SCHENECTADY — A police officer suffering from severe complications from diabetes will be allowed to retire early, thanks to a bill signed by Gov. David Paterson.

The bill allows Schenectady police Investigator Michael Kelly to leave the force immediately under the 20-year retirement plan. Without the bill, Kelly would not be able to retire until 2011, when he would have been a department employee for 30 years.

City officials wanted Kelly to retire early because he has been unable to work since Aug. 23, 2005, but hasn’t left the department’s payroll.

Paterson signed the bill Tuesday.

For three years, Kelly has used his unlimited sick time to draw full pay every week. He told the city he would continue to call in sick until 2011 unless he could retire early with full benefits. He could have also left early on disability, but his monthly pension would have been greatly reduced.

City officials asked the state Legislature to grant Kelly special permission to retire early so they could fill his investigator position.

Kelly’s retirement will bring the force to 166 officers, one more than budgeted. The department hired two additional trainees in anticipation of two retirements, including Kelly’s, police department spokesman Lt. Brian Kilcullen said.

“It really was a win-win,” Kilcullen said. “He was able to retire and address his health issues without any distractions, and we’re able to fill a spot.”

Kelly was a dedicated officer for 24 years, city officials said. But on Aug. 23, 2005, a toe infection forced him to seek emergency medical help. He wound up at St. Clare’s Hospital for 44 days, fighting for his life.

Since then, he has lost two toes and has had serious foot infections. He also has no feeling in either foot, he said.

City officials agreed that Kelly could no longer work as a police officer. They also acknowledged that by contract, Kelly has the right to call in sick for as long as he wants since he is genuinely ill.

Kelly developed insulin-dependent diabetes about a year after he started working for the police department, he said. The disease is known for forcing sufferers to closely monitor their blood-sugar levels every day, but it also causes serious blood flow problems that often lead to foot amputations. According to the American Diabetes Association, diabetes causes blood vessels in the foot and leg to narrow and harden. Poor circulation reduces the foot’s ability to fight infection and heal blisters.

After being hospitalized with foot infections in 2005, Kelly returned to work for four days in September 2006. However, his leg braces caused another blister that became infected, he said. At that point, he left the department’s active duty roster for good.