Alabama 2022 Regular Session

Alabama House Bill HB278 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 HB278
2	2	2 216790-1
3	3	3 By Representative Sells
4	4	4 RFD: Ways and Means Education
5	5	5 First Read: 08-FEB-22
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7	7	Page 0 1 216790-1:n:01/31/2022:KMS/cr LSA2021-2665
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13	13	7
14	14	8 SYNOPSIS: Under existing law, a retired public
15	15	9 employee is permitted to return to certain limited
16	16	10 compensated service with any employer participating
17	17	11 in the Teachers' Retirement System, Employees'
18	18	12 Retirement System, or Judicial Retirement Fund
19	19	13 without suspension of his or her retirement
20	20	14 allowance.
21	21	15 This bill would lift these restrictions for
22	22	16 retirees who have drawn retirement benefits for 12
23	23	17 consecutive months without performing services for
24	24	18 compensation with participating employers.
25	25	19
26	26	20 A BILL
27	27	21 TO BE ENTITLED
28	28	22 AN ACT
29	29	23
30	30	24 Relating to the Retirement Systems of Alabama; to
31	31	25 amend Sections 16-25-14 and 36-27-16, as amended by Act
32	32	26 2021-270, 2021 Regular Session, to require an individual
33	33	27 retired under the Teachers' Retirement System, Employees'
34	34	Page 1 1 Retirement System, or Judicial Retirement Fund to draw his or
35	35	2 her retirement benefits for 12 consecutive months before
36	36	3 returning to compensated work for a participating employer;
37	37	4 and to repeal Sections 16-25-26, 29-4-6, and 36-27-8.2, Code
38	38	5 of Alabama 1975, authorizing certain retired public employees
39	39	6 to return to work for participating employers.
40	40	7 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
41	41	8 Section 1. Sections 16-25-14 and 36-27-16, as
42	42	9 amended by Act 2021-270, 2021 Regular Session, are amended to
43	43	10 read as follows:
44	44	11 "§16-25-14.
45	45	12 "(a)(1) Any Tier I plan member who withdraws from
46	46	13 service upon or after attainment of age 60 and any Tier II
47	47	14 plan member who withdraws from service upon or after
48	48	15 attainment of age 62, or in the case of a Tier II plan member
49	49	16 who is a correctional officer, firefighter, or law enforcement
50	50	17 officer as defined in Section 36-27-59, who withdraws from
51	51	18 service upon or after attainment of age 56 with at least ten
52	52	19 10 years of creditable service as a correctional officer,
53	53	20 firefighter, or law enforcement officer may retire upon
54	54	21 written application to the Board of Control setting forth at
55	55	22 what time, not less than 30 days nor more than 90 days
56	56	23 subsequent to the execution and filing thereof, he or she
57	57	24 desires to be retired; provided, that any such member who
58	58	25 became a member on or after October 1, 1963, shall have
59	59	26 completed 10 or more years of creditable service.
60	60	Page 2 1 "(2) Any Tier I plan member who has attained age 60
61	61	2 and any Tier II plan member who has attained age 62, or in the
62	62	3 case of a Tier II plan member who is a correctional officer,
63	63	4 firefighter, or law enforcement officer as defined in Section
64	64	5 36-27-59, who has attained age 56 with at least ten 10 years
65	65	6 of creditable service as a correctional officer, firefighter,
66	66	7 or law enforcement officer and has previously withdrawn from
67	67	8 service may retire upon written application to the Board of
68	68	9 Control setting forth at what time, not less than 30 days nor
69	69	10 more than 90 days subsequent to the execution and filing
70	70	11 thereof, he or she desires to be retired; provided, that the
71	71	12 member shall have completed at the time for his or her
72	72	13 withdrawal from service the requirements established by the
73	73	14 Board of Control for eligibility for deferred benefits
74	74	15 pursuant to Section 16-25-3.
75	75	16 "(3) Any person who is presently covered or is
76	76	17 eligible to be covered under the Employees' Retirement System
77	77	18 of Alabama or the Teachers' Retirement System of Alabama and
78	78	19 who, prior to such coverage or eligibility for coverage,
79	79	20 served as head of any Alabama county's public library service
80	80	21 department shall have credited to him or her one year of
81	81	22 creditable service for each year served as such head, not to
82	82	23 exceed 12 years; provided, that such person shall pay into the
83	83	24 retirement system the employee's part of the cost or
84	84	25 contribution based on the salary paid to such person during
85	85	26 the time of his or her service in the above capacity, with
86	86	Page 3 1 such cost or contribution to be calculated at the percent or
87	87	2 rate in effect on October 1, 1973.
88	88	3 "(4) Any Tier I plan member of the Teachers'
89	89	4 Retirement System of Alabama, who withdraws from service after
90	90	5 the completion of at least 25 years of creditable service, may
91	91	6 retire upon written application to the Board of Control of the
92	92	7 Teachers' Retirement System setting forth at what time, not
93	93	8 less than 30 days nor more than 90 days subsequent to the
94	94	9 execution and filing thereof, he or she desires to be retired;
95	95	10 provided, that any such member who became a Tier I plan member
96	96	11 on or after October 1, 1963, shall have completed 10 or more
97	97	12 years of creditable service.
98	98	13 "(b) Upon retirement from service, a Tier I plan
99	99	14 member shall receive a service retirement allowance which
100	100	15 shall consist of:
101	101	16 "(1) An annuity which shall be the actuarial
102	102	17 equivalent of his or her accumulated contributions at the time
103	103	18 of his or her retirement;
104	104	19 "(2) A pension which shall be equal to the annuity
105	105	20 allowable at the age of retirement, but not to exceed an
106	106	21 annuity allowable at age 65 computed on the basis of
107	107	22 contributions made prior to the attainment of age 65; and
108	108	23 "(3) If he or she has a prior service certificate in
109	109	24 full force and effect, an additional pension which shall be
110	110	25 equal to the annuity which would have been provided at age of
111	111	26 retirement, but not to exceed an annuity allowable at age 65
112	112	27 by twice the contributions which he or she would have made
113	113	Page 4 1 during the period of prior service with which he or she is
114	114	2 credited had the system been in operation and had he or she
115	115	3 contributed thereunder. In lieu of a determination of the
116	116	4 actual compensation of the members that was received during
117	117	5 such prior service, the Board of Control may use for the
118	118	6 purposes of this chapter the compensation rates which, if they
119	119	7 had progressed with the rates of salary increase shown in the
120	120	8 tables as prescribed in subsection (o) of Section 16-25-19,
121	121	9 would have resulted in the same average salary of the member
122	122	10 for the five years immediately preceding the date of
123	123	11 establishment as the records show the member actually
124	124	12 received.
125	125	13 "(c) The annual service retirement pension payable
126	126	14 to a Tier I plan member retiring on or after October 1, 1975,
127	127	15 shall not be less than an amount which when added to his or
128	128	16 her annuity is equal to the greater of the following two
129	129	17 amounts:
130	130	18 "(1) Two and one-eightieth percent of the member's
131	131	19 average final compensation multiplied by the number of years
132	132	20 of his or her creditable service; or
133	133	21 "(2) If he or she became a member before October 1,
134	134	22 1971, $72 seventy-two dollars ($72) multiplied by the number
135	135	23 of years of his or her creditable service not in excess of 25
136	136	24 years.
137	137	25 "Notwithstanding, a member who retired prior to
138	138	26 October 1, 1971, under service retirement shall receive $120
139	139	27 one hundred twenty dollars ($120) multiplied by the number of
140	140	Page 5 1 years of his or her creditable service not in excess of 25
141	141	2 years.
142	142	3 "(d) Upon retirement from service, a Tier II plan
143	143	4 member shall receive a service retirement allowance which
144	144	5 shall consist of an annuity which shall be the actuarial
145	145	6 equivalent of the member's accumulated contributions at the
146	146	7 time of retirement and a pension which, when added to the
147	147	8 member's annuity, shall be equal to one and sixty-five
148	148	9 hundredths percent (1.65%) of the member's average final
149	149	10 compensation multiplied by the number of years of creditable
150	150	11 service. Notwithstanding the foregoing, the service retirement
151	151	12 allowance shall not exceed eighty percent (80%) of the
152	152	13 member's average final compensation.
153	153	14 "(e) Upon the application of a Tier I plan member in
154	154	15 service or of his or her employer, any member who has had 10
155	155	16 or more years of creditable service may be retired by the
156	156	17 Board of Control on a disability retirement allowance not less
157	157	18 than 30 nor more than 90 days next following the date of
158	158	19 filing such an application; provided, that the medical board,
159	159	20 after a medical examination of such member, shall certify that
160	160	21 such member is mentally or physically incapacitated for
161	161	22 further performance of duty, that such incapacity is likely to
162	162	23 be permanent, and that such member should be retired. Upon the
163	163	24 application of a Tier II plan member in service or of his or
164	164	25 her employer, any member who has had 10 or more years of
165	165	26 creditable service may be retired by the Board of Control on a
166	166	27 disability retirement allowance not less than 30 nor more than
167	167	Page 6 1 90 days next following the date of filing such an application;
168	168	2 provided, that the medical board, after a medical examination
169	169	3 of such member, shall certify that the member is totally and
170	170	4 permanently mentally or physically incapacitated from regular
171	171	5 and substantial gainful employment, and that such member
172	172	6 should be retired.
