Personnel Board affirms FY26 incentive-pay payments and narrows FY27 eligibility to formal retirements

The Conflict Personnel Board voted unanimously on Thursday to approve incentive-pay plans for fiscal years 2026 and 2027.

For FY26 the board accepted staff's recommendation to follow last year's practice and pay merit/incentive awards to employees who retire or resign between May 1 and June 30, 2026, noting that the administration issues payments on final paychecks where appropriate. Board materials noted that four employees received merit pay prior to June 30 last year (two retirements and two resignations).

For FY27 the board approved proposed language that narrows eligibility: only employees who retire under Chapter 32'that is, who formally enter the state retirement system and begin collecting a pension'would be eligible for the incentive. Staff explained the change is designed to clarify what constitutes a retirement versus a deferred-retirement or resignation and to align incentives with long-term departure decisions.

Jess, the assistant town manager and HR director, stressed the practical eligibility timing: employees must be actively employed on June 30 to receive payment except in the retirement provision. "Be actively employed at the time on June 30th. That's the eligibility," she said during the discussion.

Board members asked for clear language around goal completion and assessment timing; staff said eligibility and goal assessment timing (goal check-ins in May and a final assessment in June) would be explicitly noted in the FY27 language before publication.

Both motions (FY26 and FY27 plans as presented) were moved, seconded and approved with unanimous votes by members present.