Montgomery, AL – Most new public employees wouldn't be able to draw their pensions until later in life, but would have to contribute less of their paycheck to retirement under a proposal approved by an Alabama Senate committee.
The bill favorably reported Tuesday now goes before the full Senate.
The proposal calls for setting a retirement age of 62 for most employees and 56 for law enforcement officers and firefighters. Right now, employees can retire after a minimum of 25 years or service. There is no retirement age.
Proponents say the overhaul would save the state around $5 billion over 30 years.
Opponents in the Senate committee say they are worried that the measure would make it harder to attract quality employees with smaller pension payouts.
(Copyright 2012 by The Associated Press. All Rights Reserved.)