173	173	7 "(f) Upon retirement for disability, a Tier I plan
174	174	8 member shall receive a service retirement allowance if he or
175	175	9 she has attained age 60 or if any law or part of any law
176	176	10 pertaining to retirement under the Teachers' Retirement System
177	177	11 of Alabama provides for service retirement after the
178	178	12 completion of 25 years of creditable service and the member
179	179	13 has completed 25 years of creditable service; otherwise, he or
180	180	14 she shall receive a disability retirement allowance which
181	181	15 shall consist of:
182	182	16 "(1) An annuity which shall be the actuarial
183	183	17 equivalent of his or her accumulated contributions at the time
184	184	18 of retirement; and
185	185	19 "(2) A pension which shall be equal to the pension
186	186	20 that would have been payable under subdivisions (2) and (3) of
187	187	21 subsection (b) of this section upon service retirement at age
188	188	22 60 had the member continued in service to that age without
189	189	23 change in compensation.
190	190	24 "The annual disability retirement pension shall not
191	191	25 be less than an amount which when added to his or her annuity
192	192	26 is equal to the greater of the following amounts:
193	193	Page 7 1 "a. Two and one-eightieth percent of the member's
194	194	2 average final compensation multiplied by the number of years
195	195	3 of creditable service.
196	196	4 "b. If he or she became a member before October 1,
197	197	5 1971, $54 fifty-four dollars ($54) multiplied by the number of
198	198	6 years of his or her creditable service not in excess of 25
199	199	7 years.
200	200	8 "Notwithstanding, a member who retired prior to
201	201	9 October 1, 1971, for disability shall receive $90 ninety
202	202	10 dollars ($90) multiplied by the number of years of his or her
203	203	11 creditable service not in excess of 25 years.
204	204	12 "(g) Upon retirement for disability, a Tier II plan
205	205	13 member shall receive a service retirement allowance if the
206	206	14 member has attained age 62, or in the case of a Tier II plan
207	207	15 member who is a correctional officer, firefighter, or law
208	208	16 enforcement officer as defined in Section 36-27-59, if the
209	209	17 member has attained age 56 with at least ten 10 years of
210	210	18 creditable service as a correctional officer, firefighter, or
211	211	19 law enforcement officer, otherwise, the member shall receive a
212	212	20 disability retirement allowance which shall be equal to one
213	213	21 and sixty-five hundredths percent (1.65%) of the member's
214	214	22 average final compensation multiplied by the number of years
215	215	23 of creditable service.
216	216	24 "(h)(1) Once each year during the first five years
217	217	25 following the retirement of a member on a disability
218	218	26 retirement allowance and once in every three-year period
219	219	27 thereafter, the Board of Control may and upon his or her
220	220	Page 8 1 application shall require any disability beneficiary who has
221	221	2 not yet attained age 60 for a Tier I plan member or age 62 for
222	222	3 a Tier II plan member to undergo a medical examination, such
223	223	4 examination to be made at the place of residence of such
224	224	5 beneficiary or other place mutually agreed upon by a physician
225	225	6 of or designated by the medical board. Should any disability
226	226	7 beneficiary who has not yet attained age 60 for a Tier I plan
227	227	8 member or age 62 for a Tier II plan member refuse to submit to
228	228	9 such medical examination, his or her pension may be
229	229	10 discontinued until his or her withdrawal of such refusal, and
230	230	11 should his refusal continue for one year, all his or her
231	231	12 rights in and to his or her pension may be revoked by the
232	232	13 Board of Control; provided, that these requirements relative
233	233	14 to the medical examination shall not apply in the case of a
234	234	15 Tier II plan member who is a correctional officer,
235	235	16 firefighter, or law enforcement officer as defined in Section
236	236	17 36-27-59 retired for disability and who has attained age 56
237	237	18 with at least ten 10 years of creditable service as a
238	238	19 correctional officer, firefighter, or law enforcement officer.
239	239	20 "(2) Should the medical board report and certify to
240	240	21 the Board of Control that a disability beneficiary who is a
241	241	22 Tier I plan member is engaged in or is able to engage in a
242	242	23 gainful occupation paying more than the difference between his
243	243	24 or her retirement allowance and his average final compensation
244	244	25 and should the Board of Control concur in such report, then
245	245	26 the amount of his or her pension shall be reduced to an amount
246	246	27 which, together with his or her annuity and the amount
247	247	Page 9 1 earnable by him or her, shall equal the amount of his or her
248	248	2 average final compensation. Should his or her earning capacity
249	249	3 be later changed, the amount of his or her pension may be
250	250	4 further modified; provided, that the new pension shall not
251	251	5 exceed the amount of the pension originally granted nor an
252	252	6 amount which, when added to the amount earnable by the
253	253	7 beneficiary together with his or her annuity, equals the
254	254	8 amount of his or her average final compensation.
255	255	9 "(3) Should the medical board report and certify to
256	256	10 the Board of Control that a disability beneficiary who is a
257	257	11 Tier II plan member has the capacity to engage in regular and
258	258	12 substantial gainful employment, the Board of Control shall
259	259	13 discontinue the beneficiary's retirement allowance until the
260	260	14 beneficiary is otherwise eligible for service retirement.
261	261	15 "(i)(1) Should a member cease to be a teacher,
262	262	16 except by death or by retirement under the provisions of this
263	263	17 chapter, the contributions standing to the credit of his or
264	264	18 her individual account in the Annuity Savings Fund shall be
265	265	19 paid to him or her upon demand, and in addition to such
266	266	20 payment there shall be paid five-tenths of the interest
267	267	21 accumulations standing to the credit of his or her individual
268	268	22 account if he or she shall have not less than three but less
269	269	23 than 16 years of membership service, six-tenths of such
270	270	24 interest accumulations if he or she shall have not less than
271	271	25 16 but less than 21 years of membership service, seven-tenths
272	272	26 of such interest accumulations if he or she shall have not
273	273	27 less than 21 but less than 26 years of membership service, and
274	274	Page 10 1 eight-tenths of such interest accumulations if he or she shall
275	275	2 have not less than 26 years of membership service.
276	276	3 "(2) In case of the death of a member eligible for
277	277	4 service retirement pursuant to subsection (a) of this section,
278	278	5 an allowance shall be paid to the surviving spouse, or to such
279	279	6 other person who the member shall have designated, in an
280	280	7 amount that would have been payable if the member had retired
281	281	8 immediately prior to his or her death and had elected Option
282	282	9 3, as set forth in subsection (j) or, alternatively, if the
283	283	10 surviving spouse or other designee desires, he or she may
284	284	11 choose to receive, in lieu of the allowance provided under
285	285	12 Option 3, the accumulated contributions of the member plus an
286	286	13 amount equal to the accumulated contributions of the member
287	287	14 not to exceed $5,000 five thousand dollars ($5,000) or the
288	288	15 accumulated contributions of the member plus the benefit
289	289	16 provided by Section 36-27B-3 if a benefit is payable under
290	290	17 such section. For purposes of this subsection only, hazardous
291	291	18 duty time, as set forth in subdivision (b)(1) of Section
292	292	19 36-27-59, may be used in calculating the requisite years of
293	293	20 service for firefighters, law enforcement officers, and
294	294	21 correctional officers even if the member has not otherwise
295	295	22 attained 25 years of creditable service.
296	296	23 "(3) Upon the death of a member on account of whom
297	297	24 no survivor allowance is payable under subdivision (2) of this
298	298	25 subsection, the accumulated contributions of the member plus
299	299	26 an amount equal to the accumulated contributions not to exceed
300	300	27 $5,000 five thousand dollars ($5,000) or the accumulated
301	301	Page 11 1 contributions of the member plus the benefit provided by
302	302	2 Section 36-27B-3 if a benefit is payable under such section
303	303	3 shall be paid to his or her estate or to such person as he or
304	304	4 she shall have nominated by written designation duly executed
305	305	5 and filed with the Board of Control.
