Details of Voluntary Retirement Incentive Proposal - ABC 33/40 - Birmingham News, Weather, Sports

Details of Voluntary Retirement Incentive Proposal

Posted: Updated:

Monday Governor Robert Bentley gave details of legislation that would offer a retirement incentive to eligible state employees who voluntarily retire from state service.


Qualified employees would include:
 
Executive Branch, Legislative Branch, and Judicial Branch state employees who meet the minimum retirement eligibility requirements.
The plan covers both merit and non-merit staff.
 
The program does not affect education employees; however, a separate Teacher Voluntary Retirement Incentive program could be proposed at a later date.


"The Voluntary Retirement Incentive program will give eligible employees an attractive choice.  The program will be a benefit for employees who choose to participate and a benefit for taxpayers as well," Governor Bentley said.  "This program will save taxpayer dollars in both the short term and the long term.  The result will be a less costly, more efficient state government."
 
The Alabama Department of Finance projects that total overall savings in salaries and benefits would average between $18 million and $26 million a year for every 500 employees who participate, with $6 million to $10 million of those savings directly benefiting the General Fund budget.  The state is not counting on a pre-determined number of employees to participate.  The goal is simply to make this option available as another way of increasing efficiency.
 
Pending legislative approval of the program, employees who choose to participate would be able to select one of the following retirement incentives:
 
Option 1:  Post-Retirement Group Health Insurance Coverage
The State will pay 100% of the retiree's monthly premiums for non-tobacco users for up to 5 years for member-only coverage or up to 2.5 years for family coverage or until the retiree qualifies for Medicare or reaches age 65, whichever comes first.  If the employee or his or her covered spouse is a tobacco user, the employee will be responsible for paying the difference between the non-tobacco user premium and the tobacco user premium.
 
Option 2:  Cash incentive payment of $15,000
The cash incentive payment would be made in two installments.  The first installment would be $7,500 upon retirement.  The second $7,500 installment would be paid in January of 2014.
 
Senate President Pro Tem Del Marsh will serve as the Senate sponsor of the legislation.
 

"Voluntary retirement incentives are a win-win for both the taxpayers and employees who choose to participate," President Pro Tem Marsh said.  "We're able to realize significant short- and long-term cost savings for taxpayers, as well as offer an attractive incentive to employees who have served the state for many years.  I appreciate Governor Bentley's commitment to right-sizing state government.  We look forward to continuing our work with his administration to reduce costs, maximize taxpayer resources and operate as efficiently as possible."
 
Representative Mac McCutcheon will serve as the House sponsor of the legislation.
 
"The retirement incentive bill is one more way of managing our budgets and being fiscally responsible to the Alabama taxpayers," Representative McCutcheon said.  "Governor Bentley and the Legislative Leadership are committed to living within our means.  We are well on our way to saving the taxpayers of Alabama one billion dollars.  The Voluntary Retirement Incentive is the latest of several initiatives that will help us reach our goal."
 
House Speaker Mike Hubbard voiced support for the Voluntary Retirement Incentive plan, saying it builds on a promise to maintain services while right-sizing government.
 
"When the Republican legislative majority was elected in 2010, we promised to reduce the size of government and cut back on out-of-control spending while continuing to provide essential state services to those who need them," Speaker Hubbard said.  "By offering an early retirement package, we can accomplish all of these goals while also ensuring that the promises made to the affected employees when they were hired are promises being kept as they retire."
 
An application process will be conducted to allow the state to determine the level of interest among employees.  Agency heads will have discretion on whether their particular state agency will participate based on factors such as staffing levels for critical positions.
 
The state plans to eliminate many of the positions of those who retire.  However, critical positions will be refilled in order to ensure the viability of essential state functions.  Refilling positions will be considered on a case-by-case basis.
 
Lieutenant Governor Kay Ivey also voiced support for the proposal and the increased efficiency it provides.
 
"As we continue to identify ways to streamline state government, the Voluntary Retirement Incentive program proposed by Governor Bentley offers an attractive option for state employees to consider," Lieutenant Governor Ivey said.  "The successful implementation of the proposed VRI program will help reduce the size of state government without impacting essential services."
 
"The Voluntary Retirement Incentive is part of our overall plan to right-size state government," Governor Bentley added.  "We will conduct this program in a responsible manner in order to ensure that we are providing essential state services while also increasing efficiency in government agencies."

