Summary
To: Town Commission
From: Ashley LA Bernal
Date: 8/6/2019
______________________________________________________________________
Subject:
Title
Consideration of Early Retirement Buyout
Summary:
Staff has been reviewing the possibility of an employee’s potential early retirement. At this time, the employee becomes eligible for Medicare health benefits in October of 2020, but is considering retirement now. Buying out the employee’s sick, vacation, and holiday pay would yield approximately $14,650. They would require a $10,000 payout to assist with medical premiums.
If this employee retired according to this plan, there would be an annual savings of $29,188. This employee would be moved to part time, starting at a new and lower rate.
End
Financial Implications: Result in current year and future fiscal year savings.
Recommendation: Staff recommends to move approval of the consideration of early retirement buyout.
Proposed Motion: I move approval of the consideration of early retirement buyout.