ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, March 27, 1995                   TAG: 9503270091
SECTION: VIRGINIA                    PAGE: C1   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND                                 LENGTH: Medium


STATE EMPLOYEES PONDERING BUYOUT

Gov. George Allen's plan to shrink state government takes it first substantive step Friday, the deadline for state employees to sign up for an early retirement plan.

The plan is part of a work-force reduction program that, at the insistence of the Democrat-controlled General Assembly, also features early retirement and severance pay for workers who are laid off.

Generally, vacated positions will not be filled, and agency budgets will be adjusted to reflect reduced employment.

The typical employee, earning about $25,000 after 11 years with the state, could pocket about $10,700 under the buyout plan. Additional benefits for that worker would be worth about $8,000.

Just how many people will be leaving state government jobs is unclear, but inquiries to agency personnel offices and the Virginia Retirement System suggest that many are considering it.

By last week, VRS spokesman Bill Sullivan said, more than 2,000 employees had contacted the pension fund or attended 15 meetings around the state on early retirement. That option allows employees who are at least 50 years old with 10 years of state service to qualify for an actuarially reduced benefit.

Employees said they were considering Allen's voluntary separation plan for several reasons: the lure of quick cash; a financial cushion while they consider a new career, and growing distaste for government work.

``This is a grand opportunity for me to walk away with a large sum of cash. It's a godsend,'' a three-year state employee in her 30s who plans to start her own business told the Richmond Times-Dispatch.

The state budget for the 1994-96 spending cycle requires a reduction of 1,700 positions, about one-tenth of the 16,000 that Allen has said he may eliminate by the conclusion of his term in January 1998. Virginia government employs nearly 110,000.

The coming round of reductions has some managers nervous they will lack the staff necessary to fulfill statutory responsibilities in such areas as education and public health.

``You'll find particular skills important to an organization are going to be lost,'' said David L. Potter, a vice president and dean of the College of Arts and Science at George Mason University.

The Allen administration said such fears are unfounded.

State Planning and Budget Director Robert Lauterberg and Michael Thomas, the secretary of administration, said safeguards in Allen's program will prevent an exodus of staff.

``We're going to give agencies flexibility to manage in the most effective way,'' Lauterberg said.

For example, positions can be shuffled and swapped to preserve key jobs. Also, Allen will allow agency heads to block an employee's resignation if he or she is deemed essential. For that reason, prison guards and motor vehicle and liquor agency investigators cannot participate in the buyout.

Under the Allen program, those who voluntarily quit must pledge not to work for the state for two years. The bulk of vacant jobs will be wiped off the state payroll altogether.



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