City looks to remove early retirement burden from workers
Thu, 18 Oct 2012 14:02:16 GMT —
Albany City Attorney Nathan Davis presented an amendment to the town's pension ordinance during the Pension Board of Trustees meeting Thursday morning.
Davis asked a change be made to the ordinance that will allow the City Manager's Office to waive the early retirement penalty for city workers.
The motion is part of City Manager James Taylor's 5-year fiscal plan to reduce costs and will allow workers to avoid the 5% per year penalty for retiring before the normal date.
Allowing workers to retire early without penalty would take some of the burden off of the city's payroll -- the most expensive section of the budget.
In order to balance the money lost that would go to the pension fund by these workers, the city would have to pay the difference up front if they decide to offer early retirement.
The Pension Board approved Davis's motion to amend the ordinance. Davis will now present the change to the City of Albany Commissioners during their night meeting next Tuesday.