Retirement Incentive Prevents Virginia Fire Service Cuts

April 17, 2009 – The current economic recession is forcing many local governments to work within smaller budgets. As a result, many IAFF locals must work with their cities and municipalities to develop creative solutions that do not include potentially dangerous cuts to the fire service. Lynchburg, VA Local 1146 fire fighters collaborated with city administrators to create a new retirement incentive plan.

City officials and fire fighters believe the money saved as a result of this plan will prevent city employees (including fire fighters) pay reductions and prevent potential layoffs.

“The bottom line was to protect fire fighter jobs and current salary levels,” says Jason Campbell, president of Local 1146.

As the city administration was planning the FY2010 budget, cost-cutting proposals included a 3 percent salary deduction for all city employees, fire fighter layoffs and the elimination of an engine company.

Wanting to avoid any of those three scenarios, Local 1146 began working with the city on more amiable solutions. After some research, it was discovered that retirement incentive plans had proved to be favorable cost-cutting measures in other Virginia cities such as Roanoke and Suffolk.

Lynchburg’s plan is a one-time voluntary incentive. To be eligible, employees must be full-time and of retirement-age. Those choosing to take the incentive will receive $10,000 each, but interested employees must give notice by May 29 and retire by December 31.

Positions left open by the retirees will either be eliminated, vacant for one year or filled by lower-salaried entry-level employees. All fire fighter positions left open will be replaced by new recruits.

“Signing onto this plan was not a decision Local 1146 took lightly,” says Campbell. “We have already made a concession to take a furlough this year, which equated to a one percent pay cut. However, because of this plan, no one is losing their job and no one is taking an additional salary cut. All things considered, we decided it was a fair compromise.”

There are about 112 city employees currently eligible for the incentive. Twenty-six of those are fire fighters. It is expected that 12 fire fighters will take the deal.

“The city originally wanted all employees wishing to retire under the plan to do so by July 1, but we negotiated the later date of December 31,” says Campbell. “If all 12 of our fire fighters left at one time, we would have to close an engine company, hurting our ability to respond to emergencies. With the later date, it gives us time to conduct a recruit school and hire 12 new fire fighters to replace them.”