Governor Rell’s Retirement Incentive Plan

Saving More Money Than Expected

Goal of 3,000 Retirees Exceeded by Nearly 500;

More Retirees, More Cost Savings Anticipated By July 1

            Governor M. Jodi Rell today announced that 3,460 state employees have already retired or will do so by July 1, exceeding the cost-cutting goal of the Retirement Incentive Program (RIP) she negotiated with state employee unions. With two weeks remaining before the July 1 deadline to apply for the RIP, the number of state employees leaving state service – along with the savings to the state – is likely to increase.

            The RIP, part of a far-reaching labor agreement Governor Rell negotiated with state employee bargaining units, projected overall cost savings of $700 million if 3,000 state employees took retirement. The savings increase with each employee who retires above the original target of 3,000.

            The total agreement will cut costs for taxpayers now and in the future. It includes significant changes in employee health care and pension benefits and agreements in individual labor contracts that include wage freezes and furlough days for all state employees.

            “My goal is to reduce the size and cost of state government – and the RIP is turning out to be a very effective tool in achieving that goal,” Governor Rell said. “The state employees who are retiring are helping us to resolve the enormous financial issues facing Connecticut. The fact that we will achieve an even greater cost savings than anticipated is good news for our state and its taxpayers.”

            “This program will enable us to reduce the total number of state employees in Connecticut,” the Governor said. “By severely restricting the rehires for these positions, we can ensure that our government is permanently smaller – and less expensive.”