Denver expects to save $11M through early retirements
The city of Denver anticipates saving at least $11 million a year because 322 employees accepted a retirement incentive offer, Mayor John Hickenlooper announced Tuesday.
But the city also plans to fill about half of the positions left vacant by the retirements "to avoid interruption of vital services to the community," a statement from the mayor's office said.
Hickenlooper proposed the voluntary retirement incentive program for senior Denver workers in August as a way to cut the cash-strapped city’s payroll costs.
The offer was for workers covered by the Denver Employees Retirement Plan. Eligible employees needed to be either at least 65 years old, or at least 55 years old with their age and years of city service adding up to 75 or more.
Hickenlooper offered those workers $500 a month for 30 months after their retirement.
There were 932 employees eligible for the retirement incentive program, and 322 took the offer.
"The retirement incentive program was a win-win for the city and for employees who chose to accept the offer," Hickenlooper said in the statement. "… We are grateful for the service these employees provided to our community and wish them well in the next chapter of their lives."
The retirements also will help the city reduce the number of workers it intends to lay off to trim the budget, officials said.
When the proposed city budget was released in September, officials anticipated 176 layoffs. Now, they expect fewer than 80 workers to be let go.