AL
Alabama House Bill HB155

Alabama 2022 Regular Session

Alabama House Bill HB155 Compare Versions

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11 1 HB155
2-2 216493-3
2+2 216493-2
33 3 By Representative Ellis
44 4 RFD: Ways and Means General Fund
55 5 First Read: 18-JAN-22
66
7-Page 0 HB155
8-1
9-2 ENROLLED, An Act,
10-3 Relating to the Retirement Systems of Alabama; to
11-4 amend Sections 12-17-277.6, 12-18-156, 16-25-14, and 36-27-16
12-5 of the Code of Alabama 1975, as amended by Act 2021-270, 2021
13-6 Regular Session; to change the option available to a surviving
14-7 spouse of a retirement eligible member of the District
15-8 Attorneys' Plan, the Judges' and Clerks' Plan, the Teachers'
16-9 Retirement System of Alabama, and the Employees' Retirement
17-10 System of Alabama that has died in active service; and to
18-11 provide for a retroactive effective date.
19-12 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
20-13 Section 1. Sections 12-17-277.6, 12-18-156,
21-14 16-25-14, and 36-27-16 of the Code of Alabama 1975, as amended
22-15 by Act 2021-270, 2021 Regular Session, are amended to read as
23-16 follows:
24-17 "§12-17-227.6.
25-18 "(a) Should a member cease to be a district attorney
26-19 except by death or by retirement under the provisions of this
27-20 division, the contributions standing to the credit of his or
28-21 her individual account in the fund shall be paid to him or her
29-22 upon demand and, in addition to such the payment, there shall
30-23 be paid five-tenths of the interest accumulations standing to
31-24 the credit of his or her individual account if he or she shall
32-25 have not less than three but less than 16 years of membership
33-Page 1 HB155
34-1 service, six-tenths of such the interest accumulations if he
35-2 or she shall have not less than 16 but less than 21 years of
36-3 membership service, seven-tenths of such the interest
37-4 accumulations if he or she shall have not less than 21 but
38-5 less than 26 years of membership service, and eight-tenths of
39-6 such the interest accumulations if he or she shall have not
40-7 less than 26 years of membership service.
41-8 "(b) In case of the death of a member eligible for
42-9 service retirement pursuant to Section 12-17-227.4, an
43-10 allowance shall be paid to the surviving spouse, if designated
44-11 as the sole beneficiary, in an amount that would have been
45-12 payable if the member had retired immediately prior to his or
46-13 her death and had elected Option 2, as set forth in subsection
47-14 (d), or to such other person who the member shall have
48-15 designated, in an amount that would have been payable if the
49-16 member had retired immediately prior to his or her death and
50-17 had elected Option 3, as set forth in subsection (d) or,
51-18 alternatively,. Alternatively, if the surviving spouse or
52-19 other designee desires, he or she may choose to receive, in
53-20 lieu of the allowance provided under Option 2 or Option 3, the
54-21 accumulated contributions of the member plus an amount equal
55-22 to the accumulated contributions of the member not to exceed
56-23 $5,000.00 five thousand dollars ($5,000) or the accumulated
57-24 contributions of the member plus the benefit provided by
58-Page 2 HB155
59-1 Section 36-27B-3 if a benefit is payable under such that
7+Page 0 1 ENGROSSED
8+2
9+3
10+4 A BILL
11+5 TO BE ENTITLED
12+6 AN ACT
13+7
14+8 Relating to the Retirement Systems of Alabama; to
15+9 amend Sections 12-17-277.6, 12-18-156, 16-25-14, and 36-27-16
16+10 of the Code of Alabama 1975, as amended by Act 2021-270, 2021
17+11 Regular Session; to change the option available to a surviving
18+12 spouse of a retirement eligible member of the District
19+13 Attorneys' Plan, the Judges' and Clerks' Plan, the Teachers'
20+14 Retirement System of Alabama, and the Employees' Retirement
21+15 System of Alabama that has died in active service; and to
22+16 provide for a retroactive effective date.
23+17 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
24+18 Section 1. Sections 12-17-277.6, 12-18-156,
25+19 16-25-14, and 36-27-16 of the Code of Alabama 1975, as amended
26+20 by Act 2021-270, 2021 Regular Session, are amended to read as
27+21 follows:
28+22 "§12-17-227.6.
29+23 "(a) Should a member cease to be a district attorney
30+24 except by death or by retirement under the provisions of this
31+25 division, the contributions standing to the credit of his or
32+26 her individual account in the fund shall be paid to him or her
33+27 upon demand and, in addition to such the payment, there shall
34+Page 1 1 be paid five-tenths of the interest accumulations standing to
35+2 the credit of his or her individual account if he or she shall
36+3 have not less than three but less than 16 years of membership
37+4 service, six-tenths of such the interest accumulations if he
38+5 or she shall have not less than 16 but less than 21 years of
39+6 membership service, seven-tenths of such the interest
40+7 accumulations if he or she shall have not less than 21 but
41+8 less than 26 years of membership service, and eight-tenths of
42+9 such the interest accumulations if he or she shall have not
43+10 less than 26 years of membership service.
44+11 "(b) In case of the death of a member eligible for
45+12 service retirement pursuant to Section 12-17-227.4, an
46+13 allowance shall be paid to the surviving spouse, if designated
47+14 as the sole beneficiary, in an amount that would have been
48+15 payable if the member had retired immediately prior to his or
49+16 her death and had elected Option 2, as set forth in subsection
50+17 (d), or to such other person who the member shall have
51+18 designated, in an amount that would have been payable if the
52+19 member had retired immediately prior to his or her death and
53+20 had elected Option 3, as set forth in subsection (d) or,
54+21 alternatively,. Alternatively, if the surviving spouse or
55+22 other designee desires, he or she may choose to receive, in
56+23 lieu of the allowance provided under Option 2 or Option 3, the
57+24 accumulated contributions of the member plus an amount equal
58+25 to the accumulated contributions of the member not to exceed
59+26 $5,000.00 five thousand dollars ($5,000) or the accumulated
60+27 contributions of the member plus the benefit provided by
61+Page 2 1 Section 36-27B-3 if a benefit is payable under such that
6062 2 section.
6163 3 "(c) Upon the death of a member on account of whom
6264 4 no survivor allowance is payable under subsection (b), the
6365 5 accumulated contributions of the member plus an amount equal
6466 6 to the accumulated contributions not to exceed $5,000 five
6567 7 thousand dollars ($5,000) or the accumulated contributions of
6668 8 the member plus the benefit provided by Section 36-27B-3 if a
6769 9 benefit is payable under such that section shall be paid to
6870 10 his or her estate or to such person as he or she shall have
6971 11 nominated by written designation duly executed and filed with
7072 12 the Board of Control.
7173 13 "(d) Optional allowances. With the provision that
7274 14 the election of an option shall be effective on the effective
7375 15 date of retirement, any member may elect prior to retirement
7476 16 to receive, in lieu of his or her retirement allowance payable
7577 17 throughout life, the actuarial equivalent, at that time, of
7678 18 his or her retirement allowance in a reduced retirement
7779 19 allowance payable throughout life with the provisions that:
7880 20 "(1) OPTION 1. If he or she dies before he or she
7981 21 has received in annuity payments the present value of his or
8082 22 her annuity as it was at the time of his or her retirement,
8183 23 the balance shall be paid to his or her legal representatives
8284 24 or to such person as he or she shall nominate by written
83-Page 3 HB155
84-1 designation duly acknowledged and filed with the Board of
85-2 Control;
86-3 "(2) OPTION 2. Upon his or her death, his or her
87-4 reduced retirement allowance shall be continued throughout the
88-5 life of and paid to such person as he or she shall nominate by
89-6 written designation duly acknowledged and filed with the Board
90-7 of Control at the time of his or her retirement;
91-8 "(3) OPTION 3. Upon his or her death, one half of
92-9 his or her reduced allowance shall be continued throughout the
93-10 life of and paid to such person as he or she shall nominate by
94-11 written designation duly acknowledged and filed with the Board
95-12 of Control at the time of his or her retirement; or
96-13 "(4) OPTION 4. Some other benefit or benefits shall
97-14 be paid either to the member or to such person or persons as
98-15 he or she shall nominate; provided, that such those other
99-16 benefits, together with the reduced retirement allowance,
100-17 shall be certified by the actuary to be of equivalent
101-18 actuarial value to his or her retirement allowance and shall
102-19 be approved by the Board of Control.
103-20 "(e) Notwithstanding any other provisions of this
104-21 section to the contrary, when a designated beneficiary for a
105-22 member predeceases the member who is receiving a monthly
106-23 benefit allowance provided under Option 2, 3, or 4, the member
107-24 may designate a replacement beneficiary for the deceased
108-25 beneficiary to become effective two years after the date of
109-Page 4 HB155
110-1 designation of the replacement beneficiary and an actuarial
85+25 designation duly acknowledged and filed with the Board of
86+26 Control;
87+Page 3 1 "(2) OPTION 2. Upon his or her death, his or her
88+2 reduced retirement allowance shall be continued throughout the
89+3 life of and paid to such person as he or she shall nominate by
90+4 written designation duly acknowledged and filed with the Board
91+5 of Control at the time of his or her retirement;
92+6 "(3) OPTION 3. Upon his or her death, one half of
93+7 his or her reduced allowance shall be continued throughout the
94+8 life of and paid to such person as he or she shall nominate by
95+9 written designation duly acknowledged and filed with the Board
96+10 of Control at the time of his or her retirement; or
97+11 "(4) OPTION 4. Some other benefit or benefits shall
98+12 be paid either to the member or to such person or persons as
99+13 he or she shall nominate; provided, that such those other
100+14 benefits, together with the reduced retirement allowance,
101+15 shall be certified by the actuary to be of equivalent
102+16 actuarial value to his or her retirement allowance and shall
103+17 be approved by the Board of Control.
104+18 "(e) Notwithstanding any other provisions of this
105+19 section to the contrary, when a designated beneficiary for a
106+20 member predeceases the member who is receiving a monthly
107+21 benefit allowance provided under Option 2, 3, or 4, the member
108+22 may designate a replacement beneficiary for the deceased
109+23 beneficiary to become effective two years after the date of
110+24 designation of the replacement beneficiary and an actuarial
111+25 adjustment in the monthly benefit allowance of the member to
112+26 cover any cost associated with designating a replacement
113+27 beneficiary shall be reflected thereafter in the monthly
114+Page 4 1 benefit allowance received by the member, commencing with the
115+2 first benefit allowance check received by the member following
116+3 the date of designation of the replacement beneficiary.
117+4 "(f) Notwithstanding any provision of this section
118+5 to the contrary, if a retired member who is receiving a
119+6 monthly benefit allowance provided under Option 2, 3, or 4
120+7 divorces his or her designated beneficiary, the member may
121+8 designate a replacement beneficiary for the beneficiary to
122+9 become effective two years after the date of designation of
123+10 the replacement beneficiary and an actuarial adjustment in the
124+11 monthly benefit allowance of the member to cover any cost
125+12 associated with designating a replacement beneficiary shall be
126+13 reflected thereafter in the monthly benefit allowance received
127+14 by the member, commencing with the first benefit allowance
128+15 check received by the member following the date of designation
129+16 of the replacement beneficiary.
130+17 "§12-18-156.
131+18 "(a) Should a member cease to be a judge or clerk
132+19 except by death or by retirement under the provisions of this
133+20 article, the contributions standing to the credit of his or
134+21 her individual account in the fund shall be paid to him or her
135+22 upon demand and, in addition to such that payment, there shall
136+23 be paid five-tenths of the interest accumulations standing to
137+24 the credit of his or her individual account if he or she shall
138+25 have not less than three but less than 16 years of membership
139+26 service, six-tenths of such the interest accumulations if he
140+27 or she shall have not less than 16 but less than 21 years of
141+Page 5 1 membership service, seven-tenths of such the interest
142+2 accumulations if he or she shall have not less than 21 but
143+3 less than 26 years of membership service and eight-tenths of
144+4 such the interest accumulations if he or she shall have not
145+5 less than 26 years of membership service.
146+6 "(b) In case of the death of a member eligible for
147+7 service retirement pursuant to Section 12-18-154, an allowance
148+8 shall be paid to the surviving spouse, if designated as the
149+9 sole beneficiary, in an amount that would have been payable if
150+10 the member had retired immediately prior to his or her death
151+11 and had elected Option 2, as set forth in subsection (d), or
152+12 to such other person who the member shall have designated, in
153+13 an amount that would have been payable if the member had
154+14 retired immediately prior to his or her death and had elected
155+15 Option 3, as set forth in subsection (d) or, alternatively.
156+16 Alternatively, if the surviving spouse or other designee
157+17 desires, he or she may choose to receive, in lieu of the
158+18 allowance provided under Option 2 or Option 3, the accumulated
159+19 contributions of the member plus an amount equal to the
160+20 accumulated contributions of the member not to exceed
161+21 $5,000.00 five thousand dollars ($5,000) or the accumulated
162+22 contributions of the member plus the benefit provided by
163+23 Section 36-27B-3 if a benefit is payable under such that
164+24 section.
165+25 "(c) Upon the death of a member on account of whom
166+26 no survivor allowance is payable under subsection (b), the
167+27 accumulated contributions of the member plus an amount equal
168+Page 6 1 to the accumulated contributions not to exceed $5,000 five
169+2 thousand dollars ($5,000) or the accumulated contributions of
170+3 the member plus the benefit provided by Section 36-27B-3 if a
171+4 benefit is payable under such that section shall be paid to
172+5 his or her estate or to such person as he or she shall have
173+6 nominated by written designation duly executed and filed with
174+7 the Board of Control.
175+8 "(d) Optional allowances. With the provision that
176+9 the election of an option shall be effective on the effective
177+10 date of retirement, any member may elect prior to retirement
178+11 to receive, in lieu of his or her retirement allowance payable
179+12 throughout life, the actuarial equivalent, at that time, of
180+13 his or her retirement allowance in a reduced retirement
181+14 allowance payable throughout life with the provisions that:
182+15 "(1) OPTION 1. If he or she dies before he or she
183+16 has received in annuity payments the present value of his or
184+17 her annuity as it was at the time of his or her retirement,
185+18 the balance shall be paid to his or her legal representatives
186+19 or to the person as he or she shall nominate by written
187+20 designation duly acknowledged and filed with the Board of
188+21 Control;
189+22 "(2) OPTION 2. Upon his or her death, his or her
190+23 reduced retirement allowance shall be continued throughout the
191+24 life of and paid to the person as he or she shall nominate by
192+25 written designation duly acknowledged and filed with the Board
193+26 of Control at the time of his or her retirement;
194+Page 7 1 "(3) OPTION 3. Upon his or her death, one half of
195+2 his or her reduced allowance shall be continued throughout the
196+3 life of and paid to the person as he or she shall nominate by
197+4 written designation duly acknowledged and filed with the Board
198+5 of Control at the time of his or her retirement; or
199+6 "(4) OPTION 4. Some other benefit or benefits shall
200+7 be paid either to the member or to the person or persons as he
201+8 or she shall nominate; provided, that such those other
202+9 benefits, together with the reduced retirement allowance,
203+10 shall be certified by the actuary to be of equivalent
204+11 actuarial value to his or her retirement allowance and shall
205+12 be approved by the Board of Control.
206+13 "(5) Where the person designated by the member under
207+14 this subsection to receive a continued retirement allowance is
208+15 a beneficiary of a special needs trust established under Title
209+16 42, United States Code, Section 1396p(d)(4)(A) or (C), as
210+17 amended, the retirement allowance payable to the person may be
211+18 paid by the retirement system to the special needs trust upon
212+19 written direction to the retirement system by the member or,
213+20 after the member is deceased, by the designated person or by
214+21 his or her legal representative if the designated person is a
215+22 minor or is incapacitated.
216+23 "(e) Notwithstanding any other provisions of this
217+24 section to the contrary, when a designated beneficiary for a
218+25 member predeceases the member who is receiving a monthly
219+26 benefit allowance provided under Option 2, 3, or 4, the member
220+27 may designate a replacement beneficiary for the deceased
221+Page 8 1 beneficiary to become effective two years after the date of
222+2 designation of the replacement beneficiary and an actuarial
223+3 adjustment in the monthly benefit allowance of the member to
224+4 cover any cost associated with designating a replacement
225+5 beneficiary shall be reflected thereafter in the monthly
226+6 benefit allowance received by the member, commencing with the
227+7 first benefit allowance check received by the member following
228+8 the date of designation of the replacement beneficiary.
