A bill designed to save the state an estimated $60 million through early retirement incentives is on the fast track to the Iowa Senate floor, IowaPolitics.com reported.

The legislation would try to entice an estimated 2,261 eligible state employees to take payouts and health insurance premium payments in exchange for taking their salaries off the books.

The study bill proposed by the governor’s office was approved Tuesday by a Senate state government subcommittee. Central Iowa legislators Staci Appel (D-Ackworth) and Dick Dearden (D-Des Moines) supported the bill; Sen. Jerry Behn (R-Boone), did not sign on.

Appel said Senate Study Bill 3002 will likely be approved by the full Senate State Government Committee on Thursday and should be on the Senate floor early next week.

Executive branch employees would receive $1,000 for each year beyond 10 and below 25 that they have worked for the state. They would also receive unused vacation funds and monthly health-care premium costs. Payments would be made over a five-year period beginning this September.

Employees would have to apply for the program by April 15 to receive the incentives and separate from employment by June 1, allowing the state to save a yet-undetermined amount of money in the current fiscal year as well.

Legislators made it clear that employees participating in the program would not be eligible to work for the state ever again, and that vacated positions deemed non-critical would be left open unless approved otherwise by the Department of Management. There was some advocacy for allowing other areas of government to opt into the program as well.

Click here to read the early retirement bill.