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FOR IMMEDIATE RELEASE
July 10, 2002
PR-184-02
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG SIGNS EARLY RETIREMENT INCENTIVE LEGISLATION

Testimony by Mayor Bloomberg During Public Hearing on Local Law


"The bill before me today is Introductory Number 233-A, sponsored at my request by Council Member Weprin. This bill will preserve the City's right to offer qualified City employees an opportunity for early retirement under State law. This early retirement incentive program will be offered to non-uniformed municipal employees during an 'open period' for retirement from July 11, 2002 until October 8, 2002.

"The retirement program has two incentive programs from which City employees can choose only one program. The first incentive, 'Part A,' is for current City employees who are at least 50 years old and have worked for the City for at least ten years. Should these employees choose "Part A," they will receive an additional retirement credit for each year of pension service, up to a limit of three years, on top of or added to the amount of years they have worked for the City, thus creating a larger pension benefit. These 'bonus' years will provide a powerful incentive toward early retirement. The plan also allows the Administration to target positions for early retirement. "Part A" allows all municipal employers to join in.

"The second incentive, 'Part B,' is for members who are at least 55 years old with 25 years of service. These employees may retire without incurring any reduction in their pension benefits, if they choose to retire during the 'open period.' However, the Mayor may deny this incentive to positions whose loss he deems 'critical to the maintenance of public health and safety.' "At a time when the City faces a severe budget deficit, we must consider every available opportunity to reduce the City's operating costs. This proposal, combined with a soon to be negotiated severance package, will provide the City with $50 million in savings."

 

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