Alabama 2022 Regular Session

Alabama House Bill HB308 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 HB308
2		-	2 216794-3
	2	+	2 216794-2
3	3		3 By Representative Ingram
4	4		4 RFD: Ways and Means General Fund
5	5		5 First Read: 08-FEB-22
6	6
7		-	Page 0 HB308
8		-	1
9		-	2 ENROLLED, An Act,
10		-	3 To amend Section 36-27-16, Code of Alabama 1975, as
11		-	4 amended by Act 2021-270, 2021 Regular Session, relating to
12		-	5 retirement benefits for employees who are members of the
13		-	6 Employees' Retirement System; to modify the retirement
14		-	7 benefits for Tier II plan members of the system by providing
15		-	8 30-year service retirement.
16		-	9 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
17		-	10 Section 1. Sections 36-26-36.1, 36-27-16, as amended
18		-	11 by Act 2021-270, 2021 Regular Session, 36-27-24, and 36-27-59
19		-	12 of the Code of Alabama 1975, are amended to read as follows:
20		-	13 Section 36-27-16, Code of Alabama 1975, as amended by Act
21		-	14 2021-270, 2021 Regular Session, is amended to read as follows:
22		-	15 "§36-26-36.1.
23		-	16 "(a) Any Tier I or Tier II plan member of the
24		-	17 Teachers' or Employees' Retirement System of Alabama not
25		-	18 otherwise covered by a provision to convert unused sick leave
26		-	19 into membership service for purposes of service retirement
27		-	20 may, at their option and in lieu of receiving payment for 50
28		-	21 percent of their accrued and unused sick leave at the time of
29		-	22 their retirement as provided in Section 36-26-36, or any other
30		-	23 payment that may be provided for such unused sick leave, use
31		-	24 their accrued sick leave, up to a maximum number of 180
32		-	25 accrued sick leave days or as otherwise allowed by law,
33		-	Page 1 HB308
34		-	1 whichever is greater, to be included as membership service in
35		-	2 determining the total years of creditable service in the
36		-	3 Employees' Retirement System of Alabama or the Teachers'
37		-	4 Retirement System of Alabama; provided that no employee of an
38		-	5 employer participating in the Employees' Retirement System
39		-	6 pursuant to Section 36-27-6 shall be entitled to the benefits
40		-	7 provided herein unless such employer shall elect to come under
41		-	8 the provisions of this section and further elects to fund the
42		-	9 benefits provided herein. Unused sick leave may be converted
43		-	10 to membership service only for the purpose of applying for
44		-	11 service retirement and may be considered in the determination
45		-	12 of eligibility for retirement. The conversion shall not apply
46		-	13 to eligibility for deferred retirement. It is further provided
47		-	14 that if a Tier I or Tier II plan member eligible for service
48		-	15 retirement is also eligible for disability retirement the
49		-	16 member may elect disability retirement and also receive credit
50		-	17 for accumulated sick leave pursuant to this section. No Tier I
51		-	18 or Tier II plan member shall receive both service credit
52		-	19 provided for by this section and payment or partial payment
53		-	20 for accrued sick leave pursuant to any other provision of law.
54		-	21 "(b) The conversion of accrued sick leave into
55		-	22 creditable service provided in this section shall not apply to
56		-	23 any Tier II plan member.
57		-	24 "§36-27-16.
58		-	Page 2 HB308
59		-	1 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
60		-	2 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
61		-	3 "a. Any Tier I plan member who withdraws from
62		-	4 service upon or after attainment of age 60 and any Tier II
63		-	5 plan member who withdraws from service upon or after
64		-	6 attainment of age 62 may retire upon written application to
65		-	7 the Board of Control setting forth at what time, not less than
66		-	8 30 days nor more than 90 days subsequent to the execution and
67		-	9 filing thereof, he or she desires to be retired; provided,
68		-	10 that any such member who became a member on or after October
69		-	11 1, 1963, shall have completed 10 or more years of creditable
70		-	12 service; provided further, that a Tier I plan member employed
71		-	13 as a state policeman shall be eligible to file application for
72		-	14 service retirement upon attaining age 52 and a Tier II plan
73		-	15 member employed as a state policeman or employed as a
74		-	16 correctional officer, firefighter, or law enforcement officer
75		-	17 as defined in Section 36-27-59 with at least ten 10 years of
76		-	18 creditable service as a correctional officer, firefighter, or
77		-	19 law enforcement officer shall be eligible to file application
78		-	20 for service retirement upon attaining age 56.
79		-	21 "b. Any Tier I plan member who has attained age 60,
80		-	22 or age 52 in the case of a state policeman and any Tier II
81		-	23 plan member who has attained age 62, or age 56 in the case of
82		-	24 a state policeman or in the case of a correctional officer,
83		-	25 firefighter, or law enforcement officer as defined in Section
84		-	Page 3 HB308
85		-	1 36-27-59 who has at least ten 10 years of creditable service
86		-	2 as a correctional officer, firefighter, or law enforcement
87		-	3 officer, and has previously withdrawn from service may retire
88		-	4 upon written application to the Board of Control setting forth
89		-	5 at what time, not less than 30 days nor more than 90 days
90		-	6 subsequent to the execution and filing thereof, he or she
91		-	7 desires to be retired; provided, the member shall have at the
92		-	8 time of his or her withdrawal from service completed the age
93		-	9 and service requirements established by the Board of Control
94		-	10 for eligibility for deferred benefits; provided, that such
95		-	11 minimum number of years of creditable service shall not be
96		-	12 less than 10 years nor more than 25 years.
97		-	13 "c. In addition to any law or part of law relating
98		-	14 to service retirement under the Employees' Retirement System
99		-	15 of Alabama, any Tier I plan member of the Employees'
100		-	16 Retirement System who withdraws from service after completion
101		-	17 of not less than 25 years of creditable service, or any Tier
102		-	18 II plan member who withdraws from service after completion of
103		-	19 not less than 30 years of creditable service, may retire
104		-	20 without a reduction in retirement allowance upon written
105		-	21 application to the Board of Control of the Employees'
106		-	22 Retirement System setting forth the first day of which month,
107		-	23 not less than 30 days or more than 90 days subsequent to the
108		-	24 execution and filing thereof, he or she desires to be retired,
109		-	25 provided that no person whose employer participates in the
110		-	Page 4 HB308
111		-	1 Employees' Retirement System under Section 36-27-6 shall be
	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 To amend Sections 36-26-36.1, 36-27-16, as amended
	15	+	9 by Act 2021-270, 2021 Regular Session, 36-27-24, and 36-27-59,
	16	+	10 Code of Alabama 1975, relating to retirement benefits for
	17	+	11 employees who are members of the Employees' Retirement System;
	18	+	12 to modify the retirement benefits for Tier II plan members of
	19	+	13 the system by providing 30-year service retirement, allowing
	20	+	14 the conversion of sick leave into creditable service, and, for
	21	+	15 firefighters, law enforcement officers, and correctional
	22	+	16 officers, providing hazardous duty time; and to increase the
	23	+	17 Tier II plan member contribution rate.
	24	+	18 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	25	+	19 Section 1. Sections 36-26-36.1, 36-27-16, as amended
	26	+	20 by Act 2021-270, 2021 Regular Session, 36-27-24, and 36-27-59
	27	+	21 of the Code of Alabama 1975, are amended to read as follows:
	28	+	22 "§36-26-36.1.
	29	+	23 "(a) Any Tier I or Tier II plan member of the
	30	+	24 Teachers' or Employees' Retirement System of Alabama not
	31	+	25 otherwise covered by a provision to convert unused sick leave
	32	+	26 into membership service for purposes of service retirement
	33	+	27 may, at their option and in lieu of receiving payment for 50
	34	+	Page 1 1 percent of their accrued and unused sick leave at the time of
	35	+	2 their retirement as provided in Section 36-26-36, or any other
	36	+	3 payment that may be provided for such unused sick leave, use
	37	+	4 their accrued sick leave, up to a maximum number of 180
	38	+	5 accrued sick leave days or as otherwise allowed by law,
	39	+	6 whichever is greater, to be included as membership service in
	40	+	7 determining the total years of creditable service in the
	41	+	8 Employees' Retirement System of Alabama or the Teachers'
	42	+	9 Retirement System of Alabama; provided that no employee of an
	43	+	10 employer participating in the Employees' Retirement System
	44	+	11 pursuant to Section 36-27-6 shall be entitled to the benefits
	45	+	12 provided herein unless such employer shall elect to come under
	46	+	13 the provisions of this section and further elects to fund the
	47	+	14 benefits provided herein. Unused sick leave may be converted
	48	+	15 to membership service only for the purpose of applying for
	49	+	16 service retirement and may be considered in the determination
	50	+	17 of eligibility for retirement. The conversion shall not apply
	51	+	18 to eligibility for deferred retirement. It is further provided
	52	+	19 that if a Tier I or Tier II plan member eligible for service
	53	+	20 retirement is also eligible for disability retirement the
	54	+	21 member may elect disability retirement and also receive credit
	55	+	22 for accumulated sick leave pursuant to this section. No Tier I
	56	+	23 or Tier II plan member shall receive both service credit
	57	+	24 provided for by this section and payment or partial payment
	58	+	25 for accrued sick leave pursuant to any other provision of law.
	59	+	Page 2 1 "(b) The conversion of accrued sick leave into
	60	+	2 creditable service provided in this section shall not apply to
	61	+	3 any Tier II plan member.
	62	+	4 "§36-27-16.
	63	+	5 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
	64	+	6 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
	65	+	7 "a. Any Tier I plan member who withdraws from
	66	+	8 service upon or after attainment of age 60 and any Tier II
	67	+	9 plan member who withdraws from service upon or after
	68	+	10 attainment of age 62 may retire upon written application to
	69	+	11 the Board of Control setting forth at what time, not less than
	70	+	12 30 days nor more than 90 days subsequent to the execution and
	71	+	13 filing thereof, he or she desires to be retired; provided,
	72	+	14 that any such member who became a member on or after October
	73	+	15 1, 1963, shall have completed 10 or more years of creditable
	74	+	16 service; provided further, that a Tier I plan member employed
	75	+	17 as a state policeman shall be eligible to file application for
	76	+	18 service retirement upon attaining age 52 and a Tier II plan
	77	+	19 member employed as a state policeman or employed as a
	78	+	20 correctional officer, firefighter, or law enforcement officer
	79	+	21 as defined in Section 36-27-59 with at least ten 10 years of
	80	+	22 creditable service as a correctional officer, firefighter, or
	81	+	23 law enforcement officer shall be eligible to file application
	82	+	24 for service retirement upon attaining age 56.
	83	+	25 "b. Any Tier I plan member who has attained age 60,
	84	+	26 or age 52 in the case of a state policeman and any Tier II
	85	+	27 plan member who has attained age 62, or age 56 in the case of
	86	+	Page 3 1 a state policeman or in the case of a correctional officer,
	87	+	2 firefighter, or law enforcement officer as defined in Section
	88	+	3 36-27-59 who has at least ten 10 years of creditable service
	89	+	4 as a correctional officer, firefighter, or law enforcement
	90	+	5 officer, and has previously withdrawn from service may retire
	91	+	6 upon written application to the Board of Control setting forth
	92	+	7 at what time, not less than 30 days nor more than 90 days
	93	+	8 subsequent to the execution and filing thereof, he or she
	94	+	9 desires to be retired; provided, the member shall have at the
	95	+	10 time of his or her withdrawal from service completed the age
	96	+	11 and service requirements established by the Board of Control
	97	+	12 for eligibility for deferred benefits; provided, that such
	98	+	13 minimum number of years of creditable service shall not be
	99	+	14 less than 10 years nor more than 25 years.
	100	+	15 "c. In addition to any law or part of law relating
	101	+	16 to service retirement under the Employees' Retirement System
	102	+	17 of Alabama, any Tier I plan member of the Employees'
	103	+	18 Retirement System who withdraws from service after completion
	104	+	19 of not less than 25 years of creditable service, or any Tier
	105	+	20 II plan member who withdraws from service after completion of
	106	+	21 not less than 30 years of creditable service, may retire
	107	+	22 without a reduction in retirement allowance upon written
	108	+	23 application to the Board of Control of the Employees'
	109	+	24 Retirement System setting forth the first day of which month,
	110	+	25 not less than 30 days or more than 90 days subsequent to the
	111	+	26 execution and filing thereof, he or she desires to be retired,
	112	+	27 provided that no person whose employer participates in the
	113	+	Page 4 1 Employees' Retirement System under Section 36-27-6 shall be
112	114		2 entitled to the benefits provided in this paragraph for Tier I
113	115		3 members unless such employer elects to come under the
114	116		4 provisions of the paragraph. Any employer making such election
115	117		5 must bear the cost of such benefit.
116	118		6 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
117	119		7 "a. Upon retirement from service, a Tier I plan
118	120		8 member shall receive a service retirement allowance which
119	121		9 shall consist of:
120	122		10 "1. An annuity which shall be the actuarial
121	123		11 equivalent of his or her accumulated contributions at the time
122	124		12 of his or her retirement; except, that in the case of a state
123	125		13 policeman who has completed 20 years of creditable service as
124	126		14 a state policeman who retires after age 56 but prior to age
125	127		15 60, the annuity shall be equal to the annuity that would have
126	128		16 been payable upon service retirement at age 60 had the member
127	129		17 continued in service to age 60 without change in compensation;
128	130		18 "2. A pension which shall be equal to the annuity
129	131		19 allowance at age of retirement, but not to exceed an annuity
130	132		20 allowable at age 65, computed on the basis of contributions
131	133		21 made prior to attainment of age 65; except, that in the case
132	134		22 of a state policeman who has completed 20 years of creditable
133	135		23 service as a state policeman who retires after age 56 but
134	136		24 prior to age 60, the pension shall be equal to the annuity
135		-	Page 5 HB308
136		-	1 that he or she would have received had he or she contributed
137		-	2 to age 60 without change in compensation; and
138		-	3 "3. An additional pension, if he or she has a prior
139		-	4 service certificate in full force and effect, which shall be
140		-	5 equal to the annuity which would have been provided at the age
141		-	6 of retirement, but which shall not exceed an annuity allowable
142		-	7 at age 65 by twice the contributions which he or she would
143		-	8 have made during the period of prior service with which he or
144		-	9 she is credited had the system been in operation and had he or
145		-	10 she contributed thereunder; except, that in case of a state
146		-	11 policeman who has completed 20 years of creditable service as
147		-	12 a state policeman who retired after age 56 but prior to age
148		-	13 60, an additional pension, if he or she has a prior service
149		-	14 certificate in full force and effect, which shall be equal to
150		-	15 the annuity which would have been provided at age 60, but
151		-	16 which shall not exceed an annuity allowable at age 60 by twice
152		-	17 the contributions which he or she would have made during the
153		-	18 period of prior service with which he or she is credited had
154		-	19 the system been in operation and had he or she contributed
155		-	20 thereunder.
