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AL HB396

Bill

Status

Introduced

3/31/2011

Primary Sponsor

Craig Ford

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Origin

House of Representatives

Regular Session 2011

AI Summary

HB396 Summary

  • Allows new participation in the Deferred Retirement Option Plan (DROP) as of July 2011 for eligible members of the Teachers' Retirement System and Employees' Retirement System.

  • Increases eligibility requirements from 25 to 30 years of creditable service and from 55 to 57 years of age (52 for state police members).

  • Caps interest earned on DROP accounts at the yield for two-year United States Treasury notes for new participants after June 30, 2011.

  • Limits interest on benefit deposits for members who began DROP participation on or before April 1, 2011 to the lesser of the preceding fiscal year's investment performance or a specified rate.

  • Becomes effective on the first day of the third month following passage and approval by the Governor.

Legislative Description

Retirement, new participation in DROP authorized, interest paid on accounts limited, Secs. 16-25-150, 36-27-170 am'd.; Act 2011-27, 2011 Reg. Sess. am'd.

Retirement

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means General Fund

3/31/2011

Committee Referrals

Ways and Means General Fund3/31/2011

Full Bill Text

No bill text available