Governor Robert Bentley has backed off his first major proposal before the 2013 legislative session starting February 5.
Bentley began talking in September about passing incentives for veteran state employees to retire. His goal was to reduce the state payroll.
But Bentley says he's decided they are not needed right now because enough people are leaving state service and because the state is saving money in other areas.
The executive director of the Alabama State Employees Association, Mac McArthur, says he doesn't think the proposal was well-received. He says nearly everyone who expressed an interest in the retirement incentives was already planning to retire.
More than 300 had expressed interest to the state Personnel Department, far fewer than the 2,600 who retired when the state last offered incentives in 1998.