156		-	21 "b. Notwithstanding the provisions of subparagraphs
157		-	22 1., 2., and 3. of paragraph a. of this subdivision, a state
158		-	23 policeman who is a Tier I plan member and who has completed 20
159		-	24 years of service as a state policeman who retires after age 52
160		-	25 but prior to age 56 shall receive:
161		-	Page 6 HB308
162		-	1 "1. An annuity which shall be equal to the annuity
163		-	2 that would have been payable had the member continued in
164		-	3 service for four years without change in compensation;
165		-	4 "2. A pension which shall be equal to the annuity
166		-	5 that he or she would have received had he or she contributed
167		-	6 for four years without change in compensation; and
168		-	7 "3. An additional pension, if he or she has a prior
169		-	8 service certificate in full force and effect, which shall be
170		-	9 equal to the annuity which would have been provided at the age
171		-	10 of retirement, but which shall not exceed an annuity allowable
172		-	11 at the age of retirement plus four years by twice the
173		-	12 contributions which he or she would have made during the
174		-	13 period of prior service with which he or she is credited had
175		-	14 the system been in operation and had he or she contributed
176		-	15 thereunder. In lieu of a determination of the actual
177		-	16 compensation of a member that was received during such prior
178		-	17 service, the Board of Control may use for the purpose of this
179		-	18 article the compensation rate which, if it had progressed with
180		-	19 the rates of salary increase shown in the tables as prescribed
181		-	20 in subsection (n) of Section 36-27-23, would have resulted in
182		-	21 the same average salary of the member for the five years
183		-	22 immediately preceding the date of establishment as the records
184		-	23 show the member actually received.
185		-	24 "c. The annual service retirement pension payable to
186		-	25 a Tier I plan member not employed as a state policeman
187		-	Page 7 HB308
188		-	1 retiring on or after October 1, 1975, shall not be less than
189		-	2 an amount which, when added to his or her annuity, is equal to
190		-	3 the greater of the following two amounts:
191		-	4 "1. Two and one-eightieth percent of the member's
192		-	5 average final compensation multiplied by the number of years
193		-	6 of his or her creditable service; or
194		-	7 "2. If he or she became a member before October 1,
195		-	8 1965, $72.00 seventy-two dollars ($72) multiplied by the
196		-	9 number of years of his or her creditable service not in excess
197		-	10 of 25 years.
198		-	11 "d. The annual service retirement pension payable to
199		-	12 a Tier I plan member employed as a state policeman retiring on
200		-	13 or after October 1, 1975, shall not be less than an amount
201		-	14 which, when added to his or her annuity is equal to the
202		-	15 greater of the following two amounts:
203		-	16 "1. Two and seven-eighths percent of the member's
204		-	17 average final compensation multiplied by the number of years
205		-	18 of his or her creditable service. Creditable service for any
206		-	19 state policeman under the age of 56 years who has completed 20
207		-	20 years of creditable service as a state policeman shall include
208		-	21 a bonus equal to four additional years. Creditable service for
209		-	22 a state policeman 56 years or older shall include a bonus
210		-	23 equal to the years or portion thereof remaining until the
211		-	24 member reaches age 60; or
212		-	Page 8 HB308
213		-	1 "2. If he or she became a member before October 1,
214		-	2 1965, $86.40 eighty-six dollars forty cents ($86.40)
215		-	3 multiplied by the number of years of his or her creditable
216		-	4 service not in excess of 25 years; provided, however, that if
217		-	5 such member has completed 20 years of creditable service as a
218		-	6 state policeman and has not attained age 60 at the time of
219		-	7 retirement, the pension shall be determined as provided in
220		-	8 this subparagraph on the basis of the number of years of
221		-	9 creditable service which he or she would have had if he or she
222		-	10 had remained in service for four years, except that, in the
223		-	11 case of those state policemen retiring at age 56 or after, the
224		-	12 number of years in determining the pension shall not exceed
225		-	13 the number of years of creditable service which he or she
226		-	14 would have had if he or she had remained in service to age 60.
227		-	15 "e. Upon retirement from service, a Tier II plan
228		-	16 member who is not employed as a state policeman shall receive
229		-	17 a service retirement allowance which shall consist of an
230		-	18 annuity which shall be the actuarial equivalent of the
231		-	19 member's accumulated contributions at the time of retirement
232		-	20 and a pension which, when added to the member's annuity, shall
233		-	21 be equal to one and sixty-five hundredths percent (1.65%) of
234		-	22 the member's average final compensation multiplied by the
235		-	23 number of years of creditable service. The service retirement
236		-	24 allowance for a member that retires with 30 years of
237		-	25 creditable service before reaching the age of 62 shall be
238		-	Page 9 HB308
239		-	1 reduced by two percent (2%) for each year of the difference
240		-	2 between age 62 and the age at retirement of the member.
241		-	3 Notwithstanding the foregoing, the service retirement
242		-	4 allowance shall not exceed eighty percent (80%) of the
243		-	5 member's average final compensation.
244		-	6 "f. Upon retirement from service, a Tier II plan
245		-	7 member who is employed as a state policeman shall receive a
246		-	8 service retirement allowance which shall consist of an annuity
247		-	9 which shall be the actuarial equivalent of the member's
248		-	10 accumulated contributions at the time of retirement and a
249		-	11 pension which, when added to the member's annuity, shall be
250		-	12 equal to two and three-eighths percent (2.375%) of the
251		-	13 member's average final compensation multiplied by the member's
252		-	14 number of years of creditable service. The service retirement
253		-	15 allowance for a member that retires with 30 years of
254		-	16 creditable service before reaching the age of 62 shall be
255		-	17 reduced by two percent (2%) for each year of the difference
256		-	18 between age 62 and the age at retirement of the member.
257		-	19 Notwithstanding the foregoing, the service retirement
258		-	20 allowance shall not exceed eighty percent (80%) of the
259		-	21 member's average final compensation.
260		-	22 "g. Anything in this article to the contrary
261		-	23 notwithstanding, in the application of the foregoing
262		-	24 provisions of this subdivision to a member whose creditable
263		-	25 service includes a period of service as a state policeman and
264		-	Page 10 HB308
265		-	1 a period of service in another employment classification, the
266		-	2 benefit rates applicable to a member employed as a state
267		-	3 policeman shall apply to all creditable service as a state
268		-	4 policeman, and the benefit rates applicable to a member not
269		-	5 employed as a state policeman shall apply to all creditable
270		-	6 service, but in all other respects the pension under this
271		-	7 subdivision shall be determined on the basis of the member's
272		-	8 employment classification at the time of his or her withdrawal
273		-	9 from service.
274		-	10 "h. The annual service retirement pension payable to
275		-	11 any state employee who had attained age 60 on or before
276		-	12 October 1, 1945, who declined membership in the Employees'
277		-	13 Retirement System of Alabama in the manner prescribed in
278		-	14 Section 36-27-4 and who retires as a state employee after
279		-	15 completing a minimum of 15 years' service shall be $72.00
280		-	16 seventy-two dollars ($72) multiplied by the number of years of
281		-	17 his or her service not in excess of 25 years.
282		-	18 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
283		-	19 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
284		-	20 "a. Upon application of a Tier I plan member in
285		-	21 service or of his or her employer, any member who has had 10
286		-	22 or more years of creditable service who becomes disabled may
287		-	23 be retired on a disability retirement allowance by the Board
288		-	24 of Control not less than 30 nor more than 90 days next
289		-	25 following the date of filing of such application; provided,
290		-	Page 11 HB308
291		-	1 that the medical board, after a medical examination of such
292		-	2 member, shall certify that such member is mentally or
293		-	3 physically incapacitated for the further performance of duty,
294		-	4 that such incapacity is likely to be permanent and that such
295		-	5 member should be retired. Upon the application of a Tier II
296		-	6 plan member in service or his or her employer, any member who
297		-	7 has had 10 or more years of creditable service may be retired
298		-	8 by the Board of Control on a disability retirement allowance
299		-	9 not less than 30 nor more than 90 days next following the date
300		-	10 of filing such application; provided, that the medical board,
301		-	11 after a medical examination of such member, shall certify that
302		-	12 the member is totally and permanently mentally or physically
303		-	13 incapacitated from regular and substantial gainful employment,
304		-	14 and that member should be retired.
305		-	15 "b. Without regard to the number of years of
306		-	16 creditable service, a member employed as a state policeman, a
307		-	17 municipal police officer or a deputy sheriff, or a member
308		-	18 employed as a state, municipal, or county firefighter who is
309		-	19 not covered through his or her current employer under the
310		-	20 United States Social Security Act, who as a result of his or
311		-	21 her employment, in the line of duty and not as a result of his
312		-	22 or her own misconduct, shall become permanently and totally
313		-	23 disabled to the extent that he or she cannot perform his or
314		-	24 her duties or duties of a less strenuous nature, as an
315		-	25 employee of the State of Alabama or as an employee of an
316		-	Page 12 HB308
317		-	1 employer participating under the provisions of Section
318		-	2 36-27-6, shall be retired on a disability retirement
319		-	3 allowance, not less than 30 nor more than 90 days next
320		-	4 following the date of filing of such application, provided
321		-	5 that the medical board, after a medical examination of such
322		-	6 member shall certify that such member is mentally or
323		-	7 physically incapacitated for the further performance of duty,
324		-	8 that such incapacity is likely to be permanent, and that such
325		-	9 member should be retired.
326		-	10 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
327		-	11 "a. Upon retirement for disability, a member shall
328		-	12 receive a service retirement allowance if he or she is a Tier
329		-	13 I plan member and he or she has attained age 60 or if he or
330		-	14 she is a Tier II plan member and he or she has attained age
331		-	15 62, or if any law or part of any law pertaining to retirement
332		-	16 under the Employees' Retirement System of Alabama provides for
333		-	17 service retirement after the completion of 25 years of
334		-	18 creditable service or 30 years of creditable service without a
335		-	19 reduction in the retirement allowance and the member has
336		-	20 completed 25 years of creditable service or 30 years of
337		-	21 creditable service, whichever is applicable, or, in the case
338		-	22 of a state policeman, if he or she is a Tier I plan member and
339		-	23 he or she has attained age 52 or, in the case of a state
340		-	24 policeman or a correctional officer, firefighter, or law
341		-	25 enforcement officer as defined in Section 36-27-59 with at
342		-	Page 13 HB308
343		-	1 least ten 10 years of creditable service as a correctional
344		-	2 officer, firefighter, or law enforcement officer, if he or she
345		-	3 is a Tier II plan member and he or she has attained age 56;
346		-	4 otherwise, he or she shall receive a disability retirement
347		-	5 allowance which shall consist of:
348		-	6 "1. An annuity which shall be the actuarial
349		-	7 equivalent of his or her accumulated contributions at the time
350		-	8 of his or her retirement;
351		-	9 "2. A pension which shall be equal to the pension
352		-	10 that would have been payable under subparagraphs 2 and 3 of
353		-	11 paragraph a. of subdivision (2) of subsection (a) of this
354		-	12 section upon service retirement at age 65 had the member
355		-	13 continued in service to that age without change in
356		-	14 compensation.
357		-	15 "b. The annual disability retirement pension payable
358		-	16 to a Tier I plan member not employed as a state policeman
359		-	17 retiring on or after October 1, 1975, shall not be less than
360		-	18 an amount which when added to his or her annuity is equal to
361		-	19 the greatest of the following two amounts:
362		-	20 "1. Two and one-eightieth percent of the member's
363		-	21 average final compensation multiplied by the number of years
364		-	22 of creditable service.
365		-	23 "2. If he or she became a member before October 1,
366		-	24 1965, $54.00 fifty-four dollars ($54) multiplied by the number
367		-	Page 14 HB308
368		-	1 of years of his or her creditable service not in excess of 25
369		-	2 years.
370		-	3 "c. The annual disability retirement pension payable
371		-	4 to a Tier I plan member employed as a state policeman retiring
372		-	5 on or after October 1, 1975, shall not be less than an amount
373		-	6 which when added to his or her annuity is equal to the greater
374		-	7 of the following two amounts:
375		-	8 "1. Two and seven-eighths percent of the member's
376		-	9 average final compensation multiplied by the number of years
377		-	10 of his or her creditable service. Creditable service for any
378		-	11 state policeman under the age of 56 years who has completed 20
379		-	12 years of creditable service as a state policeman shall include
380		-	13 a bonus equal to four additional years. Creditable service for
381		-	14 a state policeman 56 years or older shall include a bonus
382		-	15 equal to the years or portion thereof remaining until the
383		-	16 member reaches age 60; or
384		-	17 "2. If he or she became a member before October 1,
385		-	18 1965, $64.80 sixty-four dollars eighty cents ($64.80)
386		-	19 multiplied by the number of years of his or her creditable
387		-	20 service not in excess of 25 years.
388		-	21 "d. The annual disability retirement allowance
389		-	22 payable to a Tier II plan member not employed as a state
390		-	23 policeman shall be equal to one and sixty-five hundredths
391		-	24 percent (1.65%) of the member's average final compensation
392		-	25 multiplied by the number of years of creditable service.
393		-	Page 15 HB308
394		-	1 "e. The annual disability retirement allowance
	137	+	25 that he or she would have received had he or she contributed
	138	+	26 to age 60 without change in compensation; and
	139	+	Page 5 1 "3. An additional pension, if he or she has a prior
	140	+	2 service certificate in full force and effect, which shall be
	141	+	3 equal to the annuity which would have been provided at the age
	142	+	4 of retirement, but which shall not exceed an annuity allowable
	143	+	5 at age 65 by twice the contributions which he or she would
	144	+	6 have made during the period of prior service with which he or
	145	+	7 she is credited had the system been in operation and had he or
	146	+	8 she contributed thereunder; except, that in case of a state
	147	+	9 policeman who has completed 20 years of creditable service as
	148	+	10 a state policeman who retired after age 56 but prior to age
	149	+	11 60, an additional pension, if he or she has a prior service
	150	+	12 certificate in full force and effect, which shall be equal to
	151	+	13 the annuity which would have been provided at age 60, but
	152	+	14 which shall not exceed an annuity allowable at age 60 by twice
	153	+	15 the contributions which he or she would have made during the
	154	+	16 period of prior service with which he or she is credited had
	155	+	17 the system been in operation and had he or she contributed
	156	+	18 thereunder.