  • Central Alabama NewsMore>>

  • Fire danger rises for Labor Day weekend

    Fire danger rises for Labor Day weekend

    Friday, August 29 2014 11:59 PM EDT2014-08-30 03:59:40 GMT
    Our recent dry weather has created the perfect conditions for fire danger. More >>
    Our recent dry weather has created the perfect conditions for fire danger. More >>
  • Talladega parents allege school employee wrote racist Facebook posts

    Talladega parents allege school employee wrote racist Facebook posts

    Friday, August 29 2014 7:32 PM EDT2014-08-29 23:32:28 GMT
    Several parents and community members in Talladega are upset Friday over allegations of racial comments made from a school employee's Facebook page.More >>
    Several parents and community members in Talladega are upset Friday over allegations of racial comments made from a school employee's Facebook page.More >>
  • Hackleburg High School preps for first home game in three years

    Friday, August 29 2014 4:57 PM EDT2014-08-29 20:57:25 GMT
    Tonight is a homecoming three years in the making for Hackleburg High School. The team takes the field tonight in their new stadium, finally completed after an E-F five tornado destroyed it on April 27, 2011.It is sure to be a packed house at Ray Stadium as the Hackleburg panthers take on Marion County, tonight at 7:00 p.m. This is going to be an emotional night, not only for the school, but for the community as well. "This is going to be an emotional game, an emotional crowd. This field ho...More >>
    Tonight is a homecoming three years in the making for Hackleburg High School. The team takes the field tonight in their new stadium, finally completed after an E-F five tornado destroyed it on April 27, 2011.It is sure to be a packed house at Ray Stadium as the Hackleburg panthers take on Marion County, tonight at 7:00 p.m. This is going to be an emotional night, not only for the school, but for the community as well. "This is going to be an emotional game, an emotional crowd. This field ho...More >>
  • Birmingham Area NewsMore>>

  • Rescue workers digging to save man buried in a hole

    Rescue workers digging to save man buried in a hole

    Saturday, August 30 2014 1:14 PM EDT2014-08-30 17:14:20 GMT
    Birmingham Fire and Rescue units are on the scene of an accident where a man has been buried in a hole. Crews reportedly are digging to pull the man out. It's not known exactly what happened at this time or how the man was trapped in the hole which collapsed on him. ABC 33/40 has a crew at the scene on Mayfield Ave. and 24th St. SW. We will have more as the story develops,More >>
    Birmingham Fire and Rescue units are on the scene of an accident where a man has been buried in a hole. Crews reportedly are digging to pull the man out. It's not known exactly what happened at this time or how the man was trapped in the hole which collapsed on him. ABC 33/40 has a crew at the scene on Mayfield Ave. and 24th St. SW. We will have more as the story develops,More >>
  • City Council to get update on education in Birmingham

    City Council to get update on education in Birmingham

    Friday, August 29 2014 8:55 PM EDT2014-08-30 00:55:45 GMT
    The Birmingham City Council is hosting a lunch meeting with the Birmingham Board of Education to discuss the current state and direction of the Birmingham City Schools. The meeting will be held Tuesday, September 2, 2014 from 12:45 p.m. to 2 p.m. at Regions Bank in the Executive Dining Room."We want to make sure that as a council we are engaged in all aspects of development for our city," Council President Jonathan Austin said. "It is very important that are continually updated on areas such ...More >>
    The Birmingham City Council is hosting a lunch meeting with the Birmingham Board of Education to discuss the current state and direction of the Birmingham City Schools. The meeting will be held Tuesday, September 2, 2014 from 12:45 p.m. to 2 p.m. at Regions Bank in the Executive Dining Room."We want to make sure that as a council we are engaged in all aspects of development for our city," Council President Jonathan Austin said. "It is very important that are continually updated on areas such ...More >>
  • Exclusive: Birmingham beats out Miami for DOT conference

    Exclusive: Birmingham beats out Miami for DOT conference

    Friday, August 29 2014 6:34 PM EDT2014-08-29 22:34:48 GMT
    ABC 33/40 has learned that the City of Birmingham beat out Miami for a DOT conference. A date for the conference has yet to be scheduled but hosting such an event gives the city an opportunity to solicit federal funding for transportation projects throughout the metro. Count on us to pass along any new information as soon as we get it.More >>
    ABC 33/40 has learned that the City of Birmingham beat out Miami for a DOT conference. A date for the conference has yet to be scheduled but hosting such an event gives the city an opportunity to solicit federal funding for transportation projects throughout the metro. Count on us to pass along any new information as soon as we get it.More >>
  • Anniston - Gadsden Area NewsMore>>

