Voluntary Separation Incentive Program Cash Incentive – Percent of Salary calculation? No, only a person’s full years of service in the current period of employment will count towards this calculation. 8. Can I change my benefit elections when enrolling in COBRA or do I have to keep the same enrollment options I currently have? You have the option under COBRA to continue any health insurance benefits you are enrolled in at the time you separate from service. Please contact the Benefits Office, ext. 5983, for more information. 9. If I want to apply for the Voluntary Separation Incentive, does my position/FTE have to be eliminated or does my department have any choice? Departments have a choice to eliminate a different FTE as long as it makes financial sense. 10. When will the proposed post-employment health reimbursement account (HRA) go into effect? A request for proposal for the HRA has been issued and is set to close on August 26. The proposals will then be evaluated and taken to the Board of County Commissioners. If approved by the Board, we are targeting a December 1, 2010, effective date. If the HRA is implemented, this would affect the sick leave payouts. Employees eligible for a sick leave payout of $1,000 or greater would have the payout deposited to a HRA. Employees with five years of service would receive 35% of their accumulated leave balance; employees with 10 years of service would receive 50% of their accumulated leave balance. 11. Will a retirement contribution be taken out of my Voluntary Separation Incentive pay? According to the “eligible wages” definition in our retirement plan document, both the employer and employee match will be applied to this payout. 12. Why is the time between the last day to apply and the beginning of the time period to separate so long? This time is needed for a number of important things to take place. The department/office must determine eligibility, evaluate the application and make a decision. HR will verify eligibility and then the department/office’s decision will be considered by the Review Committee. Finally, the employee is informed of the decision. If that is to approve the separation, then the employee 2

has a period of time to formally accept or decline the separation and complete the appropriate paperwork. 13. Why do employees need to register for the informational meetings? To make sure there is enough room for everyone and enough handouts are available. 14. If I chose to voluntarily separate or reduce my FTE, is there any difference in the time those actions are effective? No 15. Do I need to get my supervisor’s approval to attend an information meeting? Yes, if you choose to attend during your normal working hours. Since you will be out of the office for the informational meeting (normally lasts about an hour), it is important that your supervisor know you will be away from your normal work location. 16. Do I need to get my supervisor’s approval to apply for one of these programs? No 17. What happens to my paid leave accruals if I am approved for the Voluntary Separation Incentive Program? Employees who separate under this program will receive a payout of accrued paid leave as described in HR policy: Vacation: an employee will receive a payout of all accrued vacation leave up to the maximum carryover limit (1 and ½ times the employee’s accrual rate). Any vacation leave over the maximum carryover limit will be lost. An employee who is considering applying for this program should determine their current leave accruals. This can be done by accessing HR Self Service from the HR webpage. An employee who is over or close to his/her maximum carryover limit, should work with his/her supervisor in approving the use of vacation leave and/or the setting an effective date of separation that will minimize the loss of any vacation at separation. Sick: an employee with five (5) or more years of continuous service as measured from the employee’s current hire date will receive a cash payment equal to one-quarter of the number of hours in her/his accrued sick leave balance, up to a maximum payment of eight-hundred (800) hours. See FAQ #10 for the effect on sick leave payouts if the health reimbursement accounts (HRA) are approved and implemented. Comp Time: an employee will be paid for all accrued comp time hours. Holiday/Alternate or Deferred/Floating Holiday: an employee will receive a payout for all unused Holiday leave up to the maximum carryover limit (32 hours for a full time employee). 18. What kind of impacts will the passage of any of the November ballot initiatives dealing with government funding have on these programs?

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At this point the impacts if any of the passage of Amendments 60 and 61 and/or Prop 101 are unknown. Departments and offices are required to submit two budgets: one for the known budget decrease and one for a 20% decrease to be prepared for the possible passage of one or more of these initiatives. On August 17, 2010, the Board of County Commissioners approved a change to the Voluntary Separation and FTE Reduction Programs. Because of the large impact the potential passage of Amendments 60 and 61 and Proposition 101 will have on the County, the Board agreed that should these amendments pass, they will reopen the opportunity for employees to apply for the voluntary separation and FTE reduction incentives after the election. This means employees who may have wanted to apply for the voluntary separation or FTE reduction programs contingent on the amendments passing, do not need to apply by the September 15 cut off date. If the amendments and/or proposition pass and departments/offices must make further cuts, employees will get a second chance to apply in November. To listen to the discussion around this decision please go to http://larimer.org/bcc/listen_admin_meeting.cfm?date=20100817 click on “Listen from the beginning” link and forward the player to the 1:12:42 time mark.

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