Massachusetts SALT

Authors: Brent K. Beissel

On May 4, 2015, Governor Charlie Baker signed into law a bill creating an early retirement incentive program for Massachusetts state employees. Under the incentive plan, employees choosing to retire effective June 30, 2015, will be eligible to add up to five years to either their age or years of service, in order to increase their pensions accordingly. The program would allow up to 5,000 state employees retire on June 30 if their application to the program is accepted. Despite the increased pensions, the move is expected to generate $172 million in budget savings by reducing the state’s payroll. Hundreds of Department of Revenue employees will be eligible to apply for the retirement incentive program, which should create some concern that the “silver tsunami” facing the Department could arrive sooner than expected.