Stealth retirement bill causes uproar in House
Bill includes retirement plan for lawmakers
DAVID WHITE
News staff writer
MONTGOMERY - State lawmakers passed a bill Thursday that could create retirement savings plans for state employees
and elected officials, including themselves, and pull in public money for matching payments.
After the vote, many lawmakers said they hadn't realized they would be eligible for the savings plans. They later
voted 64-12 to ask Gov. Don Siegelman to take public officials out of the bill.
Under the plan, lawmakers could budget taxpayer money each year to provide matching employer payments for their
retirement savings plans, similar to 401(k) plans.
"Anything you can do to encourage savings for retirement is a good thing," said the plan's sponsor, Sen.
Roger Bedford, D Russellville.
Rep. Riley Seibenhener, R Hartford, didn't see it that way. "It sets up a damn retirement for legislators
and other elected officials, which is something they've been after forever," he said.
The retirement savings plans would be open to employees of public schools, two-year colleges and universities,
workers in state agencies, state judges and any city, county or state public officials or public employees.
State Rep. Frank McDaniel, D Albertville, in his brief explanation of the plan to House of Representatives members,
did not say it covered state lawmakers and other state and local elected officials.
Siegelman's press secretary, Carrie Kurlander, said Siegelman had not been briefed Thursday afternoon on the bill.
Alabama State Employees Association Executive Director Mac McArthur said his group and the Alabama Education Association
have been pushing for two years to get the retirement savings plan passed into law.
"It is an employee savings plan," he said. "It encourages employees to save."
State employees, teachers and lawmakers already can contribute to retirement savings plans, or deferred compensation
accounts, similar to 401(k) plans. The Retirement Systems of Alabama handles those accounts. But those accounts
are not eligible for employer matching contributions.
Bedford's bill doesn't appropriate any money for matching payments. But it sets up the system for state lawmakers
to do so in coming years.
Bedford said cities and counties might want to provide money to match payments by their elected officials and employees,
but he said he doubted the Legislature ever would write state budgets to provide matching payments for legislators'
savings accounts. "I don't think we ever will," Bedford said.
Others weren't so sure.
Rep. Ron Johnson, R-Sylacauga, said, "I think it's a vehicle for legislative retirement."
The House voted 80-6 for the plan. About a half-hour later, the Senate voted 23-2 to accept changes made by the
House.
After Rep. Steve Clouse, R Ozark, discovered that the plan included retirement savings plans for lawmakers, he
asked House members to reconsider their approval. But Rep. J.E. Turner, R-Citronelle, and others delayed him long
enough to give Bedford time to get the Senate to approve House changes to the plan.
By the time the House voted 48-24 to reconsider its approval of the plan, the Senate already had passed it. It
was sent to the governor at 3:50 p.m.
Seibenhener charged that the entire process was orchestrated by Speaker Seth Hammett, the House leader, and other
top lawmakers. "The leadership is behind this," he said.
Hammett replied later, "That's absolutely ridiculous."
The plan will become law unless Siegelman objects. He also could try to rewrite the plan with an executive amendment
or let it become law as written. How they voted
Voting to reconsider approval of the bill, with local representatives designated in bold type, were: Allen, Barton,
Beasley, Beason, Boothe, Bridges, Carns, Carothers, Clouse, Curry, C. Ford, J. Ford, Gaines, Galliher, Gaston,
Gipson, Greene, Greeson, L. Hall, Hamilton, Haney, Hawkins, Hill, Hooper, Humphreyes, Johnson, Layson, McClurkin,
McDaniel, McKee, McLaughlin, McMillan, Millican, Morrison, Morrow, Morton, C. Newton, T. Parker, Payne, Pringle,
M. Rogers, Sanderford, Sanderson, Seibenhener, Thigpen, D. Thomas, Turner and Venable.
Voting not to reconsider approval were: Baker, Bandy, L. Black, Boyd, Buskey, Dukes, Dunn, Graham, Hayden, Hilliard,
Houston, Jones, Kennedy, Melton, Mitchell, D. Newton, Page, W. Parker, Penry, Perdue, J. Robinson, O. Robinson,
J. Rogers and Willis.
Abstaining were: Grantland, Laird, Major and E. Thomas.
Not voting were: Hammett, M. Black, Carter, Clark, Crigler, Dolbare, Guin, A. Hall, Hogan, Holmes, Hubbard, Hurst,
Jackson, Knight, Letson, Lindsey, Mancuso, Martin, Maull, McClammy, Oden, Schmitz, Spicer, Starkey J., Thomas,
Vance, Warren, White and Wren.
© The Birmingham News
