By Joe Rogalsky,
Delaware State News
DOVER - A group of General Assembly members want to shorten the amount of time a state employee has to work before retiring with a full pension.
After several failed attempts, they think this could be the year the proposal finally becomes law.
Most state employees must work 30 years before retiring with a full pension. Members of the state police can retire after 25 years.
Senate Bill 14, filed last month, would allow all employees to retire after 25 years.
"Many people I have talked to have told me this is the most beneficial thing we could be doing for state employees," said Sen. David B. McBride, D-New Castle, the measure's lead sponsor.
Sen. McBride has introduced bills to lower the required service time to 25 years in previous sessions.
The measure has budget implications because the state would have to contribute more money to the pension fund to pay the benefits for the new retirees.
For lawmakers to approve SB 14, the legislative Joint Finance Committee would have to agree to include funding for it in the state's annual operating budget.
"I am hopeful that the JFC will be receptive to the bill when they begin their big-picture deliberations on the final state budget," Sen. McBride said.
"I believe the money is available if the right people want to do it."
The state budget office estimates that lowering the service requirement to 25 years will cost the state $10 million more a year in additional contributions to the pension fund.
The state would also have to increase the amount budgeted for retiree health care, but budget director Jennifer W. Davis said that amount has not been estimated.
"A lot of people have expressed interest in this over the years," Mrs. Davis said.
"The fiscal impact on the health care front warrants more discussion."
State pension administrator David C. Craik said the state estimates 200 more workers a year would retire if Sen. McBride's bill became law.
The new retirees wouldn't jeopardize the pension fund's stability, Mr. Craik said, because the state would increase its contribution to cover the new costs.
The additional retirees would create openings in state government, which would give workers still with the state more opportunities to climb the career ladder.
That's another reason Sen. McBride likes the 25-year service requirement.
"There are state employees who unfortunately do not have much of an opportunity for advancement," Sen. McBride said.
"Not because the are not competent or qualified, but because the positions do not open up."
A group studying correctional officers' pay and staffing issues two years ago recommended a 25-year pension as a way to entice the officers to remain with the state for 25 years instead of leaving earlier in their career.
"Most of our officers have worked for the state for less than 10 years," said David B. Knight, senior vice president of the Correctional Officers Association of Delaware.
"They might be considering leaving and going somewhere else where they would start all over with their retirement. If you've worked 10 years, and the halfway point to your pension is 121/2 years, you might decide you are not that far from the halfway point and decide to stay rather than starting over somewhere else."
Rep. Bruce C. Ennis, D-Smyrna, has been a longtime supporter of Sen. McBride's bill.
This year, Rep. Ennis said, the bill may receive a better reception because lawmakers are more concerned about hiring and retaining correctional officers than in past years.
"I have always supported the 25-year bills," Rep. Ennis said.
"This year, because of corrections, hopefully we will get it through.
"Ten million is certainly a lot of money, no question, but it would not be fair to do it only for corrections and not the rest of the state."
The 25-year plan has support among many state-employee groups besides COAD.
Pamela Nichols, a spokeswoman for the Delaware State Education Association, said Sen. McBride's bill is among the teachers union's top five legislative priorities this year.
"Other state employees, state police and firefighters, are eligible for retirement after 25 years," Ms. Nichols said.
"It should be looked at as an equity issue."
Michael A. Begatto, who represents about 6,000 state workers through the American Federation of State, County and Municipal Employees, said some jobs take such a toll on bodies that 25 years of service merits retirement. He pointed to correctional officers, hospital employees and social workers as examples.
"Some of the jobs people do in state government you can't do for more than 25 years," Mr. Begatto said.
"There can be very difficult jobs. Burnout is a major factor.
"But, if it gets done, I want it done for everyone, not just a segment of state workers."
Staff writer Joe Rogalsky can be reached at 741-8226 or jrogalsky@newszap.com
Reprinted with permission from newszap.com
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