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Thursday, June 21, 2007

Early Retirement Has to Wait

One of the biggest issues on City Council's agenda last night was City Manager Milton Dohoney's proposed early retirement incentive package. Part of his effort to cut $1.5 million from the budget, it would allow employees with 28 years or more to retire with full benefits, something that usually doesn't kick in until the 30-year mark.

Some council members were concerned about losing institutional memory. The plan then was revamped to remove some employees from eligibility, those who work in "enterprise" jobs like water works and parking. "Enterprise" meaning money-generating.

But that caused backlash too from some employees who think the offer should be extended to everyone. Among those was Michael Heitz, assistant superintendent of the Metropolitan Sewer District's wastewater treatment division. "Please," he said, "don't create a new category of second-class employees."

Mayor Mark Mallory held the issue until council's next meeting Wednesday, the last meeting before summer recess.


11 Comments:

at 2:23 PM, June 21, 2007 Anonymous Anonymous said...

nice job if you can get it.

 
at 8:11 PM, June 21, 2007 Anonymous Anonymous said...

Paying city employees not to work. Didn't they try that last year? Wasn't there a guy named Brock who should have been fired for it but has someone how remained on the payroll? Do you think he might be working directly for Dahoney? Hmmm?

Someone ought to ask.

 
at 8:42 PM, June 21, 2007 Anonymous Anonymous said...

The Riverside Drive Bortz Plan is to layoff people, rather than give early retirement options.

 
at 9:10 AM, June 23, 2007 Anonymous Anonymous said...

Jane, this proposed early buyout only affects non-uniformed employees,such as sanitation workers, clerks, laborers,etc. It does not included fire or police. Currently there are about 3500 full and part time non uniformed employee. The effect of this buyout would be a reduction in city services.

In the city manager's original proposal the cost to do this would be about $70 million, mainly in reimbursements to the city's retirement system. Only non-uniformed employees participate in the city system. Police & Fire are in a state wide system.

This proposal would "save" the city about $28 million in the long run. You do the math on that one.

After council objected to the cost the manager then revised the plan to eliminate enterprise fund agencies from the plan. It is doubtful that this would pass a legal test if approved by council.

In order to partially fund this proposal, the city manager is also proposing a reduction in benefits to city retirees, other than police and fire. Bear in mind that city employees do not pay into social security.

 
at 9:56 AM, June 23, 2007 Anonymous Anonymous said...

...Ane Mayor (how sad) Mallory shows his leadership skills again....hold it, hopes he does not have to make a decision...ZERO...where are those recall petitions again?

 
at 5:00 PM, June 23, 2007 Anonymous Anonymous said...

Hey Anon 9:10 AM,

Actually the proposal could save $28 million A YEAR compared to a $70 million one-time cost spread over 15 years. You do the math.

 
at 8:20 PM, June 23, 2007 Anonymous Anonymous said...

Hey Anon 5PM. My bad on $28 mil. However city council still must have thought it was too expensive if they had Dohoney go back and revise the plan to eliminate enterprise agencies.

 
at 8:51 AM, June 25, 2007 Anonymous Anonymous said...

It would be a horrible precedent to create a second cless of employees....restricted funds v. unrestricted.

Next, seperate negotiations, pay and benefit adjustments.

 
at 6:24 PM, June 25, 2007 Anonymous Anonymous said...

If a city employee gets 2.5% in retirement for every year worked, then after 30 years he/she gets 75% of the highest 3 years, plus free medical.

Hired at 21, out at 51, live till 82. Spend more time on retirement than working. Good deal if you can get it.

 
at 8:48 PM, June 25, 2007 Anonymous Anonymous said...

Well, enterprise fund employees already get more access to training and when there are layoffs their jobs are not on the line...

 
at 9:04 AM, June 26, 2007 Anonymous Anonymous said...

Remind me again...when was the last time there were layoffs?

Not in the modern era.

 
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