  • Arrest made in large level extortion scheme

    Arrest made in large level extortion scheme

    Friday, August 29 2014 12:45 PM EDT2014-08-29 16:45:16 GMT
    "Everett Leon Stout, 72 and Miriam Clair Schultz, 67 are charged with 14 counts of extortion.More >>
    "Everett Leon Stout, 72 and Miriam Clair Schultz, 67 are charged with 14 counts of extortion.More >>
  • Gadsden police recover more than 300 stolen items; felony charges against suspected fence

    Gadsden police recover more than 300 stolen items; felony charges against suspected fence

    Thursday, August 28 2014 11:22 PM EDT2014-08-29 03:22:34 GMT
    Joe Walker Pearl (Photo: Etowah County Sheriff's Office)Joe Walker Pearl (Photo: Etowah County Sheriff's Office)
    Police in Gadsden are trying to return hundreds of stolen items to their rightful owners. Captain Paul Cody said officers bust a large fencing operation this week. Joe Pearl, 75, is the suspect in the case. It took a long time to sort through and document a very wide range of stolen property. "We've collected a lot of stuff," Cody said. "Toilet paper. We have non-firearms related weapons, we have karaoke machines, musical instruments, car stereos, underwear."More >>
    Police in Gadsden are trying to return hundreds of stolen items to their rightful owners. Captain Paul Cody said officers bust a large fencing operation this week. Joe Pearl, 75, is the suspect in the case. It took a long time to sort through and document a very wide range of stolen property. "We've collected a lot of stuff," Cody said. "Toilet paper. We have non-firearms related weapons, we have karaoke machines, musical instruments, car stereos, underwear."More >>
  • Gadsden police arrest suspect in deadly stabbing case

    Gadsden police arrest suspect in deadly stabbing case

    Thursday, August 28 2014 11:37 AM EDT2014-08-28 15:37:31 GMT
    William D'Angelo McKinney (Photo: Etowah County Sheriff's Office)William D'Angelo McKinney (Photo: Etowah County Sheriff's Office)
    Investigators in Gadsden said a man strangled his ex-girlfriend Tuesday evening before stabbing another man to death. Officers arrested 30-year-old William D'Angelo McKinney Wednesday night. He faces charges for murder and domestic violence with strangulation. Police said McKinney went to his ex-girlfriend's home in the Mill Village area and let himself in. Investigators said she asked him to leave, but he shoved her and then put her in a headlock until she blacked out.More >>
    Investigators in Gadsden said a man strangled his ex-girlfriend Tuesday evening before stabbing another man to death. Officers arrested 30-year-old William D'Angelo McKinney Wednesday night. He faces charges for murder and domestic violence with strangulation. Police said McKinney went to his ex-girlfriend's home in the Mill Village area and let himself in. Investigators said she asked him to leave, but he shoved her and then put her in a headlock until she blacked out.More >>
Most Popular
Stories
Videos
loading...
  • Latest StoriesMore>>

  • Rescue workers digging to save man buried in a hole

    Rescue workers digging to save man buried in a hole

    Saturday, August 30 2014 1:14 PM EDT2014-08-30 17:14:20 GMT
    Birmingham Fire and Rescue units are on the scene of an accident where a man has been buried in a hole. Crews reportedly are digging to pull the man out. It's not known exactly what happened at this time or how the man was trapped in the hole which collapsed on him. ABC 33/40 has a crew at the scene on Mayfield Ave. and 24th St. SW. We will have more as the story develops,More >>
    Birmingham Fire and Rescue units are on the scene of an accident where a man has been buried in a hole. Crews reportedly are digging to pull the man out. It's not known exactly what happened at this time or how the man was trapped in the hole which collapsed on him. ABC 33/40 has a crew at the scene on Mayfield Ave. and 24th St. SW. We will have more as the story develops,More >>
  • Tony Stewart back at the track, looking to heal

    Tony Stewart back at the track, looking to heal

    Saturday, August 30 2014 12:20 AM EDT2014-08-30 04:20:07 GMT
    Tony Stewart should be back in his comfort zone at a NASCAR track, ready for racing.More >>
    Tony Stewart took his seat on the podium - unshaven, his eyes glassy - and unfolded a sheet of paper. His voice quivered as he read, pausing to maintain his composure as he described the death of a driver he hit as "one of...More >>
  • Fire danger rises for Labor Day weekend

