Hanover Park offers early retirement incentive program to 31 employees
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Hanover Park is offering an early retirement incentive program to 31 village employees in an effort to prevent future budget hardships.
The village board approved the initiative last week, which could result in up to $2.94 million in savings if all eligible employees accept the package.
Long-tenured employees who choose to participate in the voluntary program will receive $1,000 per year of service paid as a lump sum at the time of their retirement.
Village Manager Ron Moser said the program is not needed to balance the fiscal 2012 budget, which begins May 1, nor is he anticipating mandated furlough days or employee layoffs should no one take the buyout.
“We’re taking steps like this now to be proactive because we don’t know what the future will hold,” Moser said. “If we can take steps to keep costs down now, we think we’ll be successful.”
The employees eligible for the program include: sworn police and fire department members at least 50 years old with 20 or more years of service by Sept. 30; general employees ages 55 and older with 25 years of service to the village; and general employees ages 60 and older who are vested in the pension system with eight years of service to the village.
If 14 employees take the package — a number officials believe is realistic — the village would save about $1.7 million over seven years. The village already has saved about $2.1 million the past couple years by eliminating salaries and positions through attrition.
Positions left vacant by early retirement would be evaluated and, if necessary, replaced with a lower salaried worker. The village would see cost savings from the reduced pension benefits new hires receive, as well.
Officials also are considering limiting new hires to enrollment in an HMO as opposed to PPO health care plan, which would save an additional $1.15 million if all 31 eligible employees retired early.
Human Resources Director Wendy Bednarek said employees would be notified of the program by Monday, and that staff would schedule union labor management meetings as soon as possible since the unions would have to accept the program.
