City should phase out bureaucrat retirement bonuses

City of Calgary spending $8 million each year on bonuses when employees retire – averaging $10,814 each

Tags:
2018-06-28

The Canadian Taxpayers Federation (CTF) released a freedom of information response from the City of Calgary that illustrates another way the city could save money – phasing out unnecessary bonus cheques when employees retire on Jun 27, 2018.

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.”

“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.”

Source:Canadian Taxpayers Federation

  • 334 reads