Time to go?

POST FALLS - The city of Post Falls is offering qualified employees an optional early retirement package to save the municipality money in the long run.

The package, which does not apply to department heads, is available to those who have been with the city at least 10 years and are within five years of qualifying for a full pension under the Public Retirement System of Idaho (PERSI).

"Some employees are at the upper end of the salary scale and it has the potential to free up personnel funds for restructuring," said Teresa Benner, human resources director. "This is the first time that we've offered the package."

The early retirement package includes a 1 percent cash incentive based on the current annual salary for every year worked and a $10,000 contribution to a health reimbursement to defray insurance costs that would be incurred as a result of early retirement.

For example, an employee making $40,000 per year and who has worked for 20 years at the city would be eligible for $8,000, plus the medical contribution. The medical part can only be used for medical expenses and qualified premiums.

The early retirement program may also be offered in future years, pending city council approval.

Two employees - one in public works and one at the police department - have accepted the offer. However, the deadline is March 1, so more could apply.

Benner said the response is slightly less than what city administrators believed the program would generate.

"I expected two to four employees for a first-time program," Benner said. "As far as it being a success? Time will tell.

"We have tried to take a pretty low-key approach to the early retirement program. We don't want anyone to feel like they are being pushed out. We appreciate those employees that have been so loyal and worked so hard for so many years."

The total cost for the early retirement program for the two employees is $40,000.

"We expect to recoup our costs in the first six months," Benner said.

Benner said eight employees are eligible this year for the program. Twelve attended an informational meeting on the program.

"If we were to run the program again next year, there would be 14 eligible," Benner said. "In the next five years, I've estimated that we will have about 40 people that will be within retirement age if this becomes a regular program."

Benner said she believes the low response is an indication that employees enjoy their job and want to continue to work at the city.

"We also know that we will be losing some of the historical knowledge they possess, which can be difficult to replace," she said. "On the flip side, when they leave, it also gives other employees opportunities to expand their duties and responsibilities and provides opportunities for advancement which can recharge a department."

Benner said the early retirement program is intended to maintain a good balance of employees for each division.

"(The program) certainly isn't going to make anyone rich, but we tried to strike a balance that was beneficial to the employees who might like to retire but weren't in a position to do so before, and yet would still allow the city more organizational flexibility," Benner said.

One of the qualifications for the package is to be within five years of meeting PERSI's 80/90 rule for full retirement.

Employees may retire with a full pension if the age at which they retire plus their years of service equals either 80 (for sworn officers) or 90 (other employees) or if they reach retirement age of 65, whichever comes first. For example, an employee who retires at 60 will have to work for 30 years prior to be eligible for full retirement. A police officer at 60 would only have to work 20 years due to the physical demands of the job and the dangerous occupation.

Shelly Enderud, city administrator, said the package was not offered to department heads because some longtime administrators retired in recent years, and the only department head who is nearing retirement is Public Services Director Terry Werner, who had already given notice that he'll retire on Sept. 30.

"The city of Post Falls also did a significant amount of restructuring regarding department heads when (former city administrator Eric Keck) was here," Enderud said.

Department heads on contract are already offered early-out provisions. Such provisions include a three-month buyout of their current wage if approved by the city council, an annual PERSI contribution of $1,300 and any unused portion of 40 hours of personal leave is converted into a health reimbursement account at the employees' current wage.