Eligible state employees who don't retire by Sept. 30 will lose vision and dental benefits
In an effort to save US$300 million, Michigan is offering 45,000 state employees incentives to retire by Sept. 30. Those who are eligible to retire but don't do so by the deadline will see a reduction in their retirement benefits.
The state is facing a US$1.6 billion deficit in the 2011 budget, said Gov. Jennifer Granholm.In the past seven state employees have made US$650 million in concessions but with state revenue at historic lows, Michigan has to reduce the size and cost of the public workforce, said Granholm.
About 7,000 state workers and 39,000 school personnel, who agree by May 15 to retire by Sept. 30, will receive a one-time boost to their pension benefit and will be able to keep their retiree dental and vision benefits.
Eligible employees who don't retire by Sept. 30 will lose the state-paid vision and dental benefits.
Some retirees in critical positions, who are over the age of 60, will be able to collect their benefits and still work up to 20 hours a week for three years.
Employees who aren't eligible for retirement, and those who are eligible but don't retire by Sept. 30, will have to contribute three per cent of their salary to their pension benefit.
