The first bill, contained within both the House and Senate versions of the budget, applies to state employees. A second bill, which grants approval for an ERI to cities, towns, districts, authorities, regions and counties has passed the House and is awaiting action before the Senate.

Under the state ERI, only those employees, who are members of Group 1 and are eligible to retire, will be granted access to the ERI. In order to be eligible to retire, an active employee must have at least 20 years of creditable service or be 55 years of age with at least 10 years of service.

Although the plan must still receive final approval, it appears that the ERI will grant up to 5 years towards one's age or years of service. What differs between the House and Senate versions of the ERI is the dates under which one will be allowed to retiree, as well as how sick/vacation time will be paid out.

The House plan allows eligible state employees to apply for the ERI from July 15 to August 15 and retire on August 29. Accrued sick and vacation time will be paid out from July 1, 2004 to July 1, 2008 in installments of 1/5 of the total amount due.

Senate budget writers differed in their version by requiring eligible state employees to apply from June 15 to August 1, with a retirement date of October 1. Under the Senate version, payment for accrued vacation/sick time would be paid in three annual installments beginning this October.

Interested parties should bear in mind that the actual dates to apply for the ERI, as well as the final retirement date may be changed by the Conference Committee.

While the Senate sets no limit on the number of employees who may avail themselves of the ERI, the House limits the total number to 5,000. However, no cap has been placed on the total number of employees contributing 5 or 7% who may retire under the ERI.

A separate proposal establishing, by local option, a municipal ERI was before the state Senate as we went to press. The bill, which was passed by the House in early June, grants the ability of each city, town, county, district, authority, or region to offer an ERI if approved by the local legislative and executive bodies.

The bill, which is a near carbon copy of the local ERI offered in 2002, provides for early retirement for eligible employees in groups 1, 2, and 4. Each community would have up to October 1 to accept the ERI. Employees would then have up to November 1, 2003 to apply, with a retirement date no later than November 30, 2003.

Those, retiring under the ERI, would be granted up to five years to use towards their age or years of service. However, each local body would be granted the authority to limit the number of years granted, which groups to include, and the number of employees eligible to retire per group.

Members of the teachers retirement system and employees of the judiciary are not eligible for either the state or local ERI. Elected officials will not be eligible for the state ERI.

At press time, it is unclear as to when the legislature may complete their work on both ERIs. They will then send the finished proposals to Governor Romney for his signature or veto.

Employees who did not find last year's ERI to be timely, may take a second look this year. After all, ERIs in two successive years is an unprecedented phenomenon, and this may be the last such opportunity during one's career.

It is hoped that additional cities and towns will opt to accept this year's early-out and spare some layoffs.

With town meetings just about over, the decision in most towns will be in the hands of the selectmen. This will not be an easy decision, but selectmen, like city councilors, are elected to make decisions.