City Workers to Get Early-Retire Option
City employees will be able to retire sooner under a program that officials hope will inspire some of City Hall’s high-level managers to leave.
During union negotiations last year, employee groups asked the city to adopt an early-retirement option offered by the state’s retirement system, Personnel Director Steven V. Pham said. Under the plan, workers can retire at 55 instead of 60.
Early retirements would cost a total of $8.2 million. Employees would pay $6.9 million through payroll deductions that would go directly into a retirement fund. The rest would be covered by a surplus of funds the city has built up in the state’s retirement system.
The plan was ratified in August by 81% of the city’s 335 employees who are not sworn officers. Safety workers have separate benefit packages allowing them to retire early.
The retirements should help the city with a plan to restructure City Hall by eliminating some management slots and increasing lower-level positions in which employees have direct contact with residents.
City Council members voted unanimously to let the plan go ahead last week.
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