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State-jobs retirement rate sees 30% jump
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Faced with the tough choice of losing months of medical coverage after retirement or keeping their state jobs and risking future doctor bills, many state workers appear to be opting for health-care benefits over a paycheck.

A review of state records shows state employee retirements have jumped by more than 30 percent so far this year after state lawmakers decided to cut off a generous retirement benefit starting in 2006.

Between February - when legislators adopted that legislation - and July 1, 197 state workers retired. Last year, 149 state employees retired in the same time period. And, during the same five months in 2003, 146 state workers left their jobs.

This year, lawmakers changed the way state employees can use unclaimed sick leave. Those who retire before Dec. 31 can trade eight hours of unused sick leave for one month of post-retirement medical benefits. After Jan. 1, the sick leave policy will be phased out. Some longtime employees figure they could lose years of promised medical coverage. Rather than retiring at Social Security age and struggling to pay medical costs, many are opting for early retirement.

The Utah Public Employees Association has sued to block implementation of the legislation. UPEA Director Audry Wood is not surprised by the increased retirements. "I don't think people realized how many people would be affected by this," Wood said.

State Human Resources records obtained through a public records request show several state departments have been hit hard by the wave of retirements. Human Services has lost 38 workers since the sick leave policy change was announced. Another 25 Corrections employees have left their jobs. More than 20 Public Safety workers have retired. Transportation and Workforce Services Departments each have lost 22 employees to retirement.

Corrections Spokesman Jack Ford says his department's employee recruiters are pushing to keep pace with the retirements. On July 16 alone, eight workers left. Some are retiring and taking jobs at other law enforcement agencies around the state. Ford says state prison jobs are not so enticing without the generous sick leave benefit.

"That was a selling point we used to keep people who were making less than they could at other agencies. That's not there anymore," Ford said. "We don't know how we're going to end the year."

At Human Services last week, 10 workers announced their retirements. The department is suffering a sort of "brain drain," with many of the most experienced workers retiring. Departing executives include the Information Technology director, the Office of Recovery Services director and the contract director. This year, twice as many Human Services employees have retired as last year, often in an attempt to hold on to post-retirement medical benefits, said spokeswoman Carol Sisco.

"We're losing people who have worked for us for many years," Sisco said.

State Human Resources officers are counseling many state workers, urging them to calculate their own finances before retiring. Legislation and Planning Director Conroy Whipple says some of the initial hysteria as lawmakers changed the sick leave policy has dissipated. Still, many workers are choosing to leave.

"Our biggest concern is that employees don't make a bad retirement decision," Whipple said. "You probably shouldn't retire simply because of that bill."

The bill's sponsor, St. George Republican Rep. Dave Clark, worries many workers are jumping based on bad information about the legislation. "It was a decided policy shift. But I think there's a great deal of confusion about what [the legislation] does and what it does not do," Clark said.

Hardest hit

l Human Services: 38

l Corrections: 25

l Workforce Services: 22

l Transportation: 22

l Public Safety: 21

l Total for state so far this year: 197

Tough choice? The exodus may be due to a switch in benefits
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