TOPEKA, Kan. (AP) — Gov. Sam Brownback's administration is beginning an early retirement program for eligible state employees in an effort to reduce Kansas government spending.
Secretary of Administration Dennis Taylor said Tuesday the voluntary plan has been extended to about 4,000 state employees and runs through Sept. 19. There are more than 23,000 state employees.
Employees would have the option of retiring early and receiving up to 60 months of state-paid health insurance coverage for single members, 42 months for members plus dependents, or a lump sum of $6,500.
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"Whether they do or don't (retire) is clearly an individual situation," Taylor said.
The secretary didn't have an estimate for how much the retirement program could save the state, though some estimates on similar proposals have pegged the savings as high as $25 million.
State employees were notified Tuesday afternoon through statewide email about the plan, which had been in discussion for several weeks. Taylor said he didn't know how many fewer employees the state would need to keep providing services without putting a strain on the system.
"I don't have a right size," he said.
The program doesn't require the approval of legislators or unions that represent state employees.
Jane Carter, executive director of the Kansas Organization of State Employees, said she was disappointed that the administration went forward with the program before it met with union representatives.
"Their haste in not talking first with the workforce shows disregard for the workers and the work they provide," Carter said.
She declined to comment further about the proposal, citing agreements with the state to "meet and confer" before publicly discussing any employment policy.
Taylor said the administration couldn't and wouldn't recommend that any employee take the early retirement program. He urged all eligible employees to consult legal and financial advisers, as well as the Kansas Public Employee Retirement System before making any decision.
State officials aren't expecting to replace those employees who retire, though Taylor said some critical positions my need to be filled to maintain the viability of essential state functions.
"Reducing spending through this voluntary retirement incentive program is one method of helping the state live within its means," Brownback said in a statement.
Carter said any proposal that would encourage early retirement without replacing the positions "would decimate the workforce."
"I think it's important to work with the state on an issue that's going to affect so many state workers," she said.
The state cut overall spending in the current fiscal year, which began July 1, by 6.1 percent, resulting in reductions in cuts in education and social services. The total budget is more than $13.8 billion, including more than $6 billion in state taxes and fees. Tax collections have been running ahead of estimates for the past four months, including a $23 million windfall in July.
The early retirement program doesn't include city and county employees or school teachers across Kansas in the KPERS. Taylor said the program was similar to an early retirement program last year used by the city of Topeka where Taylor was employed.
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