Panel supports benefits for trust-fund staff

by Daniel J. Fitzgibbons, Chronicle staff

legislative committee on Tuesday endorsed a bill to extend early retirement incentives to state employees paid through trust funds.

     State Sen. Stan Rosenberg (D-Am-herst) said the measure received a favorable recommendation from the Joint Committee on Public Service following a public hearing on the bill earlier in the day. The bill was sent on to the House Ways and Means Committee.
Rosenberg, who testified in support of extending the incentives, said the bill "is about equity and fairness."

     During his testimony, Rosenberg cited the cases of two longtime University employees who found themselves ineligible for the state-sponsored program after being shifted to trust fund accounts as part of campus efforts to cope with state budget reductions.

     "One was on state-appropriated funds for 26 years before she was transferred six months ago to trust funds," he said. "The same thing happened to another with 22 years of service."

     The lawmaker also called for extending the Feb. 15 enrollment date to allow trust-funded employees to apply for the incentives, which are aimed at trimming up to 6,700 state jobs. Acting Gov. Jane Swift's proposed fiscal 2003 state budget projects a savings of $136 million through early retirements.

     The incentives allow eligible employees to add five years to their age or years of service to qualify for higher pension benefits.

     Rosenberg said Swift has expressed support for including trust-funded workers in the early retirement program, but that a Senate amendment adding that group of employees was defeated in the House of Representatives when the measure was adopted.
"We need to get everybody on board," said Rosenberg.