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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 6

This week, the Legislature moved both the General Fund and Education Trust Fund budgets and moved three RSA-related bills out of committees. The Legislature will be gone for two weeks for Spring Break and will come back in session on Tuesday, April 4.  

On Tuesday, March 14, the House passed HB155, the General Fund budget. The House passed version of this budget fully funds ERS at the requested rate.

On Wednesday, March 15, the Senate Finance and Taxation Education Committee considered SB129, the Education Trust Fund budget. The Committee adopted a substitute, which fully funded TRS and set the PEEHIP per member per month rate at $809, for an increase of approximately ten million dollars from FY17 funding. The Senate debated the Education Trust Fund budget on the floor the next day, but ultimately carried it over to be further debated when the Legislature returns from Spring Break.

In addition, three bills related to RSA were passed out of committees:

  • HB326 by Rep. Wood, which provides 25 year service retirement to Tier II FLC members and increases the employee contribution for those members, received a favorable report by the House State Government committee.
  • HB377 by Rep. Treadaway, which provides that the closed State Police Plan will no longer be a separate plan but will become part of the ERS Plan, received a favorable report by the House Ways and Means General Fund committee.
  • SB206 by Sen. Singleton, which reclassifies certain ALEA law enforcement officers as Tier II state police for purposes of retirement benefits, was substituted and received a favorable report by the Senate Governmental Affairs committee. The substitute provides that instead of reclassifying new state police and reopening the State Police Plan, the plan will become part of the ERS Plan.  

Finally, three new bills were introduced:

  • HB427 by Rep. Ledbetter provides 25 year service retirement to Tier II local FLC members, increases the employee contribution rate for these members to 7.5%, and allows local units to further increase the employee contribution rate for these members to 8.25%.
  • HB432 by Rep. Patterson requires employers and retirees to pay a 5% surcharge to RSA on a retiree’s salary when the retiree has returned to work for a RSA-participating employer and is drawing a retirement benefit from RSA. This surcharge is non-refundable and does not accrue to the retiree’s account. In addition, the retiree does not accrue additional service credit for the time served while paying this surcharge.
  • HB435 by Rep. Hurst proposes a constitutional amendment to allow the Clay County sheriff to participate in ERS.

Week 5 Legislative Update

Week 4 Legislative Update

Week 3 Legislative Update

Week 2 Legislative Update

Week 1 Legislative Update

Bill Tracking

Updated 3-21-2017

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. Read First Time in House of Origin.
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. Read Second Time in House of Origin.

HB342/McMillan

n/a Allows ERS local employers to grant a one-time bonus to their retirees. Read First 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

SB321/Hightower Provides an option at retirement to take a partial lump sum with a like reduction in the monthly pension benefit. This option would be conditional each year upon the decision of the Finance Director to issue bonds to pay for such lump sums. Read First 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 Second Time in House of Origin.
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 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 First 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 Second Time in House of Origin.
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 HB356/Patterson Provides an option at retirement to take a partial lump sum with a like reduction in the monthly pension benefit. This option would be conditional each year upon the decision of the Finance Director to issue bonds to pay for such lump sums. Read First 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.

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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