HB76 Alabama 2020 Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Alan BakerRepresentative
Republican
Session: Regular Session 2020
Title: Retirement, RSA, retirement plans, Tier III retirement plan created, Tier III Teacher Recruitment and Retention Act, plan benefits defined, Secs. 16-25-1, 16-25-11.1, 16-25-14, 16-25-21 am'd.
Summary: HB 76 creates a new Tier III defined-benefit retirement plan for Alabama public employees hired after January 1, 2013, under the Teachers' Retirement System, with adjustments to Tier II and related benefits.
What This Bill Does
The bill establishes a new Tier III defined-benefit retirement plan for employees who first become TRS members on or after January 1, 2013, effective October 1, 2020, and allows existing Tier II members to remain in Tier II if they opt out by June 1, 2021. It also lets Tier III members convert accrued sick leave into creditable service for retirement calculations, while this sick-leave credit conversion does not apply to Tier II. Additionally, the act reorganizes the retirement system definitions and funding structure, affecting how benefits are calculated and how contributions are allocated among funds for all tiers.

Who It Affects
Public school employees and other public employees who become TRS members for the first time on or after January 1, 2013 (they would be placed in the new Tier III plan, subject to eligibility rules).
Current Tier II plan members who opt to remain in Tier II by June 1, 2021 (they retain Tier II rules rather than moving to Tier III).

Key Provisions
Creates Education Workforce Investment Act and a Tier III defined-benefit retirement plan for employees who first became eligible for TRS on or after January 1, 2013, effective October 1, 2020, with eligibility and interaction rules concerning Tier II opt-out.
Allows unused accrued sick leave to be converted into creditable service for Tier III retirement calculations (service retirement), but this sick-leave credit conversion does not apply to Tier II members.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Teachers' Retirement System