State employees may purchase years needed to retire

Gov. George Ryan signed a bill Tuesday allowing some state employees to retire early by buying as much as five years of service to count toward their retirement.

“If they have to work 30 years for retirement, but they’ve only worked 25, they can buy the [five] years and, in effect, have 30 years,” said Dennis Culloton, press secretary for the governor.

Advertisement

Members of the State University Retirement System (SURS), which includes SIU employees, were not mentioned in the bill and are considered a separate group from all other state employees.

Brad Cole, Southern Illinois liaison to the governor, said that the SURS received retirement modifications in the past, and that changes for SURS have to be approved by the State Legislature. The governor does not have the authority to make changes for the State University Retirement System.

“There are several state-retirement systems, and from time to time, there are early retirement packages that benefit only one of the state systems,” Cole said. “At this time it happens to be the State Employees Retirement System.”

Culloton said the cost for buying those unworked years will vary based on the employee’s salary but, on average, will cost about seven or eight percent of the yearly salary.

“We figure about 7,400 people will take advantage of this, out of the more than 60,000 employees in state government,” Culloton said. “Those employees will take advantage of the opportunity to go on and either start golfing and fishing or take other jobs and begin collecting their pension.”

Eligibility for early retirement includes:being a member of the State Employee Retirement System for at least eight years; being on payroll as of June 2002; being on layoff status with the right to reemployment or recall; and being on disability for no more than two years.

Also, employees may not have received any retirement money before Aug. 1, 2002, to be eligible. They must have 13 years of service before they turn 60, or 25 years of service before they turn 55. Any younger and the years of service plus age of employee must equal 85 years.

Advertisement*

Ryan said in the next fiscal year, this bill could save the General Revenue Fund about $64.5 million.

“Of the nearly 7,400 positions, about half of them will remain unfilled for the foreseeable future, and that’s where the cost savings come from,” Culloton said.

He added that most state employees are taking furlough days, which are used to compensate for a state fiscal emergency. Furlough refers to days worked without pay, and employees taking them include governors, executive staff and cabinet members.

“We happen to have furlough from them as well,” Culloton said. “By the end of this month, all of the non-union employees will have taken a furlough day during this fiscal year, with the exception of those in [the American Federation of State, County and Municipal Employees].”

Eligible state employees who want to take advantage of the new bill must submit a written application requesting early retirement by Dec. 31.

Reporter Brian Peach can be reached at [email protected]