Starkville aldermen created a new city position last week, a move that reflects the city’s anticipation of high turnover associated with numerous employees reaching state retirement-eligible statuses through 2017.
The board authorized the creation and advertising for an assistant personnel officer on Jan. 7 and set its pay scale at $48,000 annually. Once hired, the new employee will assist current Personnel Director Randy Boyd with various human resources tasks.
Boyd, like many other Starkville employees, is nearing eligibility to receive benefits through the Public Employees’ Retirement System of Mississippi. PERS grants such benefits to vested employees who work for state agencies, various levels of public education systems and governing bodies.
Those hired on or before June 30, 2007 can retire with benefits at any age once they reach 25 years of credible service or at age 60 if they are vested in the system. PERS requires employees hired on or after July 1, 2011 to have 30 years of credible service at any age before they’re eligible for those benefits. Prior to 2007, vesting required four years of membership service. However, that changed to an eight-year requirement on July 1 of that year.
Other retirement-eligible statuses exist with PERS, including a partial lump sum option. Similar age and service requirements are associated with that option.
Out of Starkville’s 271 full-time employees and 14 part-time workers, 34 currently are either 60 years old or have 25 or more years of service on their resumes. Three of those workers are department heads, while 20 are in key or supervisory positions.
Through 2017, the amount of PERS-eligible employees increases. Then, 53 employees will be eligible for retirement benefits, including four department heads and 28 workers in important positions.
A turnover of four department heads translates into the loss of 25 percent of the city’s internal leadership.
Confounding the situation is how the city tracks retirement-eligible employees. For example, the data obtained by The Dispatch does not account for any service outside of the city. Employees could have additional PERS credits based on employment with another government institution – Mississippi State University or other municipalities – or military service.
“We’re just like any other organization of our size in the country right now. What we’re seeing is the last of the baby boomers still working are retiring or planning to retire,” said Taylor Adams, Starkville’s chief administrative officer. “The biggest fear I have related to the retirements of senior staff members is the loss of institutional knowledge. That working knowledge cannot be replaced. These succession efforts are born really out of that concern.”
Adams was promoted to chief administrative officer on Jan. 7. He will continue to serve as the city’s city clerk and financial director until a replacement is found for that position.
Adams replaces former CAO Lynn Spruill, a former Texas mayor who began serving as Starkville’s No. 2 administrator in the Dan Camp administration. Spruill’s July ousting was not the only turnover the city experienced in 2013: former Municipal Court Clerk Debra Wood was forced from her job in October after serving in her role for at least 20 years; police Chief David Lindley resigned his position in November, taking with him almost 40 years of service; and the city’s first community developer, William Snowden, quit in December due to health reasons.
The vacant municipal clerk’s position was filled earlier this year, but aldermen have not put into motion a search to replace Snowden. As of Wednesday, the city received two applications for police chief, including the resume of Starkville Police Department Capt. Frank Nichols. It is believed Nichols will be the only SPD employee to emerge as a candidate. The application window for police chief closes Monday.
But as officials brace for a significant loss of institutional knowledge at key positions, the city must also find ways to do more – or at least the same amount – with less due to the changing job market projections of the future.
“Every projection we’re seeing from reputable market sources suggest that by 2018 there will be a greater demand for labor than there is supply. We’ll be likely forced to look at other ways to accomplish our goals, because the cost for labor will go up as demand outpaces supply,” Adams said. “For many organizations, they’ll be forced to utilize technology and automation to do the same or more for less.
“We’re a municipality, so our means of raising revenue are generally painful to the public. We have an obligation to have a plan for how to manage these public duties as the job market shifts,” he added.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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