HB330 Alabama 2022 Session

Summary

Primary Sponsor

Allen TreadawayRepresentative

Republican

Session

Regular Session 2022

Title

Jefferson County, General Retirement System, optional 25-year superannuation benefit for certain members who enter system on or after October 1, 2022, provided, Secs. 45-37-123.20, 45-37-123.22, 45-37-123.80, 45-37-123.82, 45-37-123.100, 45-37-123.104 am'd.

Summary

HB330 creates an optional 25-year superannuation retirement option for Jefferson County employees who join after October 1, 2022, funded by higher employee contributions and a fixed employer contribution, with the option to stop contributing after 25 years.

What This Bill Does

It allows new members who join on or after October 1, 2022 and elect to participate to retire after 25 years of paid membership, regardless of age, with benefits calculated as 2.5% of the basic average salary per year of paid membership. Participants must contribute an extra 8% of their pay, in addition to the standard 6% contribution, while the county continues to contribute 6% for those electing the option. The pension board will establish rules, procedures, and forms to implement the benefit, and benefits are subject to a 75% cap and IRS-related adjustments. After reaching 25 years, a participant may terminate employee contributions and employer contributions would cease.

Who It Affects

• New Jefferson County General Retirement System members who commence membership on or after October 1, 2022 and elect to participate in the optional 25-year benefit; they must contribute an extra 8% of compensation and may stop contributing after 25 years, with employer contributions ceasing at that time.
• Jefferson County (employer) and the pension board; the county will continue to contribute 6% for participants, may fund actuarial soundness as needed, and the board will implement rules and oversee administration of the new benefit.

Key Provisions

• Establishes an optional 25-year superannuation retirement benefit for members who begin membership on or after October 1, 2022 and elect to participate.
• Members who elect the option must contribute an additional 8% of their compensation; the county continues to contribute 6% for these members; contributions may be after-tax or pre-tax under IRS rules.
• Benefit calculation for the 25-year option: 2.5% times the member's basic average salary times the number of years of paid membership.
• There is a 75% maximum limit on the initial retirement benefit, with potential adjustments to comply with IRS rules to determine the maximum payable.
• Upon reaching 25 years of paid membership, members may terminate their employee contributions and the corresponding employer contributions shall cease.
• The pension board is authorized to establish rules, procedures, and forms to implement the optional 25-year benefit and to manage plan administration.

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

Subjects

Jefferson County