HB463 Alabama 2010 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Session

Regular Session 2010

Title

Teachers' Retirement System and Employees' Retirement System, reopened for purchase of prior service credit for employment as student assistant or work/study student at a college or university

Summary

HB463 would reopen Alabama’s Teachers’ Retirement System and Employees’ Retirement System to let eligible active members buy credit for prior student employment at public colleges or universities (1973–1975), if they pay the actuarial cost by a deadline.

What This Bill Does

The bill allows certain active and contributing TRS or ERS members with at least 10 years of credible service to purchase prior service credit for employment as a student assistant or work/study student at a public Alabama college or university, for service between January 1, 1973 and December 31, 1975. Each month of such employment would count as one-twelfth of a year of service, awarded only after the member pays the full actuarially determined cost before retirement and before October 1, 2011. Proof of service would be provided by affidavit and supporting documents, and once payment is timely made, the service credit would be added. The bill’s provisions would expire on October 1, 2011, meaning any eligible person must complete the process by then. It also states that purchased service would not affect certain retiree premium calculations or advance eligibility for health insurance plans.

Who It Affects

• Active and contributing members of the Teachers' Retirement System (TRS) or Employees' Retirement System (ERS) who have at least 10 years of credible service and who were employed as a student assistant or work/study student at a public Alabama college or university between 1973 and 1975.
• Retirees or members considering retiree health benefits, because the purchased service cannot be used to increase retiree health premium costs or accelerate eligibility for Public Education Employees' Health Insurance Plan or State Employees' Health Insurance Plan beyond what would have occurred without the purchase.

Key Provisions

• Section 1: Opens TRS and ERS to eligible active, contributing members to claim and purchase prior service credit for employment as a student assistant or work/study student at a public Alabama college/university if the employment occurred between January 1, 1973 and December 31, 1975 and the member has 10 years of credible service; requires payment of actuarially determined cost prior to retirement and before October 1, 2011; credit is awarded as one-twelfth of a year for each month (or portion) of eligible service and proof is provided by affidavit and supporting documents.
• Section 2: Purchased service years are not counted when determining retirees' out-of-pocket premiums under specific health plans and do not make the member eligible for health plan benefits earlier than they would have been without the purchase.
• Section 3: The act becomes effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement