HB61 Alabama 2019 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2019

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 61 would let local employers in Alabama's Employees' Retirement System offer Tier II employees the same retirement benefits as Tier I, with changes to employee contributions.

What This Bill Does

The bill adds a new section allowing local ERS employers to elect to provide Tier II members the same retirement benefits as Tier I. The election must be made by resolution within 24 months of the act's effective date and, once made, is irrevocable and takes effect at the start of the fiscal year after the ERS receives the resolution. Starting when the election is effective, Tier II members would contribute 7.5% of earnable compensation (8.5% for firefighters, law enforcement, or correctional officers).

Who It Affects

• Local employers participating in the Employees' Retirement System (ERS) — may choose to extend Tier I retirement benefits to their Tier II employees by resolution within the 24-month window.
• Tier II plan members — could receive the same retirement benefits as Tier I members if their employer makes the election; their contribution rate would be 7.5% of earnable compensation (8.5% for firefighters, law enforcement officers, and correctional officers).
• Tier I plan members — their benefits serve as the comparison standard; Tier II members would receive these same benefits if the election is adopted.

Key Provisions

• Adds Section 36-27-6.5 allowing ERS-participating local employers to elect to provide Tier II members the same retirement benefits as Tier I members.
• Election window: within 24 months of the act's effective date; election is irrevocable and becomes effective at the beginning of the fiscal year after ERS receives the resolution.
• Contribution changes: Tier II members contribute 7.5% of earnable compensation; Tier II members who are firefighters, law enforcement officers, or correctional officers contribute 8.5%.
• Effective date: act becomes law immediately upon governor's approval or when it otherwise becomes law.

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