Governor John Engler today signed House Bill 5732, a 2002 Early Retirement Program with an 80 and out eligibility requirement for state employees. Over 9,000 state employees are eligible to participate in the plan. The window for those interested in applying is April 1 – April 30, 2002. 
 
"This early retirement plan is an all around win for Michigan," said Engler. "Citizens benefit from the reorganization and streamlining of state government services, and taxpayers benefit from the budgetary savings these cost-effective solutions create, instead of having to shoulder the burden of tax increases. It also provides an opportunity for seasoned employees to pursue other person and professional opportunities, while allowing newer state employees the chance to demonstrate their leadership skills." 
 
To be eligible, a state employee must have his or her age and number of years of service credit combine to total at least 80. There is no age minimum. The Governor worked with the Legislature to accommodate individuals who chose to transfer to the state’s new Defined Contribution retirement plan, wish to retire early, and meet the 80 and out requirement. The bill also accommodates Department of Corrections employees who are not eligible for existing pension enhancements. State employees who apply for the Early Out have until May 15 to withdraw their application. Applicants can choose a retirement effective dates from July 1 to November 1, 2002. 
 
State employees considering the Early Retirement Program will have significant education opportunities, including statewide workshops on retirement and career planning. More information will be available on the www.michigan.gov web site. The Office of Retirement Services also is sending an educational packet and application to all state employees currently meeting the 80 and out requirement. 
 
The bill, along with House Bills 5108-5114 that were tied to the Early Out Program, also provide additional protections to strengthen long term funding for state retiree and public school retiree health benefits. This is an important step in ensuring that high quality benefits remain affordable to both retirees and the state. Other provisions ensure continued compliance with the federal Internal Revenue Code and clarify state and local pension protections from garnishment and other legal processes. 

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