HB546 Alabama 2017 Session

Summary

Primary Sponsor

Mike Jones

Republican

Session

Regular Session 2017

Title

Employees' Retirement System, purchase of prior service credit, requirements revised, Sec. 36-27-51.1 am'd.

Summary

HB546 would let certain city retirement system members who participate in the Employees' Retirement System buy up to eight years of prior service credit for work for a non-participating employer, removing the funding-source restriction and requiring actuarial payment, effective after passage.

What This Bill Does

The bill expands who can purchase prior service credit and sets a maximum of eight years. Members must pay the full actuarial cost for each year purchased before retirement, with payment made to the Secretary-Treasurer. The member’s current employer must provide documentation of the prior service. No credit can be given for service already credited by another retirement plan, except for Social Security. The law would take effect on the first day of the third month after passage and approval by the Governor.

Who It Affects

• Active, contributing members of a city retirement system that participates in the Employees' Retirement System who have prior service with a non-participating employer.
• Local governmental employers that employ these members and must supply documentation of the prior service.
• The Employees' Retirement System and its actuary, which determine the cost of purchased years.

Key Provisions

• Allows up to eight years of prior service credit for service with a non-participating employer eligible for ERS, for eligible city retirement system members.
• Requires payment of the full actuarial cost for each year purchased, before retirement, to the Secretary-Treasurer of the Employees' Retirement System.
• The member's current local government employer must provide documentation of the prior service when requested.
• Prohibits duplicate credit for service already credited in this system or any other retirement plan, with Social Security as an exception.
• Effective date: the first day of the third month after 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

Employees' Retirement System