JAY — Selectpersons have authorized the town manager to enter into an agreement that will allow Public Works Director John Johnson to retire on Sept. 30, 2017, and be rehired Oct. 1 with less salary and benefits.

The decision followed an executive session Monday.

Johnson will take an 11.5 percent reduction in salary and benefits and have a flexible work schedule, Town Manager Shiloh LaFreniere said Wednesday.

Johnson, who has worked for the town for 41 years, will have his salary decreased from about $62,000 to about $55,000. He oversees the Public Works Department and the Transfer Station.

He will take the salary reduction July 1, three months ahead of his scheduled retirement/rehire plan.

The town will also no longer contribute to Maine State Retirement for Johnson, beginning Oct. 1. That equals 9.5 percent of his salary, LaFreniere said.

Overall, it’s a savings of $14,000 to the town, she said.

In another savings effort, the town’s six department heads will go to a higher deductible health insurance plan as of Feb. 1.

Selectpersons approved the change Nov. 30.

It will be approximately $4,217 in savings to the town, LaFreniere said.

Selectpersons also approved the town offering a buyout to department heads for health insurance. For example, if an employee is eligible for a family plan and goes to a single plan, the savings will be split between the town and the employee.

In that case, it would be a savings of about $11,700 overall, LaFreniere said. The town and employee would each get approximately $5,800, she said.

dperry@sunmediagroup.net