SB428 Alabama 2011 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2011

Title

Retirement, participation further provided for in Teachers' Retirement System and Employees' Retirement System, Secs. 16-25-3, 36-27-4 am'd.

Summary

The bill would let current TRS and ERS members discontinue membership and restrict when they can withdraw contributions, and would allow new employees to opt out of TRS or ERS.

What This Bill Does

It amends the Teachers' Retirement System (TRS) and Employees' Retirement System (ERS) to allow current members to discontinue their membership. If a current member discontinue, they may not withdraw their contributions or interest until they separate from employment or retire. It also allows new employees to elect not to be covered by TRS or ERS, effective for hires beginning October 1, 2011. This creates an opt-out option for new hires and changes the mandatory membership rules for future employees.

Who It Affects

• Current members of TRS or ERS who may choose to discontinue their membership and, if they do, would not be able to withdraw contributions or interest until separation from employment or retirement.
• New employees (teachers/education employees and state employees) who may elect not to be covered by TRS or ERS starting with hires on or after October 1, 2011.

Key Provisions

• Amends TRS (16-25-3) to allow current members to discontinue membership; discontinued members cannot withdraw contributions and interest until separation or retirement.
• Allows new teachers to elect not to be covered by TRS.
• Amends ERS (36-27-4) to allow current members to discontinue membership; discontinued members cannot withdraw contributions and interest until separation or retirement.
• Allows new state employees to elect not to be covered by ERS, effective beginning October 1, 2011.

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