HB512 Alabama 2016 Session

Summary

Primary Sponsor

Matt Fridy

Republican

Session

Regular Session 2016

Title

Teachers' Retirement System, designated non-governmental and quasi-governmental agencies and any elected local superintendent of education elected to office on or after January 1, 2017, prohibited from participation in, Secs. 16-25-1, 16-25-10.1 to 16-25-10.12, inclusive, 16-25-32, 16-25A-11, 36-29-14 am'd.

Summary

This bill would block certain post-2017 hires in select education-related organizations from joining the Teachers' Retirement System and Public Education Health Insurance Plan, and require permanent full-time state employment for eligibility.

What This Bill Does

The bill prohibits officers and employees of specified education-related associations and agencies, hired on or after January 1, 2017, and any elected local superintendent of education elected after January 1, 2017, from participating in the Teachers' Retirement System and the Public Education Employees' Health Insurance Plan. It also bars any person hired on or after January 1, 2017 who is not employed in a permanent full-time capacity with the state from participating in the Teachers' Retirement System, the Public Education Employees' Health Insurance Plan, or health insurance programs run by the State Employees' Insurance Board. The bill would amend multiple code sections to implement these changes, define key terms, and establish how eligibility and employer costs would work for pre-2017 employees if certain agencies elect to participate.

Who It Affects

• Officers and employees of the listed organizations (e.g., Alabama Education Association, Alabama High School Athletic Association, Alabama Association of School Boards, and others) hired on or after January 1, 2017, and any elected local superintendent of education elected on or after January 1, 2017; they would be excluded from TRS and PEHP participation.
• Individuals hired on or after January 1, 2017 who are not employed in a permanent full-time capacity with the state; they would be ineligible for TRS, PEHP, or any health insurance program governed by the State Employees' Insurance Board.

Key Provisions

• Prohibits post-2017 hires in the listed associations/agencies and elected local superintendents from participating in the Teachers' Retirement System and the Public Education Employees' Health Insurance Plan.
• Prohibits any person hired on or after January 1, 2017 who is not a permanent full-time state employee from participating in TRS, PEHP, or health insurance programs administered by the State Employees' Insurance Board.
• Amends numerous Code sections (including 16-25-1, 16-25-10.1 to 16-25-10.12, 16-25-32, 16-25A-11, and 36-29-14) to implement these participation restrictions and to redefine eligibility, contributions, and eligibility rules.
• Allows certain pre-2017 employees of eligible agencies to be covered under TRS if the agency elects to participate and if the agency pays required employer costs; provides for creditable service and funding of prior service as determined by the actuary.
• Establishes an effective date of the act: the first day of the third month after its passage and governor 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

Teachers' Retirement System