HB598 Alabama 2012 Session

Summary

Primary Sponsor

Steve HurstRepresentative

Republican

Co-Sponsor

Randy Wood

Session

Regular Session 2012

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

HB598 allows certain Alabama retirement system members to buy credit for prior nonqualified service, and reopens a path to buy USDA Farm Service Agency service, with specified cost and timing rules.

What This Bill Does

The bill lets an active OEMS employee who is in the Employees' Retirement System purchase up to five years of prior nonqualified service for work done at OEMS before July 14, 2009, following IRS rules. It also lets eligible TRS or ERS members with 10+ years of credible service purchase up to 10 years of prior USDA Farm Service Agency service. In both cases, members must pay the full actuarial cost for each year purchased, within required timeframes, and the purchased service cannot advance eligibility for benefits or affect existing premium calculations in ways other than described in the bill.

Who It Affects

• Active, contributing members of the Oxford Emergency Medical Services, Inc. participating in the Employees' Retirement System (ERS), who want to purchase prior nonqualified OEMS service for work before 2009.
• Active, contributing members of the Teachers' Retirement System or the Employees' Retirement System who have 10+ years of credible service and formerly worked for the USDA Farm Service Agency, who want to purchase up to 10 years of that prior service.
• Members who purchase service under this act remain subject to existing limits that service cannot duplicate years already credited and cannot trigger earlier eligibility for certain health plans beyond what would occur without the purchase.

Key Provisions

• Section 1(a): An active OEMS-ERS member may purchase up to five years of prior nonqualified OEMS service for work before July 14, 2009, as allowed by IRC 415(n)(3)(B).
• Section 1(c): The member must pay the full actuarially determined cost for each year of service purchased.
• Section 1(d): Purchased service does not count toward out-of-pocket premium amounts for retirees and does not make the member eligible for benefits earlier than they would have been without the purchase, nor earlier than the member would reach eligibility under PEEHIP or SEIB.
• Section 2(a): A TRS or ERS member with 10+ years of credible service may purchase up to 10 years of prior USDA Farm Service Agency service, if they meet subsection (b) conditions.
• Section 2(b): The member must pay the full actuarially determined cost for each year of service purchased within one year from the act’s effective date.
• Section 3: Purchased service does not affect the out-of-pocket premium amounts or entitle the member to health plan eligibility earlier than would occur without the purchase.
• Section 4: The act becomes effective immediately upon governor's approval.

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

Subjects

Retirement