306	306	6 "(j) With the provision the election of an option
307	307	7 shall be effective on the effective date of retirement, any
308	308	8 member may elect prior to retirement to receive, in lieu of
309	309	9 his or her retirement allowance payable throughout life, the
310	310	10 actuarial equivalent at that time of his or her retirement
311	311	11 allowance in a reduced retirement allowance payable throughout
312	312	12 life with the provision that:
313	313	13 "(1) OPTION 1. If he or she dies before he or she
314	314	14 has received in annuity payments the present value of his or
315	315	15 her annuity as it was at the time of his or her retirement,
316	316	16 the balance shall be paid to his or her legal representatives
317	317	17 or to the person as he or she shall nominate by written
318	318	18 designation duly acknowledged and filed with the Board of
319	319	19 Control;
320	320	20 "(2) OPTION 2. Upon his or her death, his or her
321	321	21 reduced retirement allowance shall be continued throughout the
322	322	22 life of and paid to the person as he or she shall nominate by
323	323	23 written designation duly acknowledged and filed with the Board
324	324	24 of Control at the time of his or her retirement;
325	325	25 "(3) OPTION 3. Upon his or her death, one half of
326	326	26 his or her reduced retirement allowance shall be continued
327	327	27 throughout the life of and paid to the person as he or she
328	328	Page 12 1 shall nominate by written designation duly acknowledged and
329	329	2 filed with the Board of Control at the time of his or her
330	330	3 retirement; or
331	331	4 "(4) OPTION 4. Some other benefit or benefits shall
332	332	5 be paid either to the member or to the person or persons as he
333	333	6 or she shall nominate; provided, that such other benefit or
334	334	7 benefits, together with the reduced retirement allowance,
335	335	8 shall be certified by the actuary to be of equivalent
336	336	9 actuarial value to his or her retirement allowance and shall
337	337	10 be approved by the Board of Control.
338	338	11 "(5) OPTION 5. At the time of retirement, he or she
339	339	12 shall receive a partial lump sum distribution as a single
340	340	13 payment not to exceed the sum of 24 months of the maximum
341	341	14 monthly retirement allowance the member could receive. This
342	342	15 option may be elected in addition to the election of another
343	343	16 option under this subsection and the further reduced monthly
344	344	17 retirement allowance shall be calculated in accordance with
345	345	18 the selected option. This option shall not be available to a
346	346	19 member who is receiving a disability retirement.
347	347	20 "(k) Should any beneficiary be restored to active
348	348	21 service, his or her retirement allowance shall be suspended
349	349	22 until he or she again withdraws from service and, he or she
350	350	23 shall not again become a member, nor shall he or she make
351	351	24 contributions; except, that should such beneficiary who has
352	352	25 been restored to active service continue in service for a
353	353	26 period of two or more years from the date of his or her
354	354	27 reentry into active service, he or she may request the Board
355	355	Page 13 1 of Control to allow him or her to again become a member of the
356	356	2 retirement system. The Board of Control may grant the request
357	357	3 for restoration to membership; provided, that such beneficiary
358	358	4 whose retirement allowance has been suspended shall repay to
359	359	5 the system all moneys received by him or her as benefits
360	360	6 during any period subsequent to the date of his or her reentry
361	361	7 into active service; provided further, that he or she shall
362	362	8 make a contribution equal to the amount he or she would have
363	363	9 contributed had he or she been a member during the period of
364	364	10 his or her restoration to active service on a suspended
365	365	11 allowance basis, together with the interest which would have
366	366	12 been credited to the contributions on account of such period
367	367	13 of restoration up to the date such contribution is made.
368	368	14 "(l)(k)(1) All retirement allowance payments due on
369	369	15 or after October 1, 1975, to members who retired prior to
370	370	16 October 1, 1975, shall be redetermined as if the provisions of
371	371	17 subsections (b) and (e) of this section which became effective
372	372	18 on said date were in effect at the time the member retired;
373	373	19 provided, that the annual retirement allowance of any member
374	374	20 who retired on or before January 1, 1956, shall be not less
375	375	21 than $132 one hundred thirty-two dollars ($132) multiplied by
376	376	22 the number of years of his or her creditable service not in
377	377	23 excess of 30 years in the case of service retirement or $99
378	378	24 ninety-nine dollars ($99) multiplied by the number of years of
379	379	25 creditable service not in excess of 30 years in the case of
380	380	26 disability retirements. Any increase provided in the
381	381	27 retirement allowance payment under this subsection for a
382	382	Page 14 1 member who retired under the provisions of any optional
383	383	2 benefit elected pursuant to subsection (j) of this section
384	384	3 shall accrue only to the retired member, and no person
385	385	4 designated to receive any payments after the death of a
386	386	5 retired member under the provisions of any such optional
387	387	6 benefit shall receive any increase in such payments under this
388	388	7 subsection.
389	389	8 "(2) Any person who served at least 30 years as a
390	390	9 teacher in the public schools of Alabama and was never a
391	391	10 member of the system and who, prior to October 1, 1963, was in
392	392	11 receipt of a benefit for old age assistance pursuant to
393	393	12 subsections (1) and (2) of Section 1 of Act 116, approved
394	394	13 August 24, 1959, shall be entitled to receive an annual
395	395	14 retirement allowance of $3,960 three thousand nine hundred
396	396	15 sixty dollars ($3,960) from the system, effective as of
397	397	16 October 1, 1973.
398	398	17 "(3) Prior to October 31, 1975, any beneficiary may
399	399	18 elect to leave on deposit with the system all or a specified
400	400	19 part of any increase in his or her monthly retirement
401	401	20 allowance payments arising in accordance with subdivision (1)
402	402	21 or (2) of this subsection. The portion of each monthly payment
403	403	22 left in the system in accordance with such election shall be
404	404	23 credited, together with regular interest thereon, to the
405	405	24 individual account of such beneficiary. Upon the death of such
406	406	25 beneficiary, the total amount standing to his or her credit,
407	407	26 including regular interest to the date of death, shall be paid
408	408	27 in a lump sum to his or her legal representative or to such
409	409	Page 15 1 person as he or she shall have nominated by written
410	410	2 designation duly acknowledged and filed with the Board of
411	411	3 Control.
412	412	4 "(m)(l) Notwithstanding any other provisions of this
413	413	5 section to the contrary, when a designated beneficiary for a
414	414	6 member predeceases the member who is receiving a monthly
415	415	7 benefit allowance provided under Option 2, 3, or 4, the member
416	416	8 may designate a replacement beneficiary for the deceased
417	417	9 beneficiary to become effective two years after the date of
418	418	10 designation of the replacement beneficiary and an actuarial
419	419	11 adjustment in the monthly benefit allowance of the member to
420	420	12 cover any cost associated with designating a replacement
421	421	13 beneficiary shall be reflected thereafter in the monthly
422	422	14 benefit allowance received by the member, commencing with the
423	423	15 first benefit allowance check received by the member following
424	424	16 the date of designation of the replacement beneficiary.
425	425	17 "(n)(m) Notwithstanding any provision of this
426	426	18 section to the contrary, if a retired member who is receiving
427	427	19 a monthly benefit allowance provided under Option 2, 3, or 4
428	428	20 divorces his or her designated beneficiary, the member may
429	429	21 designate a replacement beneficiary for the beneficiary to
430	430	22 become effective two years after the date of designation of
431	431	23 the replacement beneficiary and an actuarial adjustment in the
432	432	24 monthly benefit allowance of the member to cover any cost
433	433	25 associated with designating a replacement beneficiary shall be
434	434	26 reflected thereafter in the monthly benefit allowance received
435	435	27 by the member, commencing with the first benefit allowance
436	436	Page 16 1 check received by the member following the date of designation
437	437	2 of the replacement beneficiary.
438	438	3 "(o)(n) Any future act to increase the retirement
439	439	4 age for Tier II plan members above the age of 62 shall require
440	440	5 a two-thirds vote of the elected membership of each house of
441	441	6 the Legislature.
442	442	7 "§36-27-16.
443	443	8 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
444	444	9 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
445	445	10 "a. Any Tier I plan member who withdraws from
446	446	11 service upon or after attainment of age 60 and any Tier II
447	447	12 plan member who withdraws from service upon or after
448	448	13 attainment of age 62 may retire upon written application to
449	449	14 the Board of Control setting forth at what time, not less than
450	450	15 30 days nor more than 90 days subsequent to the execution and
451	451	16 filing thereof, he or she desires to be retired; provided,
452	452	17 that any such member who became a member on or after October
453	453	18 1, 1963, shall have completed 10 or more years of creditable
454	454	19 service; provided further, that a Tier I plan member employed
455	455	20 as a state policeman shall be eligible to file application for
456	456	21 service retirement upon attaining age 52 and a Tier II plan
457	457	22 member employed as a state policeman or employed as a
458	458	23 correctional officer, firefighter, or law enforcement officer
459	459	24 as defined in Section 36-27-59 with at least ten 10 years of
460	460	25 creditable service as a correctional officer, firefighter, or
461	461	26 law enforcement officer shall be eligible to file application
462	462	27 for service retirement upon attaining age 56.
