February 5, 2002

Jan Winters, Michigan’s State Employer, and I are here this morning to make a very important announcement. As part of the 2003 Executive Budget that will be presented to the Legislature on Thursday, we will also present a 2002 Early Retirement Program.

Details about the plan will be available on Thursday, but to be eligible under this new program, state employees must meet an 80-and-out requirement. That means age plus number of years of service must equal 80. And there is no minimum age requirement. A little more than 8,000 state employees will be eligible, and we expect more than half will participate.

This early retirement plan is an all-around win for Michigan.

Citizens win because this plan will facilitate reorganization and streamlining of state government to better serve the public. For example, it will speed the implementation of technological – or e-government – solutions that are less costly and more convenient for users.

Taxpayers win because the savings generated will help to keep our state budget balanced, without raising taxes. Indeed, we estimate the savings to total about $50 million general fund annually. In 1996, when we implemented the last early retirement plan, about 5,100 employees participated, generating annual savings of $50 million.

This time, even though the number of employees is smaller, we expect the savings to be comparable.

Those who depend on government services win because we are maximizing scarce resources and stretching every dollar.

State employees win because they receive the opportunity to pursue other personal or professional goals. For example, I think many veteran employees would make fine teachers, and they could help fill the gaps caused by teacher shortages.

Newer state employees win because they receive the opportunity to step up into leadership positions. They’ll be also more productive and have more access to technology.

To those of you who are keeping track, that means everyone wins. I call that a win-win-win-win-win proposition.

And to those of you who are wondering. The answers are "No" and "No." "No" I am not eligible. And "NO" I do not plan to retire anytime soon.