229+9 "(f) Notwithstanding any provision of this section
230+10 to the contrary, if a retired member who is receiving a
231+11 monthly benefit allowance provided under Option 2, 3, or 4
232+12 divorces his or her designated beneficiary, the member may
233+13 designate a replacement beneficiary for the beneficiary to
234+14 become effective two years after the date of designation of
235+15 the replacement beneficiary and an actuarial adjustment in the
236+16 monthly benefit allowance of the member to cover any cost
237+17 associated with designating a replacement beneficiary shall be
238+18 reflected thereafter in the monthly benefit allowance received
239+19 by the member, commencing with the first benefit allowance
240+20 check received by the member following the date of designation
241+21 of the replacement beneficiary.
242+22 "§16-25-14.
243+23 "(a)(1) Any Tier I plan member who withdraws from
244+24 service upon or after attainment of age 60 and any Tier II
245+25 plan member who withdraws from service upon or after
246+26 attainment of age 62, or in the case of a Tier II plan member
247+27 who is a correctional officer, firefighter, or law enforcement
248+Page 9 1 officer as defined in Section 36-27-59, who withdraws from
249+2 service upon or after attainment of age 56 with at least ten
250+3 10 years of creditable service as a correctional officer,
251+4 firefighter, or law enforcement officer may retire upon
252+5 written application to the Board of Control setting forth at
253+6 what time, not less than 30 days nor more than 90 days
254+7 subsequent to the execution and filing thereof, he or she
255+8 desires to be retired; provided, that any such member who
256+9 became a member on or after October 1, 1963, shall have
257+10 completed 10 or more years of creditable service.
258+11 "(2) Any Tier I plan member who has attained age 60
259+12 and any Tier II plan member who has attained age 62, or in the
260+13 case of a Tier II plan member who is a correctional officer,
261+14 firefighter, or law enforcement officer as defined in Section
262+15 36-27-59, who has attained age 56 with at least ten 10 years
263+16 of creditable service as a correctional officer, firefighter,
264+17 or law enforcement officer and has previously withdrawn from
265+18 service may retire upon written application to the Board of
266+19 Control setting forth at what time, not less than 30 days nor
267+20 more than 90 days subsequent to the execution and filing
268+21 thereof, he or she desires to be retired; provided, that the
269+22 member shall have completed at the time for his or her
270+23 withdrawal from service the requirements established by the
271+24 Board of Control for eligibility for deferred benefits
272+25 pursuant to Section 16-25-3.
273+26 "(3) Any person who is presently covered or is
274+27 eligible to be covered under the Employees' Retirement System
275+Page 10 1 of Alabama or the Teachers' Retirement System of Alabama and
276+2 who, prior to such coverage or eligibility for coverage,
277+3 served as head of any Alabama county's public library service
278+4 department shall have credited to him or her one year of
279+5 creditable service for each year served as such head, not to
280+6 exceed 12 years; provided, that such the person shall pay into
281+7 the retirement system the employee's part of the cost or
282+8 contribution based on the salary paid to such the person
283+9 during the time of his or her service in the above capacity,
284+10 with such the cost or contribution to be calculated at the
285+11 percent or rate in effect on October 1, 1973.
286+12 "(4) Any Tier I plan member of the Teachers'
287+13 Retirement System of Alabama, who withdraws from service after
288+14 the completion of at least 25 years of creditable service, may
289+15 retire upon written application to the Board of Control of the
290+16 Teachers' Retirement System setting forth at what time, not
291+17 less than 30 days nor more than 90 days subsequent to the
292+18 execution and filing thereof, he or she desires to be retired;
293+19 provided, that any such member who became a Tier I plan member
294+20 on or after October 1, 1963, shall have completed 10 or more
295+21 years of creditable service.
296+22 "(b) Upon retirement from service, a Tier I plan
297+23 member shall receive a service retirement allowance which
298+24 shall consist of:
299+25 "(1) An annuity which shall be the actuarial
300+26 equivalent of his or her accumulated contributions at the time
301+27 of his or her retirement;
302+Page 11 1 "(2) A pension which shall be equal to the annuity
303+2 allowable at the age of retirement, but not to exceed an
304+3 annuity allowable at age 65 computed on the basis of
305+4 contributions made prior to the attainment of age 65; and
306+5 "(3) If he or she has a prior service certificate in
307+6 full force and effect, an additional pension which shall be
308+7 equal to the annuity which would have been provided at age of
309+8 retirement, but not to exceed an annuity allowable at age 65
310+9 by twice the contributions which he or she would have made
311+10 during the period of prior service with which he or she is
312+11 credited had the system been in operation and had he or she
313+12 contributed thereunder. In lieu of a determination of the
314+13 actual compensation of the members that was received during
315+14 such that prior service, the Board of Control may use for the
316+15 purposes of this chapter the compensation rates which, if they
317+16 had progressed with the rates of salary increase shown in the
318+17 tables as prescribed in subsection (o) of Section 16-25-19,
319+18 would have resulted in the same average salary of the member
320+19 for the five years immediately preceding the date of
321+20 establishment as the records show the member actually
322+21 received.
323+22 "(c) The annual service retirement pension payable
324+23 to a Tier I plan member retiring on or after October 1, 1975,
325+24 shall not be less than an amount which when added to his or
326+25 her annuity is equal to the greater of the following two
327+26 amounts:
328+Page 12 1 "(1) Two and one-eightieth percent of the member's
329+2 average final compensation multiplied by the number of years
330+3 of his or her creditable service; or
331+4 "(2) If he or she became a member before October 1,
332+5 1971, $72 seventy-two dollars ($72) multiplied by the number
333+6 of years of his or her creditable service not in excess of 25
334+7 years.
335+8 "Notwithstanding, a member who retired prior to
336+9 October 1, 1971, under service retirement shall receive $120
337+10 one hundred twenty dollars ($120) multiplied by the number of
338+11 years of his or her creditable service not in excess of 25
339+12 years.
340+13 "(d) Upon retirement from service, a Tier II plan
341+14 member shall receive a service retirement allowance which
342+15 shall consist of an annuity which shall be the actuarial
343+16 equivalent of the member's accumulated contributions at the
344+17 time of retirement and a pension which, when added to the
345+18 member's annuity, shall be equal to one and sixty-five
346+19 hundredths percent (1.65%) of the member's average final
347+20 compensation multiplied by the number of years of creditable
348+21 service. Notwithstanding the foregoing, the service retirement
349+22 allowance shall not exceed eighty percent (80%) of the
350+23 member's average final compensation.
351+24 "(e) Upon the application of a Tier I plan member in
352+25 service or of his or her employer, any member who has had 10
353+26 or more years of creditable service may be retired by the
354+27 Board of Control on a disability retirement allowance not less
355+Page 13 1 than 30 nor more than 90 days next following the date of
356+2 filing such an the application; provided, that the medical
357+3 board, after a medical examination of such the member, shall
358+4 certify that such the member is mentally or physically
359+5 incapacitated for further performance of duty, that such the
360+6 incapacity is likely to be permanent, and that such the member
361+7 should be retired. Upon the application of a Tier II plan
362+8 member in service or of his or her employer, any member who
363+9 has had 10 or more years of creditable service may be retired
364+10 by the Board of Control on a disability retirement allowance
365+11 not less than 30 nor more than 90 days next following the date
366+12 of filing such an the application; provided, that the medical
367+13 board, after a medical examination of such the member, shall
368+14 certify that the member is totally and permanently mentally or
369+15 physically incapacitated from regular and substantial gainful
370+16 employment, and that such the member should be retired.
371+17 "(f) Upon retirement for disability, a Tier I plan
372+18 member shall receive a service retirement allowance if he or
373+19 she has attained age 60 or if any law or part of any law
374+20 pertaining to retirement under the Teachers' Retirement System
375+21 of Alabama provides for service retirement after the
376+22 completion of 25 years of creditable service and the member
377+23 has completed 25 years of creditable service; otherwise, he or
378+24 she shall receive a disability retirement allowance which
379+25 shall consist of:
380+Page 14 1 "(1) An annuity which shall be the actuarial
381+2 equivalent of his or her accumulated contributions at the time
382+3 of retirement; and
383+4 "(2) A pension which shall be equal to the pension
384+5 that would have been payable under subdivisions (2) and (3) of
385+6 subsection (b) of this section upon service retirement at age
386+7 60 had the member continued in service to that age without
387+8 change in compensation.
388+9 "The annual disability retirement pension shall not
389+10 be less than an amount which when added to his or her annuity
390+11 is equal to the greater of the following amounts:
391+12 "a. Two and one-eightieth percent of the member's
392+13 average final compensation multiplied by the number of years
393+14 of creditable service.
394+15 "b. If he or she became a member before October 1,
395+16 1971, $54 fifty-four dollars ($54) multiplied by the number of
396+17 years of his or her creditable service not in excess of 25
397+18 years.
398+19 "Notwithstanding, a member who retired prior to
399+20 October 1, 1971, for disability shall receive $90 ninety
400+21 dollars ($90) multiplied by the number of years of his or her
401+22 creditable service not in excess of 25 years.
402+23 "(g) Upon retirement for disability, a Tier II plan
403+24 member shall receive a service retirement allowance if the
404+25 member has attained age 62, or in the case of a Tier II plan
405+26 member who is a correctional officer, firefighter, or law
406+27 enforcement officer as defined in Section 36-27-59, if the
407+Page 15 1 member has attained age 56 with at least ten 10 years of
408+2 creditable service as a correctional officer, firefighter, or
409+3 law enforcement officer, otherwise, the member shall receive a
410+4 disability retirement allowance which shall be equal to one
411+5 and sixty-five hundredths percent (1.65%) of the member's
412+6 average final compensation multiplied by the number of years
413+7 of creditable service.
414+8 "(h)(1) Once each year during the first five years
415+9 following the retirement of a member on a disability
416+10 retirement allowance and once in every three-year period
417+11 thereafter, the Board of Control may and upon his or her
418+12 application shall require any disability beneficiary who has
419+13 not yet attained age 60 for a Tier I plan member or age 62 for
420+14 a Tier II plan member to undergo a medical examination, such
421+15 the examination to be made at the place of residence of such
422+16 the beneficiary or other place mutually agreed upon by a
423+17 physician of or designated by the medical board. Should any
424+18 disability beneficiary who has not yet attained age 60 for a
425+19 Tier I plan member or age 62 for a Tier II plan member refuse
426+20 to submit to such the medical examination, his or her pension
427+21 may be discontinued until his or her withdrawal of such the
428+22 refusal, and should his or her refusal continue for one year,
429+23 all his or her rights in and to his or her pension may be
430+24 revoked by the Board of Control; provided, that these
431+25 requirements relative to the medical examination shall not
432+26 apply in the case of a Tier II plan member who is a
433+27 correctional officer, firefighter, or law enforcement officer
434+Page 16 1 as defined in Section 36-27-59 retired for disability and who
435+2 has attained age 56 with at least ten 10 years of creditable
436+3 service as a correctional officer, firefighter, or law
437+4 enforcement officer.
438+5 "(2) Should the medical board report and certify to
439+6 the Board of Control that a disability beneficiary who is a
440+7 Tier I plan member is engaged in or is able to engage in a
441+8 gainful occupation paying more than the difference between his
442+9 or her retirement allowance and his average final compensation
443+10 and should the Board of Control concur in such the report,
444+11 then the amount of his or her pension shall be reduced to an
445+12 amount which, together with his or her annuity and the amount
446+13 earnable by him or her, shall equal the amount of his or her
447+14 average final compensation. Should his or her earning capacity
448+15 be later changed, the amount of his or her pension may be
449+16 further modified; provided, that the new pension shall not
450+17 exceed the amount of the pension originally granted nor an
451+18 amount which, when added to the amount earnable by the
452+19 beneficiary together with his or her annuity, equals the
453+20 amount of his or her average final compensation.
454+21 "(3) Should the medical board report and certify to
455+22 the Board of Control that a disability beneficiary who is a
456+23 Tier II plan member has the capacity to engage in regular and
457+24 substantial gainful employment, the Board of Control shall
458+25 discontinue the beneficiary's retirement allowance until the
459+26 beneficiary is otherwise eligible for service retirement.
460+Page 17 1 "(i)(1) Should a member cease to be a teacher,
461+2 except by death or by retirement under the provisions of this
462+3 chapter, the contributions standing to the credit of his or
463+4 her individual account in the Annuity Savings Fund shall be
464+5 paid to him or her upon demand, and in addition to such the
465+6 payment there shall be paid five-tenths of the interest
466+7 accumulations standing to the credit of his or her individual
467+8 account if he or she shall have not less than three but less
468+9 than 16 years of membership service, six-tenths of such the
469+10 interest accumulations if he or she shall have not less than
470+11 16 but less than 21 years of membership service, seven-tenths
471+12 of such the interest accumulations if he or she shall have not
472+13 less than 21 but less than 26 years of membership service, and
473+14 eight-tenths of such the interest accumulations if he or she
474+15 shall have not less than 26 years of membership service.
475+16 "(2) In case of the death of a member eligible for
476+17 service retirement pursuant to subsection (a) of this section,
477+18 an allowance shall be paid to the surviving spouse, if
478+19 designated as the sole beneficiary, in an amount that would
479+20 have been payable if the member had retired immediately prior
480+21 to his or her death and had elected Option 2, as set forth in
481+22 subsection (j), or to such other person who the member shall
482+23 have designated, in an amount that would have been payable if
483+24 the member had retired immediately prior to his or her death
484+25 and had elected Option 3, as set forth in subsection (j) or,
485+26 alternatively. Alternatively, if the surviving spouse or other
486+27 designee desires, he or she may choose to receive, in lieu of
487+Page 18 1 the allowance provided under Option 2 or Option 3, the
488+2 accumulated contributions of the member plus an amount equal
489+3 to the accumulated contributions of the member not to exceed
490+4 $5,000 five thousand dollars ($5,000) or the accumulated
491+5 contributions of the member plus the benefit provided by
492+6 Section 36-27B-3 if a benefit is payable under such that
493+7 section. For purposes of this subsection only, hazardous duty
494+8 time, as set forth in subdivision (b)(1) of Section 36-27-59,
495+9 may be used in calculating the requisite years of service for
496+10 firefighters, law enforcement officers, and correctional
497+11 officers even if the member has not otherwise attained 25
498+12 years of creditable service.
499+13 "(3) Upon the death of a member on account of whom
500+14 no survivor allowance is payable under subdivision (2) of this
501+15 subsection, the accumulated contributions of the member plus
502+16 an amount equal to the accumulated contributions not to exceed
503+17 $5,000 five thousand dollars ($5,000) or the accumulated
504+18 contributions of the member plus the benefit provided by
505+19 Section 36-27B-3 if a benefit is payable under such that
506+20 section shall be paid to his or her estate or to such person
507+21 as he or she shall have nominated by written designation duly
508+22 executed and filed with the Board of Control.
509+23 "(j) With the provision the election of an option
510+24 shall be effective on the effective date of retirement, any
511+25 member may elect prior to retirement to receive, in lieu of
512+26 his or her retirement allowance payable throughout life, the
513+27 actuarial equivalent at that time of his or her retirement
514+Page 19 1 allowance in a reduced retirement allowance payable throughout
515+2 life with the provision that:
516+3 "(1) OPTION 1. If he or she dies before he or she
517+4 has received in annuity payments the present value of his or
518+5 her annuity as it was at the time of his or her retirement,
519+6 the balance shall be paid to his or her legal representatives
520+7 or to the person as he or she shall nominate by written
521+8 designation duly acknowledged and filed with the Board of
522+9 Control;
523+10 "(2) OPTION 2. Upon his or her death, his or her
524+11 reduced retirement allowance shall be continued throughout the
525+12 life of and paid to the person as he or she shall nominate by
526+13 written designation duly acknowledged and filed with the Board
527+14 of Control at the time of his or her retirement;
528+15 "(3) OPTION 3. Upon his or her death, one half of
529+16 his or her reduced retirement allowance shall be continued
530+17 throughout the life of and paid to the person as he or she
531+18 shall nominate by written designation duly acknowledged and
532+19 filed with the Board of Control at the time of his or her
533+20 retirement; or
534+21 "(4) OPTION 4. Some other benefit or benefits shall
535+22 be paid either to the member or to the person or persons as he
536+23 or she shall nominate; provided, that such the other benefit
537+24 or benefits, together with the reduced retirement allowance,
538+25 shall be certified by the actuary to be of equivalent
539+26 actuarial value to his or her retirement allowance and shall
540+27 be approved by the Board of Control.
