Nassau County to spend $116M this year for early retirement buyouts

Taxpayers will spend $116 million this year for nearly 600 Nassau County government workers to retire early, according to a new analysis, highlighting that the program designed to shed high-earning, veteran employees will take a few years to save money.  

The county must pay those in the program a total of $83 million in termination pay and $33 million for the $2,000-per-year-of-service incentive offered to leave county jobs, according to a report by the county's Office of Legislative Budget Review. 

 The office arrived at the $116 million figure based on numbers provided by county budget officials.

More employees than expected took the buyout, which was offered to those with 10 or more years of service, the administration has said. Workers from each of the county's six public employee unions got $2,000 per year in addition to their contractually entitled termination pay, including unused sick and vacation time. Typical payouts to retirees — which would occur despite the program — range in the tens of thousands to as high as $500,000 with high-ranking law enforcement and community college administrators traditionally leaving with the most. 

When proposed in late 2025, Nassau County Executive Bruce Blakeman, who is running for governor, said his Voluntary Separation Incentive Program would save $27 million this budget year and $30 million annually over the next three years — a total of $117 million in savings over four years. But the Nassau Interim Finance Authority, the county's state-appointed fiscal watchdog that approved the program, said it might be too early to tell what the actual savings will be.

It's unclear whether the county plans to fill each vacant job and when. Cost savings occur when a job remains unfilled or is filled with a new hire at a lower wage. Labor leaders have voiced concerns about existing employees becoming overworked, while fiscal managers say paying overtime costs could eat away at some of the savings. The workforce accounts for nearly 50% of the spending in the county's  $4.4 billion budget.  

"The jury is out at this point, we'll have to wait and see," said Richard Kessel, NIFA's chairman. "I think it surprised everyone how many took the offer."

Kessel said there are two main issues: The huge burden on this year's budget and the staffing shortage in some of the county's most critical departments. 

"Some of these departments are thin as it is, so for more employees to leave it begs the question on whether this is going to impact services to taxpayers," Kessel said. 

According to the legislative budget review report, the final number of those who applied to the program was 594. Of those, 88 employees will be deferred from early retirement for up to one year.

The majority of the employees who took the incentive, 64.5%, were members of the Civil Service Employees Association, the county's largest union representing a cross-section of workers from all departments, saving the county more than $17.5 million, according to the report. 

The county police department, social services, correction center and the department of public works were most impacted by the  departures, the report said. Newsday previously reported unofficial numbers and possible retirements at 911 call centers, where turnover is already high and fewer staff could result in longer wait times during emergencies.  

Andy Persich, Nassau's budget director, told Newsday that county savings on employee health insurance and Social Security benefits have "already materialized this year and will continue to accrue in future years."  

Persich said the "savings are estimated at over $5 million, with tens of millions of dollars in additional pension savings from lower salary costs beginning in 2027," in a statement provided through Blakeman spokesman Chris Boyle.

To pay for the immediate costs of the early retirement program, county officials said they plan to use money in the general operating budget and tap into a reserve fund that was set up specifically for labor costs. 

The plan was approved unanimously by the county legislature, where Republicans hold an 11-8 majority. Lawmakers from both sides during public hearings questioned whether the administration could provide a plan to fill the vacant jobs. Eligible employees had to submit their separation documents between Feb. 1 and March 5. 

The county saves $62 million this year if the vacant positions are not filled immediately, which is reduced to $34 million if there are new hires between March and December, according to the OLBR report. Switching retirees 65 and older to the lower Medicare rates helps the county save on health insurance costs immediately, but the annual savings on pension payments aren't likely to materialize until after next year, officials from OLBR and NIFA said.   

CSEA Local 830 president Kris Kalender said the number of full-time employees — about 10% — who wound up participating in the program is in line with what he expected. 

"That's a significant shift, and when you factor in the upfront cost and still-projected savings, it raises real questions about how services will be maintained," Kalender said in a statement to Newsday. "What we've heard across departments is clear: The county will need to hire and address longstanding pay disparities just to maintain services."