Norwalk Seeks Government Staffing Cuts Through Early Retirements

NORWALK, CT — With the coronavirus (COVID-19) pandemic heavily impacting city finances, Norwalk is looking to cut costs and has identified 91 city workers who are eligible for early retirement, according to Mayor Harry Rilling.

All the 91 positions are unionized, but none that stand to be eliminated under the Early Retirement Incentive program are from the ranks of police or fire departments. The Common Council on Tuesday unanimously approved the program, which is designed to avoid furloughs or layoffs; Council member Darlene Young recused herself from the vote, and Council member Ernest Dumas was absent.

"Due to COVID-19, we find ourselves in uncertain financial times," Rilling said. "No doubt, this virus has had an impact on all of our lives. We won't fully realize the economic impact to the City until October and January when tax collections are completed. Thankfully, we have safeguards in place with a healthy fund balance and have planned contingencies this year and next fiscal year to weather this storm."

The program is available to Norwalk government employees over 55 years old, who have been employed by the city for at least 10 years. Workers who decide to participate in the Early Retirement Incentive will gain three years of additional service credit, and, if they are younger than 62 years of age, any early retirement pension penalty will be waived, according to officials.

Roughly one-third of the 91 who are eligible might participate, officials estimate. The 91 who are eligible are out of a pool of about 290 city employees.

2009, the year after the 2008 financial crisis, was the last time an Early Retirement Incentive was offered in Norwalk. At that time, roughly 60 employees were eligible, and about 20 participated. Officials said the program was successful in avoiding layoffs and furloughs and ultimately reducing staff levels. City officials expect approximately the same participation for the 2020 program.

Rilling added, "The Coronavirus situation, while thankfully holding steady in Norwalk, is unpredictable. What we are seeing in Danbury right now shows how quickly things can spiral out of control and change plans for school or sports. Given the uncertainty with COVID-19, we are being proactive in looking for cost-saving measures wherever we can, such as staffing."

There are a wide range of positions across the 91 employees eligible for the Early Retirement Incentive, and some positions will not be re-filled. The majority can be filled at a lesser salary range, and a small number may need to be filled at the same salary range, officials added.

"I am fully supportive of this plan," said Council President Barbara Smyth. "I appreciate Mayor Rilling and his staff looking out for taxpayers by identifying cost-savings wherever they can. This plan is better than doing layoffs or furloughs since that course of action would negatively impact City services. This plan allows for services to be kept at a high level while at the same time finding cost-savings during these uncertain times."

Rilling said that while the final cost savings from the program will not be known until the participation level is determined, he is confident there will be savings.

"Whatever the costs of the incentive are, I am committed to finding equal or greater savings," Rilling said. "I want to thank my staff for working hard to bring this forward while centering the needs of Norwalk taxpayers, the Union Leadership for coming to the table to have these discussions, and the Council for its unanimous support."

Eligible employees have three to four weeks to opt-in to the Early Retirement Incentive before the program closes in late-September.

Those who participate have an anticipated retirement date of Oct. 9, 2020. A breakdown of employees who retired through the Early Retirement Incentive will be presented to the Common Council after that date.