State workers head out

The number of state employees who have decided to retire by the end of the year rather than lose the ability to use their unused sick days to buy health insurance continues to climb.

Through the end of November, 530 state workers had put in their papers — nearly 200 more than the first 11 months of 2004. State officials have feared the total number of retirements could reach at least 1,000 this year.

But Friday, state Department of Human Resources Management Executive Director Jeff Herring estimated the total number of employees retiring in 2005 will end up closer to 850, compared with 343 last year.

"I think that's good news for the state," Herring said. "We were prepared for more and pleasantly surprised."

The Utah Public Employees Association has challenged a new law that would eliminate the post-retirement benefit. The law had been set to take effect Jan. 1, but the Utah Supreme Court has delayed the effective date while it considers the challenge. At least some retirements are on hold pending the court's decision.

This week the court decided to stop part of the law from going into effect. The court will hear the case on Jan. 10. Now the law won't take effect until at least 30 days after the high court issues its final ruling.

With the status of the law in flux, workers who want to retain their benefits no longer had to begin their retirement on Friday. So the state now has to figure out just how many workers are actually leaving and how many will extend their employment.

"I think we're in a holding pattern," Herring said Friday.

There had been concerns that the state could rack up an estimated $150,000 in additional benefits while the case is pending. But Herring said the benefits in question will still end on Jan. 1.

The question for the court to decide is how the sick leave already accumulated by workers through 2005 can be used when they retire. The state had allowed workers to convert unused sick leave into as much as 10 years' worth of health insurance coverage.

The new law would change that. Lawmakers passed HB213 last session, after hearing warnings that continuing to offer the benefit could cost the state more than $300 million in just a few years, thanks to rising health-care costs.

State workers, though, argued that they'd been given the option in lieu of pay raises during some of Utah's leanest years. The law forced those with 30 years of experience to decide whether to leave by the end of the year or lose thousands of dollars' worth of health care.

UPEA officials have warned of a "brain drain" in state government. The state Department of Corrections has been especially hard-hit, with the retirements coming on top of state workers who are leaving the system to earn more in similar local or federal government posts.

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