	157	+	19 "b. Notwithstanding the provisions of subparagraphs
	158	+	20 1., 2., and 3. of paragraph a. of this subdivision, a state
	159	+	21 policeman who is a Tier I plan member and who has completed 20
	160	+	22 years of service as a state policeman who retires after age 52
	161	+	23 but prior to age 56 shall receive:
	162	+	24 "1. An annuity which shall be equal to the annuity
	163	+	25 that would have been payable had the member continued in
	164	+	26 service for four years without change in compensation;
	165	+	Page 6 1 "2. A pension which shall be equal to the annuity
	166	+	2 that he or she would have received had he or she contributed
	167	+	3 for four years without change in compensation; and
	168	+	4 "3. An additional pension, if he or she has a prior
	169	+	5 service certificate in full force and effect, which shall be
	170	+	6 equal to the annuity which would have been provided at the age
	171	+	7 of retirement, but which shall not exceed an annuity allowable
	172	+	8 at the age of retirement plus four years by twice the
	173	+	9 contributions which he or she would have made during the
	174	+	10 period of prior service with which he or she is credited had
	175	+	11 the system been in operation and had he or she contributed
	176	+	12 thereunder. In lieu of a determination of the actual
	177	+	13 compensation of a member that was received during such prior
	178	+	14 service, the Board of Control may use for the purpose of this
	179	+	15 article the compensation rate which, if it had progressed with
	180	+	16 the rates of salary increase shown in the tables as prescribed
	181	+	17 in subsection (n) of Section 36-27-23, would have resulted in
	182	+	18 the same average salary of the member for the five years
	183	+	19 immediately preceding the date of establishment as the records
	184	+	20 show the member actually received.
	185	+	21 "c. The annual service retirement pension payable to
	186	+	22 a Tier I plan member not employed as a state policeman
	187	+	23 retiring on or after October 1, 1975, shall not be less than
	188	+	24 an amount which, when added to his or her annuity, is equal to
	189	+	25 the greater of the following two amounts:
	190	+	Page 7 1 "1. Two and one-eightieth percent of the member's
	191	+	2 average final compensation multiplied by the number of years
	192	+	3 of his or her creditable service; or
	193	+	4 "2. If he or she became a member before October 1,
	194	+	5 1965, $72.00 seventy-two dollars ($72) multiplied by the
	195	+	6 number of years of his or her creditable service not in excess
	196	+	7 of 25 years.
	197	+	8 "d. The annual service retirement pension payable to
	198	+	9 a Tier I plan member employed as a state policeman retiring on
	199	+	10 or after October 1, 1975, shall not be less than an amount
	200	+	11 which, when added to his or her annuity is equal to the
	201	+	12 greater of the following two amounts:
	202	+	13 "1. Two and seven-eighths percent of the member's
	203	+	14 average final compensation multiplied by the number of years
	204	+	15 of his or her creditable service. Creditable service for any
	205	+	16 state policeman under the age of 56 years who has completed 20
	206	+	17 years of creditable service as a state policeman shall include
	207	+	18 a bonus equal to four additional years. Creditable service for
	208	+	19 a state policeman 56 years or older shall include a bonus
	209	+	20 equal to the years or portion thereof remaining until the
	210	+	21 member reaches age 60; or
	211	+	22 "2. If he or she became a member before October 1,
	212	+	23 1965, $86.40 eighty-six dollars forty cents ($86.40)
	213	+	24 multiplied by the number of years of his or her creditable
	214	+	25 service not in excess of 25 years; provided, however, that if
	215	+	26 such member has completed 20 years of creditable service as a
	216	+	27 state policeman and has not attained age 60 at the time of
	217	+	Page 8 1 retirement, the pension shall be determined as provided in
	218	+	2 this subparagraph on the basis of the number of years of
	219	+	3 creditable service which he or she would have had if he or she
	220	+	4 had remained in service for four years, except that, in the
	221	+	5 case of those state policemen retiring at age 56 or after, the
	222	+	6 number of years in determining the pension shall not exceed
	223	+	7 the number of years of creditable service which he or she
	224	+	8 would have had if he or she had remained in service to age 60.
	225	+	9 "e. Upon retirement from service, a Tier II plan
	226	+	10 member who is not employed as a state policeman shall receive
	227	+	11 a service retirement allowance which shall consist of an
	228	+	12 annuity which shall be the actuarial equivalent of the
	229	+	13 member's accumulated contributions at the time of retirement
	230	+	14 and a pension which, when added to the member's annuity, shall
	231	+	15 be equal to one and sixty-five hundredths percent (1.65%) of
	232	+	16 the member's average final compensation multiplied by the
	233	+	17 number of years of creditable service. Notwithstanding the
	234	+	18 foregoing, the service retirement allowance shall not exceed
	235	+	19 eighty percent (80%) of the member's average final
	236	+	20 compensation.
	237	+	21 "f. Upon retirement from service, a Tier II plan
	238	+	22 member who is employed as a state policeman shall receive a
	239	+	23 service retirement allowance which shall consist of an annuity
	240	+	24 which shall be the actuarial equivalent of the member's
	241	+	25 accumulated contributions at the time of retirement and a
	242	+	26 pension which, when added to the member's annuity, shall be
	243	+	27 equal to two and three-eighths percent (2.375%) of the
	244	+	Page 9 1 member's average final compensation multiplied by the member's
	245	+	2 number of years of creditable service. Notwithstanding the
	246	+	3 foregoing, the service retirement allowance shall not exceed
	247	+	4 eighty percent (80%) of the member's average final
	248	+	5 compensation.
	249	+	6 "g. Anything in this article to the contrary
	250	+	7 notwithstanding, in the application of the foregoing
	251	+	8 provisions of this subdivision to a member whose creditable
	252	+	9 service includes a period of service as a state policeman and
	253	+	10 a period of service in another employment classification, the
	254	+	11 benefit rates applicable to a member employed as a state
	255	+	12 policeman shall apply to all creditable service as a state
	256	+	13 policeman, and the benefit rates applicable to a member not
	257	+	14 employed as a state policeman shall apply to all creditable
	258	+	15 service, but in all other respects the pension under this
	259	+	16 subdivision shall be determined on the basis of the member's
	260	+	17 employment classification at the time of his or her withdrawal
	261	+	18 from service.
	262	+	19 "h. The annual service retirement pension payable to
	263	+	20 any state employee who had attained age 60 on or before
	264	+	21 October 1, 1945, who declined membership in the Employees'
	265	+	22 Retirement System of Alabama in the manner prescribed in
	266	+	23 Section 36-27-4 and who retires as a state employee after
	267	+	24 completing a minimum of 15 years' service shall be $72.00
	268	+	25 seventy-two dollars ($72) multiplied by the number of years of
	269	+	26 his or her service not in excess of 25 years.
	270	+	Page 10 1 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
	271	+	2 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
	272	+	3 "a. Upon application of a Tier I plan member in
	273	+	4 service or of his or her employer, any member who has had 10
	274	+	5 or more years of creditable service who becomes disabled may
	275	+	6 be retired on a disability retirement allowance by the Board
	276	+	7 of Control not less than 30 nor more than 90 days next
	277	+	8 following the date of filing of such application; provided,
	278	+	9 that the medical board, after a medical examination of such
	279	+	10 member, shall certify that such member is mentally or
	280	+	11 physically incapacitated for the further performance of duty,
	281	+	12 that such incapacity is likely to be permanent and that such
	282	+	13 member should be retired. Upon the application of a Tier II
	283	+	14 plan member in service or his or her employer, any member who
	284	+	15 has had 10 or more years of creditable service may be retired
	285	+	16 by the Board of Control on a disability retirement allowance
	286	+	17 not less than 30 nor more than 90 days next following the date
	287	+	18 of filing such application; provided, that the medical board,
	288	+	19 after a medical examination of such member, shall certify that
	289	+	20 the member is totally and permanently mentally or physically
	290	+	21 incapacitated from regular and substantial gainful employment,
	291	+	22 and that member should be retired.
	292	+	23 "b. Without regard to the number of years of
	293	+	24 creditable service, a member employed as a state policeman, a
	294	+	25 municipal police officer or a deputy sheriff, or a member
	295	+	26 employed as a state, municipal, or county firefighter who is
	296	+	27 not covered through his or her current employer under the
	297	+	Page 11 1 United States Social Security Act, who as a result of his or
	298	+	2 her employment, in the line of duty and not as a result of his
	299	+	3 or her own misconduct, shall become permanently and totally
	300	+	4 disabled to the extent that he or she cannot perform his or
	301	+	5 her duties or duties of a less strenuous nature, as an
	302	+	6 employee of the State of Alabama or as an employee of an
	303	+	7 employer participating under the provisions of Section
	304	+	8 36-27-6, shall be retired on a disability retirement
	305	+	9 allowance, not less than 30 nor more than 90 days next
	306	+	10 following the date of filing of such application, provided
	307	+	11 that the medical board, after a medical examination of such
	308	+	12 member shall certify that such member is mentally or
	309	+	13 physically incapacitated for the further performance of duty,
	310	+	14 that such incapacity is likely to be permanent, and that such
	311	+	15 member should be retired.
	312	+	16 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
	313	+	17 "a. Upon retirement for disability, a member shall
	314	+	18 receive a service retirement allowance if he or she is a Tier
	315	+	19 I plan member and he or she has attained age 60 or if he or
	316	+	20 she is a Tier II plan member and he or she has attained age
	317	+	21 62, or if any law or part of any law pertaining to retirement
	318	+	22 under the Employees' Retirement System of Alabama provides for
	319	+	23 service retirement after the completion of 25 years of
	320	+	24 creditable service or 30 years of creditable service without a
	321	+	25 reduction in the retirement allowance and the member has
	322	+	26 completed 25 years of creditable service or 30 years of
	323	+	27 creditable service, whichever is applicable, or, in the case
	324	+	Page 12 1 of a state policeman, if he or she is a Tier I plan member and
	325	+	2 he or she has attained age 52 or, in the case of a state
	326	+	3 policeman or a correctional officer, firefighter, or law
	327	+	4 enforcement officer as defined in Section 36-27-59 with at
	328	+	5 least ten 10 years of creditable service as a correctional
	329	+	6 officer, firefighter, or law enforcement officer, if he or she
	330	+	7 is a Tier II plan member and he or she has attained age 56;
	331	+	8 otherwise, he or she shall receive a disability retirement
	332	+	9 allowance which shall consist of:
	333	+	10 "1. An annuity which shall be the actuarial
	334	+	11 equivalent of his or her accumulated contributions at the time
	335	+	12 of his or her retirement;
	336	+	13 "2. A pension which shall be equal to the pension
	337	+	14 that would have been payable under subparagraphs 2 and 3 of
	338	+	15 paragraph a. of subdivision (2) of subsection (a) of this
	339	+	16 section upon service retirement at age 65 had the member
	340	+	17 continued in service to that age without change in
	341	+	18 compensation.
	342	+	19 "b. The annual disability retirement pension payable
	343	+	20 to a Tier I plan member not employed as a state policeman
	344	+	21 retiring on or after October 1, 1975, shall not be less than
	345	+	22 an amount which when added to his or her annuity is equal to
	346	+	23 the greatest of the following two amounts:
	347	+	24 "1. Two and one-eightieth percent of the member's
	348	+	25 average final compensation multiplied by the number of years
	349	+	26 of creditable service.
	350	+	Page 13 1 "2. If he or she became a member before October 1,
	351	+	2 1965, $54.00 fifty-four dollars ($54) multiplied by the number
	352	+	3 of years of his or her creditable service not in excess of 25
	353	+	4 years.
	354	+	5 "c. The annual disability retirement pension payable
	355	+	6 to a Tier I plan member employed as a state policeman retiring
	356	+	7 on or after October 1, 1975, shall not be less than an amount
	357	+	8 which when added to his or her annuity is equal to the greater
	358	+	9 of the following two amounts:
	359	+	10 "1. Two and seven-eighths percent of the member's
	360	+	11 average final compensation multiplied by the number of years
	361	+	12 of his or her creditable service. Creditable service for any
	362	+	13 state policeman under the age of 56 years who has completed 20
	363	+	14 years of creditable service as a state policeman shall include
	364	+	15 a bonus equal to four additional years. Creditable service for
	365	+	16 a state policeman 56 years or older shall include a bonus
	366	+	17 equal to the years or portion thereof remaining until the
	367	+	18 member reaches age 60; or
	368	+	19 "2. If he or she became a member before October 1,
	369	+	20 1965, $64.80 sixty-four dollars eighty cents ($64.80)
	370	+	21 multiplied by the number of years of his or her creditable
	371	+	22 service not in excess of 25 years.
	372	+	23 "d. The annual disability retirement allowance
	373	+	24 payable to a Tier II plan member not employed as a state
	374	+	25 policeman shall be equal to one and sixty-five hundredths
	375	+	26 percent (1.65%) of the member's average final compensation
	376	+	27 multiplied by the number of years of creditable service.
	377	+	Page 14 1 "e. The annual disability retirement allowance
395	378		2 payable to a Tier II plan member employed as a state policeman
396	379		3 shall be equal to two and three-eighths percent (2.375%) of
397	380		4 the member's average final compensation multiplied by the
398	381		5 number of years of creditable service.
399	382		6 "f. Anything in this chapter to the contrary
400	383		7 notwithstanding in the application of the provisions of this
401	384		8 subdivision to a member whose creditable service includes a
402	385		9 period of service as a state policeman and a period of service
403	386		10 in another employment classification the benefit rates
404	387		11 applicable to a member employed as a state policeman shall
405	388		12 apply to all creditable service as a state policeman, and the
406	389		13 benefit rates applicable to a member not employed as a state
407	390		14 policeman shall apply to all other creditable service, but in
408	391		15 all other respects the pension under this subdivision shall be
409	392		16 determined on the basis of the member's employment
410	393		17 classification at the time of his or her withdrawal from
411	394		18 service.