463	463	Page 17 1 "b. Any Tier I plan member who has attained age 60,
464	464	2 or age 52 in the case of a state policeman and any Tier II
465	465	3 plan member who has attained age 62, or age 56 in the case of
466	466	4 a state policeman or in the case of a correctional officer,
467	467	5 firefighter, or law enforcement officer as defined in Section
468	468	6 36-27-59 who has at least ten 10 years of creditable service
469	469	7 as a correctional officer, firefighter, or law enforcement
470	470	8 officer, and has previously withdrawn from service may retire
471	471	9 upon written application to the Board of Control setting forth
472	472	10 at what time, not less than 30 days nor more than 90 days
473	473	11 subsequent to the execution and filing thereof, he or she
474	474	12 desires to be retired; provided, the member shall have at the
475	475	13 time of his or her withdrawal from service completed the age
476	476	14 and service requirements established by the Board of Control
477	477	15 for eligibility for deferred benefits; provided, that such
478	478	16 minimum number of years of creditable service shall not be
479	479	17 less than 10 years nor more than 25 years.
480	480	18 "c. In addition to any law or part of law relating
481	481	19 to service retirement under the Employees' Retirement System
482	482	20 of Alabama, any Tier I plan member of the Employees'
483	483	21 Retirement System who withdraws from service after completion
484	484	22 of not less than 25 years of creditable service may retire
485	485	23 without a reduction in retirement allowance upon written
486	486	24 application to the Board of Control of the Employees'
487	487	25 Retirement System setting forth the first day of which month,
488	488	26 not less than 30 days or more than 90 days subsequent to the
489	489	27 execution and filing thereof, he or she desires to be retired,
490	490	Page 18 1 provided that no person whose employer participates in the
491	491	2 Employees' Retirement System under Section 36-27-6 shall be
492	492	3 entitled to the benefits provided in this paragraph unless
493	493	4 such employer elects to come under the provisions of the
494	494	5 paragraph. Any employer making such election must bear the
495	495	6 cost of such benefit.
496	496	7 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
497	497	8 "a. Upon retirement from service a Tier I plan
498	498	9 member shall receive a service retirement allowance which
499	499	10 shall consist of:
500	500	11 "1. An annuity which shall be the actuarial
501	501	12 equivalent of his or her accumulated contributions at the time
502	502	13 of his or her retirement; except, that in the case of a state
503	503	14 policeman who has completed 20 years of creditable service as
504	504	15 a state policeman who retires after age 56 but prior to age
505	505	16 60, the annuity shall be equal to the annuity that would have
506	506	17 been payable upon service retirement at age 60 had the member
507	507	18 continued in service to age 60 without change in compensation;
508	508	19 "2. A pension which shall be equal to the annuity
509	509	20 allowance at age of retirement, but not to exceed an annuity
510	510	21 allowable at age 65, computed on the basis of contributions
511	511	22 made prior to attainment of age 65; except, that in the case
512	512	23 of a state policeman who has completed 20 years of creditable
513	513	24 service as a state policeman who retires after age 56 but
514	514	25 prior to age 60, the pension shall be equal to the annuity
515	515	26 that he or she would have received had he or she contributed
516	516	27 to age 60 without change in compensation; and
517	517	Page 19 1 "3. An additional pension, if he or she has a prior
518	518	2 service certificate in full force and effect, which shall be
519	519	3 equal to the annuity which would have been provided at the age
520	520	4 of retirement, but which shall not exceed an annuity allowable
521	521	5 at age 65 by twice the contributions which he or she would
522	522	6 have made during the period of prior service with which he or
523	523	7 she is credited had the system been in operation and had he or
524	524	8 she contributed thereunder; except, that in case of a state
525	525	9 policeman who has completed 20 years of creditable service as
526	526	10 a state policeman who retired after age 56 but prior to age
527	527	11 60, an additional pension, if he or she has a prior service
528	528	12 certificate in full force and effect, which shall be equal to
529	529	13 the annuity which would have been provided at age 60, but
530	530	14 which shall not exceed an annuity allowable at age 60 by twice
531	531	15 the contributions which he or she would have made during the
532	532	16 period of prior service with which he or she is credited had
533	533	17 the system been in operation and had he or she contributed
534	534	18 thereunder.
535	535	19 "b. Notwithstanding the provisions of subparagraphs
536	536	20 1., 2., and 3. of paragraph a. of this subdivision, a state
537	537	21 policeman who is a Tier I plan member and who has completed 20
538	538	22 years of service as a state policeman who retires after age 52
539	539	23 but prior to age 56 shall receive:
540	540	24 "1. An annuity which shall be equal to the annuity
541	541	25 that would have been payable had the member continued in
542	542	26 service for four years without change in compensation;
543	543	Page 20 1 "2. A pension which shall be equal to the annuity
544	544	2 that he or she would have received had he or she contributed
545	545	3 for four years without change in compensation; and
546	546	4 "3. An additional pension, if he or she has a prior
547	547	5 service certificate in full force and effect, which shall be
548	548	6 equal to the annuity which would have been provided at the age
549	549	7 of retirement, but which shall not exceed an annuity allowable
550	550	8 at the age of retirement plus four years by twice the
551	551	9 contributions which he or she would have made during the
552	552	10 period of prior service with which he or she is credited had
553	553	11 the system been in operation and had he or she contributed
554	554	12 thereunder. In lieu of a determination of the actual
555	555	13 compensation of a member that was received during such prior
556	556	14 service, the Board of Control may use for the purpose of this
557	557	15 article the compensation rate which, if it had progressed with
558	558	16 the rates of salary increase shown in the tables as prescribed
559	559	17 in subsection (n) of Section 36-27-23, would have resulted in
560	560	18 the same average salary of the member for the five years
561	561	19 immediately preceding the date of establishment as the records
562	562	20 show the member actually received.
563	563	21 "c. The annual service retirement pension payable to
564	564	22 a Tier I plan member not employed as a state policeman
565	565	23 retiring on or after October 1, 1975, shall not be less than
566	566	24 an amount which, when added to his or her annuity, is equal to
567	567	25 the greater of the following two amounts:
568	568	Page 21 1 "1. Two and one-eightieth percent of the member's
569	569	2 average final compensation multiplied by the number of years
570	570	3 of his or her creditable service; or
571	571	4 "2. If he or she became a member before October 1,
572	572	5 1965, $72.00 seventy-two dollars ($72) multiplied by the
573	573	6 number of years of his or her creditable service not in excess
574	574	7 of 25 years.
575	575	8 "d. The annual service retirement pension payable to
576	576	9 a Tier I plan member employed as a state policeman retiring on
577	577	10 or after October 1, 1975, shall not be less than an amount
578	578	11 which, when added to his or her annuity is equal to the
579	579	12 greater of the following two amounts:
580	580	13 "1. Two and seven-eighths percent of the member's
581	581	14 average final compensation multiplied by the number of years
582	582	15 of his or her creditable service. Creditable service for any
583	583	16 state policeman under the age of 56 years who has completed 20
584	584	17 years of creditable service as a state policeman shall include
585	585	18 a bonus equal to four additional years. Creditable service for
586	586	19 a state policeman 56 years or older shall include a bonus
587	587	20 equal to the years or portion thereof remaining until the
588	588	21 member reaches age 60; or
589	589	22 "2. If he or she became a member before October 1,
590	590	23 1965, $86.40 eighty-six dollars forty cents ($86.40)
591	591	24 multiplied by the number of years of his or her creditable
592	592	25 service not in excess of 25 years; provided, however, that if
593	593	26 such member has completed 20 years of creditable service as a
594	594	27 state policeman and has not attained age 60 at the time of
595	595	Page 22 1 retirement, the pension shall be determined as provided in
596	596	2 this subparagraph on the basis of the number of years of
597	597	3 creditable service which he or she would have had if he or she
598	598	4 had remained in service for four years, except that, in the
599	599	5 case of those state policemen retiring at age 56 or after, the
600	600	6 number of years in determining the pension shall not exceed
601	601	7 the number of years of creditable service which he or she
602	602	8 would have had if he or she had remained in service to age 60.
603	603	9 "e. Upon retirement from service, a Tier II plan
604	604	10 member who is not employed as a state policeman shall receive
605	605	11 a service retirement allowance which shall consist of an
606	606	12 annuity which shall be the actuarial equivalent of the
607	607	13 member's accumulated contributions at the time of retirement
608	608	14 and a pension which, when added to the member's annuity, shall
609	609	15 be equal to one and sixty-five hundredths percent (1.65%) of
610	610	16 the member's average final compensation multiplied by the
611	611	17 number of years of creditable service. Notwithstanding the
612	612	18 foregoing, the service retirement allowance shall not exceed
613	613	19 eighty percent (80%) of the member's average final
614	614	20 compensation.
615	615	21 "f. Upon retirement from service, a Tier II plan
616	616	22 member who is employed as a state policeman shall receive a
617	617	23 service retirement allowance which shall consist of an annuity
618	618	24 which shall be the actuarial equivalent of the member's
619	619	25 accumulated contributions at the time of retirement and a
620	620	26 pension which, when added to the member's annuity, shall be
621	621	27 equal to two and three-eighths percent (2.375%) of the
622	622	Page 23 1 member's average final compensation multiplied by the member's
623	623	2 number of years of creditable service. Notwithstanding the
624	624	3 foregoing, the service retirement allowance shall not exceed
625	625	4 eighty percent (80%) of the member's average final
626	626	5 compensation.
