Senate Bill 280 Alabama 2026 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

2026 Regular Session

Title

Retirement Systems of Alabama, state employees and teachers allowed to purchase credit in Employees' Retirement System and Teachers' Retirement System for public service performed for federal government

Summary

SB280 would let Alabama state employees and teachers in the retirement systems purchase up to 10 years of credit for federal public service and other non-Alabama public service, with the cost covered through actuarial contributions, effective October 1, 2026.

What This Bill Does

It adds a provision to allow eligible members of the Employees' Retirement System of Alabama or the Teachers' Retirement System of Alabama to receive up to 10 years of creditable service for certain federal and out-of-state public service. Active members must pay the full actuarial cost for each year of service before retirement and must have a certification from the other retirement system; credit can be purchased in increments of at least one year. Retired members may also receive such credit under similar rules, but the cost is based on their final average salary, with special provisions for those who retired before July 30, 1979; the resulting increase to their lifetime retirement allowance would be calculated accordingly.

Who It Affects

• Active teachers and state employees who are current members of TRS or ERS and who have at least 10 years of contributing service and want to claim credit for federal/public out-of-state service; they would need to pay actuarial costs and obtain certification of service.
• Current retirees of TRS or ERS who might obtain additional credit for out-of-state or federal/public service under the same conditions, potentially increasing their lifetime retirement allowance (subject to final salary basis and pre-1979 provisions).

Key Provisions

• Allows up to 10 years of creditable service for specified non-Alabama public service, including federal employment, out-of-state public education, Alabama Teachers Corps, and Job Corps.
• Eligibility requires at least 10 years of contributing membership service credit (excluding military).
• Active members must contribute the full actuarial cost for each year of service before retirement; the other retirement system must certify the claimed service; credit may be purchased in increments of at least one year (or the entire remaining period if less than one year).
• Retired members may receive credit under similar terms, with contributions based on their final average salary; special pre-1979 provisions apply for certain retirees.
• No credit if the service would create duplicate benefits under any public retirement or pension plan funded by public funds, with an exception for Social Security participation.
• If out-of-state service credit is disqualified, contributions are refunded.
• The retirement system may deduct an up-front multiplier of administrative costs from the retirement allowance in up to 12 installments if needed.
• Effective date is October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement