Because of a projected budget deficit for FY2011 of between $8.5 and $12 million, Mayor Tim Davlin today has proposed several incentives which are designed to help long time city employees consider retiring earlier than they had planned. This would reduce the number of layoffs necessary to balance the budget, which begins March 1, 2010.
In letters to workers who have been with the city the longest and are eligible to retire, Mayor Davlin is offering to pay $300 per month toward the cost of their continued participation in the City’s health insurance program as a retiree, for a 30-month period. They must begin receiving pension benefits on or before April 1, 2010in order to qualify.
To workers with 20 or more years of service to the city, Mayor Davlin is making a different proposal. He is offering to give them a lump sum payment of $7,500 if they retire prior to March 1, 2010. These individuals would not qualify to return to employment with the City of Springfield.
Responses to both offers are due by mid January. Mayor Davlin would then present the package to the full Springfield City Council, which must approve the offers.