SB147 Summary

• Local employers participating in the Employees' Retirement System of Alabama may elect by resolution within 24 months to provide Tier II plan members the same retirement benefits as Tier I plan members, subject to ERS Board of Control approval based on historical compliance and financial stability.

• Employers that have not increased Tier I member contribution rates under Act 2011-676 must develop and submit a plan to gradually increase member contribution rates before electing to equalize Tier I and Tier II benefits.

• Tier II plan members shall contribute 7.5% of earnable compensation beginning when the election becomes effective, with firefighters, law enforcement officers, and correctional officers contributing 8.5% of earnable compensation.

• The election is irrevocable and becomes effective at the beginning of the fiscal year following resolution receipt by the ERS, and local entities may petition the Board for reconsideration within the 24-month period.

• For members with service in multiple Tier plans, each respective Tier's benefit rates apply to creditable service earned in that plan, with the member's Tier plan at withdrawal determining all other pension aspects.