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AL SB242
Bill
Status
2/8/2012
Primary Sponsor
Thomas Whatley
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AI Summary
SB242 Summary
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Amends Sections 16-25-150 and 36-27-170 of the Code of Alabama 1975 to modify the Deferred Retirement Option Plan (DROP) for Teachers' Retirement System and Employees' Retirement System members.
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Eliminates the forfeiture penalty for members who voluntarily leave service within the first three years of DROP participation, effective upon the bill's passage.
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Ensures that member contributions and accrued interest on the retirement allowance portion of DROP accounts are protected and not forfeited under any circumstances.
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Preserves existing protections for involuntary terminations due to dismissal, disability, involuntary spouse transfer, or death of the participant.
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Becomes effective immediately upon passage and approval by the Governor.
Legislative Description
Retirement, Deferred Retirement Option Plan, members in DROP authorized to voluntarily leave service without forfeiting portion of DROP account constituting retirement allowance, interest, or member contributions, Act 2011-27, 2011 Reg. Sess. am'd.; Secs. 16-25-150, 36-27-170 am'd.
Retirement
Last Action
Indefinitely Postponed
5/9/2012