Early Retirement Bill Now Law

Up To 5,000 State Workers May Retire By June 30th

MAY 4, 2015: Late today Governor Charlie Baker signed the much anticipated state early retirement incentive plan (ERIP) into law. Limited in scope, the bill only applies to a target set of state workers. Municipal employees, teachers, public safety and higher education, among others, are not eligible for the ERIP.

Governor Baker filed legislation calling for a limited ERIP in order to reduce the state's workforce in the face of a reported $1.8 billion state deficit.

The legislature passed the bill early on Monday, after House and Senate leaders have quickly resolved differences in competing versions of early retirement legislation passed by the legislature this spring. The compromise bill was sent to Governor Baker this morning for his approval.

The bill (H3353) allows for the early retirement of up to 5,000 state employees by June 30, 2015. Applications will be taken between May 11th and June 12th. Those eligible can apply an extra 5 years toward their age or years of service (or a combination thereof).

In order to be eligible for the ERIP, one must be an active state employee directly employed by the executive branch of government that is under the purview of the Governor. In addition, employees must be eligible to retire exclusive of the ERIP program.

H3353 grants authority to the Baker Administration to restrict the ERIP to noncritical employees – a designation that must be made in writing by Friday, May 8th.

Details on the bill can be found here.