|
|
|
|
||
|
||
|
|
||
| SEARCH | SUBSCRIBE | ||
|
 |
Pension
bonus battle expected Kim
Chandler, the Gov. Bob Riley's proposal to end a pension bonus program for veteran
teachers and state employees will spark a heated legislative battle, a
legislator and the head of the state employees union predicted Tuesday,
October 14. "I think it would be one hell of a fight," said Mac McArthur,
executive director of the Alabama State Employees Association. Riley's press secretary, David Azbell, said the administration will
propose phasing out the Deferred Retirement Option Plan during the
legislative session that begins in February. The program gives teachers
and state employees who are at least 55 years old and have at least 25
years experience a lump sum bonus if they agree to work an extra three to
five years before retiring. Paul Hubbert, head of the McArthur said he believes the administration will reconsider upon
closer examination of the program's benefits. However, Azbell said the price has become prohibitively expensive,
particularly with the number of high-paid employees taking advantage of
it. When lawmakers passed the plan last year, they did so overwhelmingly.
The Senate approved it 31-0. The House of Representatives approved it
92-1. Azbell said he hopes lawmakers will reconsider in light of the state's
financial situation. "When it had a lot of legs we weren't staring at a $285 million
shortfall in the education budget," Azbell said. "When DROP was
passed, the state was not laying off state employees en masse." There are 3,138 teachers and other public education employees and 915
state employees participating in the deferred retirement program,
according to the state retirement systems. Riley said he plans to ask the 34-member Education Spending Commission
for suggestions on how to phase out the program. The commission in a July
report said the plan had grown from its original purpose of retaining
senior employees in hard-to-fill positions to include a broad range of
employees. "I'm sure there's going to be significant opposition," said
Rep. Richard Lindsey, chairman of the House education budget-writing
committee. Lindsey said he is open to discussing the program's elimination if it
could save the state a large sum of money. The state has had to cut other
programs that once garnered broad support, he said. "During tough times, you have to make tough choices," Lindsey
said. Copyright
© 2002 Global Action on Aging |
