House Bill 589 Alabama 2026 Session

Summary

Primary Sponsor

Matt SimpsonRepresentative

Republican

Session

2026 Regular Session

Title

Retirement; active participating judges, clerks, and district attorneys allowed to purchase withdrawn service from District Attorneys Plan and Judges' and Clerks' Plan

Summary

HB589 would let active, contributing judges, clerks, and district attorneys buy back withdrawn service in their retirement plans.

What This Bill Does

It allows eligible active members of the District Attorneys' Plan and the Judges' and Clerks' Plan, who were in the Employees' Retirement System or Teachers' Retirement System within the prior year, to transfer that service and accumulated contributions into their current retirement plan. The transfer would require notice to the appropriate board and certification of the transfer; service credits and contributions would be moved accordingly. For members who previously withdrew funds or whose accounts were terminated after five years of absence, creditable service can be restored, but they must complete two years of contributing service and repay the previously returned amount plus 8% interest. The bill also limits credit to portions not already credited elsewhere, excludes Social Security in determining credits, and sets benefit rates by employment classification; it becomes effective October 1, 2026.

Who It Affects

• Active, contributing members of the District Attorneys' Plan (DA Plan) and Judges' and Clerks' Plan who were in the Employees' Retirement System or Teachers' Retirement System within the prior year
• Members who previously withdrew funds or whose accounts were terminated after five years of absence
• Boards of Control and retirement systems (ERS, TRS, DA Plan, Judges' and Clerks' Plan) responsible for processing transfers and credits

Key Provisions

• Amends Sections 12-17-227.3 and 12-18-153 to allow transfer of service and contributions from ERS/TRS to the District Attorneys' Plan or Judges' and Clerks' Plan.
• Allows eligible members to elect to transfer service and contributions and requires notification to the appropriate retirement board and certification of the transfer.
• Restores creditable service for members who withdrew funds or had accounts terminated after five years, with conditions: two years of contributing service after joining the Judicial Retirement Fund and repayment of previously returned funds plus 8% interest.
• Credit is limited to portions not already credited in other public retirement systems; Social Security coverage is not considered in determining credit; benefit rates apply to each portion of service according to its classification.
• Effective date set at October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 10, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement