District Attorney Mike O’Dell Discusses Amendment 1

In the Primary Election – Alabama voters will see a proposed Statewide Amendment on the ballot.

The text of statewide Amendment One will appear on the ballot as:

Proposing an amendment to the Constitution of Alabama of 1901, to authorize the legislature to provide a retirement program for district attorneys and circuit clerks of the state who are first elected or appointed on or after November 8, 2016. 

According to Alabama Secretary of State John Merrill, district attorneys and circuit clerks don’t currently contribute to their retirement but still receive retirement pay. If voters approve the amendment, it would make new district attorneys and circuit clerks contribute 8.5  percent of their annual salary to their retirement fund.

The amendment would also affect judges and justices — capping their benefits and raising minimum age of retirement to 62. District attorneys and circuit clerks would also abide by the age requirement and percentage of benefits.

It’s estimated over the next 30-year period this could save tax payers close to $200 million — $10 million to 15 million every year.

“The main thing people need to know about Amendment One is it’s a cost savings for the state of Alabama and for the local communities in which those people serve, bottom line. It does not create a new retirement system. It actually allows people who are already serving in these judicial roles to participate in the existing retirement system, which will be cost saving to all Alabamians,” Merrill said.

The Alabama District Attorneys Association approved the bill by a unanimous vote.

Mike O'Dell“These changes are long overdue, and with the state’s budget situation reaching crisis status, the time has come to take the steps necessary to put these retirement programs on stable financial footing while saving taxpayers millions of dollars,” said Mike O’Dell, one of the district attorneys who helped draft the bill.

Anyone currently in the position would be grandfathered into the old supernumerary system. This amendment would only affect people who would be new to the retirement system after Nov. 8.

(Information provided in part by WSFA)

 

 To hear Mike O’Dell’s Monday Morning Interview on WEIS Radio click the link provided

 

For more information, read this summary.

FOR STATEWIDE AMENDMENT

The text of the statewide ballot measure, including sponsors, cosponsors, and the text of the question that will appear on the statewide ballot:

Proposed by Act 2015

342 (Senate Bill 421 of the 2015 Regular

Legislative Session) Bill Sponsor: Senator Orr, Senate District 3

Cosponsors: None

Proposing an amendment to the Constitution of Alabama of 1901, to authorize the legislature to provide a retirement program for district attorneys and circuit clerks of the state who are first elected or appointed on or after November 8, 2016.

A summary of and the text of any implementing legislation directly related to the statewide ballot measure: If the constitutional amendment proposed by Act 2015 342 is ratified, a separate act of the legislature, Act 2015 498 (previously Senate Bill 411 of the 2015 Regular Legislative Session, sponsored by Senator Orr), will become law and will be considered the implementing legislation directly related to the constitutional amendment.

While the constitutional amendment merely authorizes the legislature to provide a retirement program for district attorneys and circuit clerks who are first elected or appointed on or after November 8, 2016, Act 2015 498, the implementing legislation, actually contains the specific details about how these retirement programs would be administered.

Under current law, justices and judges in Alabama have retirement plans that are part of the Retirement Systems of Alabama’s Judicial Retirement Fund, while retired circuit clerks and district attorneys receive compensation in accordance with Alabama’s supernumerary service system.

The implementing legislation would establish within the Judicial Retirement Fund a retirement plan for circuit clerks and district attorneys first elected or appointed on or after November 8, 2016, and would also establish a new retirement plan for justices and judges elected on or after November 8, 2016.

Compared to retirement offerings that would otherwise be available to these officials, these new plans more closely align to retirement plans already offered to other elected officials and state employees. The implementing legislation would also allow newly elected or appointed district attorneys to transfer previously earned retirement system service credits into the new retirement plan for district attorneys.

Like other retirement plans for state employees, the Retirement Systems of Alabama will administer the retirement plans established by the implementing legislation. Generally, the implementing legislation would require justices, judges, district attorneys and circuit clerks to contribute 8.5% of their annual salary to their respective retirement fund. Added to that employee contribution will be a separate employer contribution equal to a percentage of the employee’s annual salary; the employer contribution percentage will be determined annually based on actuarial valuations.

An employee would be able to draw retirement benefits no earlier than age 62, and only if the employee had ten or more years of service.

Each year of the employee’s service would effectively result in an annual retirement contribution equal to either 3% (for district attorneys and circuit clerks) or 4% (for justices or judges) of the employee’s average final compensation, but the total retirement allowance could not exceed 75% (justice or judge) or 80% (district attorneys or circuit clerk) of the employee’s average final compensation.

The placement of the statewide ballot measure on the statewide ballot: This proposed Constitutional Amendment will appear on the Ballot after election of statewide and local

offices and will be the constitutional amendment for voter consideration. The proposed Constitutional Amendment will be listed as “Statewide Amendment” A plain language summary of the statewide ballot measure, which shall include, at a minimum, the legal or constitutional authority for its passage, the effect of the statewide ballot measure if it is passed, including its cost and source of funding, and the effect of the statewide ballot measure if it is defeated.

Statewide Amendment 1 proposes to authorize the legislature to provide a retirement program for district attorneys and circuit clerks of the state who are first elected or appointed on or after November 8, 2016. Statewide Amendment 1, along with separate implementing legislation, would, for all newly elected or appointed district attorneys and circuit clerks, replace the current post-retirement supernumerary compensation system with specific retirement programs established for those officials within the Retirement Systems of Alabama’s Judicial Retirement Fund. The implementing legislation would also establish a new retirement plan for justices and judges first elected on or after November 8, 2016, who are not otherwise members of the Judicial Retirement Fund, None of the changes in the proposed constitutional amendment or the implementing legislation become effective unless the constitutional amendment is ratified.

Furthermore, should ratification occur, the constitutional amendment and the implementing legislation would only affect justices, judges, district attorneys, or circuit clerks who are first elected or appointed on or after November 8, 2016. However, the implementing legislation would allow a newly elected or appointed district attorney to transfer previously earned retirement system service credits into the new retirement plan for district attorneys.

If Statewide Amendment 1 IS PASSED, a retirement plan would be established for qualifying district attorneys and circuit clerks, who would otherwise be unable to participate in such a plan. A new retirement plan for justices and judges first elected or appointed on or after November 8, 2016 would also be established

If Statewide Amendment 1 IS DEFEATED, qualifying district attorneys and circuit clerks would not be able to participate in a state administered retirement plan, but would remain eligible to participate in the current post-retirement supernumerary compensation system. Furthermore, retirement plans for justices or judges would not be modified. As with every proposed constitutional amendment – state law requires the governor to publish the text of

Statewide Amendment 1 prior to the election. Paid from the State General Fund, the exact proclamation expenses for Statewide Amendment 1are unknown, but are estimated by the Alabama Legislative Fiscal Office to be $100,000. While Statewide Amendment 1 does not directly affect taxes, the Alabama Legislative Fiscal Office and the Retirement Systems of Alabama predict that the amendment and the implementing legislation, if ratified, will decrease the state employer contribution rates for justices, judges, district attorneys, and clerks. If that occurs, affected public entities, which receive an appropriation of public funds (i.e., taxes), would realize a reduction in expenses due to the decrease in the contribution rates.

The Constitutional authority for passage of Statewide Amendment 1 is set forth in Sections 284, 285, and 287 of the State Constitution. These sections outline the way a constitutional amendment may be put to the people of the state for a vote.

 

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