Loading chat...
AL SB388
Bill
AI Summary
SB388 Summary
-
Establishes a new "Tier II" defined benefit retirement plan for employees who first join the Teachers' Retirement System (TRS) or Employees' Retirement System (ERS) on or after January 1, 2013, while maintaining the existing "Tier I" plan for current members.
-
Tier II plan members must contribute 6% of earnable compensation (7% for correctional officers, firefighters, and law enforcement officers), compared to lower rates for Tier I members.
-
Sets retirement eligibility at age 62 for Tier II members (with exceptions for special duty officers at age 56), compared to age 60 for Tier I members; Tier II benefits capped at 80% of average final compensation.
-
Requires a two-thirds legislative vote to increase Tier II retirement age above 62, providing legal protection against future unilateral increases.
-
Becomes effective January 1, 2013, with provisions severable if any part is declared invalid or unconstitutional.
Legislative Description
Retirement, Teachers (TRS) and State Employees (ERS), new defined benefit plan for persons entering TRS and ERS on or after January 1, 2013; contributions, minimum retirement ages, and benefits provided, Secs. 16-25-1, 16-25-3, 16-25-11.1, 16-25-14, 16-25-21, 36-26-36.1, 36-27-1, 36-27-4, 36-27-16, 36-27-24, 36-27-59 am'd
Retirement
Last Action
Forwarded to Governor on May 8, 2012 at 7:20 p.m. on May 8, 2012
5/8/2012