SB51 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Gerald H. AllenGreg J. ReedBill HoltzclawJerry L. Fielding

Session

Regular Session 2012

Title

Alabama Teachers' Planned Retirement Option (ATPRO), optional retirement account for members of Teachers' Retirement System beginning fiscal year 2012-2013

Summary

SB51 creates the Alabama Teachers' Planned Retirement Option (ATPRO), an optional retirement account within the Teachers' Retirement System for certain eligible teachers to defer retirement for a fixed period in exchange for future benefits.

What This Bill Does

ATPRO establishes an optional account inside the Teachers' Retirement System starting with the 2012-2013 fiscal year. Eligible members (25+ years of creditable service, at least 55 years old, eligible for service retirement, salary $75,000 or less, and approved by their local school system) may participate for 3 or 5 years, with participation being irrevocable once it begins. During participation, employer and employee contributions continue, but the retirement allowance is deposited into the ATPRO account; no additional service credits are purchased. At the end of the period, the member withdraws from service and can receive a lump-sum from ATPRO (plus accrued contributions and interest) or roll over to another eligible retirement plan, while monthly benefits resume and are recalculated to include any sick-leave credits; there are also rules for death and certain termination scenarios, and the plan cannot be used to trigger extra incentives by employers.

Who It Affects

• Eligible Teachers' Retirement System members who meet the criteria and choose to participate in ATPRO, affecting their retirement timing, benefit calculations, and potential lump-sum or rollover options.
• Local school systems (employers) that must approve ATPRO participation for eligible employees and administer the participation process, including eligibility checks and application timing.

Key Provisions

• Creates ATPRO as an optional account within the Teachers' Retirement System, effective 2012-2013.
• Eligibility: 25+ years creditable service, age 55+, service retirement eligible, salary $75,000 or less, and local school system approval.
• Election to participate allowed in 3-year or 5-year terms; participation is irrevocable once started and can occur only once; voluntary termination within the first 3 years can forfeit the retirement allowance portion but keeps contributions and accrued interest.
• During ATPRO, employer and employee contributions continue; no service credit purchases; the monthly retirement allowance that would have been paid is deposited into the ATPRO account and remains in the regular retirement fund until disbursed.
• ATPRO accounts earn interest like active member accounts; participants do not receive COLA during ATPRO and only become eligible after withdrawal.
• At the end of the participation period, the member withdraws or rolls over to an eligible retirement plan; if death or involuntary termination occurs, special lump-sum or rollover provisions apply and sick leave credits may be adjusted.
• Incentives or special employer payments to entice participation are prohibited; no ATPRO participation if the member is currently in DROP; participation is not reversible to restore TRS membership elsewhere.
• Sections align ATPRO with federal tax rules (IRC 415) and are to be interpreted to maintain compliance.

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