Some San Ramon employees will be offered early retirement under a plan approved in March by City Council.
City Manager Greg Rogers has been authorized to negotiate with retirement-eligible employees 50 years old and older and offer a lump-sum payment of up to five months of the employee's base salary. The program will run from April 1 to Dec. 31 on a case by case basis.
Rogers has also been authorized to negotiate to allow some workers to continue health coverage into retirement.
Retirements would only be allowed if there's a saving to the city after two years, and only if the retirement wouldn't adversely affect city services.
Workers have a window of about 90 days, ending June 30, to let Rogers know if they hope to retire.
The early retirement plan will hopefully save the city money as long-time employees may cost more. Typically a new employee starts out at a lower pay scale, and may be required to contribute more toward retirement than current workers.
Under a cost analysis provided City Council, a program manager, for example, earning total compensation of $201, 639 could be offered a cash incentive of up to $52,940. If the city chose to leave the position vacant, it would save $148,699 the first year (the employee's salary minus the cash incentive) and the entire salary the next.
According to the cost analysis, if someone from inside the department were to fill the slot, the city would save $23,079 after two years. If another employee chose a lateral transfer, the city would save $35,734 after two years and if a new employee were hired, the city would save $43,041 after two years.
The plan was approved by City Council under its consent agenda at its March 25 meeting.