SB303 Alabama 2011 Session

Summary

Primary Sponsor

Greg J. Reed

Republican

Co-Sponsors

Bill HoltzclawGerald O. DialBryan TaylorTom Whatley

Session

Regular Session 2011

Title

Alabama Teachers' Planned Retirement Option (ATPRO), optional retirement account for members of Teachers' Retirement System beginning fiscal year 2012-2013

Summary

SB303 creates the Alabama Teachers' Planned Retirement Option (ATPRO), an optional retirement account for certain Teachers' Retirement System members starting in FY 2012-2013 to replace future DROP participation.

What This Bill Does

It allows eligible TRS teachers to defer retirement by continuing to work for 3 or 5 years, directing the retirement allowance that would have been paid into normal retirement into an ATPRO account that earns interest. Participation requires employer approval, and the member remains in their current service status while contributions continue; upon completion, the member withdraws or can roll over the ATPRO funds to another retirement plan and begins receiving retirement benefits that are recalculated for any accrued sick leave. The plan restricts COLA during participation, prohibits new DROP participation, and provides death and termination provisions with lump-sum or rollover options.

Who It Affects

• Eligible Teachers' Retirement System members who meet the criteria (at least 25 years of service, age 55 or older, eligible for service retirement, and salary of $75,000 or less) who may opt into ATPRO.
• Local school systems (employers) which must review, approve, and administer ATPRO participation for qualified employees.

Key Provisions

• ATPRO is created as an optional account within the Teachers' Retirement System starting in the 2012-2013 fiscal year to replace future DROP participation for new participants.
• Eligibility criteria: at least 25 years of creditable service, age 55+, eligible for service retirement, salary $75,000 or less, and local school system approval.
• Participants may elect 3-year or 5-year periods, may participate only once, and voluntary termination within the first 3 years results in forfeiture of the retirement allowance portion but not the employee's contributions or accrued interest.
• During ATPRO, service credit remains as it was; no additional service credits can be purchased; both employer and employee contributions continue and are redirected into the ATPRO account.
• ATPRO funds earn interest at the same rate as active TRS accounts; participants do not receive retiree cost-of-living adjustments during ATPRO, but may receive them after completing participation and withdrawing.
• At the end of the participation period, the member withdraws or rolls over the ATPRO funds to an eligible retirement plan; lump-sum distributions or rollovers are governed by applicable tax laws and retirement rules.
• Death benefits for ATPRO participants involve lump-sum payments to beneficiaries or estates, with possible adjustments for sick leave credits; ongoing monthly benefits may be paid to beneficiaries where allowed by law.
• If a participant has DROP, they may not participate in ATPRO; ATPRO participation cannot be used to re-enter active service with another TRS-eligible employer.
• The act must comply with federal tax rules (IRC Section 415) and related regulations; the Teachers' Board of Control has authority to interpret provisions for IRS compliance.

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