HAMMOND | If approved as expected, city employees again will have the opportunity to participate in a retirement buyout, this time with the incentive increased from $500 to $750 for each year of employment.
Another important distinction from last year's program is interested employees will have to make their decision within 60 days of the measure's adoption by the City Council. The measure was introduced at Monday's City Council meeting and will be reviewed by a council committee before a final vote.
"Last year we allowed them to see if their position was still in the budget and then make a decision," council President Dan Repay said Thursday. "This year the budget will be passed after the deadline to file for this (buyout). They're going to have to make a decision based on their needs or else take a chance on whether their positions will be eliminated or not."
For the second year, retirement buyouts are being offered as a way to cut both the city's budget and the city's self-insurance costs.
"The key thing is to get us out of being the primary insurer," Repay said Monday in introducing the measure. Retirees who get another job will be required to obtain primary coverage through the new employer. Others are likely to be covered by Medicare.
On Thursday, Repay urged eligible employees to take a serious look at the program because even after the proposed elimination of the Hammond Transit Service, he expects to have to trim another $300,000 to $400,000 from the city's budget. Plans to reach that goal include cutting jobs, he said.
Last year, 11 out of the 35 eligible employees took the buyout, Repay said. This year, there are 25 eligible employees, fewer than last year because some were shifted to the Hammond Sanitary District after the Sanitary District took over the city's sanitation and recycling departments.
If approved, the voluntary retirement program will be open to full-time employees who are 65 with at least 10 years of city service or 60 with at least 15 years of service or who satisfy the Rule of 85. The Rule of 85 adds the employee's age to years to service to reach at least 85 -- for example, someone who is 55 with 30 years of service.
An award of $750, up from last year's $500, would be offered for each year of employment. For instance, an employee with 10 years of service would receive $7,500.