412	395		19 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
413	396		20 ACCOUNT OF DISABILITY. Once each year during the first five
414	397		21 years following the retirement of a member on a disability
415	398		22 retirement allowance and once every three-year period
416	399		23 thereafter, the Board of Control may, and upon his or her
417	400		24 application shall, require any disability beneficiary who has
418	401		25 not yet attained age 60 if the beneficiary is a Tier I plan
419		-	Page 16 HB308
420		-	1 member or age 62 if the beneficiary is a Tier II plan member
421		-	2 to undergo a medical examination, such examination to be made
422		-	3 at the place of residence of such beneficiary or other place
423		-	4 mutually agreed upon by a physician or physicians of, or
424		-	5 designated by, the medical board. Should any disability
425		-	6 beneficiary who has not yet attained age 60, if the
426		-	7 beneficiary is a Tier I plan member or age 62 if the
427		-	8 beneficiary is a Tier II plan member, refuse to submit to such
428		-	9 medical examination, his or her allowance may be discontinued
429		-	10 until his or her withdrawal of such refusal, and, should his
430		-	11 or her refusal continue for one year, all his or her rights in
431		-	12 and to his or her pension may be revoked by the Board of
432		-	13 Control; provided, that these requirements relative to the
433		-	14 medical examination shall not apply in the case of a state
434		-	15 policeman retired for disability and who has attained age 52
435		-	16 if he or she is a Tier I plan member or in the case of a state
436		-	17 policeman or a correctional officer, firefighter, or law
437		-	18 enforcement officer as defined in Section 36-27-59 with at
438		-	19 least ten 10 years of creditable service as a correctional
439		-	20 officer, firefighter, or law enforcement officer retired for
440		-	21 disability who has attained age 56 if he or she is a Tier II
441		-	22 plan member. Should the medical board report and certify to
442		-	23 the Board of Control that a disability beneficiary who is a
443		-	24 Tier I plan member is engaged in or is able to engage in a
444		-	25 gainful occupation paying more than the difference between his
445		-	Page 17 HB308
446		-	1 or her retirement allowance and his or her average final
447		-	2 compensation and should the Board of Control concur in such
448		-	3 report, then the amount of his or her pension shall be reduced
449		-	4 to an amount which, together with his or her annuity and the
450		-	5 amount earnable by him or her shall equal the amount of his or
451		-	6 her average final compensation. Should his or her earning
452		-	7 capacity be later changed, the amount of his or her pension
453		-	8 may be further modified; provided, that the new pension shall
454		-	9 not exceed the amount of the pension originally granted nor an
455		-	10 amount which, when added to the amount earnable by the
456		-	11 beneficiary, together with this annuity exceeds the amount of
457		-	12 his or her average final compensation.
458		-	13 "Should the medical board report and certify to the
459		-	14 Board of Control that a disability beneficiary who is a Tier
460		-	15 II plan member has the capacity to engage in regular and
461		-	16 substantial gainful employment, the Board of Control shall
462		-	17 discontinue the beneficiary's retirement allowance until the
463		-	18 beneficiary is otherwise eligible for service retirement.
464		-	19 "(c) Disposition of contributions and allowances
465		-	20 upon death, etc., of member.
466		-	21 "(1) Should a member cease to be an employee except
467		-	22 by death or by retirement under the provisions of this
468		-	23 article, the contributions standing to the credit of his or
469		-	24 her individual account in the Annuity Savings Fund shall be
470		-	25 paid to him or her upon demand and, in addition to such
471		-	Page 18 HB308
472		-	1 payment, there shall be paid five-tenths of the interest
473		-	2 accumulations standing to the credit of his or her individual
474		-	3 account if he or she shall have not less than three but less
475		-	4 than 16 years of membership service, six-tenths of such
476		-	5 interest accumulations if he or she shall have not less than
477		-	6 16 but less than 21 years of membership service, seven-tenths
478		-	7 of such interest accumulations if he or she shall have not
479		-	8 less than 21 but less than 26 years of membership service and
480		-	9 eight-tenths of such interest accumulations if he or she shall
481		-	10 have not less than 26 years of membership service.
482		-	11 "(2) In case of the death of a member eligible for
483		-	12 service retirement pursuant to subsection (a) of this section,
484		-	13 an allowance shall be paid to the surviving spouse, or to such
485		-	14 other person who the member shall have designated, in an
486		-	15 amount that would have been payable if the member had retired
487		-	16 immediately prior to his or her death and had elected Option
488		-	17 3, as set forth in subsection (d) of this section or,
489		-	18 alternatively, if the surviving spouse or other designee
490		-	19 desires, he or she may choose to receive, in lieu of the
491		-	20 allowance provided under Option 3, the accumulated
492		-	21 contributions of the member plus an amount equal to the
493		-	22 accumulated contributions of the member not to exceed
494		-	23 $5,000.00 five thousand dollars ($5,000) or the accumulated
495		-	24 contributions of the member plus the benefit provided by
496		-	25 Section 36-27B-3 if a benefit is payable under such section;
497		-	Page 19 HB308
498		-	1 "(3) In case of the death of a Tier I plan member
499		-	2 not eligible for service retirement, after completion of 25
500		-	3 years of creditable service, an allowance shall be paid to the
501		-	4 surviving spouse, or to such other person who the member shall
502		-	5 have designated, in an amount that would have been payable if
503		-	6 the member had retired for disability immediately prior to his
504		-	7 or her death and had elected Option 3 as set forth in
505		-	8 subsection (d) of this section or, alternatively, if the
506		-	9 surviving spouse or other designee desires, he or she may
507		-	10 choose to receive, in lieu of the allowance provided under
508		-	11 Option 3, the accumulated contributions of the member plus an
509		-	12 amount equal to the accumulated contributions of the member
510		-	13 not to exceed $5,000.00 five thousand dollars ($5,000) or the
511		-	14 accumulated contributions of the member plus the benefit
512		-	15 provided by Section 36-27B-3 if a benefit is payable under
513		-	16 such section. For purposes of this subsection only, hazardous
514		-	17 duty time, as set forth in subdivision (b)(1) of Section
515		-	18 36-27-59, may be used in calculating the requisite years of
516		-	19 service for firefighters, law enforcement officers, and
517		-	20 correctional officers even if the member has not otherwise
518		-	21 attained 25 years of creditable service;
519		-	22 "(4) Upon the death of a member on account of whom
520		-	23 no survivor allowance is payable under subdivisions (2) or (3)
521		-	24 of this subsection, the accumulated contributions of the
522		-	25 member plus an amount equal to the accumulated contributions
523		-	Page 20 HB308
524		-	1 not to exceed $5,000 five thousand dollars ($5,000) or the
525		-	2 accumulated contributions of the member plus the benefit
526		-	3 provided by Section 36-27B-3 if a benefit is payable under
527		-	4 such section shall be paid to his or her estate or to such
528		-	5 person as he or she shall have nominated by written
529		-	6 designation duly executed and filed with the Board of Control.
530		-	7 "(d) Optional allowances. With the provision that
531		-	8 the election of an option shall be effective on the effective
532		-	9 date of retirement, any member may elect prior to retirement
533		-	10 to receive, in lieu of his or her retirement allowance payable
534		-	11 throughout life, the actuarial equivalent, at that time, of
535		-	12 his or her retirement allowance in a reduced retirement
536		-	13 allowance payable throughout life with the provisions that:
537		-	14 "(1) OPTION 1. If he or she dies before he or she
538		-	15 has received in annuity payments the present value of his or
539		-	16 her annuity as it was at the time of his or her retirement,
540		-	17 the balance shall be paid to his or her legal representatives
541		-	18 or to the person as he or she shall nominate by written
542		-	19 designation duly acknowledged and filed with the Board of
543		-	20 Control;
544		-	21 "(2) OPTION 2. Upon his or her death, his or her
545		-	22 reduced retirement allowance shall be continued throughout the
546		-	23 life of and paid to the person as he or she shall nominate by
547		-	24 written designation duly acknowledged and filed with the Board
548		-	25 of Control at the time of his or her retirement;
549		-	Page 21 HB308
550		-	1 "(3) OPTION 3. Upon his or her death, one half of
551		-	2 his or her reduced allowance shall be continued throughout the
552		-	3 life of and paid to the person as he or she shall nominate by
553		-	4 written designation duly acknowledged and filed with the Board
554		-	5 of Control at the time of his or her retirement; or
555		-	6 "(4) OPTION 4. Some other benefit or benefits shall
556		-	7 be paid either to the member or to the person or persons as he
557		-	8 or she shall nominate; provided, that such other benefits,
558		-	9 together with the reduced retirement allowance, shall be
559		-	10 certified by the actuary to be of equivalent actuarial value
560		-	11 to his or her retirement allowance and shall be approved by
561		-	12 the Board of Control.
562		-	13 "(5) OPTION 5. At the time of retirement, he or she
563		-	14 shall receive a partial lump sum distribution as a single
564		-	15 payment not to exceed the sum of 24 months of the maximum
565		-	16 monthly retirement allowance the member could receive. This
566		-	17 option may be elected in addition to the election of another
567		-	18 option under this subsection and the further reduced monthly
568		-	19 retirement allowance shall be calculated in accordance with
569		-	20 the selected option. This option shall not be available to a
570		-	21 member who is receiving a disability retirement.
571		-	22 "(e) Effect of return to active service. Should any
572		-	23 beneficiary be restored to active service, his or her
573		-	24 retirement allowance shall be suspended until he or she again
574		-	25 withdraws from service and he or she shall not again become a
575		-	Page 22 HB308
576		-	1 member of the retirement system nor shall he or she make
577		-	2 contributions; except, that should such beneficiary who has
578		-	3 been restored to active service continue in service for a
579		-	4 period of two or more years from the date of his or her
580		-	5 reentry into active service, he or she may request the Board
581		-	6 of Control to allow him or her to again become a member of the
582		-	7 retirement system. The Board of Control may grant the request
583		-	8 for restoration to membership; provided, that such beneficiary
584		-	9 whose retirement allowance has been suspended shall repay to
585		-	10 the system all moneys monies received by him or her as
586		-	11 benefits during any periods subsequent to the date of his or
587		-	12 her reentry into active service and shall make a contribution
588		-	13 equal to the amount he or she would have contributed had he or
589		-	14 she been a member during the period of his or her restoration
590		-	15 to active service on a suspended allowance basis together with
591		-	16 the interest which would have been credited to the
592		-	17 contributions on account of such period of restoration up to
593		-	18 the date such contribution is made.
594		-	19 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
595		-	20 ALLOWANCES. All retirement allowance payments due on or after
596		-	21 October 1, 1975, to members who retired prior to that date
597		-	22 shall be redetermined as if the provisions of this section in
598		-	23 effect on October 1, 1975, were in effect at the time the
599		-	24 member retired. Anything in this article to the contrary
600		-	25 notwithstanding, the annual retirement allowance of any member
601		-	Page 23 HB308
602		-	1 not employed as a state policeman who retired on or before
603		-	2 January 1, 1956, shall not be less than $79.20 seventy-nine
604		-	3 dollars twenty cents ($79.20) multiplied by the number of
605		-	4 years of his or her creditable service not in excess of 30
606		-	5 years in the case of service retirement of $59.40 fifty-nine
607		-	6 dollars forty cents ($59.40) multiplied by the number of years
608		-	7 of his or her creditable service not in excess of 30 years in
609		-	8 the case of disability retirement. Any increase provided in
610		-	9 the retirement allowance payment under this subdivision for a
611		-	10 member who retired under the provisions of any optional
612		-	11 benefit elected pursuant to subsection (d) of this section
613		-	12 shall accrue only to the retired member, and no person
614		-	13 designated to receive any payments after the death of a
615		-	14 retired member under the provisions of any such optional
616		-	15 benefit shall receive any increase in such payments under this
617		-	16 subdivision. Notwithstanding, any member who retired prior to
618		-	17 October 1, 1975, and who chose either Option 2 or Option 3 may
619		-	18 elect to receive a reduced allowance and to stipulate that the
620		-	19 actuarial equivalent of the increase in his or her retirement
621		-	20 allowance, which became effective on that date, be ascribed to
622		-	21 his or her designated beneficiary; provided, that such member
623		-	22 shall clearly express this intention by filing a written
624		-	23 application to the effect with the Secretary-Treasurer of the
625		-	24 Employees' Retirement System of Alabama prior to October 1,
626		-	25 1976.
627		-	Page 24 HB308
628		-	1 "(2) Any person who, prior to October 1, 1963, was
629		-	2 in receipt of a benefit pursuant to Act No. 376, approved
630		-	3 November 6, 1959, but was not a member of the system at the
631		-	4 time of retirement, shall not be entitled to receive an annual
632		-	5 retirement allowance from the system, effective October 1,
633		-	6 1971, as follows:
634		-	7 "a. If such person was retired on or before January
635		-	8 1, 1956, an amount equal to $79.20 seventy-nine dollars twenty
636		-	9 cents ($79.20) multiplied by the number of years of his or her
637		-	10 creditable service not in excess of 30 years.
638		-	11 "b. If such person was retired after January 1,
639		-	12 1956, an amount equal to $72.00 seventy-two dollars ($72)
640		-	13 multiplied by the number of years of his or her creditable
641		-	14 service not in excess of 25 years.
642		-	15 "(3) Prior to October 31, 1975, any beneficiary may
643		-	16 elect to leave on deposit with the system all or a specified
644		-	17 part of any increase in his or her monthly retirement
645		-	18 allowance payments arising in accordance with subdivisions (1)
646		-	19 or (2) of this subsection over the monthly allowance which he
647		-	20 or she was receiving prior to October 1, 1975. The portion of
648		-	21 each monthly payment left in the system in accordance with
649		-	22 such election shall be credited, together with regular
650		-	23 interest thereon, to the individual account of such
651		-	24 beneficiary. Upon the death of such beneficiary the total
652		-	25 amount standing to his or her credit, including regular
653		-	Page 25 HB308
654		-	1 interest to the date of death, shall be paid in a lump sum to
655		-	2 his or her legal representatives or to such person as he or
656		-	3 she shall have nominated by written designation duly
657		-	4 acknowledged and filed with the Board of Control.
658		-	5 "(g) Notwithstanding any other provisions of this
659		-	6 section to the contrary, when a designated beneficiary for a
660		-	7 member predeceases the member who is receiving a monthly
661		-	8 benefit allowance provided under Option 2, 3, or 4, the member
662		-	9 may designate a replacement beneficiary for the deceased
663		-	10 beneficiary to become effective two years after the date of
664		-	11 designation of the replacement beneficiary and an actuarial
665		-	12 adjustment in the monthly benefit allowance of the member to
666		-	13 cover any cost associated with designating a replacement
667		-	14 beneficiary shall be reflected thereafter in the monthly
668		-	15 benefit allowance received by the member, commencing with the
669		-	16 first benefit allowance check received by the member following
670		-	17 the date of designation of the replacement beneficiary.
671		-	18 "(h) Notwithstanding any provision of this section
672		-	19 to the contrary, if a retired member who is receiving a
673		-	20 monthly benefit allowance provided under Option 2, 3, or 4
674		-	21 divorces his or her designated beneficiary, the member may
675		-	22 designate a replacement beneficiary for the beneficiary to
676		-	23 become effective two years after the date of designation of
677		-	24 the replacement beneficiary and an actuarial adjustment in the
678		-	25 monthly benefit allowance of the member to cover any cost
679		-	Page 26 HB308
680		-	1 associated with designating a replacement beneficiary shall be
681		-	2 reflected thereafter in the monthly benefit allowance received
682		-	3 by the member, commencing with the first benefit allowance
683		-	4 check received by the member following the date of designation
684		-	5 of the replacement beneficiary.
