Nine Hammond city employees volunteer for early retirement

2013-07-31T00:00:00Z Nine Hammond city employees volunteer for early retirementAnna Ortiz anna.ortiz@nwi.com nwitimes.com
July 31, 2013 12:00 am  • 

HAMMOND | Nine Hammond city employees opted into the voluntary retirement program that is offered every year to eligible city employees. The voluntary retirement program is a catalyst to reduce future city spending.

"This is our way to reduce size of the city workforce without having lay-offs," City Controller Bobby Lendi said.

None of the retiring employees will be replaced.

Current full-time city employees were eligible for the program if they met certain age and length of service requirements. The program carries a financial incentive of a $1,000 payment for each year participating employees worked for the city.

Lendi said the reduction of employees through the program has never negatively affected city services.

The nine retiring employees had previously worked a combined 153 years, making this year's city payout for the program $153,000.

However, Lendi said the city is saving in the long run. He said the average annual cost per full-time, long-term employee is about $50,000 with combined salary and benefits. If the nine employees had not entered the retirement program, the city would be paying out an estimated $450,000 for the year.

Lendi said the difference of $297,000 is a help to the city budget.

This year, there were 64 city employees eligible for the program. There has been a reported low participation in the past, but Lendi said the 15 percent entering the program is a good amount for this year. 

The employees had to decide by July 1 whether they would opt into the program. Those who opt in are required to retire by the end of December.

"This has been a successful way for us in past years in reducing the city workforce size," Lendi said.

Copyright 2014 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



About Hammond

Hammond City Hall

5925 Calumet Avenue Hammond, IN 46320
219.853.6301

Police Department

509 Douglas Street Hammond, IN 46320
219.852.2900

Fire Department

6110 Calumet Avenue Hammond, IN 46320
219.853.6416

Parks and Recreation

5825 Sohl Avenue Hammond, IN 46320
219.853.6378

School City of Hammond

41 Williams Street Hammond, IN 46320
219.933.2400

Latest Local Offers

Featured Businesses