SB201 Alabama 2020 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

Regular Session 2020

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

SB201 would create a new defined-benefit retirement plan for public employees hired on or after October 1, 2020 by ERS-participating employers (and allow Tier II members to opt in).

What This Bill Does

It amends several retirement laws to establish the new plan for new members and for Tier II members who choose to join. It defines who can participate and allows Tier II members to elect to transfer into the new plan. It also preserves current sick-leave credit rules for Tier I and Tier III while excluding Tier II from sick-leave conversions. The changes take effect immediately after the bill is enacted.

Who It Affects

• Group 1: Public employees who are first hired on or after October 1, 2020 by employers that participate in the Employees' Retirement System; they would be enrolled in the new defined-benefit retirement plan.
• Group 2: Tier II plan members who elect to join the new defined-benefit retirement plan (while other Tier II/III members continue under the existing framework unless they elect otherwise).

Key Provisions

• Establishes a new defined-benefit retirement plan for public employees who first become a member on or after October 1, 2020, or any Tier II plan member who elects to join the new plan.
• Amends Sections 36-26-36.1, 36-27-1, 36-27-16, 36-27-24, and 36-27-59 to implement the new plan and set eligibility/participation rules.
• Allows Tier II plan members to elect to join the new plan; otherwise, Tier II remains under current plan provisions.
• Converts unused sick leave to membership service for Tier I and Tier III members (up to specified limits and with employer funding) but not for Tier II members.
• Effective date: immediate following passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement Systems