Act 2022-348 Election to Provide Tier I Benefits to Tier II Plan Members
Act 2022-348 allows local employers that participate in the Employees’ Retirement System (ERS) to provide Tier I retirement benefits to their Tier II members. Those Tier II members will pay member contribution rates of 7.5% for regular employees and 8.5% for firefighters and law enforcement officers. The local employers will pay an increased employer contribution rate, as calculated by RSA’s actuaries.
Local employers may elect to provide Tier I benefits to their Tier II employees by adopting a resolution and submitting such resolution to the ERS.
The Act also requires that local employers that have not raised the Tier I member contribution rates from 5% to 7.5% for regular employees and from 6% to 8.5% for firefighters and law enforcement officers as provided in Act 2011-676 must submit a plan to the ERS for raising those rates before they will be allowed to make an election to provide Tier I benefits to Tier II members.
To make an election, submit your resolution and plan (if you have not increased rates under Act 2011-676) to the attention of the Employees’ Retirement System, 201 S. Union St., Montgomery, AL 36104. If approved, elections will become effective on the first day of the following fiscal year from when the resolution was approved by the ERS Board of Control.
- RSA Statement Regarding the Implementation of Act 2022-348
- Act 2022-348 ERS Board Policy
- Sample Tier I Election Resolution - Employer Has Not Increased Tier I Rates Per Act 2011-676
- Sample Tier I Election Resolution – Employer Has Increased Tier I Member Rates Per Act 2011-676
- Employer Plan to Increase Tier I Member Contribution Rates Form