Clarkstown Looks to Save on Salaries with Early Retirement Incentives

Clarkstown is offering its municipal employees a retirement incentive program that town officials say will help cut salary expenses.

The Town Board approved the program Tuesday night for a pool of about 50 eligible workers. Town Supervisor Alex Gromack said the state-approved program is similar to one that was offered in 2002, when 25 workers – many from the Highway Department – took early retirement.

Gromack said that of the 50 eligible workers, the town is anticipating 20 to 25 of them will take advantage of the program. Town municipal workers – the program doesn't include the Police Department – have until Sept. 15 to apply for early retirement.

Gromack said that as town jobs are vacated for early retirement, the town will determine whether individual jobs should be filled. He said it is possible some of the retirees will not be replaced.

For jobs that are filled, Gromack said the town will be able to save about 50 percent – possibly as much as 75 percent in some cases – on that position by hiring a replacement at a lower salary.

The incentive program gives workers employment credit for leaving their job early. For example, a town worker with 24 years of service would get credit for two extra years of service. Gromack said that would increase pension benefits for that worker by a range of 2 to 5 percent.

"Even with the higher retirement benefits, the town will see a big savings by being able to fill that job at a lower cost," said Gromack.

In approving the retirement incentive package, the Town Board also approved a special agreement with the Clarkstown Unit of the Civil Service Employees Association that extends the incentive program to a five workers who expressed interest in the program but are not qualified for full retirement benefits.

Gromack said the agreement covers medical coverage for the five workers for a year. Workers fully qualified for retirement benefits do not have to make contributions toward the continued health insurance coverage. However, the five workers covered by the special agreement would have to make contributions to their health insurance coverage if they retired this year.

Gromack said the cost of the special agreement was so little – only $1,000 for the year in the case of one worker – that it was worth the expense to get the savings from having the longtime workers retire.