627	627	6 "g. Anything in this article to the contrary
628	628	7 notwithstanding, in the application of the foregoing
629	629	8 provisions of this subdivision to a member whose creditable
630	630	9 service includes a period of service as a state policeman and
631	631	10 a period of service in another employment classification, the
632	632	11 benefit rates applicable to a member employed as a state
633	633	12 policeman shall apply to all creditable service as a state
634	634	13 policeman, and the benefit rates applicable to a member not
635	635	14 employed as a state policeman shall apply to all creditable
636	636	15 service, but in all other respects the pension under this
637	637	16 subdivision shall be determined on the basis of the member's
638	638	17 employment classification at the time of his or her withdrawal
639	639	18 from service.
640	640	19 "h. The annual service retirement pension payable to
641	641	20 any state employee who had attained age 60 on or before
642	642	21 October 1, 1945, who declined membership in the Employees'
643	643	22 Retirement System of Alabama in the manner prescribed in
644	644	23 Section 36-27-4 and who retires as a state employee after
645	645	24 completing a minimum of 15 years' service shall be $72.00
646	646	25 seventy-two dollars ($72) multiplied by the number of years of
647	647	26 his or her service not in excess of 25 years.
648	648	Page 24 1 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
649	649	2 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
650	650	3 "a. Upon application of a Tier I plan member in
651	651	4 service or of his or her employer, any member who has had 10
652	652	5 or more years of creditable service who becomes disabled may
653	653	6 be retired on a disability retirement allowance by the Board
654	654	7 of Control not less than 30 nor more than 90 days next
655	655	8 following the date of filing of such application; provided,
656	656	9 that the medical board, after a medical examination of such
657	657	10 member, shall certify that such member is mentally or
658	658	11 physically incapacitated for the further performance of duty,
659	659	12 that such incapacity is likely to be permanent and that such
660	660	13 member should be retired. Upon the application of a Tier II
661	661	14 plan member in service or his or her employer, any member who
662	662	15 has had 10 or more years of creditable service may be retired
663	663	16 by the Board of Control on a disability retirement allowance
664	664	17 not less than 30 nor more than 90 days next following the date
665	665	18 of filing such application; provided, that the medical board,
666	666	19 after a medical examination of such member, shall certify that
667	667	20 the member is totally and permanently mentally or physically
668	668	21 incapacitated from regular and substantial gainful employment,
669	669	22 and that member should be retired.
670	670	23 "b. Without regard to the number of years of
671	671	24 creditable service, a member employed as a state policeman, a
672	672	25 municipal police officer or a deputy sheriff, or a member
673	673	26 employed as a state, municipal, or county firefighter who is
674	674	27 not covered through his or her current employer under the
675	675	Page 25 1 United States Social Security Act, who as a result of his or
676	676	2 her employment, in the line of duty and not as a result of his
677	677	3 or her own misconduct, shall become permanently and totally
678	678	4 disabled to the extent that he or she cannot perform his or
679	679	5 her duties or duties of a less strenuous nature, as an
680	680	6 employee of the State of Alabama or as an employee of an
681	681	7 employer participating under the provisions of Section
682	682	8 36-27-6, shall be retired on a disability retirement
683	683	9 allowance, not less than 30 nor more than 90 days next
684	684	10 following the date of filing of such application, provided
685	685	11 that the medical board, after a medical examination of such
686	686	12 member shall certify that such member is mentally or
687	687	13 physically incapacitated for the further performance of duty,
688	688	14 that such incapacity is likely to be permanent, and that such
689	689	15 member should be retired.
690	690	16 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
691	691	17 "a. Upon retirement for disability a member shall
692	692	18 receive a service retirement allowance if he or she is a Tier
693	693	19 I plan member and he or she has attained age 60 or if he or
694	694	20 she is a Tier II plan member and he or she has attained age
695	695	21 62, or if any law or part of any law pertaining to retirement
696	696	22 under the Employees' Retirement System of Alabama provides for
697	697	23 service retirement after the completion of 25 years of
698	698	24 creditable service without a reduction in the retirement
699	699	25 allowance and the member has completed 25 years of creditable
700	700	26 service, or, in the case of a state policeman, if he or she is
701	701	27 a Tier I plan member and he or she has attained age 52 or, in
702	702	Page 26 1 the case of a state policeman or a correctional officer,
703	703	2 firefighter, or law enforcement officer as defined in Section
704	704	3 36-27-59 with at least ten 10 years of creditable service as a
705	705	4 correctional officer, firefighter, or law enforcement officer,
706	706	5 if he or she is a Tier II plan member and he or she has
707	707	6 attained age 56; otherwise, he or she shall receive a
708	708	7 disability retirement allowance which shall consist of:
709	709	8 "1. An annuity which shall be the actuarial
710	710	9 equivalent of his or her accumulated contributions at the time
711	711	10 of his or her retirement;
712	712	11 "2. A pension which shall be equal to the pension
713	713	12 that would have been payable under subparagraphs 2 and 3 of
714	714	13 paragraph a. of subdivision (2) of subsection (a) of this
715	715	14 section upon service retirement at age 65 had the member
716	716	15 continued in service to that age without change in
717	717	16 compensation.
718	718	17 "b. The annual disability retirement pension payable
719	719	18 to a Tier I plan member not employed as a state policeman
720	720	19 retiring on or after October 1, 1975, shall not be less than
721	721	20 an amount which when added to his or her annuity is equal to
722	722	21 the greatest of the following two amounts:
723	723	22 "1. Two and one-eightieth percent of the member's
724	724	23 average final compensation multiplied by the number of years
725	725	24 of creditable service.
726	726	25 "2. If he or she became a member before October 1,
727	727	26 1965, $54.00 fifty-four dollars ($54) multiplied by the number
728	728	Page 27 1 of years of his or her creditable service not in excess of 25
729	729	2 years.
730	730	3 "c. The annual disability retirement pension payable
731	731	4 to a Tier I plan member employed as a state policeman retiring
732	732	5 on or after October 1, 1975, shall not be less than an amount
733	733	6 which when added to his or her annuity is equal to the greater
734	734	7 of the following two amounts:
735	735	8 "1. Two and seven-eighths percent of the member's
736	736	9 average final compensation multiplied by the number of years
737	737	10 of his or her creditable service. Creditable service for any
738	738	11 state policeman under the age of 56 years who has completed 20
739	739	12 years of creditable service as a state policeman shall include
740	740	13 a bonus equal to four additional years. Creditable service for
741	741	14 a state policeman 56 years or older shall include a bonus
742	742	15 equal to the years or portion thereof remaining until the
743	743	16 member reaches age 60; or
744	744	17 "2. If he or she became a member before October 1,
745	745	18 1965, $64.80 sixty-four dollars eighty cents ($64.80)
746	746	19 multiplied by the number of years of his or her creditable
747	747	20 service not in excess of 25 years.
748	748	21 "d. The annual disability retirement allowance
749	749	22 payable to a Tier II plan member not employed as a state
750	750	23 policeman shall be equal to one and sixty-five hundredths
751	751	24 percent (1.65%) of the member's average final compensation
752	752	25 multiplied by the number of years of creditable service.
753	753	26 "e. The annual disability retirement allowance
754	754	27 payable to a Tier II plan member employed as a state policeman
755	755	Page 28 1 shall be equal to two and three-eighths percent (2.375%) of
756	756	2 the member's average final compensation multiplied by the
757	757	3 number of years of creditable service.
758	758	4 "f. Anything in this chapter to the contrary
759	759	5 notwithstanding in the application of the provisions of this
760	760	6 subdivision to a member whose creditable service includes a
761	761	7 period of service as a state policeman and a period of service
762	762	8 in another employment classification the benefit rates
763	763	9 applicable to a member employed as a state policeman shall
764	764	10 apply to all creditable service as a state policeman, and the
765	765	11 benefit rates applicable to a member not employed as a state
766	766	12 policeman shall apply to all other creditable service, but in
767	767	13 all other respects the pension under this subdivision shall be
768	768	14 determined on the basis of the member's employment
769	769	15 classification at the time of his or her withdrawal from
770	770	16 service.
