A bill that would raise the pension contributions of public employees in Alabama has passed through the Senate Finance and Taxation- Education Committee, according to Businessweek. The bill was passed seven to three, with Republicans voting for the bill and Democrats against it.
The bill would increase pension contributions by 2.5 percent of a public employee's salary, between now and October 1, 2012, the source says.
Many of the individuals in favor of the bill say it is the only option for keeping the pension program sound and closing the state's budget gap.
However, in a time when a number of individuals have cut essential expenses, such as life insurance policies and other savings investments, some are concerned that this bill may be too much for struggling public workers to bear.
"It's a tremendous amount of money out of the paychecks of families," the executive secretary of the Alabama Education Association, Paul Hubbert, told the source.
The bill will go to the Senate to be debated next, but, should it be passed, financial planning may become more important for public workers in Alabama. For those with complex financial situations, many experts suggest consulting a financial advisor to get professional advice.