County May Offer Voluntary Separation Package to Employees
In efforts to head off potential budget crunches in 2016, Westchester County Executive Robert Astorino announced a financial incentive plan for employees last week. Under the plan, employees who resign or retire by July 31, 2015 would receive $1,000 for every year of completed county service, reducing payroll costs by more than $1.6 million in 2016.
“Next year’s budget promises to be very difficult. This incentive plan allows us to voluntarily reduce headcount and the cost of compensation, which is the county’s largest budget expense,” said Astorino in a press statement. “If employees are thinking of leaving their jobs, I would ask them to look at this incentive very carefully. We offered a similar incentive in 2010 and it was very successful in reducing expenses and limiting layoffs.”
The incentive is being offered to all employees except police and correction officers, investigators in the District Attorney’s office and elected officials. There is no age or service minimum to qualify, but it is expected that most employees who take the incentive will be those who are pension eligible – age 55 and older with 30 years of service or 62 and older with 20 years of service.
The incentive offer has a limited time frame.
Even though positions left open by retirements or resignations are typically refilled, the county can save substantial amounts of money because contract modifications and changes in state law make the cost of new hires less expensive, particularly in the areas of fringe benefits such as pension and health care costs. The average compensation of current county workers is approximately $130,000 a year; $80,000 for salary and an additional $50,000 or 64 percent for benefits.
The county estimates the cost of the incentive at about $700,000 in 2015, which would be recouped more than two times over with $1.6 million in savings in 2016.
Legislation enabling the incentive is being sent to the Board of Legislators in time for its June 1 meeting, with Astorino urging prompt consideration.
If the bill passes, employees interested in taking advantage of the incentive must notify their department head by June 30. Their last day of service would be July 31.
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