HB414 Alabama 2011 Session

Summary

Primary Sponsor

Jay Love

Republican

Session

Regular Session 2011

Title

Retirement, judges, education employees, including teachers, state employees, firefighter, law enforcement officer, correctional officer, retirement contributions increased, Pension Accumulation Fund, Secs. 12-18-5, 12-18-52, 12-18-82, 16-25-21, 36-27-24, 36-27-59 am'd.

Summary

HB414 increases how much employees contribute to several Alabama retirement funds and updates related funding rules.

What This Bill Does

It raises employee contribution rates for judges (Judicial Retirement Fund) and for education and state employees (Teachers' and Employees' Retirement Systems), introduces or expands employer 'pick-up' contributions, and adds rules for military service credit and hazardous duty time. It also reorganizes funding through the Annuity Savings Fund and Pension Accumulation Fund with higher ongoing contributions and actuarial-based rate setting, while allowing offsets if investment performance lowers overall rates. The changes take effect immediately upon passage.

Who It Affects

• Judges and justices who participate in the Judicial Retirement Fund, with contribution rates increasing to 8.25% in 2011 and 8.5% in 2012 (plus potential state or county 'pick-up' of contributions).
• Members of the Teachers' Retirement System and Employees' Retirement System (including education employees and other state/local employees), who face higher percentages directed into the Annuity Savings Fund and Pension Accumulation Fund, plus related employer contributions and reporting requirements.

Key Provisions

• Judicial Retirement Fund: Contributions by judges/judicial officers rise from 4.5% to 6% (effective 1977), then to 8.25% (Oct 1, 2011) and 8.5% (Oct 1, 2012), with deductions handled by the State Comptroller and allocations credited to individual accounts.
• Pick-up of contributions: The Supreme Court may have the state pick up member contributions for appellate and circuit/district judges; counties may pick up for probate judges, with these pick-ups treated as employer contributions for tax purposes and paid from the same funds as salaries.
• Annuity Savings Fund: Employer deductions rise from 5% to 7.25% (Oct 1, 2011) and 7.5% (Oct 1, 2012); state policemen have a 10% rate; members may make additional deposits to buy extra annuities; adjustments allocate to the Annuity Savings Fund and Pension Accumulation Fund as needed.
• Pension Accumulation Fund: Normal and accrued liability contributions are set annually based on actuarial valuations; the fund determines the required rates and may transfer funds to manage surpluses or deficits between funds; death benefits and survivor provisions are tied to accumulated contributions.
• Hazardous duty time: Firefighters, law enforcement officers, and correctional officers who contribute the required extra amount earn one year of hazardous duty time for every five years of service; rates for these members rise to 8.25% in 2011 and 8.5% in 2012, with special provisions for funding.
• Offsets and changes: If investment performance lowers rates, the Retirement Systems will first reduce employee contributions to offset the impact.

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

Subjects