Alabama Judicial Retirement Measure, Amendment 1 (March 2016)
| Alabama Amendment 1 | |
|---|---|
 | |
| Election date March 1, 2016 | |
| Topic Wages and pay | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
The Judicial Retirement Measure, Amendment 1 was on the March 1, 2016, primary ballot in Alabama as a legislatively referred constitutional amendment.[1] It was approved.
| A "yes" vote was a vote in favor of allowing the legislature to "change retirement plans for new Alabama Supreme Court, district, circuit and probate judges, and move circuit clerks and district attorneys out of the supernumerary system and into the Retirement Systems of Alabama." |
| A "no" vote would have prohibited the legislature from enacting a retirement program for judges, circuit clerks and district attorneys. |
Under the provisions of the legislation tied to Amendment 1, district attorneys and clerks are included in the Retirement Systems of Alabama. Additionally, the amendment was designed to require judges who participate in the Judicial Retirement Fund (JRF) to increase the amount they contribute to their pensions and prevent participating judges from collecting a pension until the age of 62.[2][3]
Alabama State Auditor Jim Zeigler (R), who supported Amendment 1, said the legislation that would come as a result of Amendment 1's passage "would abolish a pension program the officials already have, to which they make no contributions from their pay. It replaces that 'supernumerary' system with a retirement structure similar to other state employees by requiring them to make contributions from their paychecks." He was concerned that these provisions were not clear in the amendment's official wording. The amendment itself was not written to enact these provisions directly. Rather, it authorized the legislature to pass a bill that would do so.[4]
Election results
| Alabama, Amendment 1 | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 679,540 | 63% | ||
| No | 401,754 | 37% | ||
Election results via: AL.com
Text of measure
Ballot title
The official ballot title was:[5]
| “ | 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 Nov. 8, 2016. "Proposed by Act _________" |
” |
Constitutional changes
| Alabama Constitution |
|---|
|
| Preamble |
| Articles |
| I • II • III • IV • V • VI • VII • VIII • IX • X • XI •XII •XIII •XIV • XV • XVI • XVII • XVIII |
| Local Provisions |
The measure was designed to add the following language to the Alabama Constitution:[5]
| The legislature is authorized 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.[6] |
Fiscal note
The following fiscal note for Amendment 1 was issued:[7]
| “ | 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 1 are 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.[6] |
” |
Background
- See also: Public pensions in Alabama
Alabama's retirement system is divided into three separate funds: the Teachers' Retirement System (TRS), the Employees' Retirement System (ERS), and the Judicial Retirement Fund (JRF). According to the Retirement Systems of Alabama website, "The Judicial Retirement Fund (JRF) was established under the provisions of Act 1163 of the Legislature of 1973 to provide benefits to qualified judges and justices. The ERS Board of Control administers and manages the JRF. The JRF is a defined benefit plan qualified under Section 401(a) of the Internal Revenue Code."[3]
According to the Alabama Policy Institute, the JRF is just 58 percent funded, making it the least funded of the three pension funds. State Sen. Arthur Orr (R-3), sponsor of Amendment 1, said the JRF's cost to the taxpayer has more than doubled in the past 10 years.[8][9]
The constitutional amendment authorizes the Alabama Legislature to provide a retirement program for the district attorneys, judges and circuit clerks. The legislation implemented in conjunction with the amendment provides details on how this program would be administered. The following details were provided:[7]
| “ | 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 requires 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 is be a separate employer contribution equal to a percentage of the employee’s annual salary; the employer contribution percentage is determined annually based on actuarial valuations. An employee is 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.[6] |
” |
Support
Supporters
- State Sen. Arthur Orr (R-3), sponsor of Amendment 1[8]
- Randy Hillman, director of the Alabama District Attorneys Association[1]
- Young Boozer (R), Alabama Treasurer[2]
- Dr. David Bronner, head of the Retirement System of Alabama[8]
- Jim Zeigler (R), Alabama State Auditor[4]
- Alabama Policy Institute[9]
Arguments
The main argument in favor of the amendment was its alleged cost savings. Sponsor Arthur Orr said,[1]
| “ | All in all, the number was $240 million to $300 million over 30 years ... [That is] considerable savings that would help the General Fund.[6] | ” |
State Auditor Zeigler agreed that the amendment would save taxpayers money; according to his estimates, Amendment 1 would save taxpayers $291,000 a year starting as soon as it was approved. Zeigler also estimated that the savings would grow to $8.4 million a year in 30 years.[4]
Opposition
Ballotpedia did not find any organized opposition to the measure or any public officials that spoke out against it. If you know of any opposing arguments that should be posted here, please email the Ballot Measures project director.
Campaign finance
| Total campaign contributions: | |
| Support: | $0.00 |
| Opposition: | $0.00 |
As of September 8, 2016, no ballot question committees registered to support or oppose Amendment 1.[10]
Path to the ballot
- See also: Amending the Alabama Constitution
According to Article 18 of the Alabama Constitution, both houses of the Alabama State Legislature were required to pass the bill by a three-fifths or 60 percent vote in order to send it to the statewide election ballot. The amendment was approved by a simple majority of the electorate, thus it becomes part of the constitution.
The amendment, titled Senate Bill 421 (SB 421) in the Alabama Legislature, was introduced by state Senator Arthur Orr (R-3). The bill was approved in the Alabama Senate on May 7, 2015, by a vote of 26 to three. It was approved in the Alabama House of Representatives on June 4, 2015, by a vote of 101 to zero.[11]
Senate vote
May 7, 2015
| Alabama SB 421 Senate vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 26 | 89.66% | ||
| No | 3 | 10.34% | ||
House vote
June 4, 2015
| Alabama SB 421 House vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 101 | 100.00% | ||
| No | 0 | 0.00% | ||
Recent news
The link below is to the most recent stories in a Google news search for the terms Alabama Judicial Retirement Amendment 1. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
- Senate Bill 421
- Alabama Policy Institute: Public Pensions Report
- Alabama Policy Institute Guide to the Issues one sheet
- Alabama Proposed Statewide Amendment for the March 1, 2016, primary election ballot
- Legislative ballot statement and summary for Amendment 1
Footnotes
- ↑ 1.0 1.1 1.2 Times Daily, "Measure addresses officials' retirements," February 14, 2016
- ↑ 2.0 2.1 Times Daily, "State officials ask for ‘yes’ votes on Amendment 1," February 26, 2016
- ↑ 3.0 3.1 The Retirement Systems of Alabama, "JRF," accessed February 29, 2016
- ↑ 4.0 4.1 4.2 Yellow Hammer News, "How a ‘wording error’ on Alabama’s upcoming ballot could cost the state millions," February 24, 2016
- ↑ 5.0 5.1 Alabama Legislature, "SB 421," accessed February 15, 2016
- ↑ 6.0 6.1 6.2 6.3 6.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ 7.0 7.1 Alabama State Legislature, "Ballot statement," accessed February 16, 2016
- ↑ 8.0 8.1 8.2 AL.com, "What's at stake with Amendment 1?" February 28, 2016
- ↑ 9.0 9.1 Alabama Policy Institute, "Guide to the Issues," accessed February 29, 2016
- ↑ Alabama Electronic Fair Campaign Practices Act (FCPA) Reporting System, "Political Action Committee Search," accessed September 8, 2016
- ↑ OpenStates.org, "SB 421," accessed February 15, 2016
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