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AL SB494
Bill
Status
5/24/2011
Primary Sponsor
Thomas Whatley
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AI Summary
SB494 Summary
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Amends Alabama Code Sections 16-25-150 and 36-27-170 relating to the Deferred Retirement Option Plan (DROP) for the Teachers' Retirement System and Employees' Retirement System.
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Eliminates the forfeiture penalty for members who voluntarily leave service within the first three years of DROP participation, effective upon passage of the act.
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Prior to the act's effective date, members forfeited the retirement allowance portion of their DROP account if they voluntarily terminated within three years, though member contributions and interest were protected.
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After the effective date, voluntary termination within the first three years no longer results in forfeiture of the retirement allowance portion, member contributions, or attributable interest.
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Becomes effective immediately upon passage and approval by the Governor.
Legislative Description
Retirement, Deferred Retirement Option Plan, new participation prohibited, limits on interest paid on DROP accounts, Secs. 16-25-150, 36-27-170 am'd.
Retirement
Last Action
Read for the first time and referred to the Senate committee on Finance and Taxation Education
5/24/2011