Early retirement proposal passes unanimously

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RAPID CITY, S.D. - Rapid City Mayor Steve Allender's plan for an early retirement incentive for long-term city employees has passed unanimously among City Council members.

The plan is to offer full-time employees that have 20 years of experience that are eligible for retirement to receive three months of bonus pay in exchange for choosing to retire by December 31 of 2016.

There are currently 92 employees who meet the requirements for the program.

Most eligible employees are at the top of their salary. The people hired to fill their spots would be lower on the pay scale, allowing funds to be used to balance the city's budget.

RAPID CITY, S.D. - Rapid City Mayor Steve Allender has floated a proposal to allow city employees who meet certain requirements to retire early - and potentially save the city hundreds of thousands in payroll expenses.

The City of Rapid City has nearly 800 employees, of whom nearly 100 would be eligible for the incentive program. Many of them are at the top of their pay scales. If approved by the Rapid City Council, the program would offer three months of bonus pay for those who retire by the end of the year.

“Many of those employees are near or at the top of the pay scale, so mathematically, if they can make the decision to retire by the end of the year, we can hire their replacements at a lower wage. We save money. So it's a completely voluntary program. There's no consequence for not electing to do it. It's just something we want to throw out there.”

If approved by the council, the proposal would only be available for 90 days and would be a one-time-only opportunity.

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