Shumlin Offers Retirement Incentives

retirementVERMONT- The Shumlin administration has proposed to give state employees who are already eligible to retire, a little extra push in hopes to save the state money. If 300 out of the 915 employees that are eligible to retire take this incentive package, the state could save up to $10.8 in personnel and labor costs.

 To be eligible for the incentive package, an employee must be at least 62 years old, or have worked with the state for at least 30 years.

The maximum amount an employee can receive is $15,000, with smaller amounts appropriated depending on how long an employee has worked for the state. To make these savings a reality, 75% of jobs that employees retire from, will not be filled again. Executive director of the Vermont State Employees’ Association, Steve Howard said “The loss of these positions really means that the state workforce is going to work harder than they have.”Although the workload will be increased, Howard said that union members are pleased to see the administration propose personnel savings that do not involve layoffs.

This is not the first time that state employees have seen this offer from the state. In 2009 the same exact package was offered, and it only took one month for the state to receive 276 applications.

State Treasurer Beth Pearce warned of mistakes made from the 2009 incentive offers, when the state added 543 jobs, five years after employees had retired.