771	771	17 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
772	772	18 ACCOUNT OF DISABILITY. Once each year during the first five
773	773	19 years following the retirement of a member on a disability
774	774	20 retirement allowance and once every three-year period
775	775	21 thereafter, the Board of Control may, and upon his or her
776	776	22 application shall, require any disability beneficiary who has
777	777	23 not yet attained age 60 if the beneficiary is a Tier I plan
778	778	24 member or age 62 if the beneficiary is a Tier II plan member
779	779	25 to undergo a medical examination, such examination to be made
780	780	26 at the place of residence of such beneficiary or other place
781	781	27 mutually agreed upon by a physician or physicians of or
782	782	Page 29 1 designated by the medical board. Should any disability
783	783	2 beneficiary who has not yet attained age 60 if the beneficiary
784	784	3 is a Tier I plan member or age 62 if the beneficiary is a Tier
785	785	4 II plan member refuse to submit to such medical examination,
786	786	5 his or her allowance may be discontinued until his or her
787	787	6 withdrawal of such refusal, and, should his or her refusal
788	788	7 continue for one year, all his or her rights in and to his or
789	789	8 her pension may be revoked by the Board of Control; provided,
790	790	9 that these requirements relative to the medical examination
791	791	10 shall not apply in the case of a state policeman retired for
792	792	11 disability and who has attained age 52 if he or she is a Tier
793	793	12 I plan member or in the case of a state policeman or a
794	794	13 correctional officer, firefighter, or law enforcement officer
795	795	14 as defined in Section 36-27-59 with at least ten 10 years of
796	796	15 creditable service as a correctional officer, firefighter, or
797	797	16 law enforcement officer retired for disability who has
798	798	17 attained age 56 if he or she is a Tier II plan member. Should
799	799	18 the medical board report and certify to the Board of Control
800	800	19 that a disability beneficiary who is a Tier I plan member is
801	801	20 engaged in or is able to engage in a gainful occupation paying
802	802	21 more than the difference between his or her retirement
803	803	22 allowance and his or her average final compensation and should
804	804	23 the Board of Control concur in such report, then the amount of
805	805	24 his or her pension shall be reduced to an amount which,
806	806	25 together with his or her annuity and the amount earnable by
807	807	26 him or her shall equal the amount of his or her average final
808	808	27 compensation. Should his or her earning capacity be later
809	809	Page 30 1 changed, the amount of his or her pension may be further
810	810	2 modified; provided, that the new pension shall not exceed the
811	811	3 amount of the pension originally granted nor an amount which,
812	812	4 when added to the amount earnable by the beneficiary, together
813	813	5 with this annuity exceeds the amount of his or her average
814	814	6 final compensation.
815	815	7 "Should the medical board report and certify to the
816	816	8 Board of Control that a disability beneficiary who is a Tier
817	817	9 II plan member has the capacity to engage in regular and
818	818	10 substantial gainful employment, the Board of Control shall
819	819	11 discontinue the beneficiary's retirement allowance until the
820	820	12 beneficiary is otherwise eligible for service retirement.
821	821	13 "(c) Disposition of contributions and allowances
822	822	14 upon death, etc., of member.
823	823	15 "(1) Should a member cease to be an employee except
824	824	16 by death or by retirement under the provisions of this
825	825	17 article, the contributions standing to the credit of his or
826	826	18 her individual account in the Annuity Savings Fund shall be
827	827	19 paid to him or her upon demand and, in addition to such
828	828	20 payment, there shall be paid five-tenths of the interest
829	829	21 accumulations standing to the credit of his or her individual
830	830	22 account if he or she shall have not less than three but less
831	831	23 than 16 years of membership service, six-tenths of such
832	832	24 interest accumulations if he or she shall have not less than
833	833	25 16 but less than 21 years of membership service, seven-tenths
834	834	26 of such interest accumulations if he or she shall have not
835	835	27 less than 21 but less than 26 years of membership service and
836	836	Page 31 1 eight-tenths of such interest accumulations if he or she shall
837	837	2 have not less than 26 years of membership service.
838	838	3 "(2) In case of the death of a member eligible for
839	839	4 service retirement pursuant to subsection (a) of this section,
840	840	5 an allowance shall be paid to the surviving spouse, or to such
841	841	6 other person who the member shall have designated, in an
842	842	7 amount that would have been payable if the member had retired
843	843	8 immediately prior to his or her death and had elected Option
844	844	9 3, as set forth in subsection (d) of this section or,
845	845	10 alternatively, if the surviving spouse or other designee
846	846	11 desires, he or she may choose to receive, in lieu of the
847	847	12 allowance provided under Option 3, the accumulated
848	848	13 contributions of the member plus an amount equal to the
849	849	14 accumulated contributions of the member not to exceed
850	850	15 $5,000.00 five thousand dollars ($5,000) or the accumulated
851	851	16 contributions of the member plus the benefit provided by
852	852	17 Section 36-27B-3 if a benefit is payable under such section;
853	853	18 "(3) In case of the death of a Tier I plan member
854	854	19 not eligible for service retirement, after completion of 25
855	855	20 years of creditable service, an allowance shall be paid to the
856	856	21 surviving spouse, or to such other person who the member shall
857	857	22 have designated, in an amount that would have been payable if
858	858	23 the member had retired for disability immediately prior to his
859	859	24 or her death and had elected Option 3 as set forth in
860	860	25 subsection (d) of this section or, alternatively, if the
861	861	26 surviving spouse or other designee desires, he or she may
862	862	27 choose to receive, in lieu of the allowance provided under
863	863	Page 32 1 Option 3, the accumulated contributions of the member plus an
864	864	2 amount equal to the accumulated contributions of the member
865	865	3 not to exceed $5,000.00 five thousand dollars ($5,000) or the
866	866	4 accumulated contributions of the member plus the benefit
867	867	5 provided by Section 36-27B-3 if a benefit is payable under
868	868	6 such section. For purposes of this subsection only, hazardous
869	869	7 duty time, as set forth in subdivision (b)(1) of Section
870	870	8 36-27-59, may be used in calculating the requisite years of
871	871	9 service for firefighters, law enforcement officers, and
872	872	10 correctional officers even if the member has not otherwise
873	873	11 attained 25 years of creditable service;
874	874	12 "(4) Upon the death of a member on account of whom
875	875	13 no survivor allowance is payable under subdivisions (2) or (3)
876	876	14 of this subsection, the accumulated contributions of the
877	877	15 member plus an amount equal to the accumulated contributions
878	878	16 not to exceed $5,000 five thousand dollars ($5,000) or the
879	879	17 accumulated contributions of the member plus the benefit
880	880	18 provided by Section 36-27B-3 if a benefit is payable under
881	881	19 such section shall be paid to his or her estate or to such
882	882	20 person as he or she shall have nominated by written
883	883	21 designation duly executed and filed with the Board of Control.
884	884	22 "(d) Optional allowances. With the provision that
885	885	23 the election of an option shall be effective on the effective
886	886	24 date of retirement, any member may elect prior to retirement
887	887	25 to receive, in lieu of his or her retirement allowance payable
888	888	26 throughout life, the actuarial equivalent, at that time, of
889	889	Page 33 1 his or her retirement allowance in a reduced retirement
890	890	2 allowance payable throughout life with the provisions that:
891	891	3 "(1) OPTION 1. If he or she dies before he or she
892	892	4 has received in annuity payments the present value of his or
893	893	5 her annuity as it was at the time of his or her retirement,
894	894	6 the balance shall be paid to his or her legal representatives
895	895	7 or to the person as he or she shall nominate by written
896	896	8 designation duly acknowledged and filed with the Board of
897	897	9 Control;
898	898	10 "(2) OPTION 2. Upon his or her death, his or her
899	899	11 reduced retirement allowance shall be continued throughout the
900	900	12 life of and paid to the person as he or she shall nominate by
901	901	13 written designation duly acknowledged and filed with the Board
902	902	14 of Control at the time of his or her retirement;
903	903	15 "(3) OPTION 3. Upon his or her death, one half of
904	904	16 his or her reduced allowance shall be continued throughout the
905	905	17 life of and paid to the person as he or she shall nominate by
906	906	18 written designation duly acknowledged and filed with the Board
907	907	19 of Control at the time of his or her retirement; or
908	908	20 "(4) OPTION 4. Some other benefit or benefits shall
909	909	21 be paid either to the member or to the person or persons as he
910	910	22 or she shall nominate; provided, that such other benefits,
911	911	23 together with the reduced retirement allowance, shall be
912	912	24 certified by the actuary to be of equivalent actuarial value
913	913	25 to his or her retirement allowance and shall be approved by
914	914	26 the Board of Control.
915	915	Page 34 1 "(5) OPTION 5. At the time of retirement, he or she
916	916	2 shall receive a partial lump sum distribution as a single
917	917	3 payment not to exceed the sum of 24 months of the maximum
918	918	4 monthly retirement allowance the member could receive. This
919	919	5 option may be elected in addition to the election of another
920	920	6 option under this subsection and the further reduced monthly
921	921	7 retirement allowance shall be calculated in accordance with
922	922	8 the selected option. This option shall not be available to a
923	923	9 member who is receiving a disability retirement.
