FREDERICK, Md. (Map, News) - The city will offer 69 employees voluntary early retirement packages, the Board of Aldermen voted unanimously Thursday night.

The workers represent 12.5 percent of the city's 550 employers. Those who are within five years of their retirement are eligible for the plan.

The board's approval of the plan drew cheers from workers who crowded into the City Hall boardroom.

"I think the city is making a generous offer to be able to do this at this time," said Alderman Alan Imhoff. "The loss of institutional knowledge ... that's the risk we take."

Alderman David Koontz voted in favor of the plan, but said it seemed to take place too quickly. "Going from asking for a discussion to being presented a plan is a little bit mind-spinning," he said.

The city will save $662,386 in the coming fiscal year if half of those eligible accept the buyout, as is projected. In each year after that, about $250,000 will be saved in personnel costs.

The city is considering a proposed $83.18 million budget from Mayor Jeff Holtzinger. It must approve the budget before fiscal 2009 begins July 1.

Employees will have to decide on the buyout by July 1. They will be allowed to select one of three dates - Sept. 30, Dec. 31 or March 31 - as their deadline for leaving city employment.

The early retirement plan includes a payment of two years salary and full retirement benefits. Even those who have stayed on past 25- or 30-year retirement date would receive a salary payment.

"I think it's a great opportunity for some; it may not be for others," said Keith Brown, who is deputy director for public works and who is eligible for the package.

Brown pointed out that the time frame may be too short for employees to make such a big decision.

Eligible employees will have 45 days after receiving a notice of eligibility to consider taking early retirement and will have seven days to reverse their decision. It is expected that notices will be sent next week.

Employees who choose the package will be offered financial counseling; there will be different options to receive payouts.

Imhoff said the city might rehire "mission-critical" employees under contract and with the acceptance of the administration and department head.

Alderwoman Marcia Hall said, "This is one time you could say no one is leaving out of anger."

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Information from: The Frederick (Md.) News-Post, http://www.fredericknewspost.com