SB472 Alabama 2011 Session

Summary

Primary Sponsor

Jerry L. Fielding

Republican

Session

Regular Session 2011

Title

Employees' Retirement System, reopened for purchase by Oxford Emergency Medical Services, Inc., employee for prior nonqualified service for employment rendered to Oxford Emergency Medical Services, Inc.

Summary

This bill would let certain Oxford Emergency Medical Services, Inc. employees in the Employees' Retirement System buy back prior non-qualified service for work done before July 14, 2009 for a non-participating employer.

What This Bill Does

If enacted, active and contributing Oxford EMS ERS members could purchase prior non-qualified service for employment with Oxford EMS prior to July 14, 2009, when the employer was not eligible to participate in ERS. The purchase would follow IRS rules (415(n)(3)(B)) and require the member to pay the full actuarial cost for each year of service. Credit from this purchase could not duplicate service already credited in ERS or other public retirement plans (except Social Security), and the purchase would not change retiree premium calculations or make the member eligible for benefits earlier than they would have been. The act would take effect October 1, 2011, after governor's approval.

Who It Affects

• Active and contributing members of Oxford Emergency Medical Services, Inc. who participate in the Employees' Retirement System and seek to purchase prior non-qualified service for work done before 7/14/2009 for a non-participating employer
• The Employees' Retirement System administration (Secretary-Treasurer and system actuary) responsible for determining eligibility, actuarial cost, and processing of the service purchases

Key Provisions

• Allows an active and contributing Oxford EMS employee who participates in ERS to purchase prior non-qualified service for employment with Oxford EMS before July 14, 2009, as allowed by IRC 415(n)(3)(B).
• Requires that the service being purchased was for a non-participating employer not eligible for ERS participation under Section 36-27-6.
• Prohibits giving credit for any service already credited in ERS or another public retirement plan (except Social Security).
• Requires the member to pay the full actuarial cost for each year of service purchased, as determined by the system actuary.
• Stipulates that purchased service does not affect retirees' out-of-pocket premium amounts under specified sections or advance eligibility for PEEHIP or SEIB.
• Effective date is October 1, 2011, after the Governor signs or it becomes law.

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