HB344 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Nathaniel LedbetterRepresentative
Republican
Session: Regular Session 2018
Title: Retirement, benefits for local employers participating in ERS, retirement benefits given to Tier I plan members authorized for Tier II plan members, Sec. 36-27-6.5 added
Summary: HB 344 lets local employers in Alabama's Employees' Retirement System choose to give Tier II members the same retirement benefits as Tier I members.
What This Bill Does
The bill allows a local employer participating in the ERS to elect, by resolution within 24 months of the act’s effective date, to provide Tier II plan members the same retirement benefits as Tier I plan members. The election is irrevocable and takes effect at the start of the fiscal year after ERS receives the resolution. Once in effect, Tier II plan members contribute 7.5% of their earnable compensation to ERS, and Tier II members who are firefighters, law enforcement officers, or correctional officers contribute 8.5%.

Who It Affects
Local employers participating in the Employees' Retirement System: may elect to extend Tier I retirement benefits to their Tier II employees.
Tier II plan members: could receive the same retirement benefits as Tier I members if their employer makes the election.
Tier II plan members who are firefighters, law enforcement officers, or correctional officers: would contribute 8.5% of earnable compensation once the election is in effect (vs. 7.5% for other Tier II members).

Key Provisions
Allows ERS-participating local employers to elect, by resolution within 24 months of the act’s effective date, to provide Tier II members with the same retirement benefits as Tier I members.
Election is irrevocable and takes effect at the beginning of the fiscal year following the ERS receiving the resolution.
Beginning in the month the election becomes effective, Tier II members contribute 7.5% of earnable compensation to ERS, and Tier II firefighters, law enforcement officers, or correctional officers contribute 8.5%.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Retirement Systems