May 20, 2009 in City

Spokane County adds health care incentive to retire early

Some workers eligible for as much as $20,000
By The Spokesman-Review
 

Health care account

Requirements: Five to 10 years of service, eligibility for retirement.

Incentive: $10,000, with an additional $1,000 per year of service.

Deadline: Employees must decide by June 30 to take the deal and retire by July 31.

Hoping to trim payroll costs, Spokane County will begin encouraging early retirement for eligible employees.

As an incentive, the county will help with the cost of medical insurance for those taking advantage of the voluntary program until Medicare kicks in.

The plan is seen by county officials as a way of possibly reducing the number of workers who might have to be laid off next year if tax revenue continues to lag.

County commissioners voted unanimously Tuesday to offer payments of up to $20,000 over 42 months to special Health Retirement Accounts that would be set up for longtime employees who opt for early retirement.

The county doesn’t control the rules of its various employees’ retirement plans, which are run by the state, Chief Executive Officer Marshall Farnell said. It can, however, offer incentives to employees who qualify for retirement but aren’t considering it because they can’t afford medical insurance, by placing money in special accounts that can be used to pay the premiums.

Those who have worked between five and 10 years and are eligible to retire will qualify for $10,000, with an additional $1,000 per year of service up to a maximum of $20,000. But they’ll have to decide by June 30 and retire by July 31.

Human Resources Director Cathy Malzahn said there could be as many as 260 employees who would be eligible for some level of payment.

In some small departments, more than half the employees might qualify for the insurance payments. If they all opted to retire, it could create a staffing problem, but giving department heads the power to “pick and choose” who could take advantage of the offer could create legal problems, Steve Bartel, the county’s risk manager, said.

Commissioner Mark Richard suggested some might be willing to come back and train their replacements.

While the plan may be attractive to county workers in their early 60s, it probably won’t be much help to sheriff’s deputies, said Detective David Skogen, of the deputies union. Deputies typically retire after 30 years, in their early to mid-50s.

“Law enforcement officers have earlier retirement age for a reason. Thirty years is a long time to do what I do,” Skogen said.

But 42 months of payment toward health insurance will leave them far short of qualifying for Medicare. He urged commissioners to remove the cap, arguing that extending the insurance payments would be cheaper than having the deputies stay on the job an extra 10 years and paying their salaries and benefits.

Commissioners said, however, that while the plan wasn’t perfect, it was the result of a series of discussions that led to several changes, such as extending the time limit from 18 months to 42 months.

Staff writer Jim Camden can be reached at (509) 459-5461 or by e-mail at jimc@spokesman.com.


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