SPECIAL INCENTIVE PROGRAM

Denver Revised Municipal Code ch. 18, art. XX

in effect

Denver Revised Municipal Code § 18-800 Purpose of the special incentive program.

Sec. 18-800. - Purpose of the special incentive program. The purposes of the special incentive program (SIP) are: (a) To reduce expenditures for personnel employed by the city; (b) To provide financial incentives from revenues available either for appropriation from the general fund or for expenditure from the various funds and accounts described in the fiscal code of the city in order to encourage employees eligible for a normal retirement benefit to separate from employment and to avoid or minimize forced layoffs that would otherwise be required; (c) To enable and encourage agency and department heads to achieve vacancy savings and control the level of expenditures for personnel while maintaining the proper level of performance of duties; and (d) To afford those employees who are eligible for normal retirement and willing to separate from service some financial assistance. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-801 Definitions.

Sec. 18-801. - Definitions. The following definitions are used in this article. (a) Administrator means the manager of finance of the city or such other officer or appointee designated by the manager. (b) Employee means an active member of the Denver Employees Retirement Plan as defined in subsection 18-402(2) or subsection 18-402(13) of the Code who is either a full-time employee in the career service of the city as set forth in Denver Charter section 9.1.1 or a full-time employee of the city whose salary or wage is paid directly or indirectly from the general funds of the city, excluding any employees of a contractual entity as defined in subsection 18-402(8). (c) SIP-eligible rmployee means an employee who irrevocably agrees to separate from service and who is eligible for normal retirement, as currently defined in section 18-402(20). (d) City means the City and County of Denver, a municipal corporation created by and operating by virtue of Article XX of the Constitution of the State of Colorado. (e) SIP means the special incentive program, the name by which this article XX of chapter 18 of the Code may be known and cited. (f) Normal retirement shall have the same meaning as currently defined in subsection 18-402(20). (g) Participant shall mean a SIP-eligible employee who has met the requirements set forth in section 18-803. (h) Separate from service means voluntary termination from employment but shall not include any person terminated for violation of career service rules. (i) Pension plan shall mean the Denver Employees Retirement Plan created under article XII of chapter 18. (j) Final check shall mean the check issued after the employee's final payroll check that includes any payment due for unused paid time off (PTO) or paid sick and vacation leave in accordance with DRMC section 18-127(b) and section 18-134, respectively. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-802 Administration.

Sec. 18-802. - Administration. (a) Duties of the administrator. SIP shall be administered by the administrator in accordance with its terms and purposes. The administrator shall determine a SIP-eligible employee's eligibility for participation in the SIP and shall distribute the incentive payments described in subsection 18-804(b) due to or to be paid on behalf of SIP participants. (b) Finality of decisions. The decisions made and the actions taken by the administrator in the administration of SIP shall be final. (c) Expenses. The administrator shall not invade the corpus of the trust created by section 18-403 in order to administer SIP. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-803 Eligibility.

Sec. 18-803. - Eligibility. In order to participate, an employee must: (a) Qualify as a SIP-eligible employee; (b) Apply in writing on a form provided by the administrator in accordance with the terms of the SIP no later than July 10, 2020; (c) Be an employee of the city on the date of application; (d) Voluntarily separate from service on or before August 31, 2020; and (e) Sign an agreement setting forth the terms and conditions for participation in the SIP. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-804 Payment.