541+Page 20 1 "(5) OPTION 5. At the time of retirement, he or she
542+2 shall receive a partial lump sum distribution as a single
543+3 payment not to exceed the sum of 24 months of the maximum
544+4 monthly retirement allowance the member could receive. This
545+5 option may be elected in addition to the election of another
546+6 option under this subsection and the further reduced monthly
547+7 retirement allowance shall be calculated in accordance with
548+8 the selected option. This option shall not be available to a
549+9 member who is receiving a disability retirement.
550+10 "(k) Should any beneficiary be restored to active
551+11 service, his or her retirement allowance shall be suspended
552+12 until he or she again withdraws from service and, he or she
553+13 shall not again become a member, nor shall he or she make
554+14 contributions; except, that should such the beneficiary who
555+15 has been restored to active service continue in service for a
556+16 period of two or more years from the date of his or her
557+17 reentry into active service, he or she may request the Board
558+18 of Control to allow him or her to again become a member of the
559+19 retirement system. The Board of Control may grant the request
560+20 for restoration to membership; provided, that such the
561+21 beneficiary whose retirement allowance has been suspended
562+22 shall repay to the system all moneys monies received by him or
563+23 her as benefits during any period subsequent to the date of
564+24 his or her reentry into active service; provided further, that
565+25 he or she shall make a contribution equal to the amount he or
566+26 she would have contributed had he or she been a member during
567+27 the period of his or her restoration to active service on a
568+Page 21 1 suspended allowance basis, together with the interest which
569+2 would have been credited to the contributions on account of
570+3 such the period of restoration up to the date such the
571+4 contribution is made.
572+5 "(l)(1) All retirement allowance payments due on or
573+6 after October 1, 1975, to members who retired prior to October
574+7 1, 1975, shall be redetermined as if the provisions of
575+8 subsections (b) and (e) of this section which became effective
576+9 on said date were in effect at the time the member retired;
577+10 provided, that the annual retirement allowance of any member
578+11 who retired on or before January 1, 1956, shall be not less
579+12 than $132 one hundred thirty-two dollars ($132) multiplied by
580+13 the number of years of his or her creditable service not in
581+14 excess of 30 years in the case of service retirement or $99
582+15 ninety-nine dollars ($99) multiplied by the number of years of
583+16 creditable service not in excess of 30 years in the case of
584+17 disability retirements. Any increase provided in the
585+18 retirement allowance payment under this subsection for a
586+19 member who retired under the provisions of any optional
587+20 benefit elected pursuant to subsection (j) of this section
588+21 shall accrue only to the retired member, and no person
589+22 designated to receive any payments after the death of a
590+23 retired member under the provisions of any such optional
591+24 benefit shall receive any increase in such payments under this
592+25 subsection.
593+26 "(2) Any person who served at least 30 years as a
594+27 teacher in the public schools of Alabama and was never a
595+Page 22 1 member of the system and who, prior to October 1, 1963, was in
596+2 receipt of a benefit for old age assistance pursuant to
597+3 subsections (1) and (2) of Section 1 of Act 116, approved
598+4 August 24, 1959, shall be entitled to receive an annual
599+5 retirement allowance of $3,960 three thousand nine hundred
600+6 sixty dollars ($3,960) from the system, effective as of
601+7 October 1, 1973.
602+8 "(3) Prior to October 31, 1975, any beneficiary may
603+9 elect to leave on deposit with the system all or a specified
604+10 part of any increase in his or her monthly retirement
605+11 allowance payments arising in accordance with subdivision (1)
606+12 or (2) of this subsection. The portion of each monthly payment
607+13 left in the system in accordance with such the election shall
608+14 be credited, together with regular interest thereon, to the
609+15 individual account of such the beneficiary. Upon the death of
610+16 such the beneficiary, the total amount standing to his or her
611+17 credit, including regular interest to the date of death, shall
612+18 be paid in a lump sum to his or her legal representative or to
613+19 such the person as he or she shall have nominated by written
614+20 designation duly acknowledged and filed with the Board of
615+21 Control.
616+22 "(m) Notwithstanding any other provisions of this
617+23 section to the contrary, when a designated beneficiary for a
618+24 member predeceases the member who is receiving a monthly
619+25 benefit allowance provided under Option 2, 3, or 4, the member
620+26 may designate a replacement beneficiary for the deceased
621+27 beneficiary to become effective two years after the date of
622+Page 23 1 designation of the replacement beneficiary and an actuarial
111623 2 adjustment in the monthly benefit allowance of the member to
112624 3 cover any cost associated with designating a replacement
113625 4 beneficiary shall be reflected thereafter in the monthly
114626 5 benefit allowance received by the member, commencing with the
115627 6 first benefit allowance check received by the member following
116628 7 the date of designation of the replacement beneficiary.
117-8 "(f) Notwithstanding any provision of this section
629+8 "(n) Notwithstanding any provision of this section
118630 9 to the contrary, if a retired member who is receiving a
119631 10 monthly benefit allowance provided under Option 2, 3, or 4
120632 11 divorces his or her designated beneficiary, the member may
121633 12 designate a replacement beneficiary for the beneficiary to
122634 13 become effective two years after the date of designation of
123635 14 the replacement beneficiary and an actuarial adjustment in the
124636 15 monthly benefit allowance of the member to cover any cost
125637 16 associated with designating a replacement beneficiary shall be
126638 17 reflected thereafter in the monthly benefit allowance received
127639 18 by the member, commencing with the first benefit allowance
128640 19 check received by the member following the date of designation
129641 20 of the replacement beneficiary.
130-21 "§12-18-156.
131-22 "(a) Should a member cease to be a judge or clerk
132-23 except by death or by retirement under the provisions of this
133-24 article, the contributions standing to the credit of his or
134-25 her individual account in the fund shall be paid to him or her
135-Page 5 HB155
136-1 upon demand and, in addition to such that payment, there shall
137-2 be paid five-tenths of the interest accumulations standing to
138-3 the credit of his or her individual account if he or she shall
139-4 have not less than three but less than 16 years of membership
140-5 service, six-tenths of such the interest accumulations if he
141-6 or she shall have not less than 16 but less than 21 years of
142-7 membership service, seven-tenths of such the interest
143-8 accumulations if he or she shall have not less than 21 but
144-9 less than 26 years of membership service and eight-tenths of
145-10 such the interest accumulations if he or she shall have not
146-11 less than 26 years of membership service.
147-12 "(b) In case of the death of a member eligible for
148-13 service retirement pursuant to Section 12-18-154, an allowance
149-14 shall be paid to the surviving spouse, if designated as the
150-15 sole beneficiary, in an amount that would have been payable if
151-16 the member had retired immediately prior to his or her death
152-17 and had elected Option 2, as set forth in subsection (d), or
153-18 to such other person who the member shall have designated, in
154-19 an amount that would have been payable if the member had
155-20 retired immediately prior to his or her death and had elected
156-21 Option 3, as set forth in subsection (d) or, alternatively.
157-22 Alternatively, if the surviving spouse or other designee
158-23 desires, he or she may choose to receive, in lieu of the
159-24 allowance provided under Option 2 or Option 3, the accumulated
160-25 contributions of the member plus an amount equal to the
161-Page 6 HB155
162-1 accumulated contributions of the member not to exceed
163-2 $5,000.00 five thousand dollars ($5,000) or the accumulated
164-3 contributions of the member plus the benefit provided by
165-4 Section 36-27B-3 if a benefit is payable under such that
166-5 section.
167-6 "(c) Upon the death of a member on account of whom
168-7 no survivor allowance is payable under subsection (b), the
169-8 accumulated contributions of the member plus an amount equal
170-9 to the accumulated contributions not to exceed $5,000 five
171-10 thousand dollars ($5,000) or the accumulated contributions of
172-11 the member plus the benefit provided by Section 36-27B-3 if a
173-12 benefit is payable under such that section shall be paid to
174-13 his or her estate or to such person as he or she shall have
175-14 nominated by written designation duly executed and filed with
176-15 the Board of Control.
177-16 "(d) Optional allowances. With the provision that
178-17 the election of an option shall be effective on the effective
179-18 date of retirement, any member may elect prior to retirement
180-19 to receive, in lieu of his or her retirement allowance payable
181-20 throughout life, the actuarial equivalent, at that time, of
182-21 his or her retirement allowance in a reduced retirement
183-22 allowance payable throughout life with the provisions that:
184-23 "(1) OPTION 1. If he or she dies before he or she
185-24 has received in annuity payments the present value of his or
186-25 her annuity as it was at the time of his or her retirement,
187-Page 7 HB155
188-1 the balance shall be paid to his or her legal representatives
189-2 or to the person as he or she shall nominate by written
190-3 designation duly acknowledged and filed with the Board of
191-4 Control;
192-5 "(2) OPTION 2. Upon his or her death, his or her
193-6 reduced retirement allowance shall be continued throughout the
194-7 life of and paid to the person as he or she shall nominate by
195-8 written designation duly acknowledged and filed with the Board
196-9 of Control at the time of his or her retirement;
197-10 "(3) OPTION 3. Upon his or her death, one half of
198-11 his or her reduced allowance shall be continued throughout the
199-12 life of and paid to the person as he or she shall nominate by
200-13 written designation duly acknowledged and filed with the Board
201-14 of Control at the time of his or her retirement; or
202-15 "(4) OPTION 4. Some other benefit or benefits shall
203-16 be paid either to the member or to the person or persons as he
204-17 or she shall nominate; provided, that such those other
205-18 benefits, together with the reduced retirement allowance,
206-19 shall be certified by the actuary to be of equivalent
207-20 actuarial value to his or her retirement allowance and shall
208-21 be approved by the Board of Control.
209-22 "(5) Where the person designated by the member under
210-23 this subsection to receive a continued retirement allowance is
211-24 a beneficiary of a special needs trust established under Title
212-25 42, United States Code, Section 1396p(d)(4)(A) or (C), as
213-Page 8 HB155
214-1 amended, the retirement allowance payable to the person may be
215-2 paid by the retirement system to the special needs trust upon
216-3 written direction to the retirement system by the member or,
217-4 after the member is deceased, by the designated person or by
218-5 his or her legal representative if the designated person is a
219-6 minor or is incapacitated.
220-7 "(e) Notwithstanding any other provisions of this
221-8 section to the contrary, when a designated beneficiary for a
222-9 member predeceases the member who is receiving a monthly
223-10 benefit allowance provided under Option 2, 3, or 4, the member
224-11 may designate a replacement beneficiary for the deceased
225-12 beneficiary to become effective two years after the date of
226-13 designation of the replacement beneficiary and an actuarial
227-14 adjustment in the monthly benefit allowance of the member to
228-15 cover any cost associated with designating a replacement
229-16 beneficiary shall be reflected thereafter in the monthly
230-17 benefit allowance received by the member, commencing with the
231-18 first benefit allowance check received by the member following
232-19 the date of designation of the replacement beneficiary.
233-20 "(f) Notwithstanding any provision of this section
234-21 to the contrary, if a retired member who is receiving a
235-22 monthly benefit allowance provided under Option 2, 3, or 4
236-23 divorces his or her designated beneficiary, the member may
237-24 designate a replacement beneficiary for the beneficiary to
238-25 become effective two years after the date of designation of
239-Page 9 HB155
240-1 the replacement beneficiary and an actuarial adjustment in the
241-2 monthly benefit allowance of the member to cover any cost
242-3 associated with designating a replacement beneficiary shall be
243-4 reflected thereafter in the monthly benefit allowance received
244-5 by the member, commencing with the first benefit allowance
245-6 check received by the member following the date of designation
246-7 of the replacement beneficiary.
247-8 "§16-25-14.
248-9 "(a)(1) Any Tier I plan member who withdraws from
249-10 service upon or after attainment of age 60 and any Tier II
250-11 plan member who withdraws from service upon or after
251-12 attainment of age 62, or in the case of a Tier II plan member
252-13 who is a correctional officer, firefighter, or law enforcement
253-14 officer as defined in Section 36-27-59, who withdraws from
254-15 service upon or after attainment of age 56 with at least ten
255-16 10 years of creditable service as a correctional officer,
256-17 firefighter, or law enforcement officer may retire upon
257-18 written application to the Board of Control setting forth at
258-19 what time, not less than 30 days nor more than 90 days
259-20 subsequent to the execution and filing thereof, he or she
260-21 desires to be retired; provided, that any such member who
261-22 became a member on or after October 1, 1963, shall have
262-23 completed 10 or more years of creditable service.
263-24 "(2) Any Tier I plan member who has attained age 60
264-25 and any Tier II plan member who has attained age 62, or in the
265-Page 10 HB155
266-1 case of a Tier II plan member who is a correctional officer,
267-2 firefighter, or law enforcement officer as defined in Section
268-3 36-27-59, who has attained age 56 with at least ten 10 years
269-4 of creditable service as a correctional officer, firefighter,
270-5 or law enforcement officer and has previously withdrawn from
271-6 service may retire upon written application to the Board of
272-7 Control setting forth at what time, not less than 30 days nor
273-8 more than 90 days subsequent to the execution and filing
274-9 thereof, he or she desires to be retired; provided, that the
275-10 member shall have completed at the time for his or her
276-11 withdrawal from service the requirements established by the
277-12 Board of Control for eligibility for deferred benefits
278-13 pursuant to Section 16-25-3.
279-14 "(3) Any person who is presently covered or is
280-15 eligible to be covered under the Employees' Retirement System
281-16 of Alabama or the Teachers' Retirement System of Alabama and
282-17 who, prior to such coverage or eligibility for coverage,
283-18 served as head of any Alabama county's public library service
284-19 department shall have credited to him or her one year of
285-20 creditable service for each year served as such head, not to
286-21 exceed 12 years; provided, that such the person shall pay into
287-22 the retirement system the employee's part of the cost or
288-23 contribution based on the salary paid to such the person
289-24 during the time of his or her service in the above capacity,
290-Page 11 HB155
291-1 with such the cost or contribution to be calculated at the
292-2 percent or rate in effect on October 1, 1973.
293-3 "(4) Any Tier I plan member of the Teachers'
294-4 Retirement System of Alabama, who withdraws from service after
295-5 the completion of at least 25 years of creditable service, may
296-6 retire upon written application to the Board of Control of the
297-7 Teachers' Retirement System setting forth at what time, not
298-8 less than 30 days nor more than 90 days subsequent to the
299-9 execution and filing thereof, he or she desires to be retired;
300-10 provided, that any such member who became a Tier I plan member
301-11 on or after October 1, 1963, shall have completed 10 or more
302-12 years of creditable service.
303-13 "(b) Upon retirement from service, a Tier I plan
304-14 member shall receive a service retirement allowance which
305-15 shall consist of:
306-16 "(1) An annuity which shall be the actuarial
307-17 equivalent of his or her accumulated contributions at the time
308-18 of his or her retirement;
309-19 "(2) A pension which shall be equal to the annuity
310-20 allowable at the age of retirement, but not to exceed an
311-21 annuity allowable at age 65 computed on the basis of
312-22 contributions made prior to the attainment of age 65; and
313-23 "(3) If he or she has a prior service certificate in
314-24 full force and effect, an additional pension which shall be
315-25 equal to the annuity which would have been provided at age of
316-Page 12 HB155
317-1 retirement, but not to exceed an annuity allowable at age 65
318-2 by twice the contributions which he or she would have made
319-3 during the period of prior service with which he or she is
320-4 credited had the system been in operation and had he or she
321-5 contributed thereunder. In lieu of a determination of the
322-6 actual compensation of the members that was received during
323-7 such that prior service, the Board of Control may use for the
324-8 purposes of this chapter the compensation rates which, if they
325-9 had progressed with the rates of salary increase shown in the
326-10 tables as prescribed in subsection (o) of Section 16-25-19,
327-11 would have resulted in the same average salary of the member
328-12 for the five years immediately preceding the date of
329-13 establishment as the records show the member actually
330-14 received.