685		-	6 "(i) Any future act to increase the retirement age
686		-	7 for Tier II plan members above the age of 62 shall require a
687		-	8 two-thirds vote of the elected membership of each house of the
688		-	9 Legislature."
689		-	10 "§36-27-24.
690		-	11 "(a) Effective October 1, 1997, all the assets of
691		-	12 the retirement system shall be credited according to the
692		-	13 purpose for which they are held among three funds, namely, the
693		-	14 Annuity Savings Fund, the Pension Accumulation Fund, and the
694		-	15 Expense Fund. The operation of the former Pension Reserve Fund
695		-	16 and the Annuity Reserve Fund shall be discontinued as of such
696		-	17 date and the balance of the former Pension Reserve Fund shall
697		-	18 be transferred to the Pension Accumulation Fund, and the
698		-	19 balance of the former Annuity Reserve Fund shall be
699		-	20 transferred to the Pension Accumulation Fund.
700		-	21 "(b) Annuity Savings Fund. The Annuity Savings Fund
701		-	22 shall be a fund in which shall be accumulated contributions
702		-	23 from the compensation of members to provide for their
703		-	24 annuities.
704		-	Page 27 HB308
705		-	1 "Contributions to and payments from the Annuity
706		-	2 Savings Fund shall be made as follows: Effective October 1,
707		-	3 1971, each employer shall cause to be deducted from the salary
708		-	4 of each member on each and every payroll of such employer for
709		-	5 each and every payroll period five percent of his or her
710		-	6 earnable compensation; except, that in the case of a state
711		-	7 policeman, the rate of 10 percent of earnable compensation
712		-	8 shall apply, and in computing all retirement benefits it shall
713		-	9 be assumed that a seven percent rate of contribution had
714		-	10 applied with respect to service as a state policeman prior to
715		-	11 July 1, 1957. For all pay dates beginning on or after October
716		-	12 1, 2011, each employer, except those employers participating
717		-	13 pursuant to Section 36-27-6, shall cause to be deducted from
718		-	14 the salary of each member on each and every payroll of such
719		-	15 employer for each and every payroll period seven and
720		-	16 one-quarter percent (7.25%) of his or her earnable
721		-	17 compensation; except, that in the case of a state policeman,
722		-	18 the rate of ten percent (10%) of earnable compensation shall
723		-	19 apply. For all pay dates beginning on or after October 1,
724		-	20 2012, each employer, except those employers participating
725		-	21 pursuant to Section 36-27-6, shall cause to be deducted from
726		-	22 the salary of each Tier I plan member on each and every
727		-	23 payroll of such employer for each and every payroll period
728		-	24 seven and one-half percent (7.5%) of his or her earnable
729		-	25 compensation; except, that in the case of a state policeman,
730		-	Page 28 HB308
731		-	1 the rate of ten percent (10%) of earnable compensation shall
	402	+	26 member or age 62 if the beneficiary is a Tier II plan member
	403	+	27 to undergo a medical examination, such examination to be made
	404	+	Page 15 1 at the place of residence of such beneficiary or other place
	405	+	2 mutually agreed upon by a physician or physicians of, or
	406	+	3 designated by, the medical board. Should any disability
	407	+	4 beneficiary who has not yet attained age 60, if the
	408	+	5 beneficiary is a Tier I plan member or age 62 if the
	409	+	6 beneficiary is a Tier II plan member, refuse to submit to such
	410	+	7 medical examination, his or her allowance may be discontinued
	411	+	8 until his or her withdrawal of such refusal, and, should his
	412	+	9 or her refusal continue for one year, all his or her rights in
	413	+	10 and to his or her pension may be revoked by the Board of
	414	+	11 Control; provided, that these requirements relative to the
	415	+	12 medical examination shall not apply in the case of a state
	416	+	13 policeman retired for disability and who has attained age 52
	417	+	14 if he or she is a Tier I plan member or in the case of a state
	418	+	15 policeman or a correctional officer, firefighter, or law
	419	+	16 enforcement officer as defined in Section 36-27-59 with at
	420	+	17 least ten 10 years of creditable service as a correctional
	421	+	18 officer, firefighter, or law enforcement officer retired for
	422	+	19 disability who has attained age 56 if he or she is a Tier II
	423	+	20 plan member. Should the medical board report and certify to
	424	+	21 the Board of Control that a disability beneficiary who is a
	425	+	22 Tier I plan member is engaged in or is able to engage in a
	426	+	23 gainful occupation paying more than the difference between his
	427	+	24 or her retirement allowance and his or her average final
	428	+	25 compensation and should the Board of Control concur in such
	429	+	26 report, then the amount of his or her pension shall be reduced
	430	+	27 to an amount which, together with his or her annuity and the
	431	+	Page 16 1 amount earnable by him or her shall equal the amount of his or
	432	+	2 her average final compensation. Should his or her earning
	433	+	3 capacity be later changed, the amount of his or her pension
	434	+	4 may be further modified; provided, that the new pension shall
	435	+	5 not exceed the amount of the pension originally granted nor an
	436	+	6 amount which, when added to the amount earnable by the
	437	+	7 beneficiary, together with this annuity exceeds the amount of
	438	+	8 his or her average final compensation.
	439	+	9 "Should the medical board report and certify to the
	440	+	10 Board of Control that a disability beneficiary who is a Tier
	441	+	11 II plan member has the capacity to engage in regular and
	442	+	12 substantial gainful employment, the Board of Control shall
	443	+	13 discontinue the beneficiary's retirement allowance until the
	444	+	14 beneficiary is otherwise eligible for service retirement.
	445	+	15 "(c) Disposition of contributions and allowances
	446	+	16 upon death, etc., of member.
	447	+	17 "(1) Should a member cease to be an employee except
	448	+	18 by death or by retirement under the provisions of this
	449	+	19 article, the contributions standing to the credit of his or
	450	+	20 her individual account in the Annuity Savings Fund shall be
	451	+	21 paid to him or her upon demand and, in addition to such
	452	+	22 payment, there shall be paid five-tenths of the interest
	453	+	23 accumulations standing to the credit of his or her individual
	454	+	24 account if he or she shall have not less than three but less
	455	+	25 than 16 years of membership service, six-tenths of such
	456	+	26 interest accumulations if he or she shall have not less than
	457	+	27 16 but less than 21 years of membership service, seven-tenths
	458	+	Page 17 1 of such interest accumulations if he or she shall have not
	459	+	2 less than 21 but less than 26 years of membership service and
	460	+	3 eight-tenths of such interest accumulations if he or she shall
	461	+	4 have not less than 26 years of membership service.
	462	+	5 "(2) In case of the death of a member eligible for
	463	+	6 service retirement pursuant to subsection (a) of this section,
	464	+	7 an allowance shall be paid to the surviving spouse, or to such
	465	+	8 other person who the member shall have designated, in an
	466	+	9 amount that would have been payable if the member had retired
	467	+	10 immediately prior to his or her death and had elected Option
	468	+	11 3, as set forth in subsection (d) of this section or,
	469	+	12 alternatively, if the surviving spouse or other designee
	470	+	13 desires, he or she may choose to receive, in lieu of the
	471	+	14 allowance provided under Option 3, the accumulated
	472	+	15 contributions of the member plus an amount equal to the
	473	+	16 accumulated contributions of the member not to exceed
	474	+	17 $5,000.00 five thousand dollars ($5,000) or the accumulated
	475	+	18 contributions of the member plus the benefit provided by
	476	+	19 Section 36-27B-3 if a benefit is payable under such section;
	477	+	20 "(3) In case of the death of a Tier I plan member
	478	+	21 not eligible for service retirement, after completion of 25
	479	+	22 years of creditable service, an allowance shall be paid to the
	480	+	23 surviving spouse, or to such other person who the member shall
	481	+	24 have designated, in an amount that would have been payable if
	482	+	25 the member had retired for disability immediately prior to his
	483	+	26 or her death and had elected Option 3 as set forth in
	484	+	27 subsection (d) of this section or, alternatively, if the
	485	+	Page 18 1 surviving spouse or other designee desires, he or she may
	486	+	2 choose to receive, in lieu of the allowance provided under
	487	+	3 Option 3, the accumulated contributions of the member plus an
	488	+	4 amount equal to the accumulated contributions of the member
	489	+	5 not to exceed $5,000.00 five thousand dollars ($5,000) or the
	490	+	6 accumulated contributions of the member plus the benefit
	491	+	7 provided by Section 36-27B-3 if a benefit is payable under
	492	+	8 such section. For purposes of this subsection only, hazardous
	493	+	9 duty time, as set forth in subdivision (b)(1) of Section
	494	+	10 36-27-59, may be used in calculating the requisite years of
	495	+	11 service for firefighters, law enforcement officers, and
	496	+	12 correctional officers even if the member has not otherwise
	497	+	13 attained 25 years of creditable service;
	498	+	14 "(4) Upon the death of a member on account of whom
	499	+	15 no survivor allowance is payable under subdivisions (2) or (3)
	500	+	16 of this subsection, the accumulated contributions of the
	501	+	17 member plus an amount equal to the accumulated contributions
	502	+	18 not to exceed $5,000 five thousand dollars ($5,000) or the
	503	+	19 accumulated contributions of the member plus the benefit
	504	+	20 provided by Section 36-27B-3 if a benefit is payable under
	505	+	21 such section shall be paid to his or her estate or to such
	506	+	22 person as he or she shall have nominated by written
	507	+	23 designation duly executed and filed with the Board of Control.
	508	+	24 "(d) Optional allowances. With the provision that
	509	+	25 the election of an option shall be effective on the effective
	510	+	26 date of retirement, any member may elect prior to retirement
	511	+	27 to receive, in lieu of his or her retirement allowance payable
	512	+	Page 19 1 throughout life, the actuarial equivalent, at that time, of
	513	+	2 his or her retirement allowance in a reduced retirement
	514	+	3 allowance payable throughout life with the provisions that:
	515	+	4 "(1) OPTION 1. If he or she dies before he or she
	516	+	5 has received in annuity payments the present value of his or
	517	+	6 her annuity as it was at the time of his or her retirement,
	518	+	7 the balance shall be paid to his or her legal representatives
	519	+	8 or to the person as he or she shall nominate by written
	520	+	9 designation duly acknowledged and filed with the Board of
	521	+	10 Control;
	522	+	11 "(2) OPTION 2. Upon his or her death, his or her
	523	+	12 reduced retirement allowance shall be continued throughout the
	524	+	13 life of and paid to the person as he or she shall nominate by
	525	+	14 written designation duly acknowledged and filed with the Board
	526	+	15 of Control at the time of his or her retirement;
	527	+	16 "(3) OPTION 3. Upon his or her death, one half of
	528	+	17 his or her reduced allowance shall be continued throughout the
	529	+	18 life of and paid to the person as he or she shall nominate by
	530	+	19 written designation duly acknowledged and filed with the Board
	531	+	20 of Control at the time of his or her retirement; or
	532	+	21 "(4) OPTION 4. Some other benefit or benefits shall
	533	+	22 be paid either to the member or to the person or persons as he
	534	+	23 or she shall nominate; provided, that such other benefits,
	535	+	24 together with the reduced retirement allowance, shall be
	536	+	25 certified by the actuary to be of equivalent actuarial value
	537	+	26 to his or her retirement allowance and shall be approved by
	538	+	27 the Board of Control.
	539	+	Page 20 1 "(5) OPTION 5. At the time of retirement, he or she
	540	+	2 shall receive a partial lump sum distribution as a single
	541	+	3 payment not to exceed the sum of 24 months of the maximum
	542	+	4 monthly retirement allowance the member could receive. This
	543	+	5 option may be elected in addition to the election of another
	544	+	6 option under this subsection and the further reduced monthly
	545	+	7 retirement allowance shall be calculated in accordance with
	546	+	8 the selected option. This option shall not be available to a
	547	+	9 member who is receiving a disability retirement.
	548	+	10 "(e) Effect of return to active service. Should any
	549	+	11 beneficiary be restored to active service, his or her
	550	+	12 retirement allowance shall be suspended until he or she again
	551	+	13 withdraws from service and he or she shall not again become a
	552	+	14 member of the retirement system nor shall he or she make
	553	+	15 contributions; except, that should such beneficiary who has
	554	+	16 been restored to active service continue in service for a
	555	+	17 period of two or more years from the date of his or her
	556	+	18 reentry into active service, he or she may request the Board
	557	+	19 of Control to allow him or her to again become a member of the
	558	+	20 retirement system. The Board of Control may grant the request
	559	+	21 for restoration to membership; provided, that such beneficiary
	560	+	22 whose retirement allowance has been suspended shall repay to
	561	+	23 the system all moneys monies received by him or her as
	562	+	24 benefits during any periods subsequent to the date of his or
	563	+	25 her reentry into active service and shall make a contribution
	564	+	26 equal to the amount he or she would have contributed had he or
	565	+	27 she been a member during the period of his or her restoration
	566	+	Page 21 1 to active service on a suspended allowance basis together with
	567	+	2 the interest which would have been credited to the
	568	+	3 contributions on account of such period of restoration up to
	569	+	4 the date such contribution is made.
	570	+	5 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
	571	+	6 ALLOWANCES. All retirement allowance payments due on or after
	572	+	7 October 1, 1975, to members who retired prior to that date
	573	+	8 shall be redetermined as if the provisions of this section in
	574	+	9 effect on October 1, 1975, were in effect at the time the
	575	+	10 member retired. Anything in this article to the contrary
	576	+	11 notwithstanding, the annual retirement allowance of any member
	577	+	12 not employed as a state policeman who retired on or before
	578	+	13 January 1, 1956, shall not be less than $79.20 seventy-nine
	579	+	14 dollars twenty cents ($79.20) multiplied by the number of
	580	+	15 years of his or her creditable service not in excess of 30
	581	+	16 years in the case of service retirement of $59.40 fifty-nine
	582	+	17 dollars forty cents ($59.40) multiplied by the number of years
	583	+	18 of his or her creditable service not in excess of 30 years in
	584	+	19 the case of disability retirement. Any increase provided in
	585	+	20 the retirement allowance payment under this subdivision for a
	586	+	21 member who retired under the provisions of any optional
	587	+	22 benefit elected pursuant to subsection (d) of this section
	588	+	23 shall accrue only to the retired member, and no person
	589	+	24 designated to receive any payments after the death of a
	590	+	25 retired member under the provisions of any such optional
	591	+	26 benefit shall receive any increase in such payments under this
	592	+	27 subdivision. Notwithstanding, any member who retired prior to
	593	+	Page 22 1 October 1, 1975, and who chose either Option 2 or Option 3 may
	594	+	2 elect to receive a reduced allowance and to stipulate that the
	595	+	3 actuarial equivalent of the increase in his or her retirement
	596	+	4 allowance, which became effective on that date, be ascribed to
	597	+	5 his or her designated beneficiary; provided, that such member
	598	+	6 shall clearly express this intention by filing a written
	599	+	7 application to the effect with the Secretary-Treasurer of the
	600	+	8 Employees' Retirement System of Alabama prior to October 1,
	601	+	9 1976.
