LEWISTON – Switching part-time city employees to a short-term retirement plan looks to save almost $12,000 per year.

Part-time and temporary employees, including those in recreation, public works and administrative jobs, pay 7.5 percent of their wages into the 457 Deferred Compensation Plan. The city does not have to match their contribution, paying only into Medicare for each employee.

Employees can opt to keep that 457 account open and continue adding into it on their own, according to Denis Jean, the city’s human resources director. Or, they can close the account and take the money with them.

“Students and other young people are especially happy with it,” Jean said. “They like being able to take their money with them and use it however they like.”

The city will continue paying its 1.5 percent share of each employee’s paycheck into Medicare.

“But the amount of wages we pay to part-time employees is about $200,000 per year, and we save paying 6.3 percent of that,” Jean said. That adds up to about $12,000 per year in savings to the city.

The 457 plan is offered through the International City Management Association. This is the first year the city has offered the program, he said.