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Thursday, Nov. 05, 2009

Merced County sees retirement plan as win-win

About 300 employees will be offered buyout plan

Merced County will offer voluntary retirement plans to about 300 employees in an effort to reduce ongoing expenditures and avoid future forced layoffs.

The terms of the plan allow active employees -- and a handful of those who were recently laid off -- to take a one-time buyout if they give notice by Dec. 4 and leave their jobs by Dec. 19.

Voluntary retirees will get one week's pay for each year of continuous service to the county, according to the plan's guidelines.

The payouts cannot exceed $20,000, and the offer excludes elected officials and upper-level management employees.

Katie Albertson, the county's spokeswoman, said the voluntary retirement plan was created in negotiations with the county's labor unions.

"We're pleased that this was approved by the board," said Kristy Waskiewicz, of the American Federation of State, County and Municipal Employees local 2703, which represents most county employees. "We think it is a win-win situation."

She had no indication how many employees might agree to the arrangement, but said there was no cap on the number of takers.

"The board's goal is to provide services while being fiscally responsible and planning for the future," Albertson said. "We're hopeful that we'll be able to reduce those involuntary layoffs with this."

On Aug. 18, the Board of Supervisors cut 89 positions as part of $33 million in budget reductions. They have since hired back some workers, but 42 former county employees are still waiting for a chance to be rehired.

"What we are anticipating is a continued decline in revenue," Albertson said. "We know that we are in a multiple-year decline and we are looking at a multiple-year budget reduction plan."

A handful, less than five, of those laid-off workers can apply for the voluntary retirement plan as long as they give up their right to be rehired, Albertson said.

The payout would not count as earnings that would boost pension payments. Taxes will be taken from the payments, which will be paid on Jan. 15, 2010.

Guidelines for the program were approved by the Merced County Board of Supervisors on Tuesday.

Iris Tatum, wife of Merced County CEO Dee Tatum, and Kelly Pedrozo, wife of Supervisor John Pedrozo, are both eligible for the voluntary retirement program. They do not plan to participate, Albertson confirmed.

The voluntary retirement plan is just one way the county and its labor unions have looked at reducing the costs of salaries and benefits, which add up to 41 percent of the county's total budget this year.

County and labor union negotiators are still meeting about possible furlough plans, they said, without elaborating because labor negotiations are confidential.

Reporter Danielle E. Gaines can be reached at (209) 385-2477 or dgaines@mercedsun-star.com.