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Phased Retirement

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Staffing AnalysisAugust, 2013

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CenterPoint Energy

• CenterPoint Energy, Inc., headquartered in Houston, Texas

• Domestic energy delivery company includes electric transmission and distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field operations.

•Total Assets $22.8 billon•Revenue $7.45 billon

•Operating Income $1.038 billon

•Number of Employees Electric T&D Number2,550

 Union1,255

  Natural Gas Dist 3,610   1,333

  Competitive Nat Gas Dist 148  

Interstate Pipelines 747  Field Serv 337  Other Ops 1,328    Total 8,720   2,588

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Phased Retirement Programs

• Purpose: To assist employees in their transition to full retirement and to retain critical skill employees as active employees, CenterPoint Energy’s Phased Retirement Policy provides flexible work arrangements to retirement eligible employees.

• Phased retirement arrangements can either be pre-retirement or post-retirement.

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Pre-retirement/Post-retirement

• Pre-retirement includes a change in role assignment and/or a gradual reduction in an employee’s responsibilities and/or hours.

• Post-retirement allows a retired employee to be considered for return to active employment on a full or part-time basis following a separation from service for at least four months.

• The company retains the right to offer or approve phased retirement arrangements on a case by case basis, at its sole discretion, and there is no promise or guarantee that a phased retirement arrangement will be offered if requested or continued if commenced.

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Eligibility

• Employee must be age 55 or older, with at least five years of service after age 50 and in “good standing.”

• An employee on a formal step of discipline would not be considered to be in good standing.

• Phased retirement arrangements that result in reduced hours must be for a minimum of 20 hours per week. 

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Eligibility

• The maximum duration of a pre-retirement arrangement is three years.

• Duration start date and anticipated end date must be established before commencement.

• Approval will be for one year subject to annual renewal.

• The company or the employee may terminate the phased retirement arrangement at any time and for any reason.

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Staffing Analysis

• The purpose of staffing analysis is to determine staffing needs which are impacted by changing workload and retirements.

• Staffing models are established for each department and work group. Models have 2 parts: workload and manpower.

• Workload– Define units of work

– Determine man-hours per unit

– Determine units of work per year for next several years

– Totalize to get workload for each year

• Manpower is the number of FTEs available to do the work, including transfers and projected retirements.

• Difference between workload and FTEs = Staffing shortfall.