Elgin suffering brain drain as 21 workers take early retirement

When Mike Millikan woke up Monday morning, he was a little perplexed as to what to do and where to go.

For the last 30 years, the 53-year-old has worked for the city of Elgin in one capacity or another, first as a code inspector and later as a grant administrator.

No more.

He, along with 14 others, worked their last day with the city Friday as they took early retirement.

"I've had a job ever since high school," Millikan said. "I've never not had a job."

In all, 21 city employees - a record number - will step down as part of a wave of early retirements.

Six more, including City Manager Femi Folarin and Economic Development Director Ray Moller, will leave at the end of this month.

The retirements are part of the city's effort to cut costs, and city spokesman Sue Olafson said Elgin will save about $2 million a year as some positions are eliminated and others are filled by people making less money.

The retirements mean the city also is losing 484 years of service, or an average of 23 years each.

"That's a lot of experience and institutional memory," said Mayor Ed Schock. "It's going to be tough to replace people. This is a sizable number, no doubt about it, and a lot of them are key positions. It's going to make everybody's job tougher."

While 21 people is substantial, it is less than 4 percent of the city's work force, which will stand at 664 after retirements are complete in June.

Olafson said 21 is the largest number of employees the city has ever had retire at once.

The exact benefits for each Elgin employee varies, but generally speaking, early retirement mean workers must pay additional money - which the city matches - into the Illinois Municipal Retirement Fund to ensure a larger monthly pension in the long run.

For example, an employee making $36,000 a year with 25 years' experience must pay $8,100 into the fund to increase his monthly pension from $1,410 a month, based on 25 years of service, to $1,650 a month, based on 30 years' service.

Schock said Sean Stegall, the current assistant city manager who will become the city manager when Folarin steps down, has a reorganization plan and will be bring it to the city council soon.

Stegall could not be reached for comment Monday and Tuesday.

Schock said more people could leave the city's employ as well because the one-year window for people to take advantage of the program runs from now through May 11, 2010.

Gail Cohen, the city's human resources director, said early retirement is an option that cities can decide to offer when they want to cut costs or restructure.

Applicants must have at least 20 years of total municipal service and must be at least 50 years old by their last day.

Cohen said Elgin has offered early retirement in 1998, 2004 and now.

Schock said some positions were based on growth, such as a spot in the development office dealing with permits, and might not be filled until the economy rebounds.

"The timing is right and a lot of it has to do with the window of early retirement," he said.

Meanwhile, people like Millikan are reflecting on the Elgin of yesteryear.

Millikan can recall when city reports were typed up on an actual typewriter. Now, there are computers, GPS devices and other technology to make communication instant.

Millikan said he plans to look for work, probably of a part-time nature, in the fall.

In the meantime, he'll spend plenty of time with his three grandchildren and wife, Karen.

"We're going to start dating again over the summer," he said. "We're going to have some fun. We'll do some traveling."

Early: City is losing 484 years of service