Over 2,000 veteran state workers seek early retirement

DES MOINES – Help wanted signs may be going up at some state agencies soon now that slightly more than 2,000 senior workers have signed up to take an early-retirement incentive aimed a reducing the cost of operating state government.

Agency breakdowns released Friday by Gov. Chet Culver's office indicated that 2,007 state workers out of a pool of more than 20,000 employees had applied to participate in the program and end their state employment no later than June 24. The deadline to sign up for the program was Thursday.

“This early retirement program has exceeded our expectations,” Culver said. “We are very enthusiastic about that because that will guarantee that we will be able to reach our goal of saving taxpayer money when it comes to the size of state government and our payroll with respect to employees.”

The governor said the state will end the fiscal year with fewer employees in the executive branch than when he took office in January 2007 thanks to the early-out incentive.

“Our government is leaner, it's efficient and we're getting the job done,” Culver said. “I have no concern whatsoever about the fact that we will continue to carry on our essential responsibilities.”

More than half of the workers who enrolled in the program were in three state agencies – 614 in the Department of Human Services, 367 in the Department of Transportation and 223 in the Department of Corrections. Another 117 currently work at Iowa Workforce Development, 98 at the Department of Education – including director Judy Jeffrey -- 84 at the Iowa Veterans Home in Marshalltown, 71 at the state Department of Revenue, and 66 at the Department of Natural Resources.

“It is going to be a very busy May and June,” said John Baldwin, director of the state Department of Corrections, who will be looking to replace John Ault as warden at the Iowa State Penitentiary in Fort Madison and a number of corrections officers, power plant engineers and food service workers at state prisons.

“We're going to have to get all the people trained that we're hiring. We've got to find them, hire them and get them training. Timing here is really crucial,” Baldwin added. “Because we function as a small city, we have a lot of different parts and pieces that really must come together seamlessly.”

Under the incentive plan approved by state lawmakers and signed by Culver, eligible state workers who are 55 years or older with at least 10 years of state government service would have until June 24 to take the incentive that would provide health insurance and monetary benefits for five years. Legislative projections forecast that as many as 2,261 veteran state workers could request the incentive.

Proponents asserted that offering senior state workers an early-out benefit would reduce the state's workforce, save up to $60 million over the next fiscal year and elevate younger employees with fresh, innovative perspectives. Critics questioned whether the cost savings and promised downsizing would actually materialize.

State Auditor David Vaudt said Friday he expected the savings to the general fund from the early-retirement program would be about $26 million. He said the rest of the cost savings would come through other funds, such as the road use tax fund that covers much of the state's transportation spending.

Culver spokesman Robert Bailey said the state Department of Management now would work with state agencies to determine how many vacated positions should be filled and which jobs are most critical to maintaining key state services.

“It's going to take a lot of back and forth with agencies,” he said. “It important that people know that agencies are going to work close with management to make sure that there is no drop off or service or protection or safety or anything like that.”

The target goal is to fill about half of the jobs being vacated by retirees with hires at lower salary levels, Bailey said. However, he noted that employees who signed up to participate could still change their minds if they decide they want to stay on and take other positions now becoming open during a period of shakeup, bumping rights and other maneuvering brought on by the retirement option.

“People may change their minds. It's not locked in. They aren't committed. They didn't give blood to do this or anything like that,” Bailey noted.

Senate File 2062 provides that eligible employees who have worked for the state for at least 10 years could receive $1,000 for each year of service, up to a $25,000 maximum to be paid in five equal yearly installments beginning next September. They also would get paid for unused vacation time and receive up to five years of health insurance coverage.

The legislation prohibits executive-branch agencies from filling vacancies created by retirements through the program without approval by the state Department of Management. The bill also barred those retirees from resuming state employment.

Comments: (515) 243-7220; rod.boshart@gazcomm.com

Employee early retirement participation by state agency

Agency                                                           Total

Human Services                                           614

Transportation                                             367

Corrections                                                    223

Workforce Development                           117

Education                                                          98

Iowa Veterans Home                                    84

Revenue                                                              71

Natural Resources                                          66

Inspections & Appeals                                  48

Administrative Services                               46

Agriculture                                                         38

Public Health                                                      29

Public Safety                                                       28

Commerce                                                           27

Economic Development                                22

Public Defense                                                   22

Lottery                                                                  21

Justice                                                                   16

Aging                                                                        6

Department of Blind                                           6

Finance Authority                                              6

Human Rights                                                       6

Legislative Branch                                              6

Cultural Affairs                                                     5

Law Enforcement Academy                            5

Auditor                                                                    4

Iowa Communications Network                   4

Ethics/Campaign Finance Board                  3

Management                                                         3

Public Employment Relations Board         3

Treasurer                                                               3

Civil Rights                                                            2

Ombudsman                                                         2

Parole Board                                                         2

Secretary of State                                               2

Total                                                               2,007

Source: Governor's Office