SB 51 Summary

• Creates Alabama Teachers' Planned Retirement Option (ATPRO) as an optional retirement account within the Teachers' Retirement System effective fiscal year 2012-2013, allowing eligible members to defer retirement while continuing employment for 3 or 5 years.

• Eligibility requires 25+ years of creditable service, age 55+, service retirement eligibility, annual salary of $75,000 or less, and local school system approval.

• Members receive monthly retirement allowance payments deposited into an ATPRO account earning interest at the active member rate; must withdraw from service upon completion of the 3 or 5-year participation period.

• Upon withdrawal, members receive lump-sum payments from ATPRO account plus accumulated contributions with interest; voluntary early termination within first 3 years results in forfeiture of employer contributions but not member contributions.

• Prohibits ATPRO participants from full or part-time state employment after completing ATPRO; existing Deferred Retirement Option Plan (DROP) participants are ineligible for ATPRO.