SB230 Alabama 2022 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

Regular Session 2022

Title

Employees' Retirement System, retirement benefits for Tier II plan members modified to provide 30-year service retirement, conversion of sick leave, and hazardous duty time for firefighters, law enforcement, and correctional officers, contribution rate increased, Secs. 36-26-36.1, 36-27-16, 36-27-24, 36-27-59 am'd.

Summary

SB230 would change retirement rules for Tier II members of Alabama's Employees' Retirement System by adding a 30-year service option, introducing hazardous-duty time for first responders, adjusting sick-leave credit rules (primarily benefiting Tier I), and increasing Tier II member contributions.

What This Bill Does

It creates a potential 30-year service retirement for Tier II members. It allows unused sick leave to be converted into creditable service for service retirement for Tier I members (but not for Tier II). It adds hazardous-duty time credits for firefighters, law enforcement officers, and correctional officers, counting toward years of service and related benefits, with funding supported by increased contributions. It raises Tier II member contribution rates, with higher rates applied to hazardous-duty roles and certain categories such as state policemen.

Who It Affects

• Tier II plan members (state employees): eligible for a 30-year service retirement option, face increased contribution rates, and generally lose the sick-leave credit conversion allows for Tier II under this bill.
• Firefighters, law enforcement officers, and correctional officers (including those in Tier I and Tier II, depending on coverage): receive hazardous-duty time credits toward service retirement calculations and related benefits; their contribution rates and eligibility rules for hazardous-duty credits are adjusted.
• Tier I plan members: gain the ability to convert unused sick leave into creditable service for service retirement under the new section (subject to limits).
• Employers and the retirement system administration: must implement and collect the revised contribution rates and manage the new hazardous-duty credits and sick-leave provisions.

Key Provisions

• 36-26-36.1: Allows conversion of accrued unused sick leave into creditable service for service retirement for Tier I or Tier II, up to a maximum (180 days or as allowed by law) and used to determine total years of creditable service; however, the conversion shall not apply to Tier II plan members (i.e., Tier II generally cannot use this sick-leave credit). The conversion can be used with service retirement eligibility but not for deferred retirement, and it can be combined with disability retirement only in specific circumstances.
• 36-27-16: Establishes a new 30-year service retirement option for Tier II plan members, expanding when a Tier II member may retire based on years of creditable service rather than age alone; other detailed benefit calculations remain governed by existing provisions.
• 36-27-24: Reaffirms the three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and sets forth how member and employer contributions fund pensions and benefits, including any changes to the normal and accrued liability contribution rates for Tier II members and the handling of funds (with potential funding adjustments tied to actuarial valuations).
• 36-27-59: Defines hazardous-duty time and its use in retirement calculations for firefighters, law enforcement officers, and correctional officers; awards one year of hazardous-duty time for every five years of service in those roles, contingent on the member making required additional contributions; outlines how hazardous-duty time can affect retirement eligibility and benefit calculations, and interacts with death/disability benefit provisions.
• Effective date: The act would become effective immediately after passage and approval by the Governor.

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

Subjects

Employees' Retirement System