Overtime pay to be factored in some state workers retirement pensions
A bill that would factor an employee's overtime pay into retirement payments could lead to a crackdown in payroll monitoring and policy enforcement.
In Montgomery, Alabama, a state committee recently considered and passed bills that will allow workers' overtime to count toward their state retirement pensions. The state unanimously passed the measure on Tuesday, covering all law enforcement officers as well as all other employees that are covered by the Employees Retirement system and eligible for overtime, such as firefights and Alabama Alcoholic Beverage Control Board enforcement officers, according to the Gadsen Times.
The bill may need to be reworked, however, to further include employees of the Teachers Retirement System, according to the Tuscaloosa News.
This reverses a ruling last summer in which the attorney general decided that overtime pay should not be considered compensable income. Last year, it was suspected that some state troopers were abusing overtime pay as a way to inflate their retirement pension, the source reports.
To ensure that state employees follow payroll policies, state and local departments can use employee attendance services that monitor hours and generate overtime reports that would indicate any abuse.
In Montgomery, Alabama, a state committee recently considered and passed bills that will allow workers' overtime to count toward their state retirement pensions. The state unanimously passed the measure on Tuesday, covering all law enforcement officers as well as all other employees that are covered by the Employees Retirement system and eligible for overtime, such as firefights and Alabama Alcoholic Beverage Control Board enforcement officers, according to the Gadsen Times.
The bill may need to be reworked, however, to further include employees of the Teachers Retirement System, according to the Tuscaloosa News.
This reverses a ruling last summer in which the attorney general decided that overtime pay should not be considered compensable income. Last year, it was suspected that some state troopers were abusing overtime pay as a way to inflate their retirement pension, the source reports.
To ensure that state employees follow payroll policies, state and local departments can use employee attendance services that monitor hours and generate overtime reports that would indicate any abuse.
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