R.I. offering retirement incentive for eligible state workers

PROVIDENCE Due to financial uncertainty caused by the pandemic, the state is offering a retirement incentive of up to $40,000 to eligible state employees.

The program was offered via email to 900 employees of the executive and legislative branch from Brett Smiley, state director of administration, on Monday afternoon. The missive states that the incentive is identical to one offered in 2017, and “is intended to help the state navigate the financial uncertainty associated with the pandemic and its long-term consequences.”

The Voluntary Retirement Incentive is available for state employees who are fully eligible to retire this year. It consists of a one-time payment equal to twice the value of the eligible employee’s annual longevity dollar amount, with a total cap of $40,000. It is not an early- retirement incentive.

Employees who may retire with a reduced pension benefit are not eligible for the VRI program. Only employees actively employed on Jan. 4, 2021 who have a full benefit retirement date on or before Dec. 31, 2020 are eligible for the VRI.

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Prior to this program being frozen in 2011, eligible state employees received 5%, 7.5%, 10%, 15%, 17.5% and 20% payment increases upon reaching their longevity amounts, or tenure milestone markers.

Robert Dulski, Department of Administration spokesman, said that the state “did not have a projected estimate” regarding how many employees would accept the VRI offering. “The average cost savings per employee should be between about $25,000-$50,000,” he said. “364 employees took advantage of the VRI opportunity in 2017.”

Smiley noted in his email that “the VRI program is only available to executive branch, JCLS and public defender employees. Participation by the separately elected secretary of state, attorney general, general treasurer and lieutenant governor offices will be determined by their respective general officers, as well as educational institutions such as the Department of Education and the state colleges.”

“Employees who do not have separately calculated longevity amounts or who have a longer step progression in their compensation program, such as correctional officers and sheriffs, are not eligible. State police and judges who participate in the state police and judicial retirement benefits trusts are not eligible for this incentive program.”

Smiley also said, “The state has conducted a review of its retirement records and will be sending out enrollment packages to those we believe may be eligible via email and the U.S. Postal Service, beginning January 15, 2021. Enrollment packages will include longevity information, participation deadlines, an election form and a list of frequently asked questions.”

Cassius Shuman is a PBN staff writer. You may reach him at Shuman@PBN.com.