Early Retirement

RECENTLY, THE gentleman who watches over our savings - because if I did it, there would be no savings - had one of his young associates call to ask if our financial goals were still the same. "The same as what?" I asked. "I have been watching my handful of little stocks free fall in value for six months. I am sure our financial goals were never to lose money." "We are just checking," the young man continued in the face of my vocal irritability, "to see if you and your husband are still committed to long-term growth."

Tribune Co., owner of The Sun, said it would reduce its work force by about 6 percent - roughly 1,500 positions - through early retirement and job cuts as a result of a slumping advertising sales market. At The Sun, employees were notified Thursday of staff reductions in letters from Tribune Chairman, President and Chief Executive Officer John W. Madigan and Sun Publisher and CEO Michael E. Waller. Carol Dreyfuss, The Sun's communications manager, declined to say which departments would be targeted.

FORNOSOVO, Russia - Raisa Tsyptsina has put on her best clothes - a lovely embroidered muslin blouse - and set her most bountiful table as she prepares to explain one of the great mysteries of Russia. Tsyptsina, 60, receives a pension of $25 a month and is a living illustration of how retired people here survive on so little money. Her circumstances also exemplify the desperate need for pension reform - and the near impossibility of such change when retirement at age 55 for women and 60 for men is considered sacred.

Baltimore County Fire Chief John F. O'Neill, who streamlined the upper ranks of the 1,000-member department during nearly three years in the job, announced his retirement yesterday. "Our Fire Department will function effectively for years to come because of reforms made while John O'Neill was chief," County Executive C. A. Dutch Ruppersberger said in a prepared statement. "We appreciate Chief O'Neill's 28 years of service to the citizens of Baltimore County." Deputy Fire Chief John Hohman will serve as acting chief until a permanent replacement can be found.

This month, at age 41, Stuart Miller achieved the career goal of many -- he retired. Stock options from his employer of 15 years, MCI WorldCom, helped. But a modest lifestyle, regular investing and squirreling money away in his employer's 401(k) also built his nest egg to the point that he could wave goodbye to the corporate world at an age when many Americans just begin retirement planning. Miller plans to go back to school to become an English or history teacher at a Montgomery County public high school.

In a surprise move, Paul M. Rose, the $147,000-a-year head of the state Injured Workers Insurance Fund, announced his resignation yesterday, taking advantage of an early-retirement program that was about to expire. Rose, 50, who has headed the agency for six years, told IWIF board members of his decision to step down during a closed-door session at its regular monthly meeting in Towson. Rose, who did not respond yesterday to a request for comment, informed IWIF employees of his decision after the board meeting.

FIVE years ago, the Baltimore County Council observed that the county's fire department was "over staffed in the upper ranks" and asked for a study on how to reduce the number of deputy chiefs and battalion commanders. Finally, at the end of this month, the council will have the opportunity to thin out that top-heavy department. County Executive C.A. Dutch Ruppersberger has proposed an attractive early retirement plan that would free up about $825,000 annually. If top fire officials retire early, the county would have two fire chiefs instead of five and 15 battalion commanders instead of 30. The savings would be used to staff four paramedic units.

Hoping to slash the Fire Department's upper management by half, Baltimore County Executive C. A. Dutch Ruppersberger is offering an early retirement package he hopes will free up $825,000 a year for additional emergency medical services. Administration officials say the department's top ranks have been bloated for years. They want to reduce the number of battalion chiefs from 30 to 15, and cut the number of deputy chiefs from five to two. To achieve those goals, they are dangling a relatively modest package of incentives: allowing any battalion or deputy chief with at least 20 years of service to retire and collect benefits immediately if they are younger than 55; increasing annual retirement payments by about 3 percent by doubling accrued sick time that can be added to years of service; and offering better health insurance.

Baltimore Gas and Electric Co. said yesterday that it plans to cut 190 jobs, primarily through a volunteer early retirement program, possibly as early as June 1. The utility also said it will hire 36 trainees for work on overhead electric lines, increasing to 436 the number of skilled overhead personnel. The job cuts will occur in BGE's utility operations group, which includes gas and electric delivery operations, customer care, information systems and marketing and general services. The group has about 3,800 of BGE's 6,400 workers.

Just as businesses are patting themselves on the back for having gotten their Y2K computer problems under control, a new challenge is on the horizon. In 2001, the first of the 76 million-member baby-boom generation will reach the early retirement age of 55. Employers could face a huge talent drain as the new century begins and the work force ages. "This is going to be one of the primary influences on the economy over the next decade," said Dennis Coleman, a human resources consultant for PricewaterhouseCoopers in New Jersey.