How thoughtful of you to do this for your friend!
I agree with PaperPrincess... a signature quilt would be a very thoughtful gift.
As for quilt related party theme decorations... you could ask co-workers to bring their favorite quilt to display, maybe as table covers. Or create centerpieces made with fat quarters in baskets. Then give the fat quarters to the retiree.
That's all I can think of this early...
