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More Community Corner Early retirement program spares paramedics from layoffs
As fiscal conditions worsened over the past year, Natick officials faced a quandary. At a time when the town wanted to bolster its staff of paramedics, it appeared likely that the opposite would happen because the paramedics lacked the seniority to protect them from layoffs.
Had such layoffs occurred, said Natick Fire Chief James Sheridan, the fire department would have found it difficult to consistently meet a state mandate requiring that at least two fully credentialed paramedics staff each of four ambulance shifts. If, due to injuries or other absences, the staffing level fell below the required level, the fire department would have had to either institute mandatory overtime or rely on an EMT with a lower level of medical training.
The solution was to offer bonuses of up to $24,000 to firefighters who agreed to retire early. Those who had already qualified to receive the maximum pension (80 percent of current salary) were offered bonuses of $10,000. Larger bonuses were reserved for those who, if they chose to retire now, would be sacrificing a significant portion of their future income.
As it turned out, all five firefighters who agreed to early retirement were at the 80 percent level and received $10,000 bonuses, according to Town Administrator Martha White.
When contractual obligations, including accrued sick days and unused vacation time, are factored in, the cost of the early retirements in the Fire Department exceeds by about $140,000 what Natick will save during the remainder of fiscal 2009 by eliminating the positions.
White emphasized, however, that Natick conceived the early-retirement program primarily as a management tool, not as a means of saving money in the short term. She also pointed out that the upfront costs associated with the program are somewhat misleading, since the town eventually would have had to meet its contractual obligations to the firefighters anyway. And, had Natick been forced to lay off paramedics, the town would have been responsible for unemployment insurance and other benefit costs.
“The early-retirement scenarios were more costly,” White said. “But they gave management a lot more flexibility in making the staff reductions.”
For more information, contact Martha White at (508) 647-6403.
More Community Corner Early retirement program spares paramedics from layoffs
Early retirement program spares paramedics from layoffs
As fiscal conditions worsened over the past year, Natick officials faced a quandary. At a time when the town wanted to bolster its staff of paramedics, it appeared likely that the opposite would happen because the paramedics lacked the seniority to protect them from layoffs.
Had such layoffs occurred, said Natick Fire Chief James Sheridan, the fire department would have found it difficult to consistently meet a state mandate requiring that at least two fully credentialed paramedics staff each of four ambulance shifts. If, due to injuries or other absences, the staffing level fell below the required level, the fire department would have had to either institute mandatory overtime or rely on an EMT with a lower level of medical training.
The solution was to offer bonuses of up to $24,000 to firefighters who agreed to retire early. Those who had already qualified to receive the maximum pension (80 percent of current salary) were offered bonuses of $10,000. Larger bonuses were reserved for those who, if they chose to retire now, would be sacrificing a significant portion of their future income.
As it turned out, all five firefighters who agreed to early retirement were at the 80 percent level and received $10,000 bonuses, according to Town Administrator Martha White.
When contractual obligations, including accrued sick days and unused vacation time, are factored in, the cost of the early retirements in the Fire Department exceeds by about $140,000 what Natick will save during the remainder of fiscal 2009 by eliminating the positions.
White emphasized, however, that Natick conceived the early-retirement program primarily as a management tool, not as a means of saving money in the short term. She also pointed out that the upfront costs associated with the program are somewhat misleading, since the town eventually would have had to meet its contractual obligations to the firefighters anyway. And, had Natick been forced to lay off paramedics, the town would have been responsible for unemployment insurance and other benefit costs.
“The early-retirement scenarios were more costly,” White said. “But they gave management a lot more flexibility in making the staff reductions.”
For more information, contact Martha White at (508) 647-6403.
Written by MMA Associate Editor Mitch Evich