924	924	10 "(e) Effect of return to active service. Should any
925	925	11 beneficiary be restored to active service, his or her
926	926	12 retirement allowance shall be suspended until he or she again
927	927	13 withdraws from service and he or she shall not again become a
928	928	14 member of the retirement system nor shall he or she make
929	929	15 contributions; except, that should such beneficiary who has
930	930	16 been restored to active service continue in service for a
931	931	17 period of two or more years from the date of his or her
932	932	18 reentry into active service, he or she may request the Board
933	933	19 of Control to allow him or her to again become a member of the
934	934	20 retirement system. The Board of Control may grant the request
935	935	21 for restoration to membership; provided, that such beneficiary
936	936	22 whose retirement allowance has been suspended shall repay to
937	937	23 the system all moneys received by him or her as benefits
938	938	24 during any periods subsequent to the date of his or her
939	939	25 reentry into active service and shall make a contribution
940	940	26 equal to the amount he or she would have contributed had he or
941	941	27 she been a member during the period of his or her restoration
942	942	Page 35 1 to active service on a suspended allowance basis together with
943	943	2 the interest which would have been credited to the
944	944	3 contributions on account of such period of restoration up to
945	945	4 the date such contribution is made.
946	946	5 "(f)(e)(1) REDETERMINATION, ETC., OF CERTAIN
947	947	6 ALLOWANCES. All retirement allowance payments due on or after
948	948	7 October 1, 1975, to members who retired prior to that date
949	949	8 shall be redetermined as if the provisions of this section in
950	950	9 effect on October 1, 1975, were in effect at the time the
951	951	10 member retired. Anything in this article to the contrary
952	952	11 notwithstanding, the annual retirement allowance of any member
953	953	12 not employed as a state policeman who retired on or before
954	954	13 January 1, 1956, shall not be less than $79.20 seventy-nine
955	955	14 dollars twenty cents ($79.20) multiplied by the number of
956	956	15 years of his or her creditable service not in excess of 30
957	957	16 years in the case of service retirement of $59.40 fifty-nine
958	958	17 dollars forty cents ($59.40) multiplied by the number of years
959	959	18 of his or her creditable service not in excess of 30 years in
960	960	19 the case of disability retirement. Any increase provided in
961	961	20 the retirement allowance payment under this subdivision for a
962	962	21 member who retired under the provisions of any optional
963	963	22 benefit elected pursuant to subsection (d) of this section
964	964	23 shall accrue only to the retired member, and no person
965	965	24 designated to receive any payments after the death of a
966	966	25 retired member under the provisions of any such optional
967	967	26 benefit shall receive any increase in such payments under this
968	968	27 subdivision. Notwithstanding, any member who retired prior to
969	969	Page 36 1 October 1, 1975, and who chose either Option 2 or Option 3 may
970	970	2 elect to receive a reduced allowance and to stipulate that the
971	971	3 actuarial equivalent of the increase in his or her retirement
972	972	4 allowance, which became effective on that date, be ascribed to
973	973	5 his or her designated beneficiary; provided, that such member
974	974	6 shall clearly express this intention by filing a written
975	975	7 application to the effect with the Secretary-Treasurer of the
976	976	8 Employees' Retirement System of Alabama prior to October 1,
977	977	9 1976.
978	978	10 "(2) Any person who, prior to October 1, 1963, was
979	979	11 in receipt of a benefit pursuant to Act No. 376, approved
980	980	12 November 6, 1959, but was not a member of the system at the
981	981	13 time of retirement shall not be entitled to receive an annual
982	982	14 retirement allowance from the system, effective October 1,
983	983	15 1971, as follows:
984	984	16 "a. If such person was retired on or before January
985	985	17 1, 1956, an amount equal to $79.20 seventy-nine dollars twenty
986	986	18 cents ($79.20) multiplied by the number of years of his or her
987	987	19 creditable service not in excess of 30 years.
988	988	20 "b. If such person was retired after January 1,
989	989	21 1956, an amount equal to $72.00 seventy-two dollars ($72)
990	990	22 multiplied by the number of years of his or her creditable
991	991	23 service not in excess of 25 years.
992	992	24 "(3) Prior to October 31, 1975, any beneficiary may
993	993	25 elect to leave on deposit with the system all or a specified
994	994	26 part of any increase in his or her monthly retirement
995	995	27 allowance payments arising in accordance with subdivisions (1)
996	996	Page 37 1 or (2) of this subsection over the monthly allowance which he
997	997	2 or she was receiving prior to October 1, 1975. The portion of
998	998	3 each monthly payment left in the system in accordance with
999	999	4 such election shall be credited, together with regular
1000	1000	5 interest thereon, to the individual account of such
1001	1001	6 beneficiary. Upon the death of such beneficiary the total
1002	1002	7 amount standing to his or her credit, including regular
1003	1003	8 interest to the date of death, shall be paid in a lump sum to
1004	1004	9 his or her legal representatives or to such person as he or
1005	1005	10 she shall have nominated by written designation duly
1006	1006	11 acknowledged and filed with the Board of Control.
1007	1007	12 "(g)(f) Notwithstanding any other provisions of this
1008	1008	13 section to the contrary, when a designated beneficiary for a
1009	1009	14 member predeceases the member who is receiving a monthly
1010	1010	15 benefit allowance provided under Option 2, 3, or 4, the member
1011	1011	16 may designate a replacement beneficiary for the deceased
1012	1012	17 beneficiary to become effective two years after the date of
1013	1013	18 designation of the replacement beneficiary and an actuarial
1014	1014	19 adjustment in the monthly benefit allowance of the member to
1015	1015	20 cover any cost associated with designating a replacement
1016	1016	21 beneficiary shall be reflected thereafter in the monthly
1017	1017	22 benefit allowance received by the member, commencing with the
1018	1018	23 first benefit allowance check received by the member following
1019	1019	24 the date of designation of the replacement beneficiary.
1020	1020	25 "(h)(g) Notwithstanding any provision of this
1021	1021	26 section to the contrary, if a retired member who is receiving
1022	1022	27 a monthly benefit allowance provided under Option 2, 3, or 4
1023	1023	Page 38 1 divorces his or her designated beneficiary, the member may
1024	1024	2 designate a replacement beneficiary for the beneficiary to
1025	1025	3 become effective two years after the date of designation of
1026	1026	4 the replacement beneficiary and an actuarial adjustment in the
1027	1027	5 monthly benefit allowance of the member to cover any cost
1028	1028	6 associated with designating a replacement beneficiary shall be
1029	1029	7 reflected thereafter in the monthly benefit allowance received
1030	1030	8 by the member, commencing with the first benefit allowance
1031	1031	9 check received by the member following the date of designation
1032	1032	10 of the replacement beneficiary.
1033	1033	11 "(i)(h) Any future act to increase the retirement
1034	1034	12 age for Tier II plan members above the age of 62 shall require
1035	1035	13 a two-thirds vote of the elected membership of each house of
1036	1036	14 the Legislature."
1037	1037	15 Section 2. (a) If any person retired under the
1038	1038	16 Teachers' Retirement System performs duties in any capacity
1039	1039	17 for compensation for an employer participating in the
1040	1040	18 Teachers' Retirement System, Employees' Retirement System, or
1041	1041	19 Judicial Retirement Fund, his or her retirement allowance
1042	1042	20 shall be suspended until termination of employment or
1043	1043	21 contract, unless he or she has drawn his or her retirement
1044	1044	22 benefit for 12 consecutive months and has not performed
1045	1045	23 services for compensation with any employer participating in
1046	1046	24 the Teachers' Retirement System, Employees' Retirement System,
1047	1047	25 or Judicial Retirement Fund during that period. The person may
1048	1048	26 not contribute to the retirement system and may not earn any
1049	1049	Page 39 1 additional service credit during the period of employment or
1050	1050	2 contract.
1051	1051	3 (b) Any person retired under the Teachers’
1052	1052	4 Retirement System who is serving as an elected official may
1053	1053	5 serve for compensation without suspension of benefits so long
1054	1054	6 as the position is otherwise prohibited from participating in
1055	1055	7 the Teachers' Retirement System, Employees' Retirement System,
1056	1056	8 or Judicial Retirement Fund.
1057	1057	9 (c) An employer shall pay employer contributions, as
1058	1058	10 provided by Section 16-25-21, Code of Alabama 1975, on all
1059	1059	11 earnable compensation of an employee who is retired under the
1060	1060	12 Teachers' Retirement System, Employees' Retirement System, or
1061	1061	13 Judicial Retirement Fund, regardless of membership status.
1062	1062	14 (d) Any person retired under the Teachers'
1063	1063	15 Retirement System, Employees' Retirement System, or Judicial
1064	1064	16 Retirement Fund who is employed with an employer may become a
1065	1065	17 member by suspending his or her retirement allowance and
1066	1066	18 contributing to the retirement system as provided by Section
1067	1067	19 16-25-21, Code of Alabama 1975.