331-15 "(c) The annual service retirement pension payable
332-16 to a Tier I plan member retiring on or after October 1, 1975,
333-17 shall not be less than an amount which when added to his or
334-18 her annuity is equal to the greater of the following two
335-19 amounts:
336-20 "(1) Two and one-eightieth percent of the member's
337-21 average final compensation multiplied by the number of years
338-22 of his or her creditable service; or
339-23 "(2) If he or she became a member before October 1,
340-24 1971, $72 seventy-two dollars ($72) multiplied by the number
341-Page 13 HB155
342-1 of years of his or her creditable service not in excess of 25
343-2 years.
344-3 "Notwithstanding, a member who retired prior to
345-4 October 1, 1971, under service retirement shall receive $120
346-5 one hundred twenty dollars ($120) multiplied by the number of
347-6 years of his or her creditable service not in excess of 25
348-7 years.
349-8 "(d) Upon retirement from service, a Tier II plan
350-9 member shall receive a service retirement allowance which
351-10 shall consist of an annuity which shall be the actuarial
352-11 equivalent of the member's accumulated contributions at the
353-12 time of retirement and a pension which, when added to the
354-13 member's annuity, shall be equal to one and sixty-five
355-14 hundredths percent (1.65%) of the member's average final
356-15 compensation multiplied by the number of years of creditable
357-16 service. Notwithstanding the foregoing, the service retirement
358-17 allowance shall not exceed eighty percent (80%) of the
359-18 member's average final compensation.
360-19 "(e) Upon the application of a Tier I plan member in
361-20 service or of his or her employer, any member who has had 10
362-21 or more years of creditable service may be retired by the
363-22 Board of Control on a disability retirement allowance not less
364-23 than 30 nor more than 90 days next following the date of
365-24 filing such an the application; provided, that the medical
366-25 board, after a medical examination of such the member, shall
367-Page 14 HB155
368-1 certify that such the member is mentally or physically
369-2 incapacitated for further performance of duty, that such the
370-3 incapacity is likely to be permanent, and that such the member
371-4 should be retired. Upon the application of a Tier II plan
372-5 member in service or of his or her employer, any member who
373-6 has had 10 or more years of creditable service may be retired
374-7 by the Board of Control on a disability retirement allowance
375-8 not less than 30 nor more than 90 days next following the date
376-9 of filing such an the application; provided, that the medical
377-10 board, after a medical examination of such the member, shall
378-11 certify that the member is totally and permanently mentally or
379-12 physically incapacitated from regular and substantial gainful
380-13 employment, and that such the member should be retired.
381-14 "(f) Upon retirement for disability, a Tier I plan
382-15 member shall receive a service retirement allowance if he or
383-16 she has attained age 60 or if any law or part of any law
384-17 pertaining to retirement under the Teachers' Retirement System
385-18 of Alabama provides for service retirement after the
386-19 completion of 25 years of creditable service and the member
387-20 has completed 25 years of creditable service; otherwise, he or
388-21 she shall receive a disability retirement allowance which
389-22 shall consist of:
390-23 "(1) An annuity which shall be the actuarial
391-24 equivalent of his or her accumulated contributions at the time
392-25 of retirement; and
393-Page 15 HB155
394-1 "(2) A pension which shall be equal to the pension
395-2 that would have been payable under subdivisions (2) and (3) of
396-3 subsection (b) of this section upon service retirement at age
397-4 60 had the member continued in service to that age without
398-5 change in compensation.
399-6 "The annual disability retirement pension shall not
400-7 be less than an amount which when added to his or her annuity
401-8 is equal to the greater of the following amounts:
402-9 "a. Two and one-eightieth percent of the member's
403-10 average final compensation multiplied by the number of years
404-11 of creditable service.
405-12 "b. If he or she became a member before October 1,
406-13 1971, $54 fifty-four dollars ($54) multiplied by the number of
407-14 years of his or her creditable service not in excess of 25
408-15 years.
409-16 "Notwithstanding, a member who retired prior to
410-17 October 1, 1971, for disability shall receive $90 ninety
411-18 dollars ($90) multiplied by the number of years of his or her
412-19 creditable service not in excess of 25 years.
413-20 "(g) Upon retirement for disability, a Tier II plan
414-21 member shall receive a service retirement allowance if the
415-22 member has attained age 62, or in the case of a Tier II plan
416-23 member who is a correctional officer, firefighter, or law
417-24 enforcement officer as defined in Section 36-27-59, if the
418-25 member has attained age 56 with at least ten 10 years of
419-Page 16 HB155
420-1 creditable service as a correctional officer, firefighter, or
421-2 law enforcement officer, otherwise, the member shall receive a
422-3 disability retirement allowance which shall be equal to one
423-4 and sixty-five hundredths percent (1.65%) of the member's
424-5 average final compensation multiplied by the number of years
425-6 of creditable service.
426-7 "(h)(1) Once each year during the first five years
427-8 following the retirement of a member on a disability
428-9 retirement allowance and once in every three-year period
429-10 thereafter, the Board of Control may and upon his or her
430-11 application shall require any disability beneficiary who has
431-12 not yet attained age 60 for a Tier I plan member or age 62 for
432-13 a Tier II plan member to undergo a medical examination, such
433-14 the examination to be made at the place of residence of such
434-15 the beneficiary or other place mutually agreed upon by a
435-16 physician of or designated by the medical board. Should any
436-17 disability beneficiary who has not yet attained age 60 for a
437-18 Tier I plan member or age 62 for a Tier II plan member refuse
438-19 to submit to such the medical examination, his or her pension
439-20 may be discontinued until his or her withdrawal of such the
440-21 refusal, and should his or her refusal continue for one year,
441-22 all his or her rights in and to his or her pension may be
442-23 revoked by the Board of Control; provided, that these
443-24 requirements relative to the medical examination shall not
444-25 apply in the case of a Tier II plan member who is a
445-Page 17 HB155
446-1 correctional officer, firefighter, or law enforcement officer
447-2 as defined in Section 36-27-59 retired for disability and who
448-3 has attained age 56 with at least ten 10 years of creditable
449-4 service as a correctional officer, firefighter, or law
450-5 enforcement officer.
451-6 "(2) Should the medical board report and certify to
452-7 the Board of Control that a disability beneficiary who is a
453-8 Tier I plan member is engaged in or is able to engage in a
454-9 gainful occupation paying more than the difference between his
455-10 or her retirement allowance and his average final compensation
456-11 and should the Board of Control concur in such the report,
457-12 then the amount of his or her pension shall be reduced to an
458-13 amount which, together with his or her annuity and the amount
459-14 earnable by him or her, shall equal the amount of his or her
460-15 average final compensation. Should his or her earning capacity
461-16 be later changed, the amount of his or her pension may be
462-17 further modified; provided, that the new pension shall not
463-18 exceed the amount of the pension originally granted nor an
464-19 amount which, when added to the amount earnable by the
465-20 beneficiary together with his or her annuity, equals the
466-21 amount of his or her average final compensation.
467-22 "(3) Should the medical board report and certify to
468-23 the Board of Control that a disability beneficiary who is a
469-24 Tier II plan member has the capacity to engage in regular and
470-25 substantial gainful employment, the Board of Control shall
471-Page 18 HB155
472-1 discontinue the beneficiary's retirement allowance until the
473-2 beneficiary is otherwise eligible for service retirement.
474-3 "(i)(1) Should a member cease to be a teacher,
475-4 except by death or by retirement under the provisions of this
476-5 chapter, the contributions standing to the credit of his or
477-6 her individual account in the Annuity Savings Fund shall be
478-7 paid to him or her upon demand, and in addition to such the
479-8 payment there shall be paid five-tenths of the interest
480-9 accumulations standing to the credit of his or her individual
481-10 account if he or she shall have not less than three but less
482-11 than 16 years of membership service, six-tenths of such the
483-12 interest accumulations if he or she shall have not less than
484-13 16 but less than 21 years of membership service, seven-tenths
485-14 of such the interest accumulations if he or she shall have not
486-15 less than 21 but less than 26 years of membership service, and
487-16 eight-tenths of such the interest accumulations if he or she
488-17 shall have not less than 26 years of membership service.
489-18 "(2) In case of the death of a member eligible for
490-19 service retirement pursuant to subsection (a) of this section,
491-20 an allowance shall be paid to the surviving spouse, if
492-21 designated as the sole beneficiary, in an amount that would
493-22 have been payable if the member had retired immediately prior
494-23 to his or her death and had elected Option 2, as set forth in
495-24 subsection (j), or to such other person who the member shall
496-25 have designated, in an amount that would have been payable if
497-Page 19 HB155
498-1 the member had retired immediately prior to his or her death
499-2 and had elected Option 3, as set forth in subsection (j) or,
500-3 alternatively. Alternatively, if the surviving spouse or other
501-4 designee desires, he or she may choose to receive, in lieu of
502-5 the allowance provided under Option 2 or Option 3, the
503-6 accumulated contributions of the member plus an amount equal
504-7 to the accumulated contributions of the member not to exceed
505-8 $5,000 five thousand dollars ($5,000) or the accumulated
506-9 contributions of the member plus the benefit provided by
507-10 Section 36-27B-3 if a benefit is payable under such that
508-11 section. For purposes of this subsection only, hazardous duty
509-12 time, as set forth in subdivision (b)(1) of Section 36-27-59,
510-13 may be used in calculating the requisite years of service for
511-14 firefighters, law enforcement officers, and correctional
512-15 officers even if the member has not otherwise attained 25
513-16 years of creditable service.
514-17 "(3) Upon the death of a member on account of whom
515-18 no survivor allowance is payable under subdivision (2) of this
516-19 subsection, the accumulated contributions of the member plus
517-20 an amount equal to the accumulated contributions not to exceed
518-21 $5,000 five thousand dollars ($5,000) or the accumulated
519-22 contributions of the member plus the benefit provided by
520-23 Section 36-27B-3 if a benefit is payable under such that
521-24 section shall be paid to his or her estate or to such person
522-Page 20 HB155
523-1 as he or she shall have nominated by written designation duly
524-2 executed and filed with the Board of Control.
525-3 "(j) With the provision the election of an option
526-4 shall be effective on the effective date of retirement, any
527-5 member may elect prior to retirement to receive, in lieu of
528-6 his or her retirement allowance payable throughout life, the
529-7 actuarial equivalent at that time of his or her retirement
530-8 allowance in a reduced retirement allowance payable throughout
531-9 life with the provision that:
532-10 "(1) OPTION 1. If he or she dies before he or she
533-11 has received in annuity payments the present value of his or
534-12 her annuity as it was at the time of his or her retirement,
535-13 the balance shall be paid to his or her legal representatives
536-14 or to the person as he or she shall nominate by written
537-15 designation duly acknowledged and filed with the Board of
538-16 Control;
539-17 "(2) OPTION 2. Upon his or her death, his or her
540-18 reduced retirement allowance shall be continued throughout the
541-19 life of and paid to the person as he or she shall nominate by
542-20 written designation duly acknowledged and filed with the Board
543-21 of Control at the time of his or her retirement;
544-22 "(3) OPTION 3. Upon his or her death, one half of
545-23 his or her reduced retirement allowance shall be continued
546-24 throughout the life of and paid to the person as he or she
547-25 shall nominate by written designation duly acknowledged and
548-Page 21 HB155
549-1 filed with the Board of Control at the time of his or her
550-2 retirement; or
551-3 "(4) OPTION 4. Some other benefit or benefits shall
552-4 be paid either to the member or to the person or persons as he
553-5 or she shall nominate; provided, that such the other benefit
554-6 or benefits, together with the reduced retirement allowance,
555-7 shall be certified by the actuary to be of equivalent
556-8 actuarial value to his or her retirement allowance and shall
557-9 be approved by the Board of Control.
558-10 "(5) OPTION 5. At the time of retirement, he or she
559-11 shall receive a partial lump sum distribution as a single
560-12 payment not to exceed the sum of 24 months of the maximum
561-13 monthly retirement allowance the member could receive. This
562-14 option may be elected in addition to the election of another
563-15 option under this subsection and the further reduced monthly
564-16 retirement allowance shall be calculated in accordance with
565-17 the selected option. This option shall not be available to a
566-18 member who is receiving a disability retirement.
567-19 "(k) Should any beneficiary be restored to active
568-20 service, his or her retirement allowance shall be suspended
569-21 until he or she again withdraws from service and, he or she
570-22 shall not again become a member, nor shall he or she make
571-23 contributions; except, that should such the beneficiary who
572-24 has been restored to active service continue in service for a
573-25 period of two or more years from the date of his or her
574-Page 22 HB155
575-1 reentry into active service, he or she may request the Board
576-2 of Control to allow him or her to again become a member of the
577-3 retirement system. The Board of Control may grant the request
578-4 for restoration to membership; provided, that such the
579-5 beneficiary whose retirement allowance has been suspended
580-6 shall repay to the system all moneys monies received by him or
581-7 her as benefits during any period subsequent to the date of
582-8 his or her reentry into active service; provided further, that
583-9 he or she shall make a contribution equal to the amount he or
584-10 she would have contributed had he or she been a member during
585-11 the period of his or her restoration to active service on a
586-12 suspended allowance basis, together with the interest which
587-13 would have been credited to the contributions on account of
588-14 such the period of restoration up to the date such the
589-15 contribution is made.
590-16 "(l)(1) All retirement allowance payments due on or
591-17 after October 1, 1975, to members who retired prior to October
592-18 1, 1975, shall be redetermined as if the provisions of
593-19 subsections (b) and (e) of this section which became effective
594-20 on said date were in effect at the time the member retired;
595-21 provided, that the annual retirement allowance of any member
596-22 who retired on or before January 1, 1956, shall be not less
597-23 than $132 one hundred thirty-two dollars ($132) multiplied by
598-24 the number of years of his or her creditable service not in
599-25 excess of 30 years in the case of service retirement or $99
600-Page 23 HB155
601-1 ninety-nine dollars ($99) multiplied by the number of years of
602-2 creditable service not in excess of 30 years in the case of
603-3 disability retirements. Any increase provided in the
604-4 retirement allowance payment under this subsection for a
605-5 member who retired under the provisions of any optional
606-6 benefit elected pursuant to subsection (j) of this section
607-7 shall accrue only to the retired member, and no person
608-8 designated to receive any payments after the death of a
609-9 retired member under the provisions of any such optional
610-10 benefit shall receive any increase in such payments under this
611-11 subsection.
612-12 "(2) Any person who served at least 30 years as a
613-13 teacher in the public schools of Alabama and was never a
614-14 member of the system and who, prior to October 1, 1963, was in
615-15 receipt of a benefit for old age assistance pursuant to
616-16 subsections (1) and (2) of Section 1 of Act 116, approved
617-17 August 24, 1959, shall be entitled to receive an annual
618-18 retirement allowance of $3,960 three thousand nine hundred
619-19 sixty dollars ($3,960) from the system, effective as of
620-20 October 1, 1973.
621-21 "(3) Prior to October 31, 1975, any beneficiary may
622-22 elect to leave on deposit with the system all or a specified
623-23 part of any increase in his or her monthly retirement
624-24 allowance payments arising in accordance with subdivision (1)
625-25 or (2) of this subsection. The portion of each monthly payment
626-Page 24 HB155
627-1 left in the system in accordance with such the election shall
628-2 be credited, together with regular interest thereon, to the
629-3 individual account of such the beneficiary. Upon the death of
630-4 such the beneficiary, the total amount standing to his or her
631-5 credit, including regular interest to the date of death, shall
632-6 be paid in a lump sum to his or her legal representative or to
633-7 such the person as he or she shall have nominated by written
634-8 designation duly acknowledged and filed with the Board of
635-9 Control.
636-10 "(m) Notwithstanding any other provisions of this
637-11 section to the contrary, when a designated beneficiary for a
638-12 member predeceases the member who is receiving a monthly
639-13 benefit allowance provided under Option 2, 3, or 4, the member
640-14 may designate a replacement beneficiary for the deceased
641-15 beneficiary to become effective two years after the date of
642-16 designation of the replacement beneficiary and an actuarial
643-17 adjustment in the monthly benefit allowance of the member to
644-18 cover any cost associated with designating a replacement
645-19 beneficiary shall be reflected thereafter in the monthly
646-20 benefit allowance received by the member, commencing with the
647-21 first benefit allowance check received by the member following
648-22 the date of designation of the replacement beneficiary.
