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Bill Raises Pension Costs For Ala. Public Workers

Montgomery, AL – The Alabama Legislature is getting closer to make public employees pay more for their retirement benefits.

Republicans on the Senate Finance and Taxation-Education Committee pushed through a bill Wednesday that would require all of Alabama's public employees to contribute more for their pensions. Democrats opposed the bill.

The amount would go up 2.5 percent of salary between now and Oct. 1, 2012. That would mean all education employees and most state employees would see their payments go from 5 percent of their salary to 7.5 percent.

The House passed a slightly different version earlier this month. It raised everyone except state troopers.

Republican Sen. Arthur Orr says the increase is necessary to balance the state budgets and keep the pension program sound. The legislation is backed by Gov. Robert Bentley.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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