Lansing - Vacated spots in state government may not mean more jobs for graduates, according to an early retirement program Gov. John Engler announced Tuesday.
Engler’s 2002 Early Retirement Plan would replace a minimum of one for every four retiring employees, with technology contributing to increased job efficiency and fewer state jobs.
“The accumulated savings will help balance the budget,” Engler said in a Tuesday press conference. “We want to stretch every dollar and maximize resources.”
Engler called the program a “win-win” situation. To be eligible under the plan, an employee would be subject to what Engler called the “80-and-out” rule. When a worker’s age plus the number of years he or she has worked for the state equals 80, he or she may retire with the benefits under the program.
“We estimate that of the 8,000 people who would qualify for this, about half will take advantage,” Engler said.
Enlisted state police officers, corrections employees and conservation officers would not be eligible under the plan because they already have an enhanced early retirement program, Engler said.
“When people leave it makes us find ways to work smarter and do a better job,” said Jan Winters, director of the Office of the State Employer.
A small window of opportunity lasting about a month will force those who qualify for early retirement to make the choice quickly.
“This will be offered for a very short period of time,” Winters said. “Once we know who plans to leave we can start to restructure.”
To make the early retirement plan more attractive to eligible workers, Engler will announce a financial incentive Thursday.
“What most employees look for is something to make it affordable,” Co-owner of Capitol Services Ellen Hoekstra said. “It’s certainly going to be positive for a number of state employees, the question is can technological changes keep it from being a difficult work situation?”
Steve Mitchell of Mitchell Research & Communications Inc. said Engler’s proposal is one more attempt to balance Michigan’s ailing budget.
“Two ways that you can make up for deficits are to raise taxes, which is unacceptable, or cut spending, which is what they’re trying to do here,” Mitchell said.
With the loss of senior state employees comes a loss of experience, but Engler called the resulting infusion “invigorating.”
“You lose a certain amount of institutional memory when the older people leave, but most of these people work with others who also have ability,” Mitchell said.
