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Comptroller Proposes Retirement Plan Intended to Save State Dollars

Contact: Bob King
860-703-3311 or 860-702-3300

In an effort to help find ways to address the budget deficit, State Comptroller Nancy Wyman has asked the General Assembly to consider legislation that would allow certain state employees who are not in bargaining units to retire early with lesser benefits.

"This is a good opportunity for the state to save money, while at the same time acting in a responsible manner toward our employees," said Wyman. "We have to find ways to reduce spending, and I think many of the affected employees will be attracted to this proposal."

Wyman's proposal would allow early retirement for managerial and other employees exempt from collective bargaining who have 25 years of state retirement credit but have not reached the required minimum age of 55. At least 340 employees, whose salaries total nearly $23.8 million of budgeted expenditures, would be eligible, Wyman said. Their benefits would be actuarially adjusted -- reduced -- because of their younger age, leaving the State Retirement Trust Fund unaffected.

According to Wyman, the plan would save the state money because the salary and benefit savings would outweigh the cost of paying for accrued sick and vacation time. Even if the positions are subsequently filled, the successors would likely be earning less salary. Accrued sick and vacation time, if totalling over $2,000, would be paid in quarterly installments.

Unlike the previous state-sponsored "golden handshakes" of 1989 and 1992, there are no extra incentive payments to employees included in Wyman's proposal. Eligible employees would be required to apply for the early retirement between June 1 and October 1 of 1996.

For Immediate Release
March 14, 1996

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