Hollister council members Monday will consider an idea for an employee retirement/resignation program that would pay workers lump sums – at least $25,000 if an individual has reached five years of service.
Council members will consider the proposal at their 5 p.m. Monday meeting at Hollister City Hall, 375 Fifth St. The idea came about in April during a retreat where Councilwoman Pauline Valdivia broached the topic.
A staff report for Monday’s special council meeting notes that the city manager’s recommendation – after reviewing program options – would include paying out $25,000 to an employee with five years of continuous service along with $500 for each additional year.
There would be no requirement that the employee retire immediately under the Public Employees Retirement System, only that he or she separate from employment by Jan. 30, 2015.
If all employees eligible for PERS chose to retire, it would cost $1.8 million. With replacement employees starting at lower pay and benefit scales, the city would expect to break even on the plan within two fiscal years, according to the report.
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