SB368 Alabama 2010 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2010

Title

Employees' Retirement System, certain contributing members with 24 years of service authorized to purchase service credit in the system for one year of service

Summary

The bill would let certain long-time Employees' Retirement System contributors (24 years) who worked under elected or appointed officials buy one year of service credit by paying the actuarial cost.

What This Bill Does

If enacted, eligible individuals may purchase up to one year of additional service credit by remitting the full actuarial cost for that year. The credit cannot duplicate service already credited in the system or other public retirement plans, except for Social Security. The purchased year would not count toward changes in retirees' health premium calculations or eligibility for health plans earlier than they would have otherwise, and it becomes law immediately upon passage.

Who It Affects

• Group 1: Individuals who have or had been contributing members of the Employees' Retirement System for 24 years and whose employment depended on the tenure of an elected or appointed official; they could purchase one year of service credit.
• Group 2: Current or future retirees/health plan participants whose retiree premiums or eligibility under certain health plans would not be affected by the purchased service credit.

Key Provisions

• Allows eligible 24-year contributing members to purchase up to one year of service credit for a year, upon paying the full actuarial cost.
• Credit cannot duplicate existing service credits in the system or in other public retirement plans, except Social Security.
• Purchased service is not used to adjust retirees' required health premium amounts under specified health plans and does not advance eligibility for health plans beyond what would occur without the purchase.
• Effective date: 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

Employees' Retirement System