Article published Dec 3,
2003
Pension
chief against major changes to retirement plan
The Associated Press
The head of the state retirement
system said Gov. Bob Riley shouldn't try to fix Alabama's budget problems by
making major changes in its pension fund.
While the administration has
said it was considering asking lawmakers to trim benefits, Retirement Systems of
Alabama chief executive David Bronner said big cuts or drastic hikes in employee
costs would fail.
"If he gets into a war, he'll lose," Bronner said
Tuesday after a speech to a civic club.
Alabama has one of the most
generous state pension systems for teachers and public employees. It allows a
worker to retire after 25 years of service and draw half his or her average
salary, regardless of age.
Because of investment losses in 2001 and 2002,
the pension system is asking for a $141 million increase in the state's
contribution over two years.
Bronner said it would be unfair to change
the rules on retirement and benefits for workers already paying into the system,
and requiring additional contributions from current employees would amount to a
pay cut for state workers.
Bronner predicted overwhelming opposition from
state employees and the Alabama Education Association if such changes are
proposed in the 2004 legislative session.
State Finance Director Drayton
Nabers Jr. has said soaring costs of benefits for public employees are a big
part of a problem that will lead to a budget shortfall of millions of dollars
next fiscal year.
Information from: The Birmingham News