(WUTR) — A new piece of legislation is aimed at saving both the state and municipalities some money as they feel the budget crunch of COVID-19.
The bill says that most public servants will have the ability to retire at 50 years old with 25 years of service or at 55 with 10 years of service.
“There are a number of other pieces of legislation that have been proposed as retirement incentive options, I think this is the best approach,” said Sen. Joseph Griffo. “That’s why we’re doing this because I think it can allow more participation.”
The bill doesn’t incentivize retirement with more money. It just allows more people to be able to retire, to replace them with lower=cost employees.
“There’s no fiscal incentive given outside of allowing them to have access to… for eligibility for them to retire earlier than they would’ve ordinarily had that opportunity,” said Griffo.
The opportunity to use the incentive would also go to local governments.
“Not only to offer the incentive statewide but allowing local governments to decide if they want to do similar with their local level of government because this is all part of the same state retirement system,” said Griffo.
The estimates of how much this would save will be done when the bill is formally introduced. Griffo hopes that will be this month.
“The retirement system does an evaluation of this,” said Griffo. “The state comptroller’s office will do an evaluation of this and they’ll put together some numbers and that’s when we’ll ultimately, finally have it introduced.”