Measures differ on early retirement and health costs

by Daniel J. Fitzgibbons, Chronicle staff

mong the many issues to be resolved by the six-member legislative conference committee on the budget are early retirement incentives and the share of health insurance costs paid by state employees.

     The House version of the early retirement program, limited to 5,000 employees, adds up to five years to an employee's age or years of service or a combination of the two. The application window is for July 15 through Aug. 15, with a retirement date of Aug. 29 for most state employees and Dec. 31 for higher education employees. The payout would be over five years, beginning July 1, 2004. The program excludes employees paid from federal, trust or capital funds.

    The Senate also approved the same "5 or 5" provision, but the application window is June 15 through Aug.1, with a retirement date of Oct. 1 for all employees and payout of benefits starting on Oct. 1 and continuing over three years. Eligibility is extended to employees paid from federal, trust, or capital funds. Like the House, the Senate measure allows for refilling 20 percent of vacated positions.

     Senators also broke ranks with the House on health insurance premiums, approving a sliding scale of 15 percent to 30 percent, depending on an employee's salary.

    The House hiked the share paid by employees from the current 15 percent to 20 percent.