649-23 "(n) Notwithstanding any provision of this section
650-24 to the contrary, if a retired member who is receiving a
651-25 monthly benefit allowance provided under Option 2, 3, or 4
652-Page 25 HB155
653-1 divorces his or her designated beneficiary, the member may
654-2 designate a replacement beneficiary for the beneficiary to
655-3 become effective two years after the date of designation of
656-4 the replacement beneficiary and an actuarial adjustment in the
657-5 monthly benefit allowance of the member to cover any cost
658-6 associated with designating a replacement beneficiary shall be
659-7 reflected thereafter in the monthly benefit allowance received
660-8 by the member, commencing with the first benefit allowance
661-9 check received by the member following the date of designation
662-10 of the replacement beneficiary.
663-11 "(o) Any future act to increase the retirement age
664-12 for Tier II plan members above the age of 62 shall require a
665-13 two-thirds vote of the elected membership of each house of the
666-14 Legislature.
667-15 "§36-27-16.
668-16 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
669-17 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
670-18 a. Any Tier I plan member who withdraws from service
671-19 upon or after attainment of age 60 and any Tier II plan member
672-20 who withdraws from service upon or after attainment of age 62
673-21 may retire upon written application to the Board of Control
674-22 setting forth at what time, not less than 30 days nor more
675-23 than 90 days subsequent to the execution and filing thereof,
676-24 he or she desires to be retired; provided, that any such
677-25 member who became a member on or after October 1, 1963, shall
678-Page 26 HB155
679-1 have completed 10 or more years of creditable service;
680-2 provided further, that a Tier I plan member employed as a
681-3 state policeman shall be eligible to file application for
682-4 service retirement upon attaining age 52 and a Tier II plan
683-5 member employed as a state policeman or employed as a
684-6 correctional officer, firefighter, or law enforcement officer
685-7 as defined in Section 36-27-59 with at least ten 10 years of
686-8 creditable service as a correctional officer, firefighter, or
687-9 law enforcement officer shall be eligible to file application
688-10 for service retirement upon attaining age 56.
689-11 "b. Any Tier I plan member who has attained age 60,
690-12 or age 52 in the case of a state policeman and any Tier II
691-13 plan member who has attained age 62, or age 56 in the case of
692-14 a state policeman or in the case of a correctional officer,
693-15 firefighter, or law enforcement officer as defined in Section
694-16 36-27-59 who has at least ten 10 years of creditable service
695-17 as a correctional officer, firefighter, or law enforcement
696-18 officer, and has previously withdrawn from service may retire
697-19 upon written application to the Board of Control setting forth
698-20 at what time, not less than 30 days nor more than 90 days
699-21 subsequent to the execution and filing thereof, he or she
700-22 desires to be retired; provided, the member shall have at the
701-23 time of his or her withdrawal from service completed the age
702-24 and service requirements established by the Board of Control
703-25 for eligibility for deferred benefits; provided, that such the
704-Page 27 HB155
705-1 minimum number of years of creditable service shall not be
706-2 less than 10 years nor more than 25 years.
707-3 "c. In addition to any law or part of law relating
708-4 to service retirement under the Employees' Retirement System
709-5 of Alabama, any Tier I plan member of the Employees'
710-6 Retirement System who withdraws from service after completion
711-7 of not less than 25 years of creditable service may retire
712-8 without a reduction in retirement allowance upon written
713-9 application to the Board of Control of the Employees'
714-10 Retirement System setting forth the first day of which month,
715-11 not less than 30 days or more than 90 days subsequent to the
716-12 execution and filing thereof, he or she desires to be retired,
717-13 provided that no person whose employer participates in the
718-14 Employees' Retirement System under Section 36-27-6 shall be
719-15 entitled to the benefits provided in this paragraph unless
720-16 such the employer elects to come under the provisions of the
721-17 paragraph. Any employer making such this election must bear
722-18 the cost of such the benefit.
723-19 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
724-20 "a. Upon retirement from service a Tier I plan
725-21 member shall receive a service retirement allowance which
726-22 shall consist of:
727-23 "1. An annuity which shall be the actuarial
728-24 equivalent of his or her accumulated contributions at the time
729-25 of his or her retirement; except, that in the case of a state
730-Page 28 HB155
731-1 policeman who has completed 20 years of creditable service as
732-2 a state policeman who retires after age 56 but prior to age
733-3 60, the annuity shall be equal to the annuity that would have
734-4 been payable upon service retirement at age 60 had the member
735-5 continued in service to age 60 without change in compensation;
736-6 "2. A pension which shall be equal to the annuity
737-7 allowance at age of retirement, but not to exceed an annuity
738-8 allowable at age 65, computed on the basis of contributions
739-9 made prior to attainment of age 65; except, that in the case
740-10 of a state policeman who has completed 20 years of creditable
741-11 service as a state policeman who retires after age 56 but
742-12 prior to age 60, the pension shall be equal to the annuity
743-13 that he or she would have received had he or she contributed
744-14 to age 60 without change in compensation; and
745-15 "3. An additional pension, if he or she has a prior
746-16 service certificate in full force and effect, which shall be
747-17 equal to the annuity which would have been provided at the age
748-18 of retirement, but which shall not exceed an annuity allowable
749-19 at age 65 by twice the contributions which he or she would
750-20 have made during the period of prior service with which he or
751-21 she is credited had the system been in operation and had he or
752-22 she contributed thereunder; except, that in case of a state
753-23 policeman who has completed 20 years of creditable service as
754-24 a state policeman who retired after age 56 but prior to age
755-25 60, an additional pension, if he or she has a prior service
756-Page 29 HB155
757-1 certificate in full force and effect, which shall be equal to
758-2 the annuity which would have been provided at age 60, but
759-3 which shall not exceed an annuity allowable at age 60 by twice
760-4 the contributions which he or she would have made during the
761-5 period of prior service with which he or she is credited had
762-6 the system been in operation and had he or she contributed
763-7 thereunder.
764-8 "b. Notwithstanding the provisions of subparagraphs
765-9 1., 2., and 3. of paragraph a. of this subdivision, a state
766-10 policeman who is a Tier I plan member and who has completed 20
767-11 years of service as a state policeman who retires after age 52
768-12 but prior to age 56 shall receive:
769-13 "1. An annuity which shall be equal to the annuity
770-14 that would have been payable had the member continued in
771-15 service for four years without change in compensation;
772-16 "2. A pension which shall be equal to the annuity
773-17 that he or she would have received had he or she contributed
774-18 for four years without change in compensation; and
775-19 "3. An additional pension, if he or she has a prior
776-20 service certificate in full force and effect, which shall be
777-21 equal to the annuity which would have been provided at the age
778-22 of retirement, but which shall not exceed an annuity allowable
779-23 at the age of retirement plus four years by twice the
780-24 contributions which he or she would have made during the
781-25 period of prior service with which he or she is credited had
782-Page 30 HB155
783-1 the system been in operation and had he or she contributed
784-2 thereunder. In lieu of a determination of the actual
785-3 compensation of a member that was received during such that
786-4 prior service, the Board of Control may use for the purpose of
787-5 this article the compensation rate which, if it had progressed
788-6 with the rates of salary increase shown in the tables as
789-7 prescribed in subsection (n) of Section 36-27-23, would have
790-8 resulted in the same average salary of the member for the five
791-9 years immediately preceding the date of establishment as the
792-10 records show the member actually received.
793-11 "c. The annual service retirement pension payable to
794-12 a Tier I plan member not employed as a state policeman
795-13 retiring on or after October 1, 1975, shall not be less than
796-14 an amount which, when added to his or her annuity, is equal to
797-15 the greater of the following two amounts:
798-16 "1. Two and one-eightieth percent of the member's
799-17 average final compensation multiplied by the number of years
800-18 of his or her creditable service; or
801-19 "2. If he or she became a member before October 1,
802-20 1965, $72.00 seventy-two dollars ($72) multiplied by the
803-21 number of years of his or her creditable service not in excess
804-22 of 25 years.
805-23 "d. The annual service retirement pension payable to
806-24 a Tier I plan member employed as a state policeman retiring on
807-25 or after October 1, 1975, shall not be less than an amount
808-Page 31 HB155
809-1 which, when added to his or her annuity is equal to the
642+21 "(o) Any future act to increase the retirement age
643+22 for Tier II plan members above the age of 62 shall require a
644+23 two-thirds vote of the elected membership of each house of the
645+24 Legislature.
646+25 "§36-27-16.
647+26 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
648+27 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
649+Page 24 1 a. Any Tier I plan member who withdraws from service
650+2 upon or after attainment of age 60 and any Tier II plan member
651+3 who withdraws from service upon or after attainment of age 62
652+4 may retire upon written application to the Board of Control
653+5 setting forth at what time, not less than 30 days nor more
654+6 than 90 days subsequent to the execution and filing thereof,
655+7 he or she desires to be retired; provided, that any such
656+8 member who became a member on or after October 1, 1963, shall
657+9 have completed 10 or more years of creditable service;
658+10 provided further, that a Tier I plan member employed as a
659+11 state policeman shall be eligible to file application for
660+12 service retirement upon attaining age 52 and a Tier II plan
661+13 member employed as a state policeman or employed as a
662+14 correctional officer, firefighter, or law enforcement officer
663+15 as defined in Section 36-27-59 with at least ten 10 years of
664+16 creditable service as a correctional officer, firefighter, or
665+17 law enforcement officer shall be eligible to file application
666+18 for service retirement upon attaining age 56.
667+19 "b. Any Tier I plan member who has attained age 60,
668+20 or age 52 in the case of a state policeman and any Tier II
669+21 plan member who has attained age 62, or age 56 in the case of
670+22 a state policeman or in the case of a correctional officer,
671+23 firefighter, or law enforcement officer as defined in Section
672+24 36-27-59 who has at least ten 10 years of creditable service
673+25 as a correctional officer, firefighter, or law enforcement
674+26 officer, and has previously withdrawn from service may retire
675+27 upon written application to the Board of Control setting forth
676+Page 25 1 at what time, not less than 30 days nor more than 90 days
677+2 subsequent to the execution and filing thereof, he or she
678+3 desires to be retired; provided, the member shall have at the
679+4 time of his or her withdrawal from service completed the age
680+5 and service requirements established by the Board of Control
681+6 for eligibility for deferred benefits; provided, that such the
682+7 minimum number of years of creditable service shall not be
683+8 less than 10 years nor more than 25 years.
684+9 "c. In addition to any law or part of law relating
685+10 to service retirement under the Employees' Retirement System
686+11 of Alabama, any Tier I plan member of the Employees'
687+12 Retirement System who withdraws from service after completion
688+13 of not less than 25 years of creditable service may retire
689+14 without a reduction in retirement allowance upon written
690+15 application to the Board of Control of the Employees'
691+16 Retirement System setting forth the first day of which month,
692+17 not less than 30 days or more than 90 days subsequent to the
693+18 execution and filing thereof, he or she desires to be retired,
694+19 provided that no person whose employer participates in the
695+20 Employees' Retirement System under Section 36-27-6 shall be
696+21 entitled to the benefits provided in this paragraph unless
697+22 such the employer elects to come under the provisions of the
698+23 paragraph. Any employer making such this election must bear
699+24 the cost of such the benefit.
700+25 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
701+Page 26 1 "a. Upon retirement from service a Tier I plan
702+2 member shall receive a service retirement allowance which
703+3 shall consist of:
704+4 "1. An annuity which shall be the actuarial
705+5 equivalent of his or her accumulated contributions at the time
706+6 of his or her retirement; except, that in the case of a state
707+7 policeman who has completed 20 years of creditable service as
708+8 a state policeman who retires after age 56 but prior to age
709+9 60, the annuity shall be equal to the annuity that would have
710+10 been payable upon service retirement at age 60 had the member
711+11 continued in service to age 60 without change in compensation;
712+12 "2. A pension which shall be equal to the annuity
713+13 allowance at age of retirement, but not to exceed an annuity
714+14 allowable at age 65, computed on the basis of contributions
715+15 made prior to attainment of age 65; except, that in the case
716+16 of a state policeman who has completed 20 years of creditable
717+17 service as a state policeman who retires after age 56 but
718+18 prior to age 60, the pension shall be equal to the annuity
719+19 that he or she would have received had he or she contributed
720+20 to age 60 without change in compensation; and
721+21 "3. An additional pension, if he or she has a prior
722+22 service certificate in full force and effect, which shall be
723+23 equal to the annuity which would have been provided at the age
724+24 of retirement, but which shall not exceed an annuity allowable
725+25 at age 65 by twice the contributions which he or she would
726+26 have made during the period of prior service with which he or
727+27 she is credited had the system been in operation and had he or
728+Page 27 1 she contributed thereunder; except, that in case of a state
729+2 policeman who has completed 20 years of creditable service as
730+3 a state policeman who retired after age 56 but prior to age
731+4 60, an additional pension, if he or she has a prior service
732+5 certificate in full force and effect, which shall be equal to
733+6 the annuity which would have been provided at age 60, but
734+7 which shall not exceed an annuity allowable at age 60 by twice
735+8 the contributions which he or she would have made during the
736+9 period of prior service with which he or she is credited had
737+10 the system been in operation and had he or she contributed
738+11 thereunder.
739+12 "b. Notwithstanding the provisions of subparagraphs
740+13 1., 2., and 3. of paragraph a. of this subdivision, a state
741+14 policeman who is a Tier I plan member and who has completed 20
742+15 years of service as a state policeman who retires after age 52
743+16 but prior to age 56 shall receive:
744+17 "1. An annuity which shall be equal to the annuity
745+18 that would have been payable had the member continued in
746+19 service for four years without change in compensation;
747+20 "2. A pension which shall be equal to the annuity
748+21 that he or she would have received had he or she contributed
749+22 for four years without change in compensation; and
750+23 "3. An additional pension, if he or she has a prior
751+24 service certificate in full force and effect, which shall be
752+25 equal to the annuity which would have been provided at the age
753+26 of retirement, but which shall not exceed an annuity allowable
754+27 at the age of retirement plus four years by twice the
755+Page 28 1 contributions which he or she would have made during the
756+2 period of prior service with which he or she is credited had
757+3 the system been in operation and had he or she contributed
758+4 thereunder. In lieu of a determination of the actual
759+5 compensation of a member that was received during such that
760+6 prior service, the Board of Control may use for the purpose of
761+7 this article the compensation rate which, if it had progressed
762+8 with the rates of salary increase shown in the tables as
763+9 prescribed in subsection (n) of Section 36-27-23, would have
764+10 resulted in the same average salary of the member for the five
765+11 years immediately preceding the date of establishment as the
766+12 records show the member actually received.
767+13 "c. The annual service retirement pension payable to
768+14 a Tier I plan member not employed as a state policeman
769+15 retiring on or after October 1, 1975, shall not be less than
770+16 an amount which, when added to his or her annuity, is equal to
771+17 the greater of the following two amounts:
772+18 "1. Two and one-eightieth percent of the member's
773+19 average final compensation multiplied by the number of years
774+20 of his or her creditable service; or
775+21 "2. If he or she became a member before October 1,
776+22 1965, $72.00 seventy-two dollars ($72) multiplied by the
777+23 number of years of his or her creditable service not in excess
778+24 of 25 years.
779+25 "d. The annual service retirement pension payable to
780+26 a Tier I plan member employed as a state policeman retiring on
781+27 or after October 1, 1975, shall not be less than an amount
782+Page 29 1 which, when added to his or her annuity is equal to the
810783 2 greater of the following two amounts:
811784 3 "1. Two and seven-eighths percent of the member's
812785 4 average final compensation multiplied by the number of years
813786 5 of his or her creditable service. Creditable service for any
814787 6 state policeman under the age of 56 years who has completed 20
815788 7 years of creditable service as a state policeman shall include
816789 8 a bonus equal to four additional years. Creditable service for
817790 9 a state policeman 56 years or older shall include a bonus
818791 10 equal to the years or portion thereof remaining until the
819792 11 member reaches age 60; or
820793 12 "2. If he or she became a member before October 1,
821794 13 1965, $86.40 eighty-six dollars forty cents ($86.40)
822795 14 multiplied by the number of years of his or her creditable
823796 15 service not in excess of 25 years; provided, however, that if
824797 16 such the member has completed 20 years of creditable service
825798 17 as a state policeman and has not attained age 60 at the time
826799 18 of retirement, the pension shall be determined as provided in
827800 19 this subparagraph on the basis of the number of years of
828801 20 creditable service which he or she would have had if he or she
829802 21 had remained in service for four years, except that, in the
830803 22 case of those state policemen retiring at age 56 or after, the
831804 23 number of years in determining the pension shall not exceed
832805 24 the number of years of creditable service which he or she
833806 25 would have had if he or she had remained in service to age 60.
