Governor Rell: Retirement Incentive Program Far Exceeds Goal – 3,856 Employees Leave State Service

            Governor M. Jodi Rell today announced that a total of 3,856 state employees have left state service as a result of the Retirement Incentive Program she negotiated with state employee unions, far exceeding the cost-cutting program’s target of 3,000 retirements. Assuming that all other elements of the far-reaching agreement work as expected, overall savings to taxpayers are likely to be greater than the original estimate of $700 million.

            The Retirement Incentive Program (RIP) is part of a comprehensive agreement Governor Rell negotiated with state employee bargaining units. 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.

            “The many years of service and dedication that the retiring employees have given to the people of Connecticut are deeply appreciated – and each of them will be missed,” Governor Rell said. “However, I am very pleased by the success of the RIP, which is critical to cutting the size and cost of state government. With our state continuing to feel the ravages of this global economic downturn, we must take every possible step to make Connecticut’s government more affordable for taxpayers.

            “I have already taken steps to ensure that the savings we are achieving through the RIP will be preserved,” the Governor said. “The practice of rehiring retirees on 120-day contracts will be sharply curtailed. There have been too many reports of abusive ‘double-dipping,’ so all such contracts will have to be approved through my office and the retirees will come back at no more than 75 percent of their previous salary. Similarly, state agencies have already been given guidelines on how and when we will ‘refill’ positions left vacant by retirements.

            “Those of us who remain state employees will continue to provide the superior service that Connecticut residents expect and demand,” Governor Rell said. “By severely restricting the rehires for these positions, we can ensure that our government is permanently smaller – and less expensive.”