The General Assembly released a plan for state benefits yesterday. The News Journal has the story:
A consensus proposal to rein in state employee retirement and health care benefits that would save Delaware $128 million over the next five years emerged in the General Assembly on Wednesday.
But the savings would be nearly wiped out by a proposed 2 percent raise for state employees that could cost about $120 million over four years, starting June 30, 2012.
While in the short term, the gain appears to be offset by the pay raise, in an interview Gov. Jack Markell emphasized the pension changes alone would save the state an estimated $327 million over the next 15 years.
They have the usual sniping from the opposition plus a bonus Selander zinger.
House Minority Leader Greg Lavelle, R-Sharpley, said the proposal goes against Markell’s stated goal of saving $100 million over the next five years.
“I didn’t know that zero was the goal,” Lavelle said.
…
“If Greg Lavelle thinks that state employees don’t deserve a pay raise for the next several years, I guess that’s his prerogative,” Markell spokesman Brian Selander said. “We don’t agree with him.”
The changes include increasing the state workers contribution to their healthcare to 5% of pay from 3%, increasing the period until a new employee is fully vested and also decreasing benefits for pre-Medicare retirees. A lot of the proposal has to do with decreasing incentives for early retirement and raising the retirement age.