Eligible members of the Riverhead Town Civil Service Employees Union have until Sept. 5 to notify the town of their intent to retire on or before Dec. 31 to take advantage of a one-time retirement incentive approved by the town board Tuesday morning.
The incentives are offered to encourage longtime — and costlier — employees to retire, which allows the town to hire new employees at a lower rate of pay, saving money.
The incentives being offered are financial enhancements centered on the payment of employee health insurance premiums.
Under the terms of the existing collective bargaining agreement between the town and the CSEA, the town pays 100 percent of the retiree’s individual health insurance premium and 50 percent of the premium for family coverage, if the retired employee has family coverage.
Under the incentive, employees enrolled in a town-provided family health insurance plans at the time of retirement, can have the town pay 100 percent of the premiums for the family plan premium for 48 months following retirement.
Employees that have individual health insurance plans would have the town pay the employee quarterly lump sum payments equal to $600 per month, less applicable taxes and withholding amount, for a period of 48 months following retirement.
There are currently an estimated 15 to 20 CSEA unit members eligible for retirement, though there is no way to know how many might take advantage of the incentive and retire by year’s end.
The memorandum of agreement was signed by labor and management representatives on Monday, July 8.
The town board last week approved a memorandum of agreement signed with the union June 17 settling a four-year labor contract with the CSEA, retroactive to Jan. 1. .
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