SB303 Summary

• Repeals the Deferred Retirement Option Plan (DROP) for future participation and creates the Alabama Teachers' Planned Retirement Option (ATPRO) as an optional retirement account effective for fiscal year 2012-2013.

• ATPRO eligibility requires 25+ years of creditable service, age 55+, service retirement eligibility, annual salary of $75,000 or less, and local school system approval.

• Participants select either a 3-year or 5-year participation period (one-time only) and continue employment with deferred retirement allowance until completion, at which time they must withdraw from service.

• Members who complete their ATPRO term receive a lump-sum payment of account contributions plus interest; voluntary termination within first three years results in forfeiture of the retirement allowance portion but member contributions are returned.

• Participants cannot be re-employed in state positions after ATPRO completion and are ineligible for cost-of-living increases during participation; DROP plan participants cannot participate in ATPRO.