Arlington County is easing the path to retirement for hundreds of its employees in the hopes of cutting its payroll and preventing layoffs amid a sharp drop in tax revenue.
About 350 employees — roughly 10 percent of the local government’s work force — are eligible for the program, which reduces or eliminates the penalty for retiring early and increases the benefits.
The county and its school system face a budget shortfall of as much as $100 million for the upcoming fiscal year, which officials plan to close through a combination of cuts and higher taxes.
County officials declined to estimate how much money the early retirement program could save.
That figure will depend as much on which workers retire as how many; retirements in less-essential positions, which can be left unfilled, will yield more savings than critical jobs such as law enforcement, said Marcy Foster, county human resources director.
“It’s hard to measure, but it would be millions of dollars if you don’t refill all the positions that are vacated,” she said.
Real estate assessments — which are the key source of Arlington’s tax revenues — are projected to drop between 5 and 12 percent — with an especially steep drop in commercial property.
County Board members, who won’t receive a proposed budget until February, already have resolved that a tax increase will be used to help close the budget gap.
Employees have until Jan. 4 to decided whether to take part in the retirement program, which is voluntary.
The program adds one year to an employee’s service and one year to his age for the purpose of calculating benefits. Those who opt into it will be required to leave by mid-February.
Early retirements are offered to public safety employees with 23 years of service, or those at least 50 years old with five years of service, according to a letter to employees explaining the retirement incentive. County employees whose combined age and years of service are 78 or more are also eligible, the letter said.
