Sponsor Statement for HB 226

April 8, 1997

This legislation addresses better implementation of the Retirement Incentive Program (RIP) enacted last year by the nineteenth legislature. The RIP program that was enacted last year was put into place to institute savings to the state. Unfortunately, very few eligible individuals have actually taken part in the program, and the savings to the state have been minimal. The administration took a very restrictive approach to implementation of the RIP; this legislation is aimed at allowing a larger number of eligible participants to take advantage of the program, thereby assuring more saving to the state.

HB 226, which is the companion bill to SB 126 by the Senate Finance Committee, makes no changes to the eligibility qualifications for the RIP program passed last session. However, it does add two principal provisions. They are as follows:

1. HB 226 limits a qualified employee's participation to the first RIP application period for which they qualify; and
   
2. HB 226 requires state agencies to offer a RIP participation to all classified state employees who qualify under current law during 3 separate 2 month application periods

This legislation will increase RIP participation, and accelerate when employees are required to retire under this program. Both elements contained in this legislation should increase savings to the state.