Part A states that if you are 50 years old and have only 10 years of service, you can retire with a month added to every year of service you have completed, a number that can only go up to three years.
Part B allows that if you are 55 years old with 25 years of service, there will be no penalty for taking early retirement, a penalty that usually costs up to 27 percent if a worker leaves with less than 30 years of service.
"Our anticipated increase in 2011 for the town's contribution to the state's retirement system is 39 percent for about $1.5 billion," said Kelsey. "This is what the town must contribute for the cost of paying into the pension plan."
He added that a municipality's contribution to the state's retirement system usually goes up when the state's fund are down. He attributed the rise of contributions a city must make to the retirement system to the decline of the economy.
"It effects how much we have to pay to the system," he explained. "We've built those increase costs into our expenditure lines and other areas we have to cut."
Through early retirements, some positions will be left open.
"It may leave a lower level employee position open," said Kelsey, "but that lower position would not be filled, and that's where the savings come in."
He also said with the addition of an upgrade to the town's telephone system, there will be only one person to answer the phone within three different departments.
"Really, we're looking at things in a creative way and to a degree possible, allows for growth of existing employees," said Kelsey. "We've spent since the middle of June working and think we've come up with a budget that allows us to maintain the quality service we currently provide."