Metro proposes $1,000 per year retirement buyout for staff

A proposed retirement incentive offers Metro employees $1,000 for every year of service.

Mayor Freddie O'Connell's administration filed legislation with the Metro Council on Friday. The measure creates a voluntary buyout program for eligible workers. The plan mirrors similar incentives passed by the city in 2012 and 2004.

The council will consider the bill for the first of three votes at its Nov. 17 meeting. Employees must apply for the incentive by Jan. 21. In most cases, participants must work their final day at Metro by Feb. 26.

Eligibility depends on pension status. General government employees qualify for normal pension benefits at age 60 if their age plus years of service equals 85 points. They also qualify at age 65 with five years of service. Police and fire employees qualify for normal pension benefits at age 53 if their age plus years of service equals 75 points. These employees receive the $1,000-per-year incentive.

Employees eligible for early, reduced pensions receive $500 per year of service. General government employees qualify for this tier at age 50 with at least 10 years of service. Police and fire employees qualify at age 45 with at least 10 years of service.

The number of eligible employees is not yet clear. In 2012, approximately 2,600 employees were eligible for a $700-per-year offer. A few hundred accepted that incentive. In 2004, approximately 440 eligible employees accepted a $500-per-year offer.

Alex Apple, a spokesperson for the mayor's office, said the legislation establishes a voluntary program. The office worked with Human Resources and the Department of Finance to draft the bill. Apple stated the program aims to achieve savings in the operating budget while rewarding employees who have served the city. The move coincides with the upcoming budget cycle. Revenue projections for the coming year, which begins in July, are typically finalized in January. O'Connell told reporters late last month that FY28 revenues are projected to be flat. He said next year will feel as tight as any budget during the current term.