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AL HB346
Bill
Status
3/1/2016
Primary Sponsor
Lynn Greer
Click for details
AI Summary
HB346 Summary
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Requires all public employees first hired by participating employers in the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund on or after January 1, 2017 to participate in individual retirement accounts (PEIRAF) administered by the Retirement Systems of Alabama.
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New employees must contribute $10 per pay period from pre-tax compensation to their individual retirement accounts.
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Employees may opt out of the fund and withdraw their contributions without penalty within 90 days of their first contribution.
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Employers must provide written notice to automatically enrolled employees that includes information about the 90-day opt-out period and the employee's right to withdraw.
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The act becomes effective on the first day of the third month following passage and approval by the Governor.
Legislative Description
Retirement System, individual retirement accounts, authorize new employees to contribute monthly and provide opt-out provisions, Sec. 36-27A-5 am'd.
Retirement Systems
Last Action
Read for the first time and referred to the House of Representatives committee on State Government
3/1/2016