VERO BEACH, Fla. - City officials may offer an early retirement incentive program to up to 88 employees as a way to balance the city budget and avoid layoffs.
The Vero Beach City Council will consider whether to move forward with the proposed incentive program at a special call City Council meeting at 9:30 a.m. Thursday.
Under the proposed incentive program, eligible employees retiring before August 31st, will receive another month's pay.
City Manager Jim Gabbard speculated that eight to 10 employees might take the proposed retirement package, which would give eligible employees retiring prior to Aug. 31 another month’s pay.
Eligible employees are those who will be 55 or older by Oct. 1 and have five or more years of service with the city. Up to 88 employees are being considered for the program.
Vero Beach expects to see potential savings of at least $250,000, but the amount of savings would depend on which employees retired. Savings also would depend on the city not filling the positions, which may not always be possible, depending on what kind of job the employee holds.
The pension benefit for the employees taking early retirement will be based on what their five-year average annual pay would have been in the first pay period of 2011. They would also receive the 1 percent cost of living adjustment that is currently called for in the city’s pension plan on Oct.1.
Copyright (c) 2010 The E.W. Scripps Company and Angie's List
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