Largo Approves Early Retirement Plan for City Employees
by Bill Lopez
LARGO - The City of Largo has identified 102 employees that are eligible for an early retirement program that was approved by the city commission last week.
The stated goal of the program is to avoid filling vacancies created by the early retirement incentive program prior to FY 2010 in order to stay within the fiscal year's appropriated budget and accrue savings for the FY 2010 budget.
Under terms of the incentive program, eligible employees who have five years of service will receive an amount equal to 5% of the balance of their retirement fund. Employees must be in 401 Retirement Plan and be 59½ and by 9/30/09.
A similar program in 2008 resulted in six employees opting for early retirement; however, the staff cannot predict how many might take advantage of the program this year.
The city anticipates at least 10 early retirements because of the program. The savings generated would offset necessary budget reductions due to the income reductions in the city budget.
The program will be voluntary and will be offered to all existing staff who are vested in their respective retirement plan and be of an age that early withdrawal penalty would not be incurred.
From the experience gained last year, it was determined that since employee personal needs and situations vary greatly, a few early retirement options would be optimal.
Program options include no pay and 12 months current health insurance selection; 6 months pay and 6 months current health insurance selection; or 3 months pay and 9 months current health insurance selection. The resolution was passed by the commission 7-0.
Contact Bill Lopez at firstname.lastname@example.org
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