Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 13, 1991                   TAG: 9103130291
SECTION: VIRGINIA                    PAGE: B-1   EDITION: METRO 
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE:                                 LENGTH: Medium

PROPOSED CITY RETIREMENT PLAN WELL RECEIVED

"It looks good to me. I am strongly considering it if it's offered," William Mullins, manager of signals and alarms for the city, said Tuesday after being briefed on the proposal.

"There are many factors to consider: your age, years of service, age of your wife and other things. It's not an easy decision," said Mullins, 63, who has worked for the city for 42 years.

Finance Director Joel Schlanger and city pension officials met Tuesday with employees who would be eligible for the incentives to explain them and answer questions.

At the first session, 25 of 54 workers who attended indicated they were interested in the plan, and 25 said they would consider it, Schlanger said. Only four employees rejected it.

"It was quite positive. There were a lot of questions and many employees brought their wives," he said.

The employees are being surveyed to determine their interest. They have been asked to give a preliminary, non-binding decision by Friday.

City Manager Robert Herbert said the survey will help determine the projected savings if the plan is adopted. All of the employees are, or will be, eligible for normal retirement by June 30.

City officials said the early indications are that some employees who had been considering retirement are likely to opt for the plan if the city goes ahead with the plan to reduce payroll costs.

In some cases, pension checks for workers could increase by $300 to $500 a month because of the incentives, Schlanger said. The employees would also be free to get another job without any reduction in their pension, he said.

Employees who had not planned to retire soon will be less likely to choose the plan, Schlanger said, because they may consider the gap between their salaries and pension checks too wide. Several employees who did not want to be identified said Tuesday that they probably would not be interested.

"Each case is different. The circumstances are different in almost every case," Herbert said. "Not everyone will take it. Some will struggle with it."

The city has two retirement systems. Under the normal policy, the size of a pension check is based on the employee's salary and number of years with the city. Retired workers can receive up to 60 percent of their salary in one retirement system and a higher percentage in the second system, depending on their years of service.

Under the proposal, the city would provide a voluntary, one-time incentive to the employees to retire now. Retirement benefits would be calculated on the basis of the employee's current salary, rather than a three-year average, and employees could receive credit for more years of service.

In addition, employees who retire now would receive a monthly supplement until age 65, based on their years of service ($10 a month for each year of service).

City officials said the supplement would help cover the cost of medical insurance or other expenses.

Herbert said the plan is not designed to make any substantial reduction in the city's work force because many older workers who might choose to retire would be replaced because their jobs are needed, especially in public safety.