Workers retiring early

INDIANAPOLIS -- An early retirement plan for state workers devised to help ease Indiana's budget crunch is paying off, with nearly 1,400 workers opting so far to end their careers in state government.\nThe workers' moves put Gov. Frank O'Bannon within reach of his goal of saving taxpayers $32.7 million a year by trimming the state's payroll.\nThose retiring have worked in government an average of 26 years, with 91 of 1,395 retiring workers putting in 40 years or more of service. The jobs cover a wide spectrum, from toll attendant to livestock inspector.\nNo one who wanted to retire was turned down, and applications filled out before the Feb. 28 deadline are still coming in.\nThe state agencies losing the most workers are the state's Family and Social Services Administration, with 611 departures; the Transportation Department, with 200; and the Department of Correction, with 180.\nAs the dust settles, John Hamilton, who leads the state's 9,638-employee FSSA -- the largest in state government -- will have to figure out which vacated positions are filled.\nHe will have to replace at least three county welfare directors and vital employees at several state mental institutions.\n"There clearly are going to be some excellent people who've chosen to take the deal," Hamilton said.\nLosing key people is a built-in risk when states try to save money by encouraging workers to retire, said Ron Snell, director of the National Conference of State Legislatures' economic and fiscal division.\n"People who have marketable skills are most likely to take advantage," he said. "The notion that an early retirement program clears out the deadwood is often fallacious."\nTo help close an $850 million budget deficit, O'Bannon also has imposed a selective hiring freeze, canceled raises for state workers and asked employees to voluntarily take off a day without pay each month.\nAbout 6,400 of the state's 35,000 employees were eligible for the retirement package.\nAn analysis of retirement applications by The Indianapolis Star shows the state will save at least $27.5 million a year after making a series of payments to retirees within the first year totaling about $12.9 million.\nThe State Budget Agency has not crunched the numbers yet, but a high-ranking agency official said the Star's calculations appear realistic.\nO'Bannon's goal of saving $32.7 million a year does not include an additional $10.9 million in potential health and retirement benefit savings each year if just half of the open positions are filled with lower-paid workers.\n"The hard part now is trying to manage this so we get those savings," said David Reynolds, a deputy state budget director. "This is just the first step."\nThe program, announced in October, was the result of a deal the administration cut last fall with state employees' unions.\nThe final day retirees taking earlier retirement is June 14.\nAmong those departing are Willie True, who earns $31,863 a year overseeing workers in Tipton who fix Department of Transportation trucks and electronic signs.\n"I've planned on this for a couple, three years," said True, 62. "... This package kind of helped persuade me"