The incentive is for employees who are ages 60 and above and have 30 years of city service.
Springfield City Hall.SPRINGFIELD – The City Council on Monday voted to set aside $300,000 to fund a retirement incentive program for city employees who are at least 60 years old and have 30 years of service.
Under the program, approved by Mayor Domenic J. Sarno and the council, any qualified employee who accepts the retirement will receive a one-time payment of $6,000. The program is designed to reduce staff and cut costs under budget constraints.
Up to 28 employees could qualify for the program, and 10 have signed up thus far, officials said.
The $300,000 would fund the incentive for 20 employees and would also include enough money for the required payoff of their unused vacation time and unused sick leave.
The amount they are paid for unused sick leave varies, but in some cases is $30 per day or 15 percent of their daily pay, according to city finance and labor officials.
Police and firefighters were not included in the retirement incentive program in the interest of public safety, officials said.
The list of employees and the amount of money that might be saved is not yet determined, as employees have an extended period of time to consider the program or revoke their acceptance, said City Budget Director LeeAnn Pasquini.
The goal is not to replace those retirees, but it must be considered on a case by case basis, she said. Health insurance is a benefit for all retirees.
In other action at City Hall, the council voted to urge the mayor to adopt a tiered furlough program for approximately 330 non-bargaining employees. Under the proposed tiered system, higher-paid employees would be required to take more unpaid furlough days and lower-paid employees would take fewer furloughs.
Sarno has proposed that all non-bargaining employees be required to take 12 days of unpaid furlough, but said recently that he will have the Finance Department review the council’s proposal for a tiered system. The non-bargaining employees also have a wage freeze in fiscal year 2012.
Councilor Kateri B. Walsh said the tiered furloughs are a matter of “fairness.” Employees who make less face a more difficult burden in taking 12 unpaid days than do higher-paid employees and supervisors, she and other councilors said.
The council’s resolution, which is non-binding, recommends that employees in the salary range of $25,000 or less not be included in furloughs. Thereafter, it is recommended that furlough days vary from one day to 15 days (with 15 days for employees making more than $110,000).
Just one union has accepted furloughs, which is subject to collective bargaining. The building tradesmen have agreed to 24 furlough days, which helped save the jobs of five of its members threatened with layoffs.
The city is laying off 13.5 employees, which takes into account that 10 employees will accept the retirement incentive, Pasquini said.