Dean proposes buyout program for Metro employees

Friday, November 9, 2012 at 12:30pm

Mayor Karl Dean today will file legislation authorizing a buyout program for Metro employees, according to an email sent from Metro’s Human Resources Department to Metro Council members.

“As designed, the program is similar to one adopted in 2004 and would provide eligible employees a retirement incentive equal to $700 for each year of credited service with the Metropolitan Government,” wrote Rita Roberts-Turner, director of Metro Human Resources. “In announcing this program, Mayor Dean acknowledged the pivotal role played by Metro's outstanding and dedicated workforce in the providing of services to our citizens. He believes that at this historic point in Metro's history — as we celebrate the 50th anniversary — a retirement incentive at this time will provide a unique opportunity for departments to restructure and be in a better position to serve our constituents in the years to come.”

The mayor’s office said in a release that, in the short term, the program will be “cost neutral” to the Metro government and that the cost of incentive payments “will be recovered as some positions are abolished due to efficiencies gained through reorganization.” Dean’s office estimated the total amount of the incentive payments for the new program would fall between $5 million and $7 million. The mayor framed the move as a chance for department heads to find savings.

“Nashville is fortunate to have an outstanding and dedicated workforce, including many employees who have worked for Metro a long time,” Dean said, in the release. “This incentive program gives our department heads additional flexibility to reassess personnel needs and look for savings. Just as major corporations use retirement incentive plans to improve their business, this program provides Metro a unique opportunity to better position our departments to serve Nashville residents in the years to come.”

The program would offer eligible Metro employees $700 for each year of service with the city. About 1,590 Metro employees would be eligible for the program, according the mayor’s office. They would have until Jan. 18 to accept the buyout and must leave their jobs by Feb. 28 if they do.

The mayor’s office said the plan includes a provision that would defer retirements until June 30 police officers, firemen and other Metro employees in areas related to public welfare and safety.

8 Comments on this post:

By: BigPapa on 11/9/12 at 2:54

Im always glad to see the government offer these type of programs. Its a very business like approach to the biggest cost of the gov. -people.

By: asdfgh on 11/10/12 at 7:15

I wonder if this includes MNPS teachers?

By: Kosh III on 11/10/12 at 8:18

If they are goihng to offer a "business like approach" then offer "business like" amounts.
Nissan in 08 offered $100,000 to 125,000 per employee for 6000 workers.
Dean is offering a pittance.

By: jwk6179 on 11/10/12 at 11:32

I agree with Kosh III. The state offered a buyout several years ago with only $500 per year of service, along with a clause of anyone taking the buyout would never be eligible to work for the state or any company that had a state contract or dealings with the state. After taxes and paying for your COBRA insurance, most people were only left with a couple thousand dollars top. Very few people that were offered the buyout, took the buyout.

By: opalsweat on 11/12/12 at 9:35

IS THIS FOR MNPS SUPPORT STAFF ALSO..

By: govskeptic on 11/12/12 at 12:36

Kosh: I doubt your figures on Nissan, nevertheless, that is private business
and has no connection to those working within government service.

A pittance to you sounds like quite a bit to taxpayers doing the funding.

By: bfra on 11/13/12 at 2:45

If the buyout works like retirees, they can take the (taxpayer's) money, then if they know the right people, go back to work for Metro at $20 or better per hr.. But, they have to keep it under a certain amount per wk. to keep drawing the (taxpayer's} money.

By: Kosh III on 11/13/12 at 8:30

govskeptic:
A 2 second search finds this
http://www.nytimes.com/2008/07/31/business/31auto.html?_r=0

" will be offered a lump sum of $100,000 or $125,000 depending on tenure, as well as medical and car-buying benefits,"