SB302 Alabama 2020 Session

Summary

Primary Sponsor

Donnie ChesteenSenator

Republican

Session

Regular Session 2020

Title

Teachers Retirement System, 30-year service retirement and conversion of sick leave allowed for Tier II, plan members, member contribution rate increased, Secs. 16-25-11.1, 16-25-14, 16-25-21 am'd.

Summary

SB302 would add a 30-year service retirement option for Tier II teachers, modify sick leave credit rules, and raise Tier II member contribution rates within the Teachers' Retirement System of Alabama.

What This Bill Does

If enacted, the bill would allow Tier II members to retire after 30 years of creditable service with a retirement calculated under the system's standard formula (annuity equal to accumulated contributions plus a pension based on 1.65% of average final compensation per year of service, up to an 80% cap). It would also revise sick leave credit rules so sick leave can count toward service credit for determining total years of creditable service, but only non-Tier II members may convert unused sick leave to creditable service. Additionally, the bill would raise the member contribution rate for Tier II, with specific percentages to be applied and remittance rules set by the statute.

Who It Affects

• Tier II Teachers' Retirement System members (affects eligibility for a 30-year retirement, how their sick leave credit counts, and their salary-based contribution rate)

Key Provisions

• Section 16-25-11.1: Sick leave can be counted toward creditable service for determining total years of service, but the conversion of unused sick leave to creditable service does not apply to Tier II members.
• Section 16-25-14: Establishes a 30-year service retirement option for Tier II members, with retirement allowances determined by the standard formula (annuity equal to accumulated contributions and a pension equal to 1.65% of average final compensation per year of service, not to exceed 80% of AFC).
• Section 16-25-21: Modifies member contribution rates for Tier II; sets the schedule for deductions from earnable compensation (with specified percentages and exceptions for certain officer classifications) and outlines how these contributions are collected and remitted to the retirement system.
• Section 2: Effective date — the act becomes effective immediately after the Governor signs it (or otherwise becomes law).

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

Subjects

Teachers' Retirement System