HB354 Alabama 2010 Session

Summary

Primary Sponsor

Richard J. Laird

Independent

Session

Regular Session 2010

Title

Teachers' Retirement System and the Employees' Retirement System, reopened for purchase of prior service credit for service with United States Department of Agriculture Farm Service Agency (2010-20304)

Summary

HB354 would reopen Alabama's retirement systems to let eligible members buy credit for USDA Farm Service Agency work from 1987 to 1998 to boost their retirement benefits.

What This Bill Does

The bill allows active, contributing TRS or ERS members with 10+ years of credible service to purchase prior service credit for USDA Farm Service Agency employment that occurred between August 1, 1987 and February 28, 1998, subject to certain conditions. Members must pay the full actuarially determined cost for each year of claimed service within one year after the act becomes effective. The purchased credit cannot duplicate existing credits in TRS/ERS or in another public retirement plan (except Social Security), and it will not affect how retirees' health insurance premiums are calculated or make the member eligible for health plans earlier than they would have been otherwise.

Who It Affects

• Active and contributing members of the Teachers' Retirement System or Employees' Retirement System who have 10 or more years of credible service and who worked for the USDA Farm Service Agency between 1987-08-01 and 1998-02-28; they may claim and purchase prior service credit.
• Retirees or current members' health plan considerations are protected so that the purchased service does not change retirees' out-of-pocket health premium amounts or advance eligibility for health plans beyond what would have occurred without the purchased service.

Key Provisions

• Eligibile active and contributing TRS/ERS members with 10+ years of credible service may purchase prior USDA Farm Service Agency service from 1987-08-01 to 1998-02-28, subject to conditions in subsection (b) and no duplicate credit with existing service or other public retirement plans (except Social Security).
• The member must pay the full actuarially determined cost for each year of claimed service within one year from the act's effective date, as determined by the system's actuary.
• Purchased service shall not be counted for determining retirees' out-of-pocket health insurance premiums under specific sections, and it shall not make a member eligible for certain health plans earlier than they would have been without the purchase.
• The act becomes effective immediately after passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Teachers' Retirement System