Post by backdoorit on Aug 19, 2015 17:14:15 GMT -5
NIFA nixes borrowing for Nassau retirement incentive
Nassau cannot borrow to pay for the termination costs of county employees taking an early retirement incentive and must pay for the expenses out of its operating budget, the head of a state monitoring board in control of the county's finances said Wednesday.
The Nassau Interim Finance Authority will meet Wednesday night and is expected to approve a retirement incentive that would pay departing Civil Service Employees Association members $1,000 for every year of service with the county, said NIFA board chairman Jon Kaiman.
Departing employees would also collect pay for unused vacation and personal days.
But in a major policy reversal, Kaiman said NIFA will no longer approve bonding to pay for the program.
Kaiman said the board's position has "evolved" and members now believe the program -- designed to save millions of dollars in labor costs by encouraging high-paid employees to retire -- should be funded by program's savings.
"This is the direction we plan to move in going forward," Kaiman said.
In an interview, County Executive Edward Mangano said Nassau is now in a position financially to absorb the incentive and termination costs, which he estimated at about $5 million if 100 employees accept the offer.
"We will be able to achieve this," said Mangano, noting that no county executive in recent memory has paid for termination pay out of the operating budget. "We have been systematically repairing the county's finances "
County officials had said previously that Nassau would pay for the program from the operating budget only if fewer than 50 employees applied. If more than 50 employees took the incentive, the county had expected to borrow to pay for the costs.
To date, 115 county employees have signed up for the incentive but some could pull their papers by the Sept. 15 deadline, Mangano said.
An analysis by Eric Naughton, Nassau's deputy county executive for finance, said the incentive, approved by the GOP-controlled legislature this month, will save $12 million annually in salary and benefits.
CSEA president Jerry Laricchiuta said his priority is ensuring that Mangano replaces a high number of the retirees.
"Head count is very low and every department is understaffed," he said.
Since June 2011, 400 CSEA members have been laid off and 560 retired with incentives, including nearly 200 who took an identical program last year.
Mangano said the county will replace, some, but not all, of the retiring employees.
New hires would take longer to reach top salaries and pay a percentage of health and pension costs under a labor deal signed last year.
Nassau cannot borrow to pay for the termination costs of county employees taking an early retirement incentive and must pay for the expenses out of its operating budget, the head of a state monitoring board in control of the county's finances said Wednesday.
The Nassau Interim Finance Authority will meet Wednesday night and is expected to approve a retirement incentive that would pay departing Civil Service Employees Association members $1,000 for every year of service with the county, said NIFA board chairman Jon Kaiman.
Departing employees would also collect pay for unused vacation and personal days.
But in a major policy reversal, Kaiman said NIFA will no longer approve bonding to pay for the program.
Kaiman said the board's position has "evolved" and members now believe the program -- designed to save millions of dollars in labor costs by encouraging high-paid employees to retire -- should be funded by program's savings.
"This is the direction we plan to move in going forward," Kaiman said.
In an interview, County Executive Edward Mangano said Nassau is now in a position financially to absorb the incentive and termination costs, which he estimated at about $5 million if 100 employees accept the offer.
"We will be able to achieve this," said Mangano, noting that no county executive in recent memory has paid for termination pay out of the operating budget. "We have been systematically repairing the county's finances "
County officials had said previously that Nassau would pay for the program from the operating budget only if fewer than 50 employees applied. If more than 50 employees took the incentive, the county had expected to borrow to pay for the costs.
To date, 115 county employees have signed up for the incentive but some could pull their papers by the Sept. 15 deadline, Mangano said.
An analysis by Eric Naughton, Nassau's deputy county executive for finance, said the incentive, approved by the GOP-controlled legislature this month, will save $12 million annually in salary and benefits.
CSEA president Jerry Laricchiuta said his priority is ensuring that Mangano replaces a high number of the retirees.
"Head count is very low and every department is understaffed," he said.
Since June 2011, 400 CSEA members have been laid off and 560 retired with incentives, including nearly 200 who took an identical program last year.
Mangano said the county will replace, some, but not all, of the retiring employees.
New hires would take longer to reach top salaries and pay a percentage of health and pension costs under a labor deal signed last year.
