HB414 Summary

• Increases employee retirement contributions effective October 1, 2011, raising rates from 6% to 8.25% of earnable compensation for judges, teachers, and state employees in the Employees' and Teachers' Retirement Systems.

• Further increases employee contributions to 8.5% effective October 1, 2012, for all covered employees including judges, probate judges, teachers, state employees, firefighters, law enforcement officers, and correctional officers.

• Allows employers participating under Section 36-27-6 to elect by resolution whether to withhold the increased employee contribution amounts from employee compensation or pay them as employer costs.

• Requires the Retirement Systems of Alabama to prioritize reducing employee contribution rates if positive investment performance decreases total contribution rates, to offset these increases.

• Becomes effective immediately upon passage and approval by the Governor.