Early Retirement

More than 400 Baltimore County employees -- nearly half those eligible -- took advantage of an early retirement program designed to save money by paring as many long-term, highly paid workers as possible.The retirement program that ended Jan. 31 was accepted by 5 percent of the county's work force of 8,000 -- or 403 of the 875 people eligible -- leaving some gaping holes in the bureaucracy, said James R. Gibson Jr., the finance director.Among those leaving were the engineer in charge of inspecting buildings and bridges, half the majors on the police force, 94 police officers, 87 firefighters, one-third the fire chiefs, a host of highway workers and 24 public health nurses, including 12 school nurses.

Bell Atlantic Corp., the Philadelphia-based parent of Chesapeake & Potomac Telephone Co. of Maryland, announced a plan yesterday to reduce its management ranks by more than 3,500 through an early retirement incentive program.Bell Atlantic has 68,000 employees, including about 10,300 in Maryland. About 18,000 of its workers are salaried employees in management positions."The area where we feel that we are overstaffed is in the management ranks," Cynthia M. Ciangio, a Bell Atlantic spokeswoman, said.

The county school board is offering 310 senior school system employees an early retirement incentive plan that includes a lump-sum cash payment and full health insurance coverage to age 65.School officials said they anticipated that 88 employees -- 34 of them teachers --would take the early retirement, saving the county an estimated $225,000 in 1992-1993. The board approved the offer at Tuesday's meeting.Superintendent Michael E. Hickey said additional savings would result from being able to pay lower salaries to the less-experienced employees who replace the retiring workers.

Baltimore fire officials are concerned that an effort to encourage early retirements to save payroll costs may backfire as potential retirees wait and see what inducements the city will offer.Mayor Kurt L. Schmoke, who has proposed saving $220,000 from the fire department's fiscal 1992 budget by eliminating 18 captain positions and replacing them with lieutenant positions, had hoped that enough fire department personnel would retire this year that there would be no need to actually demote people.

I was recently laid off and I'm wondering whether I have enough money to not return to work full time. Here are the facts: I am 41 and my wife is 40. She is a teacher with a $60,000-a-year income, and we have a combined retirement balance of $3.5 million. (Obviously, we have benefited not only from lucky investments, but also from dedicated retirement investing since we graduated from college.) I believe we could live comfortably by drawing $50,000 a year from our retirement kitty, but our planner does not recommend it, as the withdrawals would lower our potential retirement nest egg. This leads me to my question: How much is really enough?

As companies look for ways to downsize and cut costs, some workers are finding themselves on the receiving end of early-retirement offers.These plans may offer, singly or in combination, a lump-sum payment, additional or enhanced pension benefits, health insurance for a certain period and a "bridge" until Social Security kicks in. Normally, the offer is good only for a limited time, or "window."Financial experts say employees should consider a number of points before making a decision, especially under deadline pressure.

About one in four top leaders in the Baltimore County Police Department are expected to leave under an early-retirement incentive, county officials said Friday. Some of the officers plan to retire Nov.1, said Don Mohler, chief of staff to County Executive Kevin Kamenetz. Kamenetz proposed the incentive last month, and members of the County Council approved the package. They hope to eliminate about 200 positions from the county workforce of 8,000. Only those with the rank of captain or above are eligible for the buyouts.

While Gov. Parris N. Glendening and legislative leaders agree that Maryland state employees should be offered financial incentives for early retirement, they are having difficulty settling on a plan to do it.As the governor moves to shrink the state's work force of 70,000 with promised layoffs of 800 or more workers annually for the next few years, the chance to get some employees to leave voluntarily has gained broad appeal in Annapolis.The House of Delegates is expected to approve a bill that would extend health benefits to employees who have lost their jobs as a result of budget cuts.

ANYONE WHO HAS lived in Baltimore an appreciable length of time knows the city ain't what she used to be. Its population is a lot smaller. And the smaller number of people who still call Baltimore home are poorer, in the aggregate. This new Baltimore simply cannot afford what the old Baltimore used to provide. That it still tries has created a financial crisis that will continue into next fiscal year and beyond unless significant adjustments to the city budget are made.Baltimore has to raise more money by increasing taxes and fees, shrink the size of government or attempt some combination.

County officials are still confident their early-retirement incentive package will reduce the work force and save money, but union leaders fear the savings will come at the expense of the remaining workers."