HB123 Alabama 2024 Session

Updated Feb 23, 2026

Low Interest

Summary

Primary Sponsor: Jim HillRepresentative
Republican
Session: Regular Session 2024
Title: Teachers' Retirement System, reopened to allow purchase of credit in the system for prior service rendered to the St. Clair County DAY Program, Inc.
Summary: HB123 would reopen the Teachers' Retirement System to allow active, contributing members to purchase credit for prior service with the St. Clair County DAY Program, Inc.
What This Bill Does
The DAY Program can elect to have its executive officers and full‑time employees participate in TRS, with employer contributions paid by the program and remitted monthly along with employee contributions. It may credit prior service for eligible employees (those in active service on the election date), with funding and costs determined by TRS actuaries and paid by the DAY Program. Benefits paid to any beneficiary would be limited to the amounts contributed by the employee and employer, plus earned interest and investment gains, minus administration costs, with no cost to the State. The act would take effect on June 1, 2024.

Who It Affects
Active, vested, and contributing employees and executive officers of the St. Clair County DAY Program, Inc. who choose to participate in TRS and may purchase prior service credit.
St. Clair County DAY Program, Inc. as the employer, which would pay the employer costs and fund the crediting of prior service as determined by TRS actuaries.

Key Provisions
Section 1(a): The DAY Program's governing body may elect to have its employees and executive officers participate in the Teachers' Retirement System.
Section 1(b): If elected, contributions from salaries paid by the DAY Program shall include an employer cost, calculated as a percentage of salaries, paid monthly to TRS along with members' contributions, per Section 16-25-21.
Section 1(c): The DAY Program's resolution may credit prior service for eligible employees; limited to those in active service on the election date; the Program shall pay all costs necessary to fund the prior service credit as determined by the TRS actuary.
Section 1(c) further requires the DAY Program to assume and pay funding costs for previous service as required by the actuary.
Section 1: Benefits payable are limited to the total contributions from the employee and employer plus interest and investment gains, minus administration costs, with no cost to the State.
Section 2: The act becomes effective June 1, 2024.

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