Council Statement: City Manager Retirement Details

In February former City Manager Neil Martin announced his retirement due to health reasons.  Following this announcement City Council met with Mr. Martin to discuss his retirement. The parties reached a mutually agreeable compensation package which included payout of accrued benefits, a standard retirement severance and a negotiated salary continuance.

As a long standing employee of 29 years the circumstances of Mr. Martin’s employment were unique.  Mr. Martin was a former Director and City Clerk. When he became City Manager he entered into a written contract. This contract did not address compensation in the event of early retirement. In consultation with the City Solicitor, Council had to consider many factors during negotiation of an equitable retirement package.  Considerations included position/responsibilities, health, years of service, accrued benefits and terms of his employment contract. The compensation totaling $640,206 includes:
 
Annual Leave - $234,993
Upon retirement employees are entitled to the payout of any annual leave that they would have accrued in their vacation leave bank. As a former Director Mr. Martin was entitled to bank unlimited annual leave. This provision is being phased out and the maximum allowance is now capped at twice the annual allowance (to a maximum 12 weeks).

Sick Leave - $126,465
In consideration of his illness an agreement was made for sick leave to be paid out. The payout is based on the individual’s daily rate as at the last day of pay times the number of unused days in their sick leave bank.

Retiring Allowance - $144,000
Upon retirement City employees are entitled to one week’s pay for each year of service. The payout is based on the individual’s weekly rate as at the last week of pay times the number of years of service, both whole and partial.

Salary Continuance - $134,748
Following the announcement of Mr. Martin’s retirement, City Council negotiated six months of salary continuance.
 
With the exception of the Retiring Allowance, total compensation is not a lump sum payment.  Mr. Martin will remain on the payroll until total compensation has been paid.
 
Mayor Dennis O’Keefe