MBTA offers early retirement to cut $25M from payroll

The cash-strapped MBTA is looking to slash $25 million from its payroll through a series of programs that will let workers voluntarily quit or retire — a maneuver that officials hope will cut down on the system’s operating expenses.

“This will be the first time since 1991 that the MBTA has moved on a workforce action like this,” said Brian Shortsleeve, the agency’s chief administrator. “The goal is to reduce our total wage spending.”

The MBTA said the cost-cutting process required 26 managers from 40 departments to figure out a way to reduce payroll and head count “without material impact on ridership.”

The system is implementing a voluntary retirement incentive program, where eligible workers can get 20 percent of their current salary to leave the MBTA as soon as feasible, according to Shortsleeve. The payments won’t be pensionable, and the average payout is expected to be $16,576, according to MBTA data.

There are currently 1,105 employees eligible for the new program.

The MBTA also plans to unveil a voluntary separation incentive program for workers who aren’t eligible to retire. The plan would give $5,000 to employees with five to 10 years of experience to leave as soon as possible. Employees with more than 10 years of experience would get $10,000. Like the retirement incentive program, the payments won’t be pensionable.

There are 2,259 employees who can participate, excluding transit operators. The MBTA said any employee who participates in either program “would not be eligible to be rehired by the MBTA for at least two years.”

If employees decline to take part in either program, MBTA officials say layoffs are possible.