834-Page 32 HB155
835-1 "e. Upon retirement from service, a Tier II plan
836-2 member who is not employed as a state policeman shall receive
837-3 a service retirement allowance which shall consist of an
838-4 annuity which shall be the actuarial equivalent of the
839-5 member's accumulated contributions at the time of retirement
840-6 and a pension which, when added to the member's annuity, shall
841-7 be equal to one and sixty-five hundredths percent (1.65%) of
842-8 the member's average final compensation multiplied by the
843-9 number of years of creditable service. Notwithstanding the
844-10 foregoing, the service retirement allowance shall not exceed
845-11 eighty percent (80%) of the member's average final
846-12 compensation.
847-13 "f. Upon retirement from service, a Tier II plan
848-14 member who is employed as a state policeman shall receive a
849-15 service retirement allowance which shall consist of an annuity
850-16 which shall be the actuarial equivalent of the member's
851-17 accumulated contributions at the time of retirement and a
852-18 pension which, when added to the member's annuity, shall be
853-19 equal to two and three-eighths percent (2.375%) of the
854-20 member's average final compensation multiplied by the member's
855-21 number of years of creditable service. Notwithstanding the
856-22 foregoing, the service retirement allowance shall not exceed
857-23 eighty percent (80%) of the member's average final
858-24 compensation.
859-Page 33 HB155
860-1 "g. Anything in this article to the contrary
861-2 notwithstanding, in the application of the foregoing
862-3 provisions of this subdivision to a member whose creditable
863-4 service includes a period of service as a state policeman and
864-5 a period of service in another employment classification, the
865-6 benefit rates applicable to a member employed as a state
866-7 policeman shall apply to all creditable service as a state
867-8 policeman, and the benefit rates applicable to a member not
868-9 employed as a state policeman shall apply to all creditable
869-10 service, but in all other respects the pension under this
870-11 subdivision shall be determined on the basis of the member's
871-12 employment classification at the time of his or her withdrawal
872-13 from service.
873-14 "h. The annual service retirement pension payable to
874-15 any state employee who had attained age 60 on or before
875-16 October 1, 1945, who declined membership in the Employees'
876-17 Retirement System of Alabama in the manner prescribed in
877-18 Section 36-27-4 and who retires as a state employee after
878-19 completing a minimum of 15 years' service shall be $72.00
879-20 seventy-two dollars ($72) multiplied by the number of years of
880-21 his or her service not in excess of 25 years.
881-22 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
882-23 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
883-24 "a. Upon application of a Tier I plan member in
884-25 service or of his or her employer, any member who has had 10
885-Page 34 HB155
886-1 or more years of creditable service who becomes disabled may
887-2 be retired on a disability retirement allowance by the Board
888-3 of Control not less than 30 nor more than 90 days next
889-4 following the date of filing of such the application;
890-5 provided, that the medical board, after a medical examination
891-6 of such the member, shall certify that such the member is
892-7 mentally or physically incapacitated for the further
893-8 performance of duty, that such the incapacity is likely to be
894-9 permanent and that such the member should be retired. Upon the
895-10 application of a Tier II plan member in service or his or her
896-11 employer, any member who has had 10 or more years of
897-12 creditable service may be retired by the Board of Control on a
898-13 disability retirement allowance not less than 30 nor more than
899-14 90 days next following the date of filing such the
900-15 application; provided, that the medical board, after a medical
901-16 examination of such the member, shall certify that the member
902-17 is totally and permanently mentally or physically
903-18 incapacitated from regular and substantial gainful employment,
904-19 and that member should be retired.
905-20 "b. Without regard to the number of years of
906-21 creditable service, a member employed as a state policeman, a
907-22 municipal police officer or a deputy sheriff, or a member
908-23 employed as a state, municipal, or county firefighter who is
909-24 not covered through his or her current employer under the
910-25 United States Social Security Act, who as a result of his or
911-Page 35 HB155
912-1 her employment, in the line of duty and not as a result of his
913-2 or her own misconduct, shall become permanently and totally
914-3 disabled to the extent that he or she cannot perform his or
915-4 her duties or duties of a less strenuous nature, as an
916-5 employee of the State of Alabama or as an employee of an
917-6 employer participating under the provisions of Section
918-7 36-27-6, shall be retired on a disability retirement
919-8 allowance, not less than 30 nor more than 90 days next
920-9 following the date of filing of such the application, provided
921-10 that the medical board, after a medical examination of such
922-11 the member shall certify that such the member is mentally or
923-12 physically incapacitated for the further performance of duty,
924-13 that such the incapacity is likely to be permanent, and that
925-14 such the member should be retired.
926-15 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
927-16 "a. Upon retirement for disability a member shall
928-17 receive a service retirement allowance if he or she is a Tier
929-18 I plan member and he or she has attained age 60 or if he or
930-19 she is a Tier II plan member and he or she has attained age
931-20 62, or if any law or part of any law pertaining to retirement
932-21 under the Employees' Retirement System of Alabama provides for
933-22 service retirement after the completion of 25 years of
934-23 creditable service without a reduction in the retirement
935-24 allowance and the member has completed 25 years of creditable
936-25 service, or, in the case of a state policeman, if he or she is
937-Page 36 HB155
938-1 a Tier I plan member and he or she has attained age 52 or, in
939-2 the case of a state policeman or a correctional officer,
940-3 firefighter, or law enforcement officer as defined in Section
941-4 36-27-59 with at least ten 10 years of creditable service as a
942-5 correctional officer, firefighter, or law enforcement officer,
943-6 if he or she is a Tier II plan member and he or she has
944-7 attained age 56; otherwise, he or she shall receive a
945-8 disability retirement allowance which shall consist of:
946-9 "1. An annuity which shall be the actuarial
947-10 equivalent of his or her accumulated contributions at the time
948-11 of his or her retirement;
949-12 "2. A pension which shall be equal to the pension
950-13 that would have been payable under subparagraphs 2 and 3 of
951-14 paragraph a. of subdivision (2) of subsection (a) of this
952-15 section upon service retirement at age 65 had the member
953-16 continued in service to that age without change in
954-17 compensation.
955-18 "b. The annual disability retirement pension payable
956-19 to a Tier I plan member not employed as a state policeman
957-20 retiring on or after October 1, 1975, shall not be less than
958-21 an amount which when added to his or her annuity is equal to
959-22 the greatest of the following two amounts:
960-23 "1. Two and one-eightieth percent of the member's
961-24 average final compensation multiplied by the number of years
962-25 of creditable service.
963-Page 37 HB155
964-1 "2. If he or she became a member before October 1,
965-2 1965, $54.00 fifty-four dollars ($54) multiplied by the number
966-3 of years of his or her creditable service not in excess of 25
967-4 years.
968-5 "c. The annual disability retirement pension payable
969-6 to a Tier I plan member employed as a state policeman retiring
970-7 on or after October 1, 1975, shall not be less than an amount
971-8 which when added to his or her annuity is equal to the greater
972-9 of the following two amounts:
973-10 "1. Two and seven-eighths percent of the member's
974-11 average final compensation multiplied by the number of years
975-12 of his or her creditable service. Creditable service for any
976-13 state policeman under the age of 56 years who has completed 20
977-14 years of creditable service as a state policeman shall include
978-15 a bonus equal to four additional years. Creditable service for
979-16 a state policeman 56 years or older shall include a bonus
980-17 equal to the years or portion thereof remaining until the
981-18 member reaches age 60; or
982-19 "2. If he or she became a member before October 1,
983-20 1965, $64.80 sixty-four dollars eighty cents ($64.80)
984-21 multiplied by the number of years of his or her creditable
985-22 service not in excess of 25 years.
986-23 "d. The annual disability retirement allowance
987-24 payable to a Tier II plan member not employed as a state
988-25 policeman shall be equal to one and sixty-five hundredths
989-Page 38 HB155
990-1 percent (1.65%) of the member's average final compensation
991-2 multiplied by the number of years of creditable service.
992-3 "e. The annual disability retirement allowance
993-4 payable to a Tier II plan member employed as a state policeman
994-5 shall be equal to two and three-eighths percent (2.375%) of
807+26 "e. Upon retirement from service, a Tier II plan
808+27 member who is not employed as a state policeman shall receive
809+Page 30 1 a service retirement allowance which shall consist of an
810+2 annuity which shall be the actuarial equivalent of the
811+3 member's accumulated contributions at the time of retirement
812+4 and a pension which, when added to the member's annuity, shall
813+5 be equal to one and sixty-five hundredths percent (1.65%) of
995814 6 the member's average final compensation multiplied by the
996-7 number of years of creditable service.
997-8 "f. Anything in this chapter to the contrary
998-9 notwithstanding in the application of the provisions of this
999-10 subdivision to a member whose creditable service includes a
1000-11 period of service as a state policeman and a period of service
1001-12 in another employment classification the benefit rates
1002-13 applicable to a member employed as a state policeman shall
1003-14 apply to all creditable service as a state policeman, and the
1004-15 benefit rates applicable to a member not employed as a state
1005-16 policeman shall apply to all other creditable service, but in
1006-17 all other respects the pension under this subdivision shall be
1007-18 determined on the basis of the member's employment
1008-19 classification at the time of his or her withdrawal from
1009-20 service.
1010-21 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
1011-22 ACCOUNT OF DISABILITY. Once each year during the first five
1012-23 years following the retirement of a member on a disability
1013-24 retirement allowance and once every three-year period
1014-25 thereafter, the Board of Control may, and upon his or her
1015-Page 39 HB155
1016-1 application shall, require any disability beneficiary who has
1017-2 not yet attained age 60 if the beneficiary is a Tier I plan
1018-3 member or age 62 if the beneficiary is a Tier II plan member
1019-4 to undergo a medical examination, such the examination to be
1020-5 made at the place of residence of such the beneficiary or
1021-6 other place mutually agreed upon by a physician or physicians
1022-7 of or designated by the medical board. Should any disability
1023-8 beneficiary who has not yet attained age 60 if the beneficiary
1024-9 is a Tier I plan member or age 62 if the beneficiary is a Tier
1025-10 II plan member refuse to submit to such the medical
1026-11 examination, his or her allowance may be discontinued until
1027-12 his or her withdrawal of such the refusal, and, should his or
1028-13 her refusal continue for one year, all his or her rights in
1029-14 and to his or her pension may be revoked by the Board of
1030-15 Control; provided, that these requirements relative to the
1031-16 medical examination shall not apply in the case of a state
1032-17 policeman retired for disability and who has attained age 52
1033-18 if he or she is a Tier I plan member or in the case of a state
1034-19 policeman or a correctional officer, firefighter, or law
1035-20 enforcement officer as defined in Section 36-27-59 with at
1036-21 least ten 10 years of creditable service as a correctional
1037-22 officer, firefighter, or law enforcement officer retired for
1038-23 disability who has attained age 56 if he or she is a Tier II
1039-24 plan member. Should the medical board report and certify to
1040-25 the Board of Control that a disability beneficiary who is a
1041-Page 40 HB155
1042-1 Tier I plan member is engaged in or is able to engage in a
1043-2 gainful occupation paying more than the difference between his
1044-3 or her retirement allowance and his or her average final
1045-4 compensation and should the Board of Control concur in such
1046-5 the report, then the amount of his or her pension shall be
1047-6 reduced to an amount which, together with his or her annuity
1048-7 and the amount earnable by him or her shall equal the amount
1049-8 of his or her average final compensation. Should his or her
1050-9 earning capacity be later changed, the amount of his or her
1051-10 pension may be further modified; provided, that the new
1052-11 pension shall not exceed the amount of the pension originally
1053-12 granted nor an amount which, when added to the amount earnable
1054-13 by the beneficiary, together with this annuity exceeds the
1055-14 amount of his or her average final compensation.
1056-15 "Should the medical board report and certify to the
1057-16 Board of Control that a disability beneficiary who is a Tier
1058-17 II plan member has the capacity to engage in regular and
1059-18 substantial gainful employment, the Board of Control shall
1060-19 discontinue the beneficiary's retirement allowance until the
1061-20 beneficiary is otherwise eligible for service retirement.
1062-21 "(c) Disposition of contributions and allowances
1063-22 upon death, etc., of member.
1064-23 "(1) Should a member cease to be an employee except
1065-24 by death or by retirement under the provisions of this
1066-25 article, the contributions standing to the credit of his or
1067-Page 41 HB155
1068-1 her individual account in the Annuity Savings Fund shall be
1069-2 paid to him or her upon demand and, in addition to such the
1070-3 payment, there shall be paid five-tenths of the interest
1071-4 accumulations standing to the credit of his or her individual
1072-5 account if he or she shall have not less than three but less
1073-6 than 16 years of membership service, six-tenths of such the
1074-7 interest accumulations if he or she shall have not less than
1075-8 16 but less than 21 years of membership service, seven-tenths
1076-9 of such the interest accumulations if he or she shall have not
1077-10 less than 21 but less than 26 years of membership service and
1078-11 eight-tenths of such the interest accumulations if he or she
1079-12 shall have not less than 26 years of membership service.
1080-13 "(2) In case of the death of a member eligible for
1081-14 service retirement pursuant to subsection (a) of this section,
1082-15 an allowance shall be paid to the surviving spouse, if
1083-16 designated as the sole beneficiary, in an amount that would
1084-17 have been payable if the member had retired immediately prior
1085-18 to his or her death and had elected Option 2, as set forth in
1086-19 subsection (d) of this section, or to such other person who
1087-20 the member shall have designated, in an amount that would have
1088-21 been payable if the member had retired immediately prior to
1089-22 his or her death and had elected Option 3, as set forth in
1090-23 subsection (d) of this section or, alternatively.
1091-24 Alternatively, if the surviving spouse or other designee
1092-25 desires, he or she may choose to receive, in lieu of the
1093-Page 42 HB155
1094-1 allowance provided under Option 2 or Option 3, the accumulated
1095-2 contributions of the member plus an amount equal to the
1096-3 accumulated contributions of the member not to exceed
1097-4 $5,000.00 five thousand dollars ($5,000) or the accumulated
1098-5 contributions of the member plus the benefit provided by
1099-6 Section 36-27B-3 if a benefit is payable under such that
1100-7 section;
1101-8 "(3) In case of the death of a Tier I plan member
1102-9 not eligible for service retirement, after completion of 25
1103-10 years of creditable service, an allowance shall be paid to the
1104-11 surviving spouse, if designated as the sole beneficiary, in an
1105-12 amount that would have been payable if the member had retired
1106-13 immediately prior to his or her death and had elected Option
1107-14 2, as set forth in subsection (d) of this section, or to such
1108-15 other person who the member shall have designated, in an
1109-16 amount that would have been payable if the member had retired
1110-17 for disability immediately prior to his or her death and had
1111-18 elected Option 3 as set forth in subsection (d) of this
1112-19 section or, alternatively. Alternatively, if the surviving
1113-20 spouse or other designee desires, he or she may choose to
1114-21 receive, in lieu of the allowance provided under Option 2 or
1115-22 Option 3, the accumulated contributions of the member plus an
1116-23 amount equal to the accumulated contributions of the member
1117-24 not to exceed $5,000.00 five thousand dollars ($5,000) or the
1118-25 accumulated contributions of the member plus the benefit
1119-Page 43 HB155
1120-1 provided by Section 36-27B-3 if a benefit is payable under
1121-2 such that section. For purposes of this subsection only,
1122-3 hazardous duty time, as set forth in subdivision (b)(1) of
1123-4 Section 36-27-59, may be used in calculating the requisite
1124-5 years of service for firefighters, law enforcement officers,
1125-6 and correctional officers even if the member has not otherwise
1126-7 attained 25 years of creditable service;
1127-8 "(4) Upon the death of a member on account of whom
1128-9 no survivor allowance is payable under subdivisions (2) or (3)
1129-10 of this subsection, the accumulated contributions of the
1130-11 member plus an amount equal to the accumulated contributions
1131-12 not to exceed $5,000 five thousand dollars ($5,000) or the
1132-13 accumulated contributions of the member plus the benefit
1133-14 provided by Section 36-27B-3 if a benefit is payable under
1134-15 such that section shall be paid to his or her estate or to
1135-16 such person as he or she shall have nominated by written
1136-17 designation duly executed and filed with the Board of Control.