	602	+	10 "(2) Any person who, prior to October 1, 1963, was
	603	+	11 in receipt of a benefit pursuant to Act No. 376, approved
	604	+	12 November 6, 1959, but was not a member of the system at the
	605	+	13 time of retirement, shall not be entitled to receive an annual
	606	+	14 retirement allowance from the system, effective October 1,
	607	+	15 1971, as follows:
	608	+	16 "a. If such person was retired on or before January
	609	+	17 1, 1956, an amount equal to $79.20 seventy-nine dollars twenty
	610	+	18 cents ($79.20) multiplied by the number of years of his or her
	611	+	19 creditable service not in excess of 30 years.
	612	+	20 "b. If such person was retired after January 1,
	613	+	21 1956, an amount equal to $72.00 seventy-two dollars ($72)
	614	+	22 multiplied by the number of years of his or her creditable
	615	+	23 service not in excess of 25 years.
	616	+	24 "(3) Prior to October 31, 1975, any beneficiary may
	617	+	25 elect to leave on deposit with the system all or a specified
	618	+	26 part of any increase in his or her monthly retirement
	619	+	27 allowance payments arising in accordance with subdivisions (1)
	620	+	Page 23 1 or (2) of this subsection over the monthly allowance which he
	621	+	2 or she was receiving prior to October 1, 1975. The portion of
	622	+	3 each monthly payment left in the system in accordance with
	623	+	4 such election shall be credited, together with regular
	624	+	5 interest thereon, to the individual account of such
	625	+	6 beneficiary. Upon the death of such beneficiary the total
	626	+	7 amount standing to his or her credit, including regular
	627	+	8 interest to the date of death, shall be paid in a lump sum to
	628	+	9 his or her legal representatives or to such person as he or
	629	+	10 she shall have nominated by written designation duly
	630	+	11 acknowledged and filed with the Board of Control.
	631	+	12 "(g) Notwithstanding any other provisions of this
	632	+	13 section to the contrary, when a designated beneficiary for a
	633	+	14 member predeceases the member who is receiving a monthly
	634	+	15 benefit allowance provided under Option 2, 3, or 4, the member
	635	+	16 may designate a replacement beneficiary for the deceased
	636	+	17 beneficiary to become effective two years after the date of
	637	+	18 designation of the replacement beneficiary and an actuarial
	638	+	19 adjustment in the monthly benefit allowance of the member to
	639	+	20 cover any cost associated with designating a replacement
	640	+	21 beneficiary shall be reflected thereafter in the monthly
	641	+	22 benefit allowance received by the member, commencing with the
	642	+	23 first benefit allowance check received by the member following
	643	+	24 the date of designation of the replacement beneficiary.
	644	+	25 "(h) Notwithstanding any provision of this section
	645	+	26 to the contrary, if a retired member who is receiving a
	646	+	27 monthly benefit allowance provided under Option 2, 3, or 4
	647	+	Page 24 1 divorces his or her designated beneficiary, the member may
	648	+	2 designate a replacement beneficiary for the beneficiary to
	649	+	3 become effective two years after the date of designation of
	650	+	4 the replacement beneficiary and an actuarial adjustment in the
	651	+	5 monthly benefit allowance of the member to cover any cost
	652	+	6 associated with designating a replacement beneficiary shall be
	653	+	7 reflected thereafter in the monthly benefit allowance received
	654	+	8 by the member, commencing with the first benefit allowance
	655	+	9 check received by the member following the date of designation
	656	+	10 of the replacement beneficiary.
	657	+	11 "(i) Any future act to increase the retirement age
	658	+	12 for Tier II plan members above the age of 62 shall require a
	659	+	13 two-thirds vote of the elected membership of each house of the
	660	+	14 Legislature.
	661	+	15 "§36-27-24.
	662	+	16 "(a) Effective October 1, 1997, all the assets of
	663	+	17 the retirement system shall be credited according to the
	664	+	18 purpose for which they are held among three funds, namely, the
	665	+	19 Annuity Savings Fund, the Pension Accumulation Fund, and the
	666	+	20 Expense Fund. The operation of the former Pension Reserve Fund
	667	+	21 and the Annuity Reserve Fund shall be discontinued as of such
	668	+	22 date and the balance of the former Pension Reserve Fund shall
	669	+	23 be transferred to the Pension Accumulation Fund, and the
	670	+	24 balance of the former Annuity Reserve Fund shall be
	671	+	25 transferred to the Pension Accumulation Fund.
	672	+	26 "(b) Annuity Savings Fund. The Annuity Savings Fund
	673	+	27 shall be a fund in which shall be accumulated contributions
	674	+	Page 25 1 from the compensation of members to provide for their
	675	+	2 annuities.
	676	+	3 "Contributions to and payments from the Annuity
	677	+	4 Savings Fund shall be made as follows: Effective October 1,
	678	+	5 1971, each employer shall cause to be deducted from the salary
	679	+	6 of each member on each and every payroll of such employer for
	680	+	7 each and every payroll period five percent of his or her
	681	+	8 earnable compensation; except, that in the case of a state
	682	+	9 policeman, the rate of 10 percent of earnable compensation
	683	+	10 shall apply, and in computing all retirement benefits it shall
	684	+	11 be assumed that a seven percent rate of contribution had
	685	+	12 applied with respect to service as a state policeman prior to
	686	+	13 July 1, 1957. For all pay dates beginning on or after October
	687	+	14 1, 2011, each employer, except those employers participating
	688	+	15 pursuant to Section 36-27-6, shall cause to be deducted from
	689	+	16 the salary of each member on each and every payroll of such
	690	+	17 employer for each and every payroll period seven and
	691	+	18 one-quarter percent (7.25%) of his or her earnable
	692	+	19 compensation; except, that in the case of a state policeman,
	693	+	20 the rate of ten percent (10%) of earnable compensation shall
	694	+	21 apply. For all pay dates beginning on or after October 1,
	695	+	22 2012, each employer, except those employers participating
	696	+	23 pursuant to Section 36-27-6, shall cause to be deducted from
	697	+	24 the salary of each Tier I plan member on each and every
	698	+	25 payroll of such employer for each and every payroll period
	699	+	26 seven and one-half percent (7.5%) of his or her earnable
	700	+	27 compensation; except, that in the case of a state policeman,
	701	+	Page 26 1 the rate of ten percent (10%) of earnable compensation shall
732	702		2 apply. For all pay dates beginning on or after January 1,
733	703		3 2013, each employer shall cause to be deducted from the salary
734	704		4 of each Tier II plan member on each and every payroll period
735	705		5 six percent (6%) of his or her earnable compensation; except
736	706		6 that in the case of a state policeman, the rate of ten percent
737	707		7 (10%) shall apply and in the case of a correctional officer,
738	708		8 firefighter, or law enforcement officer as defined in Section
739	709		9 36-27-59, the rate of seven percent (7%) shall apply. For all
740	710		10 pay dates beginning on or after October 1, 2022, for all
741	711		11 employers, each employer shall cause to be deducted from the
742	712		12 salary of each Tier II plan member on each and every payroll
743	713		13 period six and one-half percent (6.5%) of his or her earnable
744	714		14 compensation. Any employer participating under Section
745	715		15 36-27-6, by adoption of a resolution, may elect for the
746	716		16 increases in employee contributions provided by Act 2011-676
747	717		17 to be withheld from the earnable compensation of employees of
748	718		18 the employer. In determining the amount earnable by a member
749	719		19 in a payroll period, the Board of Control may consider the
750	720		20 rate of annual compensation payable to such member on the
751	721		21 first day of the payroll period as continuing through such
752	722		22 payroll period, and it may omit deductions from compensation
753	723		23 for any period less than a full payroll period if an employee
754	724		24 was not a member on the first day of the payroll period, and,
755	725		25 to facilitate the making of deductions, it may modify the
756		-	Page 29 HB308
757		-	1 deductions required of any member by such an amount as shall
758		-	2 not exceed one tenth of one percent of the annual compensation
759		-	3 upon the basis of which such deductions are made.
760		-	4 "The deductions provided for in this subsection
761		-	5 shall be made notwithstanding that the minimum compensation
762		-	6 provided for by law for any member shall be reduced thereby.
763		-	7 Every member shall be deemed to consent and agree to the
764		-	8 deduction made and provided for in this subsection and shall
765		-	9 receipt for his or her full salary or compensation and payment
766		-	10 of salary or compensation less such deductions shall be a full
767		-	11 and complete discharge and acquittance of all claims and
768		-	12 demands whatsoever for the services rendered by such person
769		-	13 during the period covered by such payment, except as to the
770		-	14 benefits provided under this article. The employer shall
771		-	15 certify to the Board of Control in each and every payroll or
772		-	16 in such other manner as the board may prescribe the amounts to
773		-	17 be deducted, and each of the amounts shall be deducted and,
774		-	18 when deducted, shall be paid into the Annuity Savings Fund and
775		-	19 shall be credited, together with regular interest thereon, to
776		-	20 the individual account of the member from whose compensation
777		-	21 the deduction was made.
778		-	22 "In addition to the contributions deducted from
779		-	23 compensation as provided in this subsection, subject to the
780		-	24 approval of the Board of Control, any member may deposit in
781		-	25 the Annuity Savings Fund by a single payment or by an
782		-	Page 30 HB308
783		-	1 increased rate of contribution an amount computed to be
784		-	2 sufficient to purchase an additional annuity which, together
785		-	3 with his or her prospective retirement allowance, will provide
786		-	4 for him or her a total retirement allowance not to exceed one
787		-	5 half of his or her average final compensation at age 60. Such
788		-	6 additional amounts so deposited shall become a part of his or
789		-	7 her accumulated contributions, except in the case of
790		-	8 retirement, when they shall be treated as excess contributions
791		-	9 returnable to the member in cash or as an annuity of
792		-	10 equivalent actuarial value and shall not be considered in
793		-	11 computing his or her pension.
794		-	12 "The contributions and interest credits of a member
795		-	13 withdrawn by him or her or paid to his or her estate or to his
796		-	14 or her designated beneficiary in event of his or her death
797		-	15 shall be paid from the Annuity Savings Fund. Should a member
798		-	16 cease to be a member other than by retirement under the
799		-	17 provisions of this article, an amount equivalent to the
800		-	18 difference, if any, between his or her accumulated
801		-	19 contributions and the amount then paid shall be transferred to
802		-	20 the Expense Fund. Upon the retirement of a member or the death
803		-	21 of an eligible member where an allowance to a surviving spouse
804		-	22 or other designated beneficiary is payable, his or her
805		-	23 accumulated contributions shall be transferred from the
806		-	24 Annuity Savings Fund to the Pension Accumulation Fund.
807		-	Page 31 HB308
808		-	1 "Notwithstanding the preceding provisions, no
809		-	2 deductions shall be made from any member's salary on account
810		-	3 of which the employer's contributions are in default.
811		-	4 "The State Personnel Board, with the approval of the
812		-	5 Governor, may provide that the state shall pick up member
813		-	6 contributions to the Employees' Retirement System of Alabama
814		-	7 as required by this subsection on behalf of all state
815		-	8 employees who participate in the Employees' Retirement System
816		-	9 by a corresponding reduction in the salary of the member, such
817		-	10 pick-up to be mandatory for all such employees, and the
818		-	11 contributions so picked up shall be treated as employer
819		-	12 contributions in determining tax treatment under the Internal
820		-	13 Revenue Code. These contributions shall be paid from the same
821		-	14 source of funds which is used in paying earnings to the
822		-	15 employee. If employee contributions are so picked up they
823		-	16 shall be treated for all other purposes of state law in the
824		-	17 same manner and to the same extent as employee contributions
825		-	18 made prior to the date picked up.
826		-	19 "(c) Pension Accumulation Fund. The Pension
827		-	20 Accumulation Fund shall be the fund in which shall be
828		-	21 accumulated all reserves other than the amounts held in the
829		-	22 Annuity Savings Fund for the payment of all pensions, all
830		-	23 allowances granted to surviving spouses or other designated
831		-	24 beneficiaries and other benefits payable from contributions
832		-	25 made by the employer and from which shall be paid all
833		-	Page 32 HB308
834		-	1 pensions, all allowances granted to surviving spouses or other
835		-	2 designated beneficiaries and other benefits on account of
836		-	3 members with prior service credit.
837		-	4 "Contributions to and payments from the Pension
838		-	5 Accumulation Fund shall be made as follows: On account of each
839		-	6 member there shall be paid monthly by the employer an amount
840		-	7 equal to a certain percentage of the earnable compensation of
841		-	8 each member to be known as the "normal contribution" and an
842		-	9 additional amount equal to a percentage of his or her earnable
843		-	10 compensation to be known as the "accrued liability
844		-	11 contribution," and these two amounts shall be paid monthly
845		-	12 into the Pension Accumulation Fund; provided, that in the case
846		-	13 of a state policeman, such percentage rates of contributions
847		-	14 shall be calculated separately. The percentage rate of such
848		-	15 contributions shall be fixed for each fiscal year on the basis
849		-	16 of the liabilities of the retirement system as shown by the
850		-	17 last annual actuarial valuation, and such percentage rate as
851		-	18 established by such valuation shall take effect the following
852		-	19 October 1 and continue in effect for the fiscal year.
853		-	20 "On the basis of regular interest and of such
854		-	21 mortality and other tables as shall be adopted by the Board of
855		-	22 Control, the actuary engaged by the board to make such
856		-	23 valuation required by this article during the period over
857		-	24 which the accrued liability contribution is payable shall,
858		-	25 immediately after making such valuation, determine the uniform
859		-	Page 33 HB308
860		-	1 and constant percentage of the earnable compensation of the
861		-	2 average new entrant which, if contributed on the basis of his
862		-	3 or her compensation throughout his or her entire period of
863		-	4 active service, would be sufficient to provide for the payment
864		-	5 of any pension payable on his or her account. The percentage
865		-	6 rate so determined shall be known as the "normal contribution"
866		-	7 rate. The normal rate of contributions shall be determined by
867		-	8 the actuary after each valuation.
