HB240 Alabama 2011 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Richard J. Laird
Independent
Session: Regular Session 2011
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
Summary: HB240 would reopen Alabama’s Teachers’ Retirement System and Employees’ Retirement System to let eligible members buy prior service credit for USDA Farm Service Agency employment from August 1, 1987 to February 28, 1998.
What This Bill Does
If passed, the bill allows active, contributing TRS or ERS members with 10+ years of credible service to purchase prior service credit for FSA employment during 1987–1998. Members must pay the full actuarial cost for each year of service within one year after the act becomes law. Credit cannot duplicate any service already credited in TRS/ERS or in any other public retirement plan (except Social Security). The purchased service will not affect retiree premium calculations under specified health plans, and it will not make a member eligible for health insurance benefits sooner than they would have been without the purchase.

Who It Affects
Active and contributing members of the Teachers' Retirement System or the Employees' Retirement System who have 10 or more years of credible service and who were employed by the USDA Farm Service Agency between August 1, 1987, and February 28, 1998 (these members may purchase that prior service credit).
Members whose service credits already exist in TRS/ERS or in any other public retirement plan (except Social Security) would not be allowed to receive duplicate credit.

Key Provisions
Eligibility to purchase: an active, contributing member with 10+ years of credible service may claim and purchase prior service for FSA employment if the work occurred between Aug 1, 1987 and Feb 28, 1998, with no duplicate credits from other public retirement plans (except Social Security).
Payment terms: the member must pay the full actuarially determined cost for each year of claimed service to the system’s Secretary-Treasurer within one year from the act’s effective date.
Impact on benefits and premiums: the purchased service will not be included in determining certain retiree health premium calculations, and it will not entitle the member to health insurance benefits earlier than they would have otherwise been.
Effective date: the act becomes effective immediately after it is passed and approved by the Governor (or becomes law otherwise).

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