New Parking Authority retirement bonus catches councillors off guard

Just like city employees, long-time workers at the Calgary Parking Authority are also entitled to retirement bonuses.

Earlier this year, it was revealed that the city paid $4.8 million in retirement allowances to its departing employees in 2017.

The city program has been in place since the 1980s as a way of helping to retain long-term employees.

But the parking authority's retirement bonuses only started last year.

A document before city council's audit committee on Wednesday revealed qualifying employees are entitled to receive a retirement bonus of up to six weeks pay, depending on their years of service.

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In a statement, the general manager of the city-owned Calgary Parking Authority Glen Furtado outlined why the payment program was started.

"The retirement bonus plan was introduced effective January 1, 2017 to align with the City of Calgary's policy on post-retirement remuneration, as the Calgary Parking Authority is a City entity governed by a committee of council."

Two members of city council sit on the parking authority's board.

One of them, Coun. Sean Chu was caught unaware by the program.

"I have to admit it. I missed that," said Chu. "I apologize for having missed that part."

The councillor has been a vocal critic of the retirement allowance for city employees.

"People don't get bonuses for retiring."

He said he will bring forward a motion at the parking authority's next board meeting next month to scrap the bonuses.

Council unhappy with program

The city offers long-time employees a retirement allowance when they depart that is equal to their annual vacation entitlement.

Several council members have said they're unhappy with the payments and question why the program exists as it is not part of any contract with unions representing city workers.

City council decided in September to ask for an external consultant to do a report on the overall compensation package for city employees.

That report is due back at council early next year.

Coun. Jeromy Farkas was also caught off-guard by the new program at the parking authority.

"I think it's pretty crazy. It's a horrible practice," said Farkas.

"This sort of thing doesn't have an equivalent in the private sector."

He said most people retire, they get a party from their co-workers or a cake.

The rookie councillor said if the parking authority board doesn't halt the payments, he'll bring forward a motion to city council to seek a political solution.

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