1137-18 "(d) Optional allowances. With the provision that
1138-19 the election of an option shall be effective on the effective
1139-20 date of retirement, any member may elect prior to retirement
1140-21 to receive, in lieu of his or her retirement allowance payable
1141-22 throughout life, the actuarial equivalent, at that time, of
1142-23 his or her retirement allowance in a reduced retirement
1143-24 allowance payable throughout life with the provisions that:
1144-Page 44 HB155
1145-1 "(1) OPTION 1. If he or she dies before he or she
815+7 number of years of creditable service. Notwithstanding the
816+8 foregoing, the service retirement allowance shall not exceed
817+9 eighty percent (80%) of the member's average final
818+10 compensation.
819+11 "f. Upon retirement from service, a Tier II plan
820+12 member who is employed as a state policeman shall receive a
821+13 service retirement allowance which shall consist of an annuity
822+14 which shall be the actuarial equivalent of the member's
823+15 accumulated contributions at the time of retirement and a
824+16 pension which, when added to the member's annuity, shall be
825+17 equal to two and three-eighths percent (2.375%) of the
826+18 member's average final compensation multiplied by the member's
827+19 number of years of creditable service. Notwithstanding the
828+20 foregoing, the service retirement allowance shall not exceed
829+21 eighty percent (80%) of the member's average final
830+22 compensation.
831+23 "g. Anything in this article to the contrary
832+24 notwithstanding, in the application of the foregoing
833+25 provisions of this subdivision to a member whose creditable
834+26 service includes a period of service as a state policeman and
835+27 a period of service in another employment classification, the
836+Page 31 1 benefit rates applicable to a member employed as a state
837+2 policeman shall apply to all creditable service as a state
838+3 policeman, and the benefit rates applicable to a member not
839+4 employed as a state policeman shall apply to all creditable
840+5 service, but in all other respects the pension under this
841+6 subdivision shall be determined on the basis of the member's
842+7 employment classification at the time of his or her withdrawal
843+8 from service.
844+9 "h. The annual service retirement pension payable to
845+10 any state employee who had attained age 60 on or before
846+11 October 1, 1945, who declined membership in the Employees'
847+12 Retirement System of Alabama in the manner prescribed in
848+13 Section 36-27-4 and who retires as a state employee after
849+14 completing a minimum of 15 years' service shall be $72.00
850+15 seventy-two dollars ($72) multiplied by the number of years of
851+16 his or her service not in excess of 25 years.
852+17 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
853+18 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
854+19 "a. Upon application of a Tier I plan member in
855+20 service or of his or her employer, any member who has had 10
856+21 or more years of creditable service who becomes disabled may
857+22 be retired on a disability retirement allowance by the Board
858+23 of Control not less than 30 nor more than 90 days next
859+24 following the date of filing of such the application;
860+25 provided, that the medical board, after a medical examination
861+26 of such the member, shall certify that such the member is
862+27 mentally or physically incapacitated for the further
863+Page 32 1 performance of duty, that such the incapacity is likely to be
864+2 permanent and that such the member should be retired. Upon the
865+3 application of a Tier II plan member in service or his or her
866+4 employer, any member who has had 10 or more years of
867+5 creditable service may be retired by the Board of Control on a
868+6 disability retirement allowance not less than 30 nor more than
869+7 90 days next following the date of filing such the
870+8 application; provided, that the medical board, after a medical
871+9 examination of such the member, shall certify that the member
872+10 is totally and permanently mentally or physically
873+11 incapacitated from regular and substantial gainful employment,
874+12 and that member should be retired.
875+13 "b. Without regard to the number of years of
876+14 creditable service, a member employed as a state policeman, a
877+15 municipal police officer or a deputy sheriff, or a member
878+16 employed as a state, municipal, or county firefighter who is
879+17 not covered through his or her current employer under the
880+18 United States Social Security Act, who as a result of his or
881+19 her employment, in the line of duty and not as a result of his
882+20 or her own misconduct, shall become permanently and totally
883+21 disabled to the extent that he or she cannot perform his or
884+22 her duties or duties of a less strenuous nature, as an
885+23 employee of the State of Alabama or as an employee of an
886+24 employer participating under the provisions of Section
887+25 36-27-6, shall be retired on a disability retirement
888+26 allowance, not less than 30 nor more than 90 days next
889+27 following the date of filing of such the application, provided
890+Page 33 1 that the medical board, after a medical examination of such
891+2 the member shall certify that such the member is mentally or
892+3 physically incapacitated for the further performance of duty,
893+4 that such the incapacity is likely to be permanent, and that
894+5 such the member should be retired.
895+6 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
896+7 "a. Upon retirement for disability a member shall
897+8 receive a service retirement allowance if he or she is a Tier
898+9 I plan member and he or she has attained age 60 or if he or
899+10 she is a Tier II plan member and he or she has attained age
900+11 62, or if any law or part of any law pertaining to retirement
901+12 under the Employees' Retirement System of Alabama provides for
902+13 service retirement after the completion of 25 years of
903+14 creditable service without a reduction in the retirement
904+15 allowance and the member has completed 25 years of creditable
905+16 service, or, in the case of a state policeman, if he or she is
906+17 a Tier I plan member and he or she has attained age 52 or, in
907+18 the case of a state policeman or a correctional officer,
908+19 firefighter, or law enforcement officer as defined in Section
909+20 36-27-59 with at least ten 10 years of creditable service as a
910+21 correctional officer, firefighter, or law enforcement officer,
911+22 if he or she is a Tier II plan member and he or she has
912+23 attained age 56; otherwise, he or she shall receive a
913+24 disability retirement allowance which shall consist of:
914+25 "1. An annuity which shall be the actuarial
915+26 equivalent of his or her accumulated contributions at the time
916+27 of his or her retirement;
917+Page 34 1 "2. A pension which shall be equal to the pension
918+2 that would have been payable under subparagraphs 2 and 3 of
919+3 paragraph a. of subdivision (2) of subsection (a) of this
920+4 section upon service retirement at age 65 had the member
921+5 continued in service to that age without change in
922+6 compensation.
923+7 "b. The annual disability retirement pension payable
924+8 to a Tier I plan member not employed as a state policeman
925+9 retiring on or after October 1, 1975, shall not be less than
926+10 an amount which when added to his or her annuity is equal to
927+11 the greatest of the following two amounts:
928+12 "1. Two and one-eightieth percent of the member's
929+13 average final compensation multiplied by the number of years
930+14 of creditable service.
931+15 "2. If he or she became a member before October 1,
932+16 1965, $54.00 fifty-four dollars ($54) multiplied by the number
933+17 of years of his or her creditable service not in excess of 25
934+18 years.
935+19 "c. The annual disability retirement pension payable
936+20 to a Tier I plan member employed as a state policeman retiring
937+21 on or after October 1, 1975, shall not be less than an amount
938+22 which when added to his or her annuity is equal to the greater
939+23 of the following two amounts:
940+24 "1. Two and seven-eighths percent of the member's
941+25 average final compensation multiplied by the number of years
942+26 of his or her creditable service. Creditable service for any
943+27 state policeman under the age of 56 years who has completed 20
944+Page 35 1 years of creditable service as a state policeman shall include
945+2 a bonus equal to four additional years. Creditable service for
946+3 a state policeman 56 years or older shall include a bonus
947+4 equal to the years or portion thereof remaining until the
948+5 member reaches age 60; or
949+6 "2. If he or she became a member before October 1,
950+7 1965, $64.80 sixty-four dollars eighty cents ($64.80)
951+8 multiplied by the number of years of his or her creditable
952+9 service not in excess of 25 years.
953+10 "d. The annual disability retirement allowance
954+11 payable to a Tier II plan member not employed as a state
955+12 policeman shall be equal to one and sixty-five hundredths
956+13 percent (1.65%) of the member's average final compensation
957+14 multiplied by the number of years of creditable service.
958+15 "e. The annual disability retirement allowance
959+16 payable to a Tier II plan member employed as a state policeman
960+17 shall be equal to two and three-eighths percent (2.375%) of
961+18 the member's average final compensation multiplied by the
962+19 number of years of creditable service.
963+20 "f. Anything in this chapter to the contrary
964+21 notwithstanding in the application of the provisions of this
965+22 subdivision to a member whose creditable service includes a
966+23 period of service as a state policeman and a period of service
967+24 in another employment classification the benefit rates
968+25 applicable to a member employed as a state policeman shall
969+26 apply to all creditable service as a state policeman, and the
970+27 benefit rates applicable to a member not employed as a state
971+Page 36 1 policeman shall apply to all other creditable service, but in
972+2 all other respects the pension under this subdivision shall be
973+3 determined on the basis of the member's employment
974+4 classification at the time of his or her withdrawal from
975+5 service.
976+6 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
977+7 ACCOUNT OF DISABILITY. Once each year during the first five
978+8 years following the retirement of a member on a disability
979+9 retirement allowance and once every three-year period
980+10 thereafter, the Board of Control may, and upon his or her
981+11 application shall, require any disability beneficiary who has
982+12 not yet attained age 60 if the beneficiary is a Tier I plan
983+13 member or age 62 if the beneficiary is a Tier II plan member
984+14 to undergo a medical examination, such the examination to be
985+15 made at the place of residence of such the beneficiary or
986+16 other place mutually agreed upon by a physician or physicians
987+17 of or designated by the medical board. Should any disability
988+18 beneficiary who has not yet attained age 60 if the beneficiary
989+19 is a Tier I plan member or age 62 if the beneficiary is a Tier
990+20 II plan member refuse to submit to such the medical
991+21 examination, his or her allowance may be discontinued until
992+22 his or her withdrawal of such the refusal, and, should his or
993+23 her refusal continue for one year, all his or her rights in
994+24 and to his or her pension may be revoked by the Board of
995+25 Control; provided, that these requirements relative to the
996+26 medical examination shall not apply in the case of a state
997+27 policeman retired for disability and who has attained age 52
998+Page 37 1 if he or she is a Tier I plan member or in the case of a state
999+2 policeman or a correctional officer, firefighter, or law
1000+3 enforcement officer as defined in Section 36-27-59 with at
1001+4 least ten 10 years of creditable service as a correctional
1002+5 officer, firefighter, or law enforcement officer retired for
1003+6 disability who has attained age 56 if he or she is a Tier II
1004+7 plan member. Should the medical board report and certify to
1005+8 the Board of Control that a disability beneficiary who is a
1006+9 Tier I plan member is engaged in or is able to engage in a
1007+10 gainful occupation paying more than the difference between his
1008+11 or her retirement allowance and his or her average final
1009+12 compensation and should the Board of Control concur in such
1010+13 the report, then the amount of his or her pension shall be
1011+14 reduced to an amount which, together with his or her annuity
1012+15 and the amount earnable by him or her shall equal the amount
1013+16 of his or her average final compensation. Should his or her
1014+17 earning capacity be later changed, the amount of his or her
1015+18 pension may be further modified; provided, that the new
1016+19 pension shall not exceed the amount of the pension originally
1017+20 granted nor an amount which, when added to the amount earnable
1018+21 by the beneficiary, together with this annuity exceeds the
1019+22 amount of his or her average final compensation.
1020+23 "Should the medical board report and certify to the
1021+24 Board of Control that a disability beneficiary who is a Tier
1022+25 II plan member has the capacity to engage in regular and
1023+26 substantial gainful employment, the Board of Control shall
1024+Page 38 1 discontinue the beneficiary's retirement allowance until the
1025+2 beneficiary is otherwise eligible for service retirement.
1026+3 "(c) Disposition of contributions and allowances
1027+4 upon death, etc., of member.
1028+5 "(1) Should a member cease to be an employee except
1029+6 by death or by retirement under the provisions of this
1030+7 article, the contributions standing to the credit of his or
1031+8 her individual account in the Annuity Savings Fund shall be
1032+9 paid to him or her upon demand and, in addition to such the
1033+10 payment, there shall be paid five-tenths of the interest
1034+11 accumulations standing to the credit of his or her individual
1035+12 account if he or she shall have not less than three but less
1036+13 than 16 years of membership service, six-tenths of such the
1037+14 interest accumulations if he or she shall have not less than
1038+15 16 but less than 21 years of membership service, seven-tenths
1039+16 of such the interest accumulations if he or she shall have not
1040+17 less than 21 but less than 26 years of membership service and
1041+18 eight-tenths of such the interest accumulations if he or she
1042+19 shall have not less than 26 years of membership service.
1043+20 "(2) In case of the death of a member eligible for
1044+21 service retirement pursuant to subsection (a) of this section,
1045+22 an allowance shall be paid to the surviving spouse, if
1046+23 designated as the sole beneficiary, in an amount that would
1047+24 have been payable if the member had retired immediately prior
1048+25 to his or her death and had elected Option 2, as set forth in
1049+26 subsection (d) of this section, or to such other person who
1050+27 the member shall have designated, in an amount that would have
1051+Page 39 1 been payable if the member had retired immediately prior to
1052+2 his or her death and had elected Option 3, as set forth in
1053+3 subsection (d) of this section or, alternatively.
1054+4 Alternatively, if the surviving spouse or other designee
1055+5 desires, he or she may choose to receive, in lieu of the
1056+6 allowance provided under Option 2 or Option 3, the accumulated
1057+7 contributions of the member plus an amount equal to the
1058+8 accumulated contributions of the member not to exceed
1059+9 $5,000.00 five thousand dollars ($5,000) or the accumulated
1060+10 contributions of the member plus the benefit provided by
1061+11 Section 36-27B-3 if a benefit is payable under such that
1062+12 section;
1063+13 "(3) In case of the death of a Tier I plan member
1064+14 not eligible for service retirement, after completion of 25
1065+15 years of creditable service, an allowance shall be paid to the
1066+16 surviving spouse, if designated as the sole beneficiary, in an
1067+17 amount that would have been payable if the member had retired
1068+18 immediately prior to his or her death and had elected Option
1069+19 2, as set forth in subsection (d) of this section, or to such
1070+20 other person who the member shall have designated, in an
1071+21 amount that would have been payable if the member had retired
1072+22 for disability immediately prior to his or her death and had
1073+23 elected Option 3 as set forth in subsection (d) of this
1074+24 section or, alternatively. Alternatively, if the surviving
1075+25 spouse or other designee desires, he or she may choose to
1076+26 receive, in lieu of the allowance provided under Option 2 or
1077+27 Option 3, the accumulated contributions of the member plus an
1078+Page 40 1 amount equal to the accumulated contributions of the member
1079+2 not to exceed $5,000.00 five thousand dollars ($5,000) or the
1080+3 accumulated contributions of the member plus the benefit
1081+4 provided by Section 36-27B-3 if a benefit is payable under
1082+5 such that section. For purposes of this subsection only,
1083+6 hazardous duty time, as set forth in subdivision (b)(1) of
1084+7 Section 36-27-59, may be used in calculating the requisite
1085+8 years of service for firefighters, law enforcement officers,
1086+9 and correctional officers even if the member has not otherwise
1087+10 attained 25 years of creditable service;
1088+11 "(4) Upon the death of a member on account of whom
1089+12 no survivor allowance is payable under subdivisions (2) or (3)
1090+13 of this subsection, the accumulated contributions of the
1091+14 member plus an amount equal to the accumulated contributions
1092+15 not to exceed $5,000 five thousand dollars ($5,000) or the
1093+16 accumulated contributions of the member plus the benefit
1094+17 provided by Section 36-27B-3 if a benefit is payable under
1095+18 such that section shall be paid to his or her estate or to
1096+19 such person as he or she shall have nominated by written
1097+20 designation duly executed and filed with the Board of Control.
