SB319 Alabama 2019 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

Regular Session 2019

Title

Retirement, RSA, ERS, Tier III Retirement plan created, plan benefits defined, Secs. 36-26-36.1, 36-27-1, 36-27-16, 36-27-24, 36-27-59 am'd.

Summary

SB 319 would create a new defined-benefit retirement plan for public employees hired after October 1, 2020 (and some Tier II members who opt in), and it changes how sick leave credits, eligibility, and funding work within the Alabama retirement systems.

What This Bill Does

It establishes a new defined-benefit retirement plan for employees who first become part of the Employees' Retirement System on or after October 1, 2020, or Tier II members who elect to join the new plan. It allows certain Tier I and Tier III members to convert up to 180 days of unused accrued sick leave into creditable service for service retirement calculations, but this option is contingent on an employer election to participate and fund the benefits and does not apply to Tier II. The bill also redefines plan membership and retirement rules by tier (I, II, III) and outlines funding structures and contribution requirements, including hazardous-duty credits for firefighters, law enforcement officers, and correctional officers, with associated contribution rates. It takes effect immediately upon passage.

Who It Affects

• New hires hired on or after October 1, 2020 (and Tier II members who elect to join the new plan) would participate in a new defined-benefit retirement plan under ERS.
• Tier I and Tier III current members could convert up to 180 days of unused sick leave into creditable service for retirement eligibility if their employer elects to participate and fund the new plan; Tier II members would not have this option.

Key Provisions

• Establishes a new defined-benefit retirement plan for employees first eligible on/after October 1, 2020, or Tier II members who elect to join the new plan.
• Allows Tier I and Tier III members to convert up to 180 accrued sick leave days into membership service for creditable service to determine service retirement, provided the employer elects to participate and funds the benefits; conversion does not apply to deferred retirement and has specific interaction with disability retirement.
• Defines and distinguishes Tier I, Tier II, and Tier III plan members within the Employees' Retirement System and outlines their eligibility and standard retirement ages (generally 60 for Tier I, 62 for Tier II/III, with exceptions for certain public-safety roles).
• Maintains a three-fund funding structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and details employer and member contribution requirements, payment schedules, and transfer rules among funds.
• Includes hazardous-duty time credits for firefighters, law enforcement officers, and correctional officers, with corresponding contribution requirements and phased-in rate changes over time.
• Effectively applies immediately upon passage and 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

Retirement Systems