SB399 Alabama 2012 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2012

Title

Teachers' Retirement System and Employees' Retirement System, reopened for purchase of prior service credit for employment with U.S. Department of Agriculture Farm Service Agency

Summary

SB399 would reopen Alabama's Teachers' Retirement System and Employees' Retirement System to allow certain members to buy credit for prior service with the USDA Farm Service Agency.

What This Bill Does

If passed, the bill allows active, contributing TRS or ERS members with 10+ years of credible service to purchase prior service credit for USDA Farm Service Agency employment between August 1, 1987 and February 28, 1998. Each month of eligible service would count as 1/12 of a year, credited only if the member pays the full actuarially determined cost before retirement and by October 1, 2012. Members prove their service by affidavit, and the systems will calculate and communicate the required payments; credit is granted upon timely payment. The provision expires on October 1, 2012, after which no one can use this option if not completed and paid beforehand. The act would take effect immediately after passage and approval.

Who It Affects

• Active, contributing TRS or ERS members who have 10 or more years of credible service and who worked for the USDA Farm Service Agency between August 1, 1987 and February 28, 1998.
• The TRS and ERS retirement systems, which would issue the credit, determine actuarial costs, and process the payments and crediting of service after payment.

Key Provisions

• Eligibility to claim and purchase prior service credit for eligible USDA FSA employment if the member has 10+ years of credible service and the employment occurred between 8/1/1987 and 2/28/1998.
• Credit calculation equals 1/12 of a year for each month (or portion) of eligible service, awarded only if the member pays the full actuarially determined cost for each year of credit before retirement and before 10/1/2012.
• Proof of service via affidavit with supporting documents; the retirement system determines the required contributions and notifies the member; credit is granted upon timely payment.
• Termination date: the provisions expire on 10/1/2012; those not fully exercised and paid by that date cannot use the option.
• Effective date: the act becomes law and takes effect immediately after passage and approval by the Governor.

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