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The Retirement Systems of Alabama

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Legislation

The 2017 Regular Session began February 7, 2017, and will end no later than May 22, 2017.

Week 9

During the 9th week of session, the Legislature introduced two new bills impacting RSA, passed one RSA-related bill out of committee, and passed legislation affecting PEEHIP out of the House.

The most notable of the two new bills is the bill to reinstitute the Deferred Retirement Option Plan (DROP). HB532 by Rep. Hanes, and its companion SB381 by Sen. Shelnutt, would reopen the DROP for eligible RSA employees. The legislation modifies the prior DROP in three major ways: (1) only 80% of a member’s monthly benefit would be deposited into his or her DROP account; (2) no interest would accrue to a member’s DROP account; and (3) employee contributions made during the DROP participation period would be non-refundable to the member. RSA’s actuaries have studied this new DROP and have determined that it would be cost-neutral to both ERS and TRS.  

The second bill introduced was HB546 by Rep. Jones, which modifies an existing statute dealing with the purchase of service credit by city employees.

In addition, the Senate Governmental Affairs committee gave a favorable report to HB326, which would provide 25 year service retirement to FLC members with an increase in the employee contribution rate. HB326 also gives local employers the option to increase the Tier II benefit multiplier for their FLC employees. This bill is now pending passage by the Senate.

Finally, the House passed HB284, which mandates coverage of certain autism therapies, by insurance plans, including PEEHIP. This bill moves on to the Senate for consideration by the to-be-assigned Senate committee.

Week 8 Legislative Update

Week 7 Legislative Update

Week 6 Legislative Update

Week 5 Legislative Update

Week 4 Legislative Update

Week 3 Legislative Update

Week 2 Legislative Update

Week 1 Legislative Update

Bill Tracking

Updated 4-20-2017

House Bills
Bill/Sponsor Companion Summary Status
HB20/Hanes n/a Requires PEEHIP to request from the legislature the full amount necessary to fund benefits without an increase in out-of-pocket costs or a decrease in benefits. Read First Time in House of Origin.
HB35/Ford SB3/Dial Provides a one-time bonus to TRS retirees. Read First Time in House of Origin.
HB155/Clouse SB150/Pittman General Fund Budget; fully funds ERS. Read First Time in Second House.
HB171/Poole SB129/Orr Education Trust Fund Budget; fully funds TRS and the requested PEEHIP per member per month rate. Read First Time in House of Origin.
HB177/Pettus n/a Combines the SEIB and PEEHIP boards. Read First Time in House of Origin.
HB240/Treadaway SB206/Singleton Reclassifies certain ALEA law enforcement officers as Tier II state police for purposes of retirement benefits. Read Second Time in House of Origin.
HB284/Patterson n/a Requires PEEHIP to cover certain autism therapies. Pending First Reading in Second House.
HB295/Rowe SB217/Marsh Adds ERS members from local units (such as cities, counties, and public boards) to the ERS Board of Control. Read First Time in House of Origin.

HB326/Wood

SB333/Chambliss Provides 25 year service retirement to Tier II FLC members and increases the employee contribution rate for these members and, as amended, would increase the benefit multiplier for Tier II FLC members employed by local units, unless the local unit opts out of the increase. Read Second Time in Second House.

HB342/McMillan

n/a Allows ERS local employers to grant a one-time bonus to their retirees. Read Second Time in House of Origin.

HB351/Knight

n/a Allows transfer of service credit and contributions from the Clerks’ and Registers’ Supernumerary Fund to ERS, TRS, or JRF. Read First Time in House of Origin.

HB356/Patterson

Sub

SB321/Hightower

Sub

As substituted, would provide an option at retirement to take a partial lump sum (up to 2 years of benefits) with a like reduced in the monthly benefit to be paid with RSA assets and would offer a one-time buyout for inactive vested members to be financed by a bond. Read Second Time in House of Origin.
HB377/Treadaway n/a Provides that the closed State Police Plan will no longer be a separate plan and will become part of the ERS Plan. Read First Time in Second House.
HB427/Ledbetter n/a Provides 25 year service retirement to Tier II local FLC members, increases the employee contribution rate for these members, and allows local units to further increase the employee contribution rate for these members. Read First Time in House of Origin.
HB432/Patterson n/a Requires employers and retirees to pay a 5% surcharge to RSA on a retiree's salary when the retiree has returned to work and is drawing a retirement benefit from RSA. Read First Time in House of Origin.
HB435/Hurst n/a Proposes a constitutional amendment to allow the Clay County sheriff to participate in ERS. Read Second Time in Second House.
HB532/Hanes SB381/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. Read First Time in House of Origin.
HB546/Jones   Removes requirement that a non-participating employer be funded by a city and county for purposes of purchasing prior service credit. Read First Time in House of Origin.
Senate Bills
Bill/Sponsor Companion Summary Status
SB3/Dial HB35/Ford Provides a one-time bonus to TRS retirees. Read Second Time in House of Origin.
SB129/Orr HB171/Poole Education Trust Fund Budget; fully funds TRS and the requested PEEHIP per member per month rate. Read First Time in Second House.
SB150/Pittman HB155/Clouse General Fund Budget; fully funds ERS. Read First Time in House of Origin.
SB159/Whatley n/a Establishes a trust to fund COLAs for TRS retirees.  Read First Time in Second House.
SB206/Singleton HB240/Treadaway Reclassifies certain ALEA law enforcement officers as Tier II state police for purposes of retirement benefits. Read Second Time in House of Origin.
SB217/Marsh HB295/Rowe Adds ERS members from local units (such as cities, counties, and public boards) to the ERS Board of Control. Read Second Time in House of Origin.

SB269/Dial

n/a Provides a one-time bonus to State ERS retirees. Read First Time in House of Origin.

SB321/Hightower

Sub

HB356/Patterson

Sub

As substituted, would provide an option at retirement to take a partial lump sum (up to 2 years of benefits) with a like reduced in the monthly benefit to be paid with RSA assets and would offer a one-time buyout for inactive vested members to be financed by a bond. Read Second Time in House of Origin.
SB333/Chambliss HB326/Wood Provides 25 year service retirement to Tier II FLC members and increases the employee contribution rate for these members. Read First time in House of Origin.
SB381/Shelnutt HB532/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.

2017 Legislative Roster

Legislative Fiscal Office Presentation on Alabama's Financial Condition - February 7, 2017

2016 Regular Session (archive)

Legislation News

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