Top early retirement for senior St. John's staff over $500K

A St. John's city councillor has released the amount of money paid out to individual senior city staff members who availed of an early retirement offer, totalling nearly $7.1 million.

Coun. Art Puddister released how much each former staff member will receive in their severance packages.

• $7M early retirement incentive bill for city of St. John's senior staff
• Paul Mackey 1 of 5 senior staff retiring early from St. John's city hall
• 'There will be a cost saving,' Dennis O'Keefe says of early retirement offerings

The highest payout at nearly $535,000 went to Paul Mackey, the former deputy city manager of public works. Close behind is Dave Blackmore, former deputy city manager of planning, development and engineering, with a nearly $520,000 package.

There's a lot of detail to be answered, but I take it we will be saving money in the long run.- Art Puddister

Of the 29 staff members who took the offer, only one severance package comes in under $100,000.

Puddister said he hopes the general public will understand that while the price seems a high one to entice staff to retire early, they would be owed much of the money regardless.

"When you look at the detail probably over half of that could be annual leave, sick leave and severance, which they would be entitled to anyway," said Puddister.

The money will be paid out in a salary continuance over a 12- to 18-month period before the retired staff move over to their pensions, Puddister said, adding the intent was to save the city money in the long run.

Council had approved the initial early retirement incentive proposed in November last year, which estimate a $3.7-million cost for salary continuation.

The total early retirement incentive program total cost to date is $3.8 million, with a nearly $7.1 million overall cost with sick leave and annual leave payouts factored in.

Puddister added staff who started with the city prior to 1980 had a different agreement that enabled them to accrue sick leave. After 1980, that program was stopped.

He said numbers provided indicate a roughly $3-million savings over the next two years due to the 29 early retirement packages offered in 2015.

'This was a one-off'

However, Puddister added he worries this may set a precedent for early retirement offers the city can't afford to deliver.

"I'm a little bit concerned about that aspect of it, but on a go-forward basis this was a one-off, I trust, and we'll see how it goes," he said.

If you can spend a dollar and save two, then in the long run then that's a good deal.- Dennis O'Keefe

"As an example, the city solicitor's office, he retired, he hasn't been replaced, but it's only about a year ago we actually added a fourth solicitor, so the question I have is, you know, are we now contracting out to law firms now that we have to cover this off," he said. 

"There's a lot of detail to be answered, but I take it we will be saving money in the long run."

Puddister added the 29 retirements are not expected to be replaced.

Numbers not 'flimsily kicked out'

While the numbers may seem high on first glance, Mayor Dennis O'Keefe said the figures were worked out by human resources staff to accurately pay departing employees what they had earned.

"These figures weren't flimsily kicked out, they were worked through by our people here based upon salary and based upon the amount of time that's left until they would retire and then go on pension," said O'Keefe.

"But again, if you can spend a dollar and save two, then in the long run then that's a good deal."

As for the information being made public with Puddister tabling them at Monday night's council meeting, O'Keefe said the public has a right to know this kind of information.

"When it comes to figures and facts and things like information Coun. Puddister tabled today, that's the way it should be," O'Keefe said Monday.

"Everybody should know what we're doing down here and how we're doing it when we're spending taxpayers' money."

Retirement package offers

Below are the amounts paid out to each positions, from highest to lowest.

• Deputy city manager, public works: $534,615.10
• Deputy city manager, planning, development and engineering: $519,654.41
• Deputy city manager, financial management: $424,311.79
• City solicitor: $383,294.23
• Deputy city manager, community services: $376,580.51
• Manager, inspection services: $353,623.95
• Supervisor, capital works: $269,599.10
• Manager, information services: $262,509.39
• Manager, community development: $259,409.19
• Foreperson, water and wastewater: $201,842.78
• Financial accountant III: $157,963.36
• Senior building inspector: $150,892.11
• Tenant relations officer: $144,800.71
• Planner III: $144,464.42
• Citizen services representative II: $134,128.33
• Streets inspector III: $130,725.16
• Office Services Supervisor: $129,413.62
• Tourism development co-ordinator: $126,823.44
• Drafting technician: $117,958.58
• Director, roads and traffic: $115,851.02
• Electrical inspector II: $114,475.75
• First class operator, excavator: $113,854.07
• Clerk, inventory control: $112,083.62
• Environmental services operator: $110,739.81
• Maintenance repairperson I: $109,159.63
• Environmental services operator: $106,773.45
• Citizen services representative I: $103,786.04
• Stockroom clerk: $103,739.96
• Operations assistant, fleet services (retires June 30, 2016): $94,267.03