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AL SB381

Bill

Status

Introduced

4/20/2017

Primary Sponsor

Shay Shelnutt

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Origin

Senate

Regular Session 2017

AI Summary

SB381 Summary

  • Reopens participation in the Deferred Retirement Option Plan (DROP) program, which was previously prohibited after March 24, 2011, for members of the Employees' Retirement System (ERS) and Teachers' Retirement System (TRS).

  • Tier I members must have at least 25 years of creditable service, be at least 55 years of age (or 52 for state police), and be eligible for service retirement to participate in DROP.

  • Tier II members must have at least 25 years of creditable service, be at least 62 years of age (or 56 for firefighters, law enforcement, corrections officers, and state police), and be eligible for service retirement to participate in DROP.

  • Allows DROP participation in one-year increments between three and five years, with 80 percent of the monthly retirement allowance deposited into a DROP account earning interest while the member continues working.

  • Effective immediately upon passage and approval by the Governor.

Legislative Description

Retirement, Deferred Retirement Option Plan (DROP), options for Tier I and Tier II members to participate, reopened, Secs. 16-25-150, 16-25-151, 36-27-170, 36-27-171 am'd.

Deferred Retirement Option Plan (DROP)

Last Action

Read for the first time and referred to the Senate committee on Finance and Taxation Education

4/20/2017

Committee Referrals

Finance and Taxation Education4/20/2017

Full Bill Text

No bill text available