Town Of Normal Could Cut Payroll With Early Retirement Booster | WGLT

Town Of Normal Could Cut Payroll With Early Retirement Booster

Sep 15, 2017

The Town of Normal wants to cut its payroll because of revenue losses. Staff are recommending the town offer early retirement incentives to 18 people.

The program outlined in documents prepared for Monday's Normal Town Council meeting would include those 55 or older, with more than 15 years of service and at higher grades of pay. The people targeted would be eligible for incentives including $500 per year of service capped at 25 years. That's if they leave by the end of March. If they leave by the end of 2018, they could get $250 per year of service up to 25 years.
The town is also offering to cover a year of insurance at the full cost for individuals and 50 percent for families.

Payments would be made 90 days after the retirements take effect to avoid impacting Illinois Municipal Retirement Fund obligations.

The town indicated as many of those jobs as possible would remain vacant for an extended period. For positions considered crucial, the town would try to hire some replacements at much lower salaries.

Staff said flat sales tax receipts, lower income tax revenue, state rake-offs, and the loss of $1.2 million per year from the Metro Zone Bloomington summarily ended are creating the need to cut town spending.
McLean County Board Finance Committee members also recommended this week that the county offer an early retirement program to make up a projected $1.5 million budget gap. In that case, 61 county workers would be eligible for that program if the full board approves next week.

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