SB330 Alabama 2012 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

Vivian Davis FiguresGeorge M. “Marc” KeaheyBobby D. SingletonPriscilla DunnLinda Coleman-MadisonQuinton RossHank SandersRodger SmithermanBen H. BrooksWilliam “Bill” M. BeasleyJerry L. Fielding

Session

Regular Session 2012

Title

Retirement Sytems of Alabama, contributions to Employees' and Teachers' Retirement System, overtime compensation, included in earning compensation for retirement, Secs. 16-25-1, 36-27-1 am'd

Summary

SB330 would count overtime pay and subsistence allowances as part of earnable compensation for Alabama's Employees' Retirement System and Teachers' Retirement System.

What This Bill Does

The bill amends Sections 16-25-1 and 36-27-1 to explicitly include overtime payments and subsistence payments in earnable compensation for retirement calculations. As a result, overtime and subsistence pay could affect the amount of retirement benefits and the basis for contributions. The changes keep IRS limits on earnable compensation (Section 401(a)(17)), with a grandfather rule exempting some pre-1995 TRS members. The act takes effect immediately upon passage.

Who It Affects

• Members of the Employees' Retirement System (ERS): overtime and subsistence pay would be counted toward earnable compensation, potentially changing retirement benefit calculations and contribution bases.
• Members of the Teachers' Retirement System (TRS): overtime and subsistence pay would be counted toward earnable compensation, potentially changing retirement benefit calculations and contribution bases.

Key Provisions

• Amend Sections 16-25-1 and 36-27-1 to include overtime payments and subsistence allowance payments in earnable compensation for the TRS and ERS.
• Earnable compensation will include overtime payments and subsistence payments, while continuing to exclude expense allowances, lump-sum payments for annual/sick leave or compensatory time, and severance pay; it remains based on full normal working-time pay, with any non-cash maintenance valued by the Board of Control.
• Earnable compensation remains subject to IRS Section 401(a)(17) limits, except that employees who were TRS members before the first plan year beginning after December 31, 1995, shall not be subject to those earning limitations.
• Effective date: immediate upon passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employees' Retirement System