Cover Letter for ERIP Legislation

I am filing for your consideration, “An Act Providing for an Employee Retirement Incentive Program”.

The primary goal of the Employee Retirement Incentive Program (or “ERIP”) will be to help reduce the state’s payroll, while minimizing the number of employees who are involuntarily laid off.  Effectively implementing an early retirement program is a more responsible way to reduce the state’s payroll.

Key provisions of the proposed ERIP legislation are as follows:

The Baker-Polito Administration expects the ERIP to generate approximately $177,900,000 net operating budget savings in fiscal year 2016, after paying for all costs sustained in fiscal year 2016, including a payment to defray the additional unfunded liability resulting from implementing this program. This calculation assumes that 4,500 eligible employees choose to participate in the ERIP.

Prompt consideration and passage of this legislation is a crucial part of the Baker-Polito approach to the fiscal year 2016 budget, and I ask you to consider it promptly.

Charles D. Baker, Governor