Public Employee Press

Governor Paterson approves early retirement incentive

Gov. David Paterson signed into law June 2 a temporary Early Retirement Incentive program for state employees and municipalities statewide that opt in. The plan is expected to save the state $320 million by 2012.

The program has two parts and allows the employer to determine whether to offer the incentive to employees.

State employers must choose a 30- to 90-day window for retiring under Part A, which covers employees age 50 with 10 years or more of service. ERI Part B has a 90-day window and is open to employees age 55 with 25 years credit.

Employers must opt in by Aug. 31; the open periods cannot extend beyond that date.

"Early retirement has been an effective way for saving municipalities hundreds of millions of dollars and is a far better solution to the city's fiscal problems than layoffs," said DC 37 Executive Director Lillian Roberts.

But on his weekly WOR radio show July 2, Mayor Michael R. Bloomberg said, "We are not going to do buyouts." He added, "I can't tell you never, but for the foreseeable future, it doesn't make sense from the city's point of view."

In response, Roberts said, "We hope the mayor changes his position as he comes to realize that an early retirement option is in the financial interest of both the city and municipal workers."