MONTGOMERY, Ala. (AP) — 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.