R.I. braces for wave of employee retirements

Governor Don Carcieri's plan boosts retirees' benefits costs.

PROVIDENCE - The state retirement office has estimated that as many as 2,500 state employees will retire over the next several months, before proposed changes that would dramatically increase the annual contribution state retirees must make toward their annual health insurance premiums.

Retirees after Sept. 30 would be required to pay $1,700 a year toward their healthcare coverage and would have to be at least 59 to receive any benefits. Retirees now pay much less a year or nothing for healthcare.

The House Finance Committee has approved the plan - first introduced by Governor Don Carcieri as a way to cut health care expenses - over the objections of labor unions. The full House was expected to approve it today.

Carcieri spokesman Jeff Neal said the goal was to reduce health care costs, not to push workers out of their jobs.

He said the state would need to fill some critical positions but also would look to consolidate tasks among staff members who remain.

"We will take whatever steps are necessary to ensure that critical services are maintained," Neal said.

Frank Karpinski, director of the state retirement office, said as many as 2,500 employees might retire by the end of September, or about twice the number of workers who generally retire each year.

Deborah DiPietro, a 52-year-old taxpayer service specialist, told the Providence Journal she loves her job but after crunching the numbers believes she has no choice but to retire.

"That's not a good way to feel," she said.

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