Retirement incentives too costly, officials say

CANTON — St. Lawrence County officials said Monday that they will recommend that lawmakers not offer either of the state's early-retirement incentives to employees because they are too expensive.

"Why would the state offer an incentive that costs municipalities money?" asked Legislator Vernon D. "Sam" Burns, D-Ogdensburg. "It doesn't make sense."

Legislators reserved judgment until they see concrete financial figures, but could decide at a special meeting Monday. Lawmakers tabled until Monday's meeting a motion not to offer the incentives.

The state Legislature approved the incentives May 28. Municipalities can opt not to offer them.

The first allows workers who are at least 50 years old with 10 years of service to receive an additional month of service credit for every year they've worked — up to 36 months. Officials dismissed this option last month because the county would have to pay penalties to the state pension system for workers who retire before the age and service length their tier requires.

The other option allows workers at least 55 years old with 25 years of service to retire without penalty, but Christopher S. Boulio, human resources director, said it requires counties to pay 110 percent of workers' salaries.

"Neither of us feels this is a good financial move, but that's your decision," County Administrator Karen M. St. Hilaire told lawmakers.

Mr. Boulio said he identified 79 employees who qualify for the incentives, and 54 of them already have filed for retirement. If higher-paid employees retire and some of their positions are filled by lower-paid workers or eliminated, Mr. Boulio said, the county could save about $973,000.

"I looked conservatively at what positions we could eliminate," he said. "We would realize that savings without these incentives."

Mr. Boulio and Ms. St. Hilaire have said the Legislature's decision last fall no longer to offer reimbursement for retirees' Medicare Part B supplemental health coverage after Jan. 1 is likely driving the number of workers retiring this year.

He said some employees are waiting to see whether the Legislature will offer the state's early-retirement incentives before making a final decision about retiring.

"Clearly part of the decision is short- versus long-term consequences — paying 110 percent of salary plus the legacy cost of health benefits," said Legislator J. Patrick Turbett, D-Potsdam.