1068	1068	20 (e) Any person retired under the Teachers'
1069	1069	21 Retirement System as of the effective date of this act shall
1070	1070	22 be presumed to have drawn his or her retirement benefit for 12
1071	1071	23 consecutive months without performing services for
1072	1072	24 compensation for any employer participating in the Teachers'
1073	1073	25 Retirement System, Employees' Retirement System, or Judicial
1074	1074	26 Retirement Fund during that period.
1075	1075	Page 40 1 (f) This section shall not apply to any person who
1076	1076	2 retired under the Teachers' Retirement System before the
1077	1077	3 effective date of this act and is drawing his or her
1078	1078	4 retirement benefit and participating in the Judicial
1079	1079	5 Retirement Fund under Chapter 18, Title 12, Code of Alabama
1080	1080	6 1975.
1081	1081	7 Section 3. (a) If any person retired under the
1082	1082	8 Employees' Retirement System performs duties in any capacity
1083	1083	9 for compensation for an employer participating in the
1084	1084	10 Teachers' Retirement System, Employees' Retirement System, or
1085	1085	11 Judicial Retirement Fund, his or her retirement allowance
1086	1086	12 shall be suspended until termination of employment or
1087	1087	13 contract, unless he or she has drawn his or her retirement
1088	1088	14 benefit for 12 consecutive months and has not performed
1089	1089	15 services for compensation with any employer participating in
1090	1090	16 the Teachers' Retirement System, Employees' Retirement System,
1091	1091	17 or Judicial Retirement Fund during that period. The person may
1092	1092	18 not contribute to the retirement system and may not earn any
1093	1093	19 additional service credit during the period of employment or
1094	1094	20 contract.
1095	1095	21 (b) Any person retired under the Employees'
1096	1096	22 Retirement System who is serving as an elected official may
1097	1097	23 serve for compensation without suspension of benefits so long
1098	1098	24 as the position is otherwise prohibited from participating in
1099	1099	25 the Teachers' Retirement System, Employees' Retirement System,
1100	1100	26 or Judicial Retirement Fund.
1101	1101	Page 41 1 (c) An employer shall pay employer contributions, as
1102	1102	2 provided by Section 36-27-24, Code of Alabama 1975, on all
1103	1103	3 earnable compensation of an employee who is retired under the
1104	1104	4 Teachers' Retirement System, Employees' Retirement System, or
1105	1105	5 Judicial Retirement Fund, regardless of membership status.
1106	1106	6 (d) Any person retired under the Teachers'
1107	1107	7 Retirement System, Employees' Retirement System, or Judicial
1108	1108	8 Retirement Fund who is employed with an employer may become a
1109	1109	9 member by suspending his or her retirement allowance and
1110	1110	10 contributing to the retirement system as provided by Section
1111	1111	11 36-27-24, Code of Alabama 1975.
1112	1112	12 (e) Any person retired under the Employees'
1113	1113	13 Retirement System as of the effective date of this act shall
1114	1114	14 be presumed to have drawn his or her retirement benefit for 12
1115	1115	15 consecutive months without performing services for
1116	1116	16 compensation for any employer participating in the Teachers'
1117	1117	17 Retirement System, Employees' Retirement System, or Judicial
1118	1118	18 Retirement Fund during that period.
1119	1119	19 (f) This section shall not apply to any person who
1120	1120	20 retired under the Employees' Retirement System before the
1121	1121	21 effective date of this act, is drawing his or her retirement
1122	1122	22 benefit, and is participating in the Judicial Retirement Fund
1123	1123	23 under Chapter 18, Title 12, Code of Alabama 1975.
1124	1124	24 Section 4. (a) If any person retired under the
1125	1125	25 Judges' and Clerks' Plan of the Judicial Retirement Fund
1126	1126	26 performs duties in any capacity for compensation for an
1127	1127	27 employer participating in the Teachers' Retirement System,
1128	1128	Page 42 1 Employees' Retirement System, or Judicial Retirement Fund, his
1129	1129	2 or her retirement allowance shall be suspended until
1130	1130	3 termination of employment or contract, unless he or she has
1131	1131	4 drawn his or her retirement benefit for 12 consecutive months
1132	1132	5 and has not performed services for compensation with any
1133	1133	6 employer participating in the Teachers' Retirement System,
1134	1134	7 Employees' Retirement System, or Judicial Retirement Fund
1135	1135	8 during that period. The person may not contribute to the
1136	1136	9 retirement system and may not earn any additional service
1137	1137	10 credit during the period of employment or contract.
1138	1138	11 (b) Any person retired under the Judges' and Clerks'
1139	1139	12 Plan who is serving as an elected official may serve for
1140	1140	13 compensation without suspension of benefits so long as the
1141	1141	14 position is otherwise prohibited from participating in the
1142	1142	15 Teachers' Retirement System, Employees' Retirement System, or
1143	1143	16 Judicial Retirement Fund.
1144	1144	17 (c) An employer shall pay employer contributions, as
1145	1145	18 provided by Section 12-18-152, Code of Alabama 1975, on all
1146	1146	19 earnable compensation of an employee who is retired under the
1147	1147	20 Teachers' Retirement System, Employees' Retirement System, or
1148	1148	21 Judicial Retirement Fund, regardless of membership status.
1149	1149	22 (d) Any person retired under the Teachers'
1150	1150	23 Retirement System, Employees' Retirement System, or Judicial
1151	1151	24 Retirement Fund who is employed as a judge or clerk with an
1152	1152	25 employer may become a member by suspending his or her
1153	1153	26 retirement allowance and contributing to the retirement system
1154	1154	27 as provided by Section 12-18-152, Code of Alabama 1975.
1155	1155	Page 43 1 (e) Any person retired under the Judges' and Clerks'
1156	1156	2 Plan as of the effective date of this act shall be presumed to
1157	1157	3 have drawn his or her retirement benefit for 12 consecutive
1158	1158	4 months without performing services for compensation for any
1159	1159	5 employer participating in the Teachers' Retirement System,
1160	1160	6 Employees' Retirement System, or Judicial Retirement Fund
1161	1161	7 during that period.
1162	1162	8 Section 5. (a) If any person retired under the
1163	1163	9 District Attorneys' Plan of the Judicial Retirement Fund
1164	1164	10 performs duties in any capacity for compensation for an
1165	1165	11 employer participating in the Teachers' Retirement System,
1166	1166	12 Employees' Retirement System, or Judicial Retirement Fund, his
1167	1167	13 or her retirement allowance shall be suspended until
1168	1168	14 termination of employment or contract, unless he or she has
1169	1169	15 drawn his or her retirement benefit for 12 consecutive months
1170	1170	16 and has not performed services for compensation with any
1171	1171	17 employer participating in the Teachers' Retirement System,
1172	1172	18 Employees' Retirement System, or Judicial Retirement Fund
1173	1173	19 during that period. The person may not contribute to the
1174	1174	20 retirement system and may not earn any additional service
1175	1175	21 credit during the period of employment or contract.
1176	1176	22 (b) Any person retired under the District Attorneys'
1177	1177	23 Plan who is serving as an elected official may serve for
1178	1178	24 compensation without suspension of benefits so long as the
1179	1179	25 position is otherwise prohibited from participating in the
1180	1180	26 Teachers' Retirement System, Employees' Retirement System, or
1181	1181	27 Judicial Retirement Fund.
1182	1182	Page 44 1 (c) An employer shall pay employer contributions, as
1183	1183	2 provided by Section 12-17-227.2, Code of Alabama 1975, on all
1184	1184	3 earnable compensation of an employee who is retired under the
1185	1185	4 Teachers' Retirement System, Employees' Retirement System, or
1186	1186	5 Judicial Retirement Fund, regardless of membership status.
1187	1187	6 (d) Any person retired under the Teachers'
1188	1188	7 Retirement System, Employees' Retirement System, or Judicial
1189	1189	8 Retirement Fund who is employed with an employer may become a
1190	1190	9 member by suspending his or her retirement allowance and
1191	1191	10 contributing to the retirement system as provided by Section
1192	1192	11 12-17-227.2, Code of Alabama 1975.
1193	1193	12 (e) Any person retired under the District Attorneys'
1194	1194	13 Plan as of the effective date of this act shall be presumed to
1195	1195	14 have drawn his or her retirement benefit for 12 consecutive
1196	1196	15 months without performing services for compensation for any
1197	1197	16 employer participating in Teachers' Retirement System,
1198	1198	17 Employees' Retirement System, or Judicial Retirement Fund
1199	1199	18 during that period.
1200	1200	19 Section 6. Sections 16-25-26, 29-4-6, and 36-27-8.2
1201	1201	20 of the Code of Alabama 1975, authorizing certain retired state
1202	1202	21 employees to return to work for the state, are repealed.
1203	1203	22 Section 7. This act shall become effective on the
1204	1204	23 first day of the third month following its passage and
1205	1205	24 approval by the Governor, or its otherwise becoming law.
1206	1206	Page 45