Ala. Senate Approves Retirement Benefit Changes

April 11, 2012 ( – New Alabama state employees and teachers will have to work longer before collecting retirement and will receive smaller payments under a bill passed by the state Senate. 

According to the Montgomery Advertiser, Senator Arthur Orr, sponsor of the bill, said the proposal was necessary in order to keep the state retirement system possible.

Under the legislation, the majority of state employees will have to work until they are 62 to begin receiving benefits. An amendment to the proposal would allow correctional officers, firefighters and law enforcement officers to retire at age 56 if they had at least 10 years of service, reports the Montgomery Advertiser.

State employees currently can retire after 25 years of service, and the age of the employee does not matter. Workers also have the option to retire at age 60 after 10 years of service.

The news report states that the majority of employees will see their contribution rates lowered from 7.5% to 6% if the proposal becomes law.

The proposal would affect state employees and teachers who are hired on or after January 1, 2013.