25 communities accept early retirement law

Twenty-five cities and towns, as well as four municipal utilities, have received state approval to launch early-retirement programs made possible by the “municipal relief” bill signed into law this past summer.

The law enables municipalities to create an early-retirement program for employees with at least 20 years of service without having to pay out accrued sick and vacation days. But the law also makes early retirement more appealing to workers: Employees can be credited with up to three years of additional service, or a higher official age, for the purpose of calculating their retirement benefit.

In Methuen, where 39 city and school employees have expressed interest in the program, the city is in position to save up to $1.7 million annually, according to Mayor William Manzi.

The law prohibits cities and towns from immediately replacing all workers who take early retirement. In any one year, the amount devoted to salaries and other expenses related to new hires cannot exceed 30 percent of what is being spared through the early retirements.

Manzi said the program will prevent layoffs in Methuen and put the city in better position to grapple with what is likely to be a challenging fiscal 2012.

“This is a better vehicle for us, as we start looking toward next July,” Manzi said. “Ultimately, it will be a job saver.”

The other cities and towns that met the state deadline for setting up an early-retirement program are Athol, Barnstable, Carver, Charlton, Chatham, Chicopee, Everett, Haverhill, Holyoke, Kingston, Leicester, Mansfield, Medford, Milton, Norwood, Salem, Tisbury, Waltham, Warren, West Springfield, Westford, Westminster, Worcester, and Yarmouth.