Forest preserve to offer retirement incentive

The Lake County Forest Preserve District likely will offer voluntary retirement incentives to eligible employees as a way to cut costs in the face of unprecedented budget challenges.

The program, recommended Thursday morning for approval by the district’s finance and administrative committee, was introduced as a way to reduce staffing levels and personnel costs, which amount to about 70 percent of the district’s expenses.

“This could potentially save up to $2.9 million over the next three years,” said Tom Hahn, the district’s executive director.

As of March 15, the district will have 26 staff members aged 55 and older who are eligible for retirement under Illinois Municipal Retirement Fund rules. The accelerated retirement option would not be offered to Hahn and other top managers.

Pending final approval March 15 by the full forest preserve board, eligible employees will be able to choose one of three options:

Ÿ Continue health and dental insurance benefits and make contributions at the same monthly rate as full-time regular employees for two years.Ÿ Continue health and dental insurance benefits and make contributions at the same monthly rate as full-time regular employees for one year, and receive one week of pay for every two years of service above 7 years not to exceed $20,000.

Ÿ Not participate

Structured the same as a plan offered by Lake County the past two years, the voluntary incentive could reduce the need to consider involuntary layoffs later, the committee was informed.

#147;It#146;s a program that has been used successfully in other organizations,#148; Hahn said. #147;We already have received a lot of questions.#148;

Among the 26 eligible forest district positions, 11 could be left vacant if the option is chosen. Additional savings could occur if other positions were filled at lower cost.

Cost savings could range from $475,000 if only those who would be replaced took the incentive to $2.9 million if only those in positions that wouldn#146;t be filled took it.

The most likely scenario envisions a mix with expected savings ranging from $1.6 million to $2.3 million over three years. Participating employees would have to retire by June 30.

The district likely will have to use several strategies to maintain a balanced budget, minimize the impact on operations and maintain good morale among remaining employees who will be asked to do more, Hahn informed the committee.

The district is facing a $2.7 million drop in property tax revenue in the coming budget year because of falling property values.