DOWNEY - In an effort to entice some of its older workers to retire, the Downey City Council on Tuesday approved a package deal for employees who agree to an early retirement.According to terms of the deal, the city will pay 60 percent of the worker's annual salary (plus premiums) into an annuity investment over a five-year period. The employee chooses how they receive the annuity payments from nine optional payment streams that cover five through 10 years, or for life. Keenan and Associates, hired by the city Tuesday to implement the program, estimated 10 employees will opt for early retirement. To qualify, a worker must be at least 55 years old and have been with the city at least five years. "Although the plan actually estimates 17 employees opting in, historically seven of those positions would be filled in the future," finance director John Michicoff wrote in a staff report. The retirement plan is projected to save Downey $4.3 million over five years or $860,000 annually. Keenan and Associates will host group orientation meetings for city employees and a financial advisor will be available for questions, according to the staff report. Keenan will be paid a 6 percent commission from all retirement checks it processes.
********** Published: March 15, 2012 - Volume 10 - Issue 48