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AL SB149
Bill
Status
3/20/2019
Primary Sponsor
Shay Shelnutt
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AI Summary
SB149 Summary
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Renames the Deferred Retirement Option Plan (DROP) to the Employees' Investment Retirement Plan (EIRP) and reopens participation for eligible members in both the Employees' Retirement System (ERS) and Teachers' Retirement System (TRS).
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Tier I members of ERS and TRS may participate in EIRP if they have 25+ years of creditable service, are at least 55 years old (52 for state police), and are eligible for service retirement.
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Tier II members of ERS and TRS may participate in EIRP if they have 25+ years of creditable service, are at least 62 years old (56 for firefighters, law enforcement, corrections officers, or state police), and are eligible for service retirement.
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Participation periods range from 3-5 years with 80 percent of the monthly retirement allowance paid into an EIRP account that earns interest; voluntary termination within the first three years results in forfeiture of retirement allowance portions unless due to involuntary dismissal, disability, involuntary transfer, or death.
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The effective date is January 1, 2020.
Legislative Description
Retirement, Deferred Retirement Option Plan (DROP), open participation in Employees' Investment Retirement Plan (EIRP), 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 Education Policy
3/20/2019