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