    Fire danger rises for Labor Day weekend

    Friday, August 29 2014 11:59 PM EDT2014-08-30 03:59:40 GMT
    Our recent dry weather has created the perfect conditions for fire danger. More >>
    Our recent dry weather has created the perfect conditions for fire danger. More >>
  • City Council to get update on education in Birmingham

    City Council to get update on education in Birmingham

    Friday, August 29 2014 8:55 PM EDT2014-08-30 00:55:45 GMT
    The Birmingham City Council is hosting a lunch meeting with the Birmingham Board of Education to discuss the current state and direction of the Birmingham City Schools. The meeting will be held Tuesday, September 2, 2014 from 12:45 p.m. to 2 p.m. at Regions Bank in the Executive Dining Room."We want to make sure that as a council we are engaged in all aspects of development for our city," Council President Jonathan Austin said. "It is very important that are continually updated on areas such ...More >>
    The Birmingham City Council is hosting a lunch meeting with the Birmingham Board of Education to discuss the current state and direction of the Birmingham City Schools. The meeting will be held Tuesday, September 2, 2014 from 12:45 p.m. to 2 p.m. at Regions Bank in the Executive Dining Room."We want to make sure that as a council we are engaged in all aspects of development for our city," Council President Jonathan Austin said. "It is very important that are continually updated on areas such ...More >>
  • Talladega parents allege school employee wrote racist Facebook posts

    Talladega parents allege school employee wrote racist Facebook posts

    Friday, August 29 2014 7:32 PM EDT2014-08-29 23:32:28 GMT
    Several parents and community members in Talladega are upset Friday over allegations of racial comments made from a school employee's Facebook page.More >>
    Several parents and community members in Talladega are upset Friday over allegations of racial comments made from a school employee's Facebook page.More >>
  • Fairview High School football stadium condemned; Game night plans change

    Fairview High School football stadium condemned; Game night plans change

    Friday, August 29 2014 6:36 PM EDT2014-08-29 22:36:45 GMT
    High school football continues into its second week of the season. Stadiums across Alabama will be filled with "Friday night lights.” But, one local stadium that's supposed to host a game will remain empty. The Fairview High School football stadium was condemned Thursday night.More >>
    High school football continues into its second week of the season. Stadiums across Alabama will be filled with "Friday night lights.” But, one local stadium that's supposed to host a game will remain empty. The Fairview High School football stadium was condemned Thursday night.
    More >>
  • Exclusive: Birmingham beats out Miami for DOT conference

    Exclusive: Birmingham beats out Miami for DOT conference

    Friday, August 29 2014 6:34 PM EDT2014-08-29 22:34:48 GMT
    ABC 33/40 has learned that the City of Birmingham beat out Miami for a DOT conference. A date for the conference has yet to be scheduled but hosting such an event gives the city an opportunity to solicit federal funding for transportation projects throughout the metro. Count on us to pass along any new information as soon as we get it.More >>
    ABC 33/40 has learned that the City of Birmingham beat out Miami for a DOT conference. A date for the conference has yet to be scheduled but hosting such an event gives the city an opportunity to solicit federal funding for transportation projects throughout the metro. Count on us to pass along any new information as soon as we get it.More >>
  • Hackleburg High School preps for first home game in three years

    Friday, August 29 2014 4:57 PM EDT2014-08-29 20:57:25 GMT
    Tonight is a homecoming three years in the making for Hackleburg High School. The team takes the field tonight in their new stadium, finally completed after an E-F five tornado destroyed it on April 27, 2011.It is sure to be a packed house at Ray Stadium as the Hackleburg panthers take on Marion County, tonight at 7:00 p.m. This is going to be an emotional night, not only for the school, but for the community as well. "This is going to be an emotional game, an emotional crowd. This field ho...More >>
    Tonight is a homecoming three years in the making for Hackleburg High School. The team takes the field tonight in their new stadium, finally completed after an E-F five tornado destroyed it on April 27, 2011.It is sure to be a packed house at Ray Stadium as the Hackleburg panthers take on Marion County, tonight at 7:00 p.m. This is going to be an emotional night, not only for the school, but for the community as well. "This is going to be an emotional game, an emotional crowd. This field ho...More >>