1098+21 "(d) Optional allowances. With the provision that
1099+22 the election of an option shall be effective on the effective
1100+23 date of retirement, any member may elect prior to retirement
1101+24 to receive, in lieu of his or her retirement allowance payable
1102+25 throughout life, the actuarial equivalent, at that time, of
1103+26 his or her retirement allowance in a reduced retirement
1104+27 allowance payable throughout life with the provisions that:
1105+Page 41 1 "(1) OPTION 1. If he or she dies before he or she
11461106 2 has received in annuity payments the present value of his or
11471107 3 her annuity as it was at the time of his or her retirement,
11481108 4 the balance shall be paid to his or her legal representatives
11491109 5 or to the person as he or she shall nominate by written
11501110 6 designation duly acknowledged and filed with the Board of
11511111 7 Control;
11521112 8 "(2) OPTION 2. Upon his or her death, his or her
11531113 9 reduced retirement allowance shall be continued throughout the
11541114 10 life of and paid to the person as he or she shall nominate by
11551115 11 written designation duly acknowledged and filed with the Board
11561116 12 of Control at the time of his or her retirement;
11571117 13 "(3) OPTION 3. Upon his or her death, one half of
11581118 14 his or her reduced allowance shall be continued throughout the
11591119 15 life of and paid to the person as he or she shall nominate by
11601120 16 written designation duly acknowledged and filed with the Board
11611121 17 of Control at the time of his or her retirement; or
11621122 18 "(4) OPTION 4. Some other benefit or benefits shall
11631123 19 be paid either to the member or to the person or persons as he
11641124 20 or she shall nominate; provided, that such those other
11651125 21 benefits, together with the reduced retirement allowance,
11661126 22 shall be certified by the actuary to be of equivalent
11671127 23 actuarial value to his or her retirement allowance and shall
11681128 24 be approved by the Board of Control.
1169-Page 45 HB155
1170-1 "(5) OPTION 5. At the time of retirement, he or she
1171-2 shall receive a partial lump sum distribution as a single
1172-3 payment not to exceed the sum of 24 months of the maximum
1173-4 monthly retirement allowance the member could receive. This
1174-5 option may be elected in addition to the election of another
1175-6 option under this subsection and the further reduced monthly
1176-7 retirement allowance shall be calculated in accordance with
1177-8 the selected option. This option shall not be available to a
1178-9 member who is receiving a disability retirement.
1179-10 "(e) Effect of return to active service. Should any
1180-11 beneficiary be restored to active service, his or her
1181-12 retirement allowance shall be suspended until he or she again
1182-13 withdraws from service and he or she shall not again become a
1183-14 member of the retirement system nor shall he or she make
1184-15 contributions; except, that should such the beneficiary who
1185-16 has been restored to active service continue in service for a
1186-17 period of two or more years from the date of his or her
1187-18 reentry into active service, he or she may request the Board
1188-19 of Control to allow him or her to again become a member of the
1189-20 retirement system. The Board of Control may grant the request
1190-21 for restoration to membership; provided, that such the
1191-22 beneficiary whose retirement allowance has been suspended
1192-23 shall repay to the system all moneys monies received by him or
1193-24 her as benefits during any periods subsequent to the date of
1194-25 his or her reentry into active service and shall make a
1195-Page 46 HB155
1196-1 contribution equal to the amount he or she would have
1197-2 contributed had he or she been a member during the period of
1198-3 his or her restoration to active service on a suspended
1199-4 allowance basis together with the interest which would have
1200-5 been credited to the contributions on account of such the
1201-6 period of restoration up to the date such the contribution is
1202-7 made.
1203-8 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
1204-9 ALLOWANCES. All retirement allowance payments due on or after
1205-10 October 1, 1975, to members who retired prior to that date
1206-11 shall be redetermined as if the provisions of this section in
1207-12 effect on October 1, 1975, were in effect at the time the
1208-13 member retired. Anything in this article to the contrary
1209-14 notwithstanding, the annual retirement allowance of any member
1210-15 not employed as a state policeman who retired on or before
1211-16 January 1, 1956, shall not be less than $79.20 seventy-nine
1212-17 dollars twenty cents ($79.20) multiplied by the number of
1213-18 years of his or her creditable service not in excess of 30
1214-19 years in the case of service retirement of $59.40 fifty-nine
1215-20 dollars forty cents ($59.40) multiplied by the number of years
1216-21 of his or her creditable service not in excess of 30 years in
1217-22 the case of disability retirement. Any increase provided in
1218-23 the retirement allowance payment under this subdivision for a
1219-24 member who retired under the provisions of any optional
1220-25 benefit elected pursuant to subsection (d) of this section
1221-Page 47 HB155
1222-1 shall accrue only to the retired member, and no person
1223-2 designated to receive any payments after the death of a
1224-3 retired member under the provisions of any such optional
1225-4 benefit shall receive any increase in such payments under this
1226-5 subdivision. Notwithstanding, any member who retired prior to
1227-6 October 1, 1975, and who chose either Option 2 or Option 3 may
1228-7 elect to receive a reduced allowance and to stipulate that the
1229-8 actuarial equivalent of the increase in his or her retirement
1230-9 allowance, which became effective on that date, be ascribed to
1231-10 his or her designated beneficiary; provided, that such the
1232-11 member shall clearly express this intention by filing a
1233-12 written application to the effect with the Secretary-Treasurer
1234-13 of the Employees' Retirement System of Alabama prior to
1235-14 October 1, 1976.
1236-15 "(2) Any person who, prior to October 1, 1963, was
1237-16 in receipt of a benefit pursuant to Act No. 376, approved
1238-17 November 6, 1959, but was not a member of the system at the
1239-18 time of retirement shall not be entitled to receive an annual
1240-19 retirement allowance from the system, effective October 1,
1241-20 1971, as follows:
1242-21 "a. If such the person was retired on or before
1243-22 January 1, 1956, an amount equal to $79.20 seventy-nine
1244-23 dollars twenty cents ($79.20) multiplied by the number of
1245-24 years of his or her creditable service not in excess of 30
1246-25 years.
1247-Page 48 HB155
1248-1 "b. If such the person was retired after January 1,
1249-2 1956, an amount equal to $72.00 seventy-two dollars ($72)
1250-3 multiplied by the number of years of his or her creditable
1251-4 service not in excess of 25 years.
1252-5 "(3) Prior to October 31, 1975, any beneficiary may
1253-6 elect to leave on deposit with the system all or a specified
1254-7 part of any increase in his or her monthly retirement
1255-8 allowance payments arising in accordance with subdivisions (1)
1256-9 or (2) of this subsection over the monthly allowance which he
1257-10 or she was receiving prior to October 1, 1975. The portion of
1258-11 each monthly payment left in the system in accordance with
1259-12 such the election shall be credited, together with regular
1260-13 interest thereon, to the individual account of such the
1261-14 beneficiary. Upon the death of such the beneficiary the total
1262-15 amount standing to his or her credit, including regular
1263-16 interest to the date of death, shall be paid in a lump sum to
1264-17 his or her legal representatives or to such person as he or
1265-18 she shall have nominated by written designation duly
1266-19 acknowledged and filed with the Board of Control.
1267-20 "(g) Notwithstanding any other provisions of this
1268-21 section to the contrary, when a designated beneficiary for a
1269-22 member predeceases the member who is receiving a monthly
1270-23 benefit allowance provided under Option 2, 3, or 4, the member
1271-24 may designate a replacement beneficiary for the deceased
1272-25 beneficiary to become effective two years after the date of
1273-Page 49 HB155
1274-1 designation of the replacement beneficiary and an actuarial
1275-2 adjustment in the monthly benefit allowance of the member to
1276-3 cover any cost associated with designating a replacement
1277-4 beneficiary shall be reflected thereafter in the monthly
1278-5 benefit allowance received by the member, commencing with the
1279-6 first benefit allowance check received by the member following
1280-7 the date of designation of the replacement beneficiary.
1281-8 "(h) Notwithstanding any provision of this section
1282-9 to the contrary, if a retired member who is receiving a
1283-10 monthly benefit allowance provided under Option 2, 3, or 4
1284-11 divorces his or her designated beneficiary, the member may
1285-12 designate a replacement beneficiary for the beneficiary to
1286-13 become effective two years after the date of designation of
1287-14 the replacement beneficiary and an actuarial adjustment in the
1288-15 monthly benefit allowance of the member to cover any cost
1289-16 associated with designating a replacement beneficiary shall be
1290-17 reflected thereafter in the monthly benefit allowance received
1291-18 by the member, commencing with the first benefit allowance
1292-19 check received by the member following the date of designation
1293-20 of the replacement beneficiary.
1294-21 "(i) Any future act to increase the retirement age
1295-22 for Tier II plan members above the age of 62 shall require a
1296-23 two-thirds vote of the elected membership of each house of the
1297-24 Legislature."
1298-Page 50 HB155
1299-1 Section 2. This act shall become effective
1300-2 retroactive to September January 1, 2021, following its
1301-3 passage and approval by the Governor, or its otherwise
1302-4 becoming law.
1303-Page 51 HB155
1304-1
1129+25 "(5) OPTION 5. At the time of retirement, he or she
1130+26 shall receive a partial lump sum distribution as a single
1131+27 payment not to exceed the sum of 24 months of the maximum
1132+Page 42 1 monthly retirement allowance the member could receive. This
1133+2 option may be elected in addition to the election of another
1134+3 option under this subsection and the further reduced monthly
1135+4 retirement allowance shall be calculated in accordance with
1136+5 the selected option. This option shall not be available to a
1137+6 member who is receiving a disability retirement.
1138+7 "(e) Effect of return to active service. Should any
1139+8 beneficiary be restored to active service, his or her
1140+9 retirement allowance shall be suspended until he or she again
1141+10 withdraws from service and he or she shall not again become a
1142+11 member of the retirement system nor shall he or she make
1143+12 contributions; except, that should such the beneficiary who
1144+13 has been restored to active service continue in service for a
1145+14 period of two or more years from the date of his or her
1146+15 reentry into active service, he or she may request the Board
1147+16 of Control to allow him or her to again become a member of the
1148+17 retirement system. The Board of Control may grant the request
1149+18 for restoration to membership; provided, that such the
1150+19 beneficiary whose retirement allowance has been suspended
1151+20 shall repay to the system all moneys monies received by him or
1152+21 her as benefits during any periods subsequent to the date of
1153+22 his or her reentry into active service and shall make a
1154+23 contribution equal to the amount he or she would have
1155+24 contributed had he or she been a member during the period of
1156+25 his or her restoration to active service on a suspended
1157+26 allowance basis together with the interest which would have
1158+27 been credited to the contributions on account of such the
1159+Page 43 1 period of restoration up to the date such the contribution is
1160+2 made.
1161+3 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
1162+4 ALLOWANCES. All retirement allowance payments due on or after
1163+5 October 1, 1975, to members who retired prior to that date
1164+6 shall be redetermined as if the provisions of this section in
1165+7 effect on October 1, 1975, were in effect at the time the
1166+8 member retired. Anything in this article to the contrary
1167+9 notwithstanding, the annual retirement allowance of any member
1168+10 not employed as a state policeman who retired on or before
1169+11 January 1, 1956, shall not be less than $79.20 seventy-nine
1170+12 dollars twenty cents ($79.20) multiplied by the number of
1171+13 years of his or her creditable service not in excess of 30
1172+14 years in the case of service retirement of $59.40 fifty-nine
1173+15 dollars forty cents ($59.40) multiplied by the number of years
1174+16 of his or her creditable service not in excess of 30 years in
1175+17 the case of disability retirement. Any increase provided in
1176+18 the retirement allowance payment under this subdivision for a
1177+19 member who retired under the provisions of any optional
1178+20 benefit elected pursuant to subsection (d) of this section
1179+21 shall accrue only to the retired member, and no person
1180+22 designated to receive any payments after the death of a
1181+23 retired member under the provisions of any such optional
1182+24 benefit shall receive any increase in such payments under this
1183+25 subdivision. Notwithstanding, any member who retired prior to
1184+26 October 1, 1975, and who chose either Option 2 or Option 3 may
1185+27 elect to receive a reduced allowance and to stipulate that the
1186+Page 44 1 actuarial equivalent of the increase in his or her retirement
1187+2 allowance, which became effective on that date, be ascribed to
1188+3 his or her designated beneficiary; provided, that such the
1189+4 member shall clearly express this intention by filing a
1190+5 written application to the effect with the Secretary-Treasurer
1191+6 of the Employees' Retirement System of Alabama prior to
1192+7 October 1, 1976.
1193+8 "(2) Any person who, prior to October 1, 1963, was
1194+9 in receipt of a benefit pursuant to Act No. 376, approved
1195+10 November 6, 1959, but was not a member of the system at the
1196+11 time of retirement shall not be entitled to receive an annual
1197+12 retirement allowance from the system, effective October 1,
1198+13 1971, as follows:
1199+14 "a. If such the person was retired on or before
1200+15 January 1, 1956, an amount equal to $79.20 seventy-nine
1201+16 dollars twenty cents ($79.20) multiplied by the number of
1202+17 years of his or her creditable service not in excess of 30
1203+18 years.
1204+19 "b. If such the person was retired after January 1,
1205+20 1956, an amount equal to $72.00 seventy-two dollars ($72)
1206+21 multiplied by the number of years of his or her creditable
1207+22 service not in excess of 25 years.
1208+23 "(3) Prior to October 31, 1975, any beneficiary may
1209+24 elect to leave on deposit with the system all or a specified
1210+25 part of any increase in his or her monthly retirement
1211+26 allowance payments arising in accordance with subdivisions (1)
1212+27 or (2) of this subsection over the monthly allowance which he
1213+Page 45 1 or she was receiving prior to October 1, 1975. The portion of
1214+2 each monthly payment left in the system in accordance with
1215+3 such the election shall be credited, together with regular
1216+4 interest thereon, to the individual account of such the
1217+5 beneficiary. Upon the death of such the beneficiary the total
1218+6 amount standing to his or her credit, including regular
1219+7 interest to the date of death, shall be paid in a lump sum to
1220+8 his or her legal representatives or to such person as he or
1221+9 she shall have nominated by written designation duly
1222+10 acknowledged and filed with the Board of Control.
1223+11 "(g) Notwithstanding any other provisions of this
1224+12 section to the contrary, when a designated beneficiary for a
1225+13 member predeceases the member who is receiving a monthly
1226+14 benefit allowance provided under Option 2, 3, or 4, the member
1227+15 may designate a replacement beneficiary for the deceased
1228+16 beneficiary to become effective two years after the date of
1229+17 designation of the replacement beneficiary and an actuarial
1230+18 adjustment in the monthly benefit allowance of the member to
1231+19 cover any cost associated with designating a replacement
1232+20 beneficiary shall be reflected thereafter in the monthly
1233+21 benefit allowance received by the member, commencing with the
1234+22 first benefit allowance check received by the member following
1235+23 the date of designation of the replacement beneficiary.
1236+24 "(h) Notwithstanding any provision of this section
1237+25 to the contrary, if a retired member who is receiving a
1238+26 monthly benefit allowance provided under Option 2, 3, or 4
1239+27 divorces his or her designated beneficiary, the member may
1240+Page 46 1 designate a replacement beneficiary for the beneficiary to
1241+2 become effective two years after the date of designation of
1242+3 the replacement beneficiary and an actuarial adjustment in the
1243+4 monthly benefit allowance of the member to cover any cost
1244+5 associated with designating a replacement beneficiary shall be
1245+6 reflected thereafter in the monthly benefit allowance received
1246+7 by the member, commencing with the first benefit allowance
1247+8 check received by the member following the date of designation
1248+9 of the replacement beneficiary.
1249+10 "(i) Any future act to increase the retirement age
1250+11 for Tier II plan members above the age of 62 shall require a
1251+12 two-thirds vote of the elected membership of each house of the
1252+13 Legislature."
1253+14 Section 2. This act shall become effective
1254+15 retroactive to September January 1, 2021, following its
1255+16 passage and approval by the Governor, or its otherwise
1256+17 becoming law.
1257+Page 47 1
13051258 2
1306-3
1307-4
1308-Speaker of the House of Representatives
1309-
1310-5
1311-6 President and Presiding Officer of the Senate
1312-House of Representatives7
1313-I hereby certify that the within Act originated in8
1314-9 and was passed by the House 08-FEB-22, as amended.
1315-10
1316-11 Jeff Woodard
1317-12 Clerk
1318-13
1319- 14
1259+House of Representatives3
1260+Read for the first time and re-4
1261+5 ferred to the House of Representa-
1262+6 tives committee on Ways and Means
1263+General Fund.......................7 .......18-JAN-22
1264+ 8
1265+Read for the second time and placed9
1266+on the calendar 1 amendment ......10 .......02-FEB-22
1267+ 11
1268+Read for the third time and passed12
1269+as amended.........................13 .......08-FEB-22
1270+Yeas 98, Nays 2, Abstains 114
13201271 15
1321-Senate16 10-MAR-22 Passed
1322- 17
1323-Page 52
1272+16 Jeff Woodard
1273+17 Clerk
1274+18
1275+Page 48