By Nick Mattera
Niagara Gazette
NIAGARA FALLS —
The Niagara Falls School Board has adopted a retirement incentive program that could save the district more than $2 million over the next five years.
Phil Mohr, administrator for human resources, said the district has targeted 19 employees who have worked with the district for at least 10 years and is at least 50 years old to offer the early retirement incentive to. Generally, teachers retire at age 60 with 35 years of service to ensure full benefits from the state pension system.
The approved incentive would vary for each employee depending on the individual’s years of service, but would reduce their penalty for retiring early translating to an increase in their pension.
The program which has to be adopted by school districts prior to this Friday, gives employees until Aug. 31 to inform the district of their intentions.
Mohr said the incentive had been extended to the first round of 19 employees with mixed results.
“We have contacted all 19 employees some of whom have accepted the incentive, some who have not,” Mohr said. “We will extend the incentive out to additional employees, because the idea is to get as close to the $2 million goal as possible.”
Mohr said the majority of positions lost through the incentive would be filled by teachers at a lower pay scale, translating to immediate cost savings.
School Superintendent Cynthia Bianco said while some of the positions will be eliminated through attrition, the retirement incentive helps with a necessary restructuring of certain departments.
“This is quite a conscience effort to restructure,” Bianco said. “One thing we have to do is show 50 percent reduction in costs, it’s a win-win situation, it helps the employee who takes the incentive and also us as a district in restructuring.”
Over the five-year period, Mohr said the district would save very little in the first year, due to immediate costs, but close to $500,000 in the subsequent four years if they receive 19 employees willing to retire.
