HB427 Summary

• Allows Tier II members of the Employees' Retirement System and Teachers' Retirement System employed as local correctional officers, firefighters, or law enforcement officers to retire with full benefits upon completion of 25 years of creditable service, instead of requiring age 62.

• Increases the employee contribution rate for Tier II members in these positions to 7.5% of earnable compensation (effective October 1, 2017), up from 7%.

• Amends multiple sections of Alabama Code (16-25-14, 16-25-21, 36-27-16, 36-27-24, and 36-27-59) to implement retirement eligibility and contribution changes for these public safety professionals.

• Provides that employers may opt-out of the provisions within 90 days after the act's effective date.

• Becomes effective on the first day of the third month following passage and approval by the Governor.