HB255 Summary

• Amends Sections 16-25-1 and 36-27-1 of the Code of Alabama 1975 to include overtime payments in "earnable compensation" for retirement benefit calculations in both the Teachers' Retirement System and Employees' Retirement System.

• For the Teachers' Retirement System, earnable compensation including overtime payments cannot exceed 120 percent of an employee's annual base compensation as certified by the employer.

• For the Employees' Retirement System, earnable compensation cannot exceed 120 percent of an employee's annual base compensation as certified by the employer; also excludes subsistence payments from earnable compensation.

• The bill took effect immediately upon passage and approval by the Governor, with the House passing it on February 28, 2012, and the Senate amending and passing it on May 2, 2012.