A one time retirement offer in the Show Me state could save tax payers millions of dollars.
Roughly 17,000 former state employees are being offered the opportunity to take their pension in a one time pay out. In stead of receiving a monthly check, those who choose to enroll in the plan would receive 60% of the full value of the pension. It is estimated that the pay out could reduce annual costs by about $7 million. State Representative Charlie Davis says while this is a one-time offering, it may be worth looking at making a permanent option in the future.
“I think it would also give an individual, with the buyout, maybe the ability to maybe start their own business, maybe it would give them a little bit of money that they could go out, start a business, and actually start contributing, rather than just retiring, because we’ve got a lot of people who are retired that really still want to work,” Davis says.
The program is only being offered to state employees who retired before June 30 of this year. The application deadline is November 3.