State Pension Study Looking For Change?

State Pension Study Looking For Change?

Retirees, this story covers the third meeting conducted by the Legislative Pension Study Committee. It is a very comprehensive overview of the meeting yesterday. The RSA will present additional information at the January, 2016 meeting. At this time there is no threat to current retirees’ pension. However, we have concerns about PEEHIP for retirees and possible changes after hearing from Pew Charitable Trust representative.

At each of the three meetings AERA staff and board members have been in attendance. The committee plans to make recommendations to the Senate and House during the 2016 Legislative Session.

Janice J. Charlesworth
Executive Director
Alabama Education Retirees Association
800-537-6867 or 334-262-4177

State pension study group not ready for legislative changes

Posted: Wednesday, December 2, 2015 12:00 am

By Mary Sell Montgomery Bureau

MONTGOMERY — The panel of lawmakers studying the state’s pension systems is at least a month from considering any possible legislative changes — if it decides to recommend any at all.

But some local legislators said Tuesday they believe some reforms need to be made for the systems with a funded rate of about 67 percent.

Sen. Paul Bussman, R-Cullman, said the Retirement Systems of Alabama boards need to have more “skin in the game” when investment revenues are below 8 percent annually.

“I’m just saying that the board is responsible right now to make that 8 percent and there’s no accountability for them to make (it) right now,” Bussman, who represents most of Lawrence County, said after a meeting of the pension study group Tuesday. “The Legislature is going to cover them, so there’s no real incentive for them to make 8 percent.“There has to be some accountability.”