 Early retirement windows
opening
The three-month window for state workers to take
advantage of the new 25/55 retirement option may open as
early as October.
“State officials have indicated they’re now
aiming to open that window in October,” said PEF
Assistant Director of Civil Service Enforcement Marty
O’Connor.
The 25/55 opportunity will allow employees who are 55 or
older and who have at least 25 years of service credit to
retire without penalty. The opportunity will be available
during the same time period to employees at all state
agencies. Only those in a few key positions may be
excluded. However the window of opportunity will last
just three months.
A traditional early retirement incentive (ERI) has also
been authorized for the current state fiscal year.
O’Connor said he has been told that it was offered
in late July for one month to some employees in selected
titles at the state Office of Real Property Services.
A 90-day window for this ERI option also opened August 1
at the Office of the State Comptroller, the state Offices
of General Services, Tax Appeals, and Budget, and at
Higher Education Services Corp. Other state agencies
could be authorized to offer it later in the year.
This ERI allows employees as young as 50 who have at
least 10 years of service credit to receive an additional
month of service credit for every year of service they
have, up to a maximum of 36 months of additional credit.
— Sherry Halbrook
 PEF answers members’
queries about 25/55, ERI
Q: Is the 25/55 option a permanent change to the
retirement system?
A: No. It’s only available for the current state
fiscal year that expires March 31, 2003.
Q: Is 25/55 available to eligible employees during the
entire year?
A: No, it will only be open for a 90-day
“window.”
Q: Does PEF know when the window will open?
A: As this issue of The Communicator goes to press in
early August, it appears the window for 25/55 will open
in October at the earliest.
Q: Why did PEF support a one-time 90-day window, instead
of a permanent, year-round 25/55?
A: Right from the beginning, PEF has supported a
permanent, year-round 25/55 option and continues to push
for it. However, given the financial losses the pension
fund has incurred in the last year, the Legislature would
approve only a 90-day window. The legislation mandates
that one window be opened during the fiscal year. The
latest that window can be opened is January 1, 2003.
Q: Can the window be opened before January 1, 2003?
A: Yes, the director of state operations can open it at
any time before then.
Q: Will 25/55 be available only to employees in specific
titles and at selected state agencies?
A: No. However, the director of state operations can deny
participation to employees in exempted positions that are
deemed to be “critical” to public health or
safety. This exception is expected to be applied
narrowly, and there is a provision allowing for a
challenge in court if an individual is denied for reasons
that are arbitrary and capricious. PEF has been assured
by the governor’s office that it does not expect any
PEF-represented titles to be exempted at this time.
Q: Will PEF get the lists of exempted titles, if any?
A: Yes, PEF will get the list prior to the opening of the
window. The list will be reviewed and any perceived
problems will be communicated with the appropriate
parties.
Q: Can I take advantage of both the Early Retirement
Incentive (ERI) and the 25/55 option?
A: No. Employees can avail themselves to just one part of
the incentive package.
Q: Can the previously enacted benefit enhancement of two
years of additional service credit for Tiers 1 and 2 be
used to get me to the 25 years of service necessary to
qualify for the 25/55?
A: Yes. It can be used, as can Veterans Buyback or any
other prior service credit.
Q: Do you know if my agency will participate in the
traditional ERI?
A: At this point, PEF is aware of eight agencies that
have been approved or have applications pending. The
state Offices of General Services, Comptroller and Real
Property Services, University of New York, Higher
Education Services Corp. and the Division of Budget have
been approved to participate. The state Insurance Fund
and Division of Tax Appeals have applications pending.
Q: Could the ERI be offered to a broader group in the
future?
A: PEF has been told the Division of Budget is
encouraging agencies to submit plans for offering the
ERI. Therefore, we believe more agencies will apply soon.
And, later in the fiscal year, another broader offering
could be made.
Q: How will I know if I am in a position eligible for the
ERI?
A: The best indicator is if you are canvassed for
interest in taking the ERI. This is no guarantee that you
will be offered the incentive, but it means your title is
being considered.
|
The Communicator
September 2002
The Official Online Edition of
The New York State Public Employees
Federation
Inside This
Issue:
Features
PEF backs Pataki re-election
bid
PEF Board votes to back
candidates in ’02 races
PEF joins fight against
soaring Rx costs
Early retirement windows
opening
Q&A on 25/55, ERI
9/11; One Year Later:
‘Everything is different’ since 9/11
PEF fights for counseling
Victims’ families
grateful for PEF’s help
Contributions of PEF
activists missed
PEF to dedicate memorial
Departments
President's Message:
Endorsements and Loyalty
You Said It: Member's
letters this month
Member Mobilization: 8 steps
to success
Legislative Action:
Retirement, whistleblower laws
Nurses' Station: Help make
new future for nursing
Retirees In Action: Lucky to
get 1% COLA
PEF Membership Benefits
Program & Travel Corp
Union Matters
2002 Convention Preview
PEF researcher’s
discovery offers hope
Members show interest in
PS&T negotiations
Division 236 at Parole fully
mobilized
Members at Labor Dept. win
back rights
PEF fights big chemo bills
PEF vets keep wagering safe
bet
PEF wins OT pay
Highlights of PEF Exec
Board’s meeting
Member’s kids wins
scholarships
Support true charities, job
security
GET OUT THE VOTE!
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