City Workers Await Early Retirement Plan Details

When Danbury decided to save money by offering 100 city workers an early retirement plan, the thinking was workers could start making their decision by Thursday. Now it looks like they'll receive the details next week at the earliest. They have until June 13 to decide.

"We'd hoped to have each worker's details mailed out on Thursday (April 18,) but it's taking longer than we expected," said Danbury Mayor Mark Boughton. He said the final numbers will be ready for mailing on Monday. It is more important to get the numbers right than to mail them fast.

Nearly 100 city workers are being offered an early retirement package that will give them their pension savings, plus $1,000 per year of service, plus a payment for unused vacation and sick time. (For a complete list of details, read attached PDF.)

City Council members asked during their meeting Monday night why this plan would save the city money. Finance Director David St. Hilaire said the payouts to workers come directly from the pension fund. It is their money in the plan. He said cashing out the workers from the plan will end any future pension payments for those workers in all future years.

Danbury Mayor Mark Boughton said the workers will be replaced by people who have 401(K) plans and not pensions. He also said the city will reorganize its workforce after people retire and fewer people will be hired than retired.

Each worker will learn the details of their retirement package in next week's letter. That will give them all of May and the first 13 days of June to decide whether to retire or not. As of June 13, their decision is final, and it can't be changed.

"We'll hold meetings with our actuary, and people can meet one on one or they can bring their financial planner," Boughton said. The meetings will take place in May and June. Workers must retire by June 30.