(BLOOMINGTON) - Bloomington offers employees early resignation incentives
In a city-wide effort to reduce personnel costs, the City of Bloomington will review 36 applications from city employees who applied for early retirement or resignation through financial incentive programs.
"The purpose is to create vacancies through voluntary attrition and unemployment, which allows greater availability in our structuring," Human Resources Director Daniel Grundmann said.
For those who were already nearing retirement or contemplating terminating their employment with the city, Grundmann said the programs offer incentives for city employees to expedite their pending decisions. The program was offered to employees working for any department within the city.
"The employees who are in a situation where they are looking at a transition, either retirement or seeking other employment or employment altogether, it is meant to be a valuable asset to them to help them make that decision," Grundmann said.
The programs, he added, will positively impact city employees remaining at their jobs.
Grundmann was unable to speculate how much the programs will save the city financially, but he said the savings should be substantial to the city's budget.
Twenty-three city employees applied for the retirement incentive program before the April 9 application deadline, Grundmann said, and 13 applied for the separation incentive plan. While several of these applicants have officially ended their duties with the city with one of the two programs, Grundmann said they are currently processing most applications.
By June 30, the city is required to notify applicants whether they will be accepted into the incentive programs. However, Grundmann said he anticipates finishing before then. Those who qualify for the programs will finish their duties with the city by the end of summer. Most, if not all, of the applications submitted should be accepted, Grundmann said.
Those accepted into the separation incentive plan will receive $500 per year of employment with the city, up to $5,000. They will also receive subsidized health insurance. Eligible employees for the separation incentive plan must have worked for the city for at least a year with benefits.
Early retirees 55 years old or older who have worked with the city for at least 20 years will have access to reduced rates for retiree insurance for up to 36 months and up to three months of paid salary, Grundmann said.
Have a question or comment about a news story? Send it to email@example.com