2C – THE NEWS-JOURNAL Friday, May 15, 1998

Voluntary retirement plan

is a big hit in Daytona

DAYTONA BEACH – Eighty-two city employees will give up their jobs over the next year under a one-time Voluntary Incentive Plan offered by the city. The 82 workers represent about 8.4 percent of the city’s full-time workforce of about 975 people. This amounts to about one-third more than the estimated 60 employees expected to accept the offer. Department or division heads opting for the plan include City Engineer Ray Lawrence, Employee Relations Administrator Fred Meincke and Development Services Director Jerry Langston. Lawrence and 25 others will end their city employment June 27; Meincke and 30 more on Jan. 30, 1999; and Langston and the remaining 24 will leave June 26, 1999.

The plan, approved by the City Commission in February, is intended to reduce the city’s general fund budget. It is administered by Michigan-based Employers Preferred Corporation, which also designed the plan. The budget reduction is based on replacing a number of higher-salary, longtime employees with new, entry-level-salary employees. That would tend to keep the workforce total at a steady level, but City Manger Carey Smith said this week he’ll "review the need for each (vacated) position before it’s filled."

The only savings estimate now available is based on a total of 41 employees accepting the plan. The savings are estimated to range over eight years, from $42,500 in the first year to $2.8 million in the eighth year. City Commissioner Tracey Remark, who strongly supported the plan offered to all city employees with 10 or more years of service, said she’s pleased it appears to have resulted in a successful effort that benefits both the city and its employees. "I’ve had many employees thank me personally for supporting the plan. A lot of them said they were glad the opportunity was made available to them," Remark said.

Those who have accepted the city offer to give up their jobs will receive a monthly income spread out over eight years with full survivor benefits. In addition to full payment for unused personal leave time, the employees will receive an amount equal to 25, 50 or 75 percent of one year’s salary during the eight-year span.

Under the plan, the 25 percent level applies to those likely to have higher salaries – employees with 30 years or more of service. Employees with 25 to 29 years of service will receive the 50 percent level and those with 10 to 24 years will receive the 75 percent level. Reflecting lower-age retirement requirements for police officers and firefighters, the 25, 50 and 75 percent levels for them are based on fewer years of service.