Sec. 18-804. - Payment. (a) Source. The amount to be paid under SIP shall be from funds appropriated or allocated to the agency or department of the city in which the employee last served at the time of separation from service. Amounts paid to Denver Employees Retirement Plan employees shall be paid in accordance with subsection 18-403(e). (b) Incentive payment. Each SIP participant shall receive an incentive payment comprised of the following: (1) The sum of five thousand dollars ($5,000.00) to be paid in two (2) equal installments. The first installment shall be included in the employee's final check, and the second installment shall be paid no later than January 22, 2021; (2) An amount equal to the participant's current weekly salary on the date of separation multiplied by the number of years of service on the date of separation, but not to exceed a maximum of forty thousand dollars ($40,000.00). One-third (⅓) of this amount shall be included in the employee's final check, and two-thirds (⅔) of this amount shall be paid no later than January 22, 2021. For the purposes of this paragraph, "years of service" shall not include any service purchased under the terms of the pension plan. a. For employees paid hourly, the current weekly salary shall be calculated as follows: the employee's regular annual salary on the date of separation divided by fifty-two (52) weeks. (c) Incentive payments excluded from calculation of retirement benefit. Incentive payments shall be excluded from the definition of compensation used in calculating an employee's retirement benefit under the pension plan. (d) Receipt of payment. Payments due under SIP are not intended to be actually or constructively received as defined under the Internal Revenue Code prior to the date of payment. The participant does not have ability or authority to draw upon or control the receipt of the payment. (e) Limits on participation. The SIP will be limited to forty percent (40%) of all eligible employees by fund, including forty percent (40%) by appropriation accounts within the general fund, on a first come, first served basis. The city reserves the right to limit the total number of participants in the SIP in order to preserve the viability of a department's basic programs and the integrity of its financial resources. (f) Contingencies. In the event of the participant's death prior to the payment of all incentive payments being paid, the remainder of such incentive payments shall be deemed the property of the city and shall not be paid to any beneficiary of the participant. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-805 Amendment and appropriation.

Sec. 18-805. - Amendment and appropriation. The city agrees to pay the incentive payments available under SIP from its funds as the same are available for annual appropriation or other budget allocation from year-to-year, subject only to appropriations required for preexisting obligations created by law or contract, including those set forth in the Charter and ordinances of the city. Although the city reserves the right to amend SIP for whatever reasons it may deem appropriate, incentive payments shall not be reduced by any such amendment; neither shall the rights of the participants to the receipt of incentive payments be diminished to the extent that annual appropriations have been made for the payment of incentive payments. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-806 Termination.

Sec. 18-806. - Termination. The city's SIP incentive obligations shall terminate under the following circumstances: (a) The final payment is paid to the participant; or (b) The death of the participant. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-807 No employment rights created.

Sec. 18-807. - No employment rights created. Nothing contained in the SIP shall be construed as a contract of employment or as a right to continue employment with the city, or as a limitation of the city to dismiss, demote, or discipline any of its employees in accordance with applicable personnel rules. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-808 Assignment of incentive payments.

Sec. 18-808. - Assignment of incentive payments. Participants receiving incentive payments from the SIP shall be restrained from selling, assigning, or otherwise alienating their incentive payments. The incentive payments from the SIP shall not at any time be subject to the claims of creditors or subject to payment or execution upon judgment for the liabilities or torts of said participants. The SIP incentive payments shall not be liable for or subject to attachment, garnishment, execution, qualified domestic relations order, other domestic relations orders, or other legal process. This provision is hereby found, determined and declared to be a matter strictly of local and municipal concern to the city. (Ord. No. 564-20, § 1, 7-20-20)

Denver Revised Municipal Code § 18-809 Participation by the employees of the Denver Employees Retirement Plan.

Sec. 18-809. - Participation by the employees of the Denver Employees Retirement Plan. Employees of the Denver Employees Retirement Plan shall be eligible to participate in the SIP if they meet eligibility requirements, including receipt of and restrictions on the benefit, however, the pension plan shall be the administrator for its employees and the pension plan shall be solely responsible for the funding and administration of SIP benefits for pension plan employees who are eligible and opt to participate in the SIP. The term "pension plan" or "the pension plan" shall be substituted for the term "city" or "the city" wherever that term is used above to describe the entity responsible for obligations created by the SIP. (Ord. No. 564-20, § 1, 7-20-20)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTXXSPINPRFetched: 10/27/2026