The cost to send paper statements on monthly pension payments to the state’s thousands of retires costs almost $200,000 per year, so the state is cutting down on them.
Starting with the August retirement pay cycle, retirees who receive direct deposits will no longer receive a paper deposit notice, except in certain circumstances, Comptroller Kevin Lembo said. Instead, they can refer to their regular bank statements to verify earnings.
Lembo said he notified more than 45,000 retirees about the change, which will save approximately $15,000 each month on postage, paper and other state resources.
“These simple steps provide immediate savings in state government,” Lembo said. “We are searching for every layer of savings available in state government and will continue to dig deeper. These changes provide significant savings with minimal impact.”
Of the 45,103 retirees, 35,166 receive direct deposit of their monthly pension payments.
Statements will only go out when annual cost of living increases are awarded; at the end of December; and any other time there is a change in net pay.
