Voluntary Retirement Program Saves Kansas Millions

More than 1000 Kansas state employees chose to participate in the Voluntary Retirement Incentive Program (VRIP).

“Reducing spending through this voluntary retirement incentive program is one method of helping the state live within its means,” Governor Brownback said. “It also honors the many years of service these employees gave to our state.”

A total of 1,027 state employees took advantage of the program, representing budgeted annual salaries of $42.7 million.

“Once the annual cost of group health insurance and other expenses are factored in, the administration estimates the program will save $8.9 million in current Fiscal Year 2012 and $25.6 million in FY 2013,” Kansas Administration Secretary Dennis Taylor said.

Taylor said the administration will continue to consult with stakeholders to determine which positions are critical in ensuring the viability of essential state functions and should be backfilled by agencies and Regents schools. Estimated savings may fluctuate based on how many of the open positions are refilled and how much the federal government reimburses the state for federally – funded positions.

Breakdown of FY 2012

Approximate 66% of unspent FY2012 salaries of positions vacated $28,215,825

Approximate 66% of FY2012 salaries for backfilled positions ($ 7,053,956)

Cost of leave payouts during FY 2012 ($ 7,272,727)

Approximate cost of group health insurance and lump sum payment ($ 5,000,000)

Total approximate savings for FY 2012 $ 8,889,142*

Breakdown of FY 2013

Budgeted annual salaries of positions vacated $42,751,251

Approximate annual salaries authorized for re-fill (25%) ($10,687,813)

Approximate annual cost of group health insurance (1,000 retirees) ($ 6,500,000)

Total approximate savings for FY 2013 $25,563,438*

Approximately 4,000 employees were eligible to retire under the criteria of the program. They chose from two options, either group health insurance coverage or a one-time lump sum payment of $6,500.