JACKSONVILLE, Fla. – More concern over JEA and plans to benefit employees.
On Tuesday, in a memo, City Council auditor Kyle Billy expressed concern about JEA considering a plan that would allow employees to invest in JEA and make a profit if the company does well. It’s called the Long-term Performance Unit Plan (PUP).
JEA last week decided to put that plan on hold indefinitely and sent a letter to the City Council auditors that it’s going to be addressed at their board meeting in August. At that time, they could consider taking that plan off the table for good.
“While the postponement alleviates my immediate concerns, the Plan has not been formally rescinded by the JEA Board. That is why I am still issuing this memo,” Billy wrote.
During a City Council committee meeting Tuesday several council members were shocked that the PUP plan was even considered.
“The Plan is potentially a very costly use of JEA resources that would be magnified by a Recapitalization Event. Regarding a Recapitalization Event, the City Council should keep in mind that plans have already been approved by the JEA Board to help retain and protect employees, including guaranteeing to the employees three years of substantially comparable compensation and benefits in effect at the Closing Date, providing an additional year’s pay spread over two years, and providing a pension for years of service not worked by employees who are not eligible for retirement at the time of a Recapitalization Event,” Billy wrote in his conclusion.
JEA is also looking at a retention bonus plan for employees who remain with the utility if it’s sold. That is under consideration by the City Council which could vote on it next week.