Legislation
The 2019 Regular Session will end no later than June 18, 2019.
Summary
Updated May 17, 2019
The Legislature completed the nineteenth, twentieth, and twenty-first legislative days of the Regular Session this week.
The House passed HB437, by Rep. Ingram, which would create Tier III for ERS state members. Under the bill, all new members hired after October 1, 2020, would be in Tier III and all Tier II members would be converted to Tier III (with the option to remain Tier II if such election is made by January 1, 2021). Tier III would improve upon the Tier II benefit by increasing the benefit multiplier to 2.00%, allowing 30-year retirement, and allowing sick leave conversion. Tier III members would pay 7.5% for this improved benefit (an increase over the 6% currently paid by Tier II members). The bill now moves to the Senate for its consideration.
Additionally, the House passed SB57, by Sen. Ward, which would allow RSA beneficiary payments to be made to special needs trusts. The law currently only allows beneficiary payments to be made individuals. This bill now goes to the Governor for her signature.
Bill Chart
House Bills | |||
|---|---|---|---|
| Bill/Sponsor | Companion | Summary | Status |
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. Changes name from DROP to EIRP (Employees’ Investment Retirement Plan). | Read First Time in House of Origin. | ||
n/a | Provides an option at retirement for a member to take up to 2 years of his or her benefit as a partial lump sum in exchange for a reduced lifetime monthly benefit. | Read Second Time in Second House. | |
Allows local employers participating in ERS to provide Tier I benefits to Tier II members. | Read Second Time in House of Origin. | ||
|
| n/a | Creates Tier III for TRS which would modify Tier II by increasing the benefit multiplier, allowing 30-year retirement, allowing sick leave conversion, and increasing the employee contribution to 7.5%. Would be effective October 1, 2020, for new members. Tier II members would automatically be converted to Tier III with the option to revert back to Tier II. | Read First Time in Second House. |
n/a | Increases return to work compensation caps from $31,000 to $42,000 and suspends CPI increases until 2025. | Read First Time in House of Origin. | |
n/a | General Fund Budget; fully funds ERS. | Read Second Time in Second House. | |
|
| n/a | Exempts retired law enforcement officers rehired by rural municipalities from the return to work laws and revolving door prohibitions. Amended in House committee to apply return to work laws. | Read First Time in Second House. |
Provides a one-time bonus to ERS retirees in the amount of $2 per month of service with a $300 minimum. Provides local units that participate in ERS the option to provide the bonus to their retirees. | Read First Time in House of Origin. | ||
| HB389/Rogers | SB364/Coleman-Madison | Allows purchase of service credit for a TRS member who served as postdoctoral fellow at an Alabama public college or university. | Read Second Time in House of Origin. |
| HB437/Ingram | SB319/Barfoot | Creates Tier III for ERS State which would modify Tier II by increasing the benefit multiplier, allowing 30-year retirement, allowing sick leave conversion, and increasing the employee contribution to 7.5%. Would be effective October 1, 2020, for new members. Tier II members would automatically be converted to Tier III with the option to revert back to Tier II. | Read First Time in Second House. |
| HB439/Wadsworth | SB288/Smitherman | Provides a one-time bonus of $800 to TRS retirees. | Read First Time in House of Origin. |
| HB485/Scott | SB299/Whatley | Establishes a trust to fund COLAs for TRS retirees. | Read First Time in House of Origin. |
| HB503/McMillan | n/a | Subjects ERS retirement benefits to garnishment for child support and alimony. | Read First Time in House of Origin. |
| HB581/Sells | n/a | Creates the Employees’ Investment Retirement Plan (EIRP) which would allow a member to continue working upon retirement. During such employment, 80% of the member’s retirement benefit would be deposited into an account for the member. No interest would accrue on the account. The member would not accrue additional service credit during the participation period and would to pay non-refundable member contributions during this period. | Read First Time in House of Origin. |
| HB610/Alexander | n/a | Proposes a constitutional amendment to allow Bessemer elected officials to participate in ERS. | Read First Time in House of Origin. |
Senate Bills | |||
|---|---|---|---|
| Bill/Sponsor | Companion | Summary | Status |
n/a | Allows payments for a member’s beneficiary to be paid to a special needs trust. | Pending Signature by the Governor. | |
SB147/Waggoner | HB61/Ledbetter | Allows local employers participating in ERS to provide Tier I benefits to Tier II members. | Enacted. Act 2019-132 |
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. Changes name from DROP to EIRP (Employees’ Investment Retirement Plan). | Read First Time in House of Origin. | ||
n/a | Provides a 3% COLA to TRS Retirees. | Read First Time in House of Origin. | |
n/a | Education Trust Fund Budget; fully funds TRS and PEEHIP. | Read First Time in Second House. | |
Provides a one-time bonus to ERS retirees in the amount of $2 per month of service with a $300 minimum. Provides local units that participate in ERS the option to provide the bonus to their retirees. | Read Second Time in House of Origin. | ||
| HB439/Wadsworth | Provides a one-time bonus of $800 to TRS retirees. Substituted in F&TE to provide a one-time bonus of $400 to TRS retirees. | Read Second Time in House of Origin. | |
| SB299/Whatley | HB485/Scott | Establishes a trust to fund COLAs for TRS retirees. | Read First Time in House of Origin. |
| SB310/Beasley | n/a | Proposes a constitutional amendment to allow Barbour County elected officials to participate in ERS. | Enacted. Act 2019-166 |
| SB319/Barfoot | HB437/Ingram | Creates Tier III for ERS State which would modify Tier II by increasing the benefit multiplier, allowing 30-year retirement, allowing sick leave conversion, and increasing the employee contribution to 7.5%. Would be effective January 1, 2021, for new members and Tier II members could opt-in. | Read First Time in House of Origin. |
| SB364/Coleman-Madison | HB389/Rogers | Allows purchase of service credit for a TRS member who served as postdoctoral fellow at UAB. | Read First Time in House of Origin. |
2018 Regular Session (archive)
Presentations
TRS Update for W&ME - 2/13/2019
PEEHIP Update for W&ME - 2/12/2019
News
Contacts
Neah Mitchell Scott,
Legislative Counsel
neah.scott@rsa-al.gov
Twitter: @neahmitchell
Neah Mitchell Scott has served as Legislative Counsel for the Retirement Systems of Alabama (RSA) since September 2013. Prior to joining the RSA, Neah practiced in the areas of civil litigation and healthcare law as an associate with Balch & Bingham LLP. Neah obtained a juris doctorate from the University of Alabama in 2008 and a B.A. in History from Auburn University in 2004.
Also check our Frequently Asked Questions
Still can’t find what you’re looking for? Ask Us!