868		-	9 "The accrued liability contribution rate shall be
869		-	10 computed by the actuary on the basis of each valuation as the
870		-	11 percentage rate of the total annual compensation of all
871		-	12 members which is sufficient to liquidate the accrued liability
872		-	13 over a period to be determined by the Board of Control which
873		-	14 shall be not less than 10 nor more than 30 years.
874		-	15 "The unfunded accrued liability shall be computed by
875		-	16 the actuary as the total liabilities of the system which are
876		-	17 not dischargeable by the assets of the Annuity Savings Fund
877		-	18 and the Pension Accumulation Fund and the present value of the
878		-	19 aforesaid normal contributions.
879		-	20 "For purposes of computing the unfunded accrued
880		-	21 liability the assets shall be determined as follows:
881		-	22 "On September 30, 1997, the assets shall be
882		-	23 determined by using the market value of such assets. For
883		-	24 subsequent years the value of the assets shall be determined
884		-	Page 34 HB308
885		-	1 by the system's actuary using a five year smoothed market
886		-	2 value.
887		-	3 "The total amount payable in each year to the
888		-	4 Pension Accumulation Fund shall be not less than the sum of
889		-	5 the percentage rates known as the normal contribution rate and
890		-	6 the accrued liability contribution rate of the total
891		-	7 compensation earnable by all members during the preceding
892		-	8 year.
893		-	9 "All interest and dividends earned on the funds of
894		-	10 the retirement system shall be credited to the Pension
895		-	11 Accumulation Fund. The amounts needed to allow a regular
896		-	12 interest on the reserves in the Annuity Savings Fund shall be
897		-	13 transferred in accordance with this article from the Pension
898		-	14 Accumulation Fund. The Board of Control, in its discretion,
899		-	15 may transfer to and from the Pension Accumulation Fund the
900		-	16 amounts of any surplus or deficit which may develop in the
901		-	17 Annuity Savings Fund, or the Expense Fund.
902		-	18 "Upon the death of a member on account of whom no
903		-	19 survivor allowance is payable under subdivisions (2) and (3)
904		-	20 of subsection (c) of Section 36-27-16, the death benefit as
905		-	21 provided in subdivision (4) of subsection (c) of Section
906		-	22 36-27-16 equal to the accumulated contributions, not to exceed
907		-	23 $5,000.00 five thousand dollars ($5,000), shall be payable
908		-	24 from the Pension Accumulation Fund.
909		-	Page 35 HB308
910		-	1 "(d) Expense Fund. The Expense Fund shall be the
911		-	2 fund from which the expenses of the administration of the
912		-	3 retirement system shall be paid, exclusive of amounts payable
913		-	4 as retirement allowances and as other benefits provided in
914		-	5 this chapter. In addition thereto and on account of each
915		-	6 member of the retirement system, there shall be paid monthly
916		-	7 by the employer an amount equal to a certain percentage of the
917		-	8 earnable compensation of each member for the administrative
918		-	9 expenses of the retirement system. The percentage rate of such
919		-	10 contribution shall be fixed by the Board of Control on the
920		-	11 basis of the cost exclusive of that provided by interest not
921		-	12 returnable. Any amounts credited to the accounts of the
922		-	13 members withdrawing before retirement and not returnable under
923		-	14 the provisions of subsection (c) of Section 36-27-16 shall be
924		-	15 credited to the Expense Fund.
925		-	16 "(e) Employer's contributions. For each biennium
926		-	17 beginning October 1, 1965, each employer shall pay to the
927		-	18 retirement system the rates provided in this section and
928		-	19 thereafter, at least 30 days preceding October 1 of each
929		-	20 fiscal year, the Board of Control shall certify to the chief
930		-	21 fiscal officer of each employer the percentage rates of
931		-	22 earnable compensation of the members required to be paid to
932		-	23 the retirement system in accordance with subsections (c) and
933		-	24 (d) of this section.
934		-	Page 36 HB308
935		-	1 "The employer's contribution on account of the
936		-	2 membership of employees whose salaries are paid in whole or in
937		-	3 part from funds derived from federal grants shall be paid from
938		-	4 funds derived from the federal grants in accordance with
939		-	5 statutes governing the administration of the grants and in
940		-	6 proportion to salaries paid therefrom. At such time and in
941		-	7 such manner as may be required, the Board of Control shall
942		-	8 certify to each department of state receiving a federal grant
943		-	9 the amount due and payable from the grant as the employer's
944		-	10 contribution to the retirement system on account of the
945		-	11 membership of the department whose salaries are paid in whole
946		-	12 or in part from funds derived from such federal grants. The
947		-	13 fiscal agent of the department shall authorize the state
948		-	14 Comptroller to draw a warrant or warrants in payment of the
949		-	15 amount certified as due and payable from federal grants.
950		-	16 "(f) Appropriations. There is hereby appropriated
951		-	17 annually from the fund from which salaries of the employees of
952		-	18 each employer are paid the amounts sufficient to carry out the
953		-	19 provisions of this section. In the case of those departments
954		-	20 supported wholly by transfers from other state funds, there is
955		-	21 hereby appropriated from the supporting funds such additional
956		-	22 amounts as may be necessary to pay the employer contribution
957		-	23 of each department so supported in the same proportion as the
958		-	24 other state funds contribute to the support and maintenance of
959		-	25 such department.
960		-	Page 37 HB308
961		-	1 "(g) Employer cost provided for in this article
962		-	2 together with member contributions required under this article
963		-	3 shall be paid to the Employees' Retirement System on the first
964		-	4 day of the month following the month in which the related
965		-	5 member salary is earned. Delinquent accounts shall accrue
966		-	6 interest at the actuarial assumed investment rate beginning 30
967		-	7 days after the original due date. The member contributions for
968		-	8 each member shall be reported to the Employees' Retirement
969		-	9 System in a format prescribed by the Employees' Retirement
970		-	10 System.
971		-	11 "§36-27-59.
972		-	12 "(a) When used in this section, the following terms
973		-	13 shall have the following meanings, unless the context clearly
974		-	14 indicates otherwise:
975		-	15 "(1) CORRECTIONAL OFFICER. A full-time correctional
976		-	16 officer who is certified as a correctional officer by the
977		-	17 Alabama Peace Officers' Standards and Training Commission.
978		-	18 "(2) FIREFIGHTER. A full-time firefighter employed
979		-	19 with the State of Alabama, a municipal fire department, or a
980		-	20 fire district who has a level one minimum standard
981		-	21 certification by the Firefighters Personnel Standards and
982		-	22 Education Commission, or a firefighter employed by the Alabama
983		-	23 Forestry Commission who has been certified by the State
984		-	24 Forester as having met the wild land firefighter training
985		-	25 standard of the National Wildfire Coordinating Group.
986		-	Page 38 HB308
987		-	1 "(3) LAW ENFORCEMENT OFFICER. A full-time law
988		-	2 enforcement officer, not covered as a state policeman,
989		-	3 employed with any state agency, department, board, commission,
990		-	4 or institution or a full-time law enforcement officer employed
991		-	5 by a local unit of the Employees' Retirement System under
992		-	6 Section 36-27-6 who is certified as a law enforcement officer
993		-	7 by the Alabama Peace Officers' Standards and Training
994		-	8 Commission.
995		-	9 "(b)(1) Any firefighter, law enforcement officer, or
996		-	10 correctional officer covered under the Employees' Retirement
997		-	11 System or the Teachers' Retirement System as a Tier I or Tier
998		-	12 II plan member, upon attainment of the requisite years of
999		-	13 creditable service or who otherwise qualifies for service or
1000		-	14 disability retirement, shall be awarded one year of hazardous
1001		-	15 duty time for every five years of service as a firefighter, a
1002		-	16 law enforcement officer, or a correctional officer provided
1003		-	17 that the person has made the additional contribution provided
1004		-	18 in subdivision (2) or paid the additional contribution
1005		-	19 required in subsection (c) for each year of service used in
1006		-	20 determining hazardous duty time for the person. Proportional
1007		-	21 credit shall be awarded for any period of service less than
1008		-	22 five years.
1009		-	23 "(2) Effective January 1, 2001, and each pay period
1010		-	24 thereafter, each active employee who is a firefighter, law
1011		-	25 enforcement officer, or correctional officer, as defined in
1012		-	Page 39 HB308
1013		-	1 subsection (a), shall contribute to the Teachers' or
1014		-	2 Employees' Retirement System of Alabama six percent of his or
1015		-	3 her earnable compensation. For all pay dates beginning on or
1016		-	4 after October 1, 2011, each active employee who is a
1017		-	5 firefighter, law enforcement officer, or correctional officer,
1018		-	6 as defined in subsection (a), except those employees
1019		-	7 participating pursuant to Section 36-27-6, shall contribute to
1020		-	8 the Teachers' or Employees' Retirement System of Alabama eight
1021		-	9 and one-quarter percent (8.25%) of his or her earnable
1022		-	10 compensation. For all pay dates beginning on or after October
1023		-	11 1, 2012, each active employee who is a Tier I plan member and
1024		-	12 who is a firefighter, law enforcement officer, or correctional
1025		-	13 officer, as defined in subsection (a), except those employees
1026		-	14 participating pursuant to Section 36-27-6, shall contribute to
1027		-	15 the Teachers' or Employees' Retirement System of Alabama eight
1028		-	16 and one-half percent (8.5%) of his or her earnable
1029		-	17 compensation. For all pay dates beginning on or after October
1030		-	18 1, 2022, each active employee who is a Tier II plan member and
1031		-	19 who is a firefighter, law enforcement officer, or correctional
1032		-	20 officer, as defined in subsection (a), shall contribute to the
1033		-	21 Teachers' or Employees' Retirement Systems of Alabama seven
1034		-	22 and one-half percent (7.50%) of his or her earnable
1035		-	23 compensation. Any employer participating under Section
1036		-	24 36-27-6, by adoption of a resolution, may elect for the
1037		-	25 increases in employee contributions provided by Act 2011-676
1038		-	Page 40 HB308
1039		-	1 to be withheld from the earnable compensation of employees of
1040		-	2 the employer.
1041		-	3 "(c) Any member of the Employees' Retirement System
1042		-	4 or the Teachers' Retirement System eligible under subsection
1043		-	5 (b) may receive credit for his or her eligible prior service
1044		-	6 provided the member pays to the Secretary-Treasurer of the
1045		-	7 Employees' Retirement System or the Secretary-Treasurer of the
1046		-	8 Teachers' Retirement System one percent of his or her current
1047		-	9 annual earnable compensation or previous year's annual
1048		-	10 earnable compensation, whichever is higher, for each year of
1049		-	11 claimed credit within two years of January 1, 2001, except
1050		-	12 that any firefighter employed by the Alabama Forestry
1051		-	13 Commission shall make such payment within two years of
1052		-	14 December 28, 2001. Any member participating in the Employees'
1053		-	15 Retirement System under Section 36-27-6, who has eligible
1054		-	16 prior service under this section and who also had no prior
1055		-	17 eligibility to purchase prior service credit under this
1056		-	18 subsection, may purchase prior service credit under this
1057		-	19 section at the same rate provided in subsection (b) within one
1058		-	20 year of the effective date of his or her enrollment with the
1059		-	21 Employees' Retirement System or within one year of August 1,
1060		-	22 2004. The member may purchase his or her claimed credit in
1061		-	23 increments of five years, unless the total service credit is
1062		-	24 less than five years, in which case the service shall be
1063		-	25 purchased in its entirety. The member shall provide
1064		-	Page 41 HB308
1065		-	1 certification from each employing agency, on forms prescribed
1066		-	2 by the Teachers' or Employees' Retirement System, of each year
1067		-	3 of claimed service, as a prerequisite to payment under this
1068		-	4 section.
1069		-	5 "(d) The provisions of this section shall not apply
1070		-	6 to any Tier II plan member."
1071		-	7 Section 2. This act shall become effective
1072		-	8 immediately following its passage and approval by the
1073		-	9 Governor, or its otherwise becoming law.
1074		-	Page 42 HB308
1075		-	1
	726	+	26 deductions required of any member by such an amount as shall
	727	+	Page 27 1 not exceed one tenth of one percent of the annual compensation
	728	+	2 upon the basis of which such deductions are made.
	729	+	3 "The deductions provided for in this subsection
	730	+	4 shall be made notwithstanding that the minimum compensation
	731	+	5 provided for by law for any member shall be reduced thereby.
	732	+	6 Every member shall be deemed to consent and agree to the
	733	+	7 deduction made and provided for in this subsection and shall
	734	+	8 receipt for his or her full salary or compensation and payment
	735	+	9 of salary or compensation less such deductions shall be a full
	736	+	10 and complete discharge and acquittance of all claims and
	737	+	11 demands whatsoever for the services rendered by such person
	738	+	12 during the period covered by such payment, except as to the
	739	+	13 benefits provided under this article. The employer shall
	740	+	14 certify to the Board of Control in each and every payroll or
	741	+	15 in such other manner as the board may prescribe the amounts to
	742	+	16 be deducted, and each of the amounts shall be deducted and,
	743	+	17 when deducted, shall be paid into the Annuity Savings Fund and
	744	+	18 shall be credited, together with regular interest thereon, to
	745	+	19 the individual account of the member from whose compensation
	746	+	20 the deduction was made.
	747	+	21 "In addition to the contributions deducted from
	748	+	22 compensation as provided in this subsection, subject to the
	749	+	23 approval of the Board of Control, any member may deposit in
	750	+	24 the Annuity Savings Fund by a single payment or by an
	751	+	25 increased rate of contribution an amount computed to be
	752	+	26 sufficient to purchase an additional annuity which, together
	753	+	27 with his or her prospective retirement allowance, will provide
	754	+	Page 28 1 for him or her a total retirement allowance not to exceed one
	755	+	2 half of his or her average final compensation at age 60. Such
	756	+	3 additional amounts so deposited shall become a part of his or
	757	+	4 her accumulated contributions, except in the case of
	758	+	5 retirement, when they shall be treated as excess contributions
	759	+	6 returnable to the member in cash or as an annuity of
	760	+	7 equivalent actuarial value and shall not be considered in
	761	+	8 computing his or her pension.
	762	+	9 "The contributions and interest credits of a member
	763	+	10 withdrawn by him or her or paid to his or her estate or to his
	764	+	11 or her designated beneficiary in event of his or her death
	765	+	12 shall be paid from the Annuity Savings Fund. Should a member
	766	+	13 cease to be a member other than by retirement under the
	767	+	14 provisions of this article, an amount equivalent to the
	768	+	15 difference, if any, between his or her accumulated
	769	+	16 contributions and the amount then paid shall be transferred to
	770	+	17 the Expense Fund. Upon the retirement of a member or the death
	771	+	18 of an eligible member where an allowance to a surviving spouse
	772	+	19 or other designated beneficiary is payable, his or her
	773	+	20 accumulated contributions shall be transferred from the
	774	+	21 Annuity Savings Fund to the Pension Accumulation Fund.
