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The Retirement Systems of Alabama

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Legislation

The 2018 Regular Session began January 9, 2018, and must end no later than April 23, 2018.

Legislative Update

Updated 2/16/18

This week, the Legislature moved the Education Trust Fund and General Fund budgets, moved one RSA-related bill out of committee, and introduced two new bills that would impact RSA.

On Tuesday, February 13, after a lengthy debate, the House passed the Education Trust Fund budget (HB175), which fully funds TRS and PEEHIP at the requested rates. While a retiree bonus for educators was discussed during the debate, a bonus must be passed in separate legislation. SB21 by Sen. Dial provides for a $400 bonus for TRS retirees and is pending consideration by the Senate.

On Wednesday, February 14, the Senate Finance and Taxation General Fund committee adopted the Senate substitute for SB178, the General Fund budget. The substitute fully funds ERS at the actuarially-calculated employer rate and was given a favorable report by the committee.

That same day, the House Ways and Means General Fund committee gave a favorable report to HB344, by Rep. Ledbetter, which would allow local employers participating in ERS to provide Tier I benefits to Tier II members.

Finally, the Senate introduced two new pieces of legislation affecting RSA. SB314, by Sen. Whatley, would create a trust to fund future COLAs for TRS retirees and SB319, by Sen. Ward, would allow retirement benefits for a member’s beneficiary to be paid to a special needs trust.

Bill Tracking

Updated 2/16/18

House Bills
Bill/Sponsor Companion Summary Status
HB1
Hanes
SB2
Shelnutt
Reinstitutes DROP with modifications to the original DROP. Only 80% of a member’s benefit will be deposited in his or her DROP account, no interest will accrue, and employee contributions made during the participation period will be non-refundable. House substitute changes name from DROP to EIRP (Employees’ Investment Retirement Plan) and changes the effective date to January 2019. Read Second Time in House of Origin.
HB121
Lawrence
n/a Constitutional amendment to allow Montgomery County Commission members to participate in ERS. Read Second Time in House of Origin.
HB156
Clouse
SB178
Pittman
General Fund Budget; fully funds ERS. Read First Time in House of Origin.
HB168
Hurst
n/a Proposes a constitutional amendment to allow the Clay County sheriff to participate in ERS. Enacted, Act 2018-37.
HB175
Poole
SB165
Orr
Education Trust Fund Budget; fully funds TRS and PEEHIP. Read First Time in Second House.
HB249
McMillan
n/a Extends time for local units to provide retiree bonus under Act 2017-367. Read Second Time in House of Origin.
HB330
Rowe
n/a

Provides a one-time $400 bonus to TRS retirees.

Read First Time in House of Origin.
HB336
Rogers
n/a Allows purchase of service credit for UAB employees who served as postdoctoral fellow. Read First Time in House of Origin
HB343
Jackson
n/a Exempt retired troopers and retired corrections officers who return to work for ALEA and Corrections from the return to work limits. Read Second Time in House of Origin.
HB344
Ledbetter
n/a Allows local employers participating in ERS to provide Tier I benefits to Tier II members. Read Second Time in House of Origin.
HB350
Rogers
n/a Allows purchase of service credit for service as a graduate assistant in the School of Education at UAB. Read First Time in House of Origin.
Senate Bills
Bill/Sponsor Companion Summary Status

SB2
Shelnutt

HB1
Hanes
Reinstitutes DROP with modifications to the original DROP. Only 80% of a member’s benefit will be deposited in his or her DROP account, no interest will accrue, and employee contributions made during the participation period will be non-refundable. Read First Time in House of Origin.
SB21
Dial
n/a Provides a one-time $400 bonus to TRS retirees. Read Second Time in House of Origin.
SB23
Coleman-Madison
n/a Allows purchase of service credit for employment with an agency eligible for participation in ERS after October 1, 2000. Read Second Time in Second House.
SB165
Orr
HB175
Poole
Education Trust Fund Budget; fully funds TRS and PEEHIP. Read First Time in House of Origin.
SB178
Pittman
HB156
Clouse
General Fund Budget; Senate substitute fully funds ERS. Read Second Time in House of Origin.
SB215
Dial
n/a Provides a one-time $400 bonus to ERS retirees. Read First Time in House of Origin.
SB314
Whatley
n/a Establishes a trust to fund COLAs for TRS retirees. Read First Time in House of Origin.
SB319
Ward
n/a Allows payments for a member’s beneficiary to be paid to a special needs trust. Read First Time in House of Origin.

2018 Legislative Update Archive:

Representatives by District

Senators by District

2017 Regular Session (archive)

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