PEEKSKILL, N.Y. – Peekskill officials are weighing a one-time voluntary retirement incentive program in the form of a payout to employees in an effort to trim the city's payroll, officials said.
Employees seeking the benefit package would have to notify the personnel office in writing no later than the close of business Friday, Nov. 9, and retire no later than Dec. 31, Acting City Manager Brian Havranek told Common Council members Monday.
The city could lay off as many as 40 full- and part-time employees because of budget shortages in coming months, Peekskill officials have said.
Retiring personnel would have to be at least 55 and meet the state retirement eligibility requirements with time already served on or before Dec. 31.
Mayor Mary Foster asked that the deadline to retire be pushed back to March 1.
“There are some people who may become eligible in the first two months of the year, which would still allow us to know by Nov. 9 if we have avoided other reductions in staff and we could also have them off the pension roll by March 31,” Foster said.
The eligible employee would receive a payout of $500 per full year of service to the city with a maximum payout capped at $12,500. The one-time incentive payment would have no impact on the calculation of pension and retirement benefits.
In the interest of public safety and to maintain proper staffing levels within the police and fire departments, the incentive program would be limited to three police officer positions and two firefighter positions, which would be met on a first-come, first-serve basis.
The retirement incentive program will be voted on at next Monday’s Common Council Meeting.