SB72 Summary

• Prohibits new participation in the Deferred Retirement Option Plan (DROP) after April 1, 2011 for both Teachers' Retirement System and Employees' Retirement System members.

• Limits interest paid on DROP benefit deposits for members who began participation on or before April 1, 2011 and do not withdraw from service to the lesser of prior fiscal year investment performance (minimum $0) or rates specified in related sections.

• Maintains existing DROP requirements including 25 years of creditable service, minimum age of 55 (52 for state police), participation periods of 3-5 years, and prohibition on retiree cost-of-living increases during participation.

• Creates the "Keeping Alabama's Best" Joint Interim Legislative Committee on Teacher and Public Employee Retention, comprised of 3 House and 3 Senate members, to study retention strategies and report findings by the fifth legislative day of the 2012 Regular Session.

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