City should phase out bureaucrat retirement bonuses
- City of Calgary spending $8 million each year on bonuses when employees retire – averaging $10,814 each
The Canadian Taxpayers Federation (CTF) released a freedom of information response from the City of Calgary today that illustrates another way the city could save money – phasing out unnecessary bonus cheques when employees retire.
Currently, when a city employee retires, regardless of performance, they’re given a “retirement vacation bonus” that is the equivalent to their annual vacation. The city’s retirement manual notes, “if you currently receive six weeks’ vacation per year, you would receive an additional six weeks’ vacation on top of your normal entitlement.” Employees can take a cash payout or take extra paid time off. This benefit is capped at seven weeks.
“Outside of government, most workplaces tend to recognize a retiring employee with a small gift, not a $10,000 cheque,” said CTF Alberta Director Colin Craig. “The city should phase this benefit out by not including the perk for new hires and cap the benefit for current employees.”
Cost of the "Retirement Allowance"
|Expense||Cash Payout||# of Employees||Average Payout|
“Calgary’s unemployment rate is still quite high,” added Craig. “There’s no need to offer this benefit to attract new staff. On top of this perk, city employees are well paid, receive a generous pension and enjoy tremendous job security.”
To see the City of Calgary’s freedom of information response – click here