SB330 Summary

• Amends Sections 16-25-1 and 36-27-1 of the Alabama Code to clarify that "earnable compensation" includes overtime payments and subsistence allowance payments for both the Teachers' Retirement System and Employees' Retirement System.

• Explicitly adds overtime payments and subsistence payments (pursuant to Section 36-21-2) to the definition of earnable compensation used to calculate retirement contributions and benefits.

• Maintains existing exclusions from earnable compensation including expense allowances, lump sum payments for annual leave, sick leave, compensatory time, and severance pay.

• Preserves Internal Revenue Code limitations on compensation (Section 401(a)(17)) for public pension funds, with an exception for employees who were members before January 1, 1996.

• Takes effect immediately upon passage and approval by the Governor.