	775	+	22 "Notwithstanding the preceding provisions, no
	776	+	23 deductions shall be made from any member's salary on account
	777	+	24 of which the employer's contributions are in default.
	778	+	25 "The State Personnel Board, with the approval of the
	779	+	26 Governor, may provide that the state shall pick up member
	780	+	27 contributions to the Employees' Retirement System of Alabama
	781	+	Page 29 1 as required by this subsection on behalf of all state
	782	+	2 employees who participate in the Employees' Retirement System
	783	+	3 by a corresponding reduction in the salary of the member, such
	784	+	4 pick-up to be mandatory for all such employees, and the
	785	+	5 contributions so picked up shall be treated as employer
	786	+	6 contributions in determining tax treatment under the Internal
	787	+	7 Revenue Code. These contributions shall be paid from the same
	788	+	8 source of funds which is used in paying earnings to the
	789	+	9 employee. If employee contributions are so picked up they
	790	+	10 shall be treated for all other purposes of state law in the
	791	+	11 same manner and to the same extent as employee contributions
	792	+	12 made prior to the date picked up.
	793	+	13 "(c) Pension Accumulation Fund. The Pension
	794	+	14 Accumulation Fund shall be the fund in which shall be
	795	+	15 accumulated all reserves other than the amounts held in the
	796	+	16 Annuity Savings Fund for the payment of all pensions, all
	797	+	17 allowances granted to surviving spouses or other designated
	798	+	18 beneficiaries and other benefits payable from contributions
	799	+	19 made by the employer and from which shall be paid all
	800	+	20 pensions, all allowances granted to surviving spouses or other
	801	+	21 designated beneficiaries and other benefits on account of
	802	+	22 members with prior service credit.
	803	+	23 "Contributions to and payments from the Pension
	804	+	24 Accumulation Fund shall be made as follows: On account of each
	805	+	25 member there shall be paid monthly by the employer an amount
	806	+	26 equal to a certain percentage of the earnable compensation of
	807	+	27 each member to be known as the "normal contribution" and an
	808	+	Page 30 1 additional amount equal to a percentage of his or her earnable
	809	+	2 compensation to be known as the "accrued liability
	810	+	3 contribution," and these two amounts shall be paid monthly
	811	+	4 into the Pension Accumulation Fund; provided, that in the case
	812	+	5 of a state policeman, such percentage rates of contributions
	813	+	6 shall be calculated separately. The percentage rate of such
	814	+	7 contributions shall be fixed for each fiscal year on the basis
	815	+	8 of the liabilities of the retirement system as shown by the
	816	+	9 last annual actuarial valuation, and such percentage rate as
	817	+	10 established by such valuation shall take effect the following
	818	+	11 October 1 and continue in effect for the fiscal year.
	819	+	12 "On the basis of regular interest and of such
	820	+	13 mortality and other tables as shall be adopted by the Board of
	821	+	14 Control, the actuary engaged by the board to make such
	822	+	15 valuation required by this article during the period over
	823	+	16 which the accrued liability contribution is payable shall,
	824	+	17 immediately after making such valuation, determine the uniform
	825	+	18 and constant percentage of the earnable compensation of the
	826	+	19 average new entrant which, if contributed on the basis of his
	827	+	20 or her compensation throughout his or her entire period of
	828	+	21 active service, would be sufficient to provide for the payment
	829	+	22 of any pension payable on his or her account. The percentage
	830	+	23 rate so determined shall be known as the "normal contribution"
	831	+	24 rate. The normal rate of contributions shall be determined by
	832	+	25 the actuary after each valuation.
	833	+	26 "The accrued liability contribution rate shall be
	834	+	27 computed by the actuary on the basis of each valuation as the
	835	+	Page 31 1 percentage rate of the total annual compensation of all
	836	+	2 members which is sufficient to liquidate the accrued liability
	837	+	3 over a period to be determined by the Board of Control which
	838	+	4 shall be not less than 10 nor more than 30 years.
	839	+	5 "The unfunded accrued liability shall be computed by
	840	+	6 the actuary as the total liabilities of the system which are
	841	+	7 not dischargeable by the assets of the Annuity Savings Fund
	842	+	8 and the Pension Accumulation Fund and the present value of the
	843	+	9 aforesaid normal contributions.
	844	+	10 "For purposes of computing the unfunded accrued
	845	+	11 liability the assets shall be determined as follows:
	846	+	12 "On September 30, 1997, the assets shall be
	847	+	13 determined by using the market value of such assets. For
	848	+	14 subsequent years the value of the assets shall be determined
	849	+	15 by the system's actuary using a five year smoothed market
	850	+	16 value.
	851	+	17 "The total amount payable in each year to the
	852	+	18 Pension Accumulation Fund shall be not less than the sum of
	853	+	19 the percentage rates known as the normal contribution rate and
	854	+	20 the accrued liability contribution rate of the total
	855	+	21 compensation earnable by all members during the preceding
	856	+	22 year.
	857	+	23 "All interest and dividends earned on the funds of
	858	+	24 the retirement system shall be credited to the Pension
	859	+	25 Accumulation Fund. The amounts needed to allow a regular
	860	+	26 interest on the reserves in the Annuity Savings Fund shall be
	861	+	27 transferred in accordance with this article from the Pension
	862	+	Page 32 1 Accumulation Fund. The Board of Control, in its discretion,
	863	+	2 may transfer to and from the Pension Accumulation Fund the
	864	+	3 amounts of any surplus or deficit which may develop in the
	865	+	4 Annuity Savings Fund, or the Expense Fund.
	866	+	5 "Upon the death of a member on account of whom no
	867	+	6 survivor allowance is payable under subdivisions (2) and (3)
	868	+	7 of subsection (c) of Section 36-27-16, the death benefit as
	869	+	8 provided in subdivision (4) of subsection (c) of Section
	870	+	9 36-27-16 equal to the accumulated contributions, not to exceed
	871	+	10 $5,000.00 five thousand dollars ($5,000), shall be payable
	872	+	11 from the Pension Accumulation Fund.
	873	+	12 "(d) Expense Fund. The Expense Fund shall be the
	874	+	13 fund from which the expenses of the administration of the
	875	+	14 retirement system shall be paid, exclusive of amounts payable
	876	+	15 as retirement allowances and as other benefits provided in
	877	+	16 this chapter. In addition thereto and on account of each
	878	+	17 member of the retirement system, there shall be paid monthly
	879	+	18 by the employer an amount equal to a certain percentage of the
	880	+	19 earnable compensation of each member for the administrative
	881	+	20 expenses of the retirement system. The percentage rate of such
	882	+	21 contribution shall be fixed by the Board of Control on the
	883	+	22 basis of the cost exclusive of that provided by interest not
	884	+	23 returnable. Any amounts credited to the accounts of the
	885	+	24 members withdrawing before retirement and not returnable under
	886	+	25 the provisions of subsection (c) of Section 36-27-16 shall be
	887	+	26 credited to the Expense Fund.
	888	+	Page 33 1 "(e) Employer's contributions. For each biennium
	889	+	2 beginning October 1, 1965, each employer shall pay to the
	890	+	3 retirement system the rates provided in this section and
	891	+	4 thereafter, at least 30 days preceding October 1 of each
	892	+	5 fiscal year, the Board of Control shall certify to the chief
	893	+	6 fiscal officer of each employer the percentage rates of
	894	+	7 earnable compensation of the members required to be paid to
	895	+	8 the retirement system in accordance with subsections (c) and
	896	+	9 (d) of this section.
	897	+	10 "The employer's contribution on account of the
	898	+	11 membership of employees whose salaries are paid in whole or in
	899	+	12 part from funds derived from federal grants shall be paid from
	900	+	13 funds derived from the federal grants in accordance with
	901	+	14 statutes governing the administration of the grants and in
	902	+	15 proportion to salaries paid therefrom. At such time and in
	903	+	16 such manner as may be required, the Board of Control shall
	904	+	17 certify to each department of state receiving a federal grant
	905	+	18 the amount due and payable from the grant as the employer's
	906	+	19 contribution to the retirement system on account of the
	907	+	20 membership of the department whose salaries are paid in whole
	908	+	21 or in part from funds derived from such federal grants. The
	909	+	22 fiscal agent of the department shall authorize the state
	910	+	23 Comptroller to draw a warrant or warrants in payment of the
	911	+	24 amount certified as due and payable from federal grants.
	912	+	25 "(f) Appropriations. There is hereby appropriated
	913	+	26 annually from the fund from which salaries of the employees of
	914	+	27 each employer are paid the amounts sufficient to carry out the
	915	+	Page 34 1 provisions of this section. In the case of those departments
	916	+	2 supported wholly by transfers from other state funds, there is
	917	+	3 hereby appropriated from the supporting funds such additional
	918	+	4 amounts as may be necessary to pay the employer contribution
	919	+	5 of each department so supported in the same proportion as the
	920	+	6 other state funds contribute to the support and maintenance of
	921	+	7 such department.
	922	+	8 "(g) Employer cost provided for in this article
	923	+	9 together with member contributions required under this article
	924	+	10 shall be paid to the Employees' Retirement System on the first
	925	+	11 day of the month following the month in which the related
	926	+	12 member salary is earned. Delinquent accounts shall accrue
	927	+	13 interest at the actuarial assumed investment rate beginning 30
	928	+	14 days after the original due date. The member contributions for
	929	+	15 each member shall be reported to the Employees' Retirement
	930	+	16 System in a format prescribed by the Employees' Retirement
	931	+	17 System.
	932	+	18 "§36-27-59.
	933	+	19 "(a) When used in this section, the following terms
	934	+	20 shall have the following meanings, unless the context clearly
	935	+	21 indicates otherwise:
	936	+	22 "(1) CORRECTIONAL OFFICER. A full-time correctional
	937	+	23 officer who is certified as a correctional officer by the
	938	+	24 Alabama Peace Officers' Standards and Training Commission.
	939	+	25 "(2) FIREFIGHTER. A full-time firefighter employed
	940	+	26 with the State of Alabama, a municipal fire department, or a
	941	+	27 fire district who has a level one minimum standard
	942	+	Page 35 1 certification by the Firefighters Personnel Standards and
	943	+	2 Education Commission, or a firefighter employed by the Alabama
	944	+	3 Forestry Commission who has been certified by the State
	945	+	4 Forester as having met the wild land firefighter training
	946	+	5 standard of the National Wildfire Coordinating Group.
	947	+	6 "(3) LAW ENFORCEMENT OFFICER. A full-time law
	948	+	7 enforcement officer, not covered as a state policeman,
	949	+	8 employed with any state agency, department, board, commission,
	950	+	9 or institution or a full-time law enforcement officer employed
	951	+	10 by a local unit of the Employees' Retirement System under
	952	+	11 Section 36-27-6 who is certified as a law enforcement officer
	953	+	12 by the Alabama Peace Officers' Standards and Training
	954	+	13 Commission.
	955	+	14 "(b)(1) Any firefighter, law enforcement officer, or
	956	+	15 correctional officer covered under the Employees' Retirement
	957	+	16 System or the Teachers' Retirement System as a Tier I or Tier
	958	+	17 II plan member, upon attainment of the requisite years of
	959	+	18 creditable service or who otherwise qualifies for service or
	960	+	19 disability retirement, shall be awarded one year of hazardous
	961	+	20 duty time for every five years of service as a firefighter, a
	962	+	21 law enforcement officer, or a correctional officer provided
	963	+	22 that the person has made the additional contribution provided
	964	+	23 in subdivision (2) or paid the additional contribution
	965	+	24 required in subsection (c) for each year of service used in
	966	+	25 determining hazardous duty time for the person. Proportional
	967	+	26 credit shall be awarded for any period of service less than
	968	+	27 five years.
	969	+	Page 36 1 "(2) Effective January 1, 2001, and each pay period
	970	+	2 thereafter, each active employee who is a firefighter, law
	971	+	3 enforcement officer, or correctional officer, as defined in
	972	+	4 subsection (a), shall contribute to the Teachers' or
	973	+	5 Employees' Retirement System of Alabama six percent of his or
	974	+	6 her earnable compensation. For all pay dates beginning on or
	975	+	7 after October 1, 2011, each active employee who is a
	976	+	8 firefighter, law enforcement officer, or correctional officer,
	977	+	9 as defined in subsection (a), except those employees
	978	+	10 participating pursuant to Section 36-27-6, shall contribute to
	979	+	11 the Teachers' or Employees' Retirement System of Alabama eight
	980	+	12 and one-quarter percent (8.25%) of his or her earnable
	981	+	13 compensation. For all pay dates beginning on or after October
	982	+	14 1, 2012, each active employee who is a Tier I plan member and
	983	+	15 who is a firefighter, law enforcement officer, or correctional
	984	+	16 officer, as defined in subsection (a), except those employees
	985	+	17 participating pursuant to Section 36-27-6, shall contribute to
	986	+	18 the Teachers' or Employees' Retirement System of Alabama eight
	987	+	19 and one-half percent (8.5%) of his or her earnable
	988	+	20 compensation. For all pay dates beginning on or after October
	989	+	21 1, 2022, each active employee who is a Tier II plan member and
	990	+	22 who is a firefighter, law enforcement officer, or correctional
	991	+	23 officer, as defined in subsection (a), shall contribute to the
	992	+	24 Teachers' or Employees' Retirement Systems of Alabama seven
	993	+	25 and one-half percent (7.50%) of his or her earnable
	994	+	26 compensation. Any employer participating under Section
	995	+	27 36-27-6, by adoption of a resolution, may elect for the
	996	+	Page 37 1 increases in employee contributions provided by Act 2011-676
	997	+	2 to be withheld from the earnable compensation of employees of
	998	+	3 the employer.
	999	+	4 "(c) Any member of the Employees' Retirement System
	1000	+	5 or the Teachers' Retirement System eligible under subsection
	1001	+	6 (b) may receive credit for his or her eligible prior service
	1002	+	7 provided the member pays to the Secretary-Treasurer of the
	1003	+	8 Employees' Retirement System or the Secretary-Treasurer of the
	1004	+	9 Teachers' Retirement System one percent of his or her current
	1005	+	10 annual earnable compensation or previous year's annual
	1006	+	11 earnable compensation, whichever is higher, for each year of
	1007	+	12 claimed credit within two years of January 1, 2001, except
	1008	+	13 that any firefighter employed by the Alabama Forestry
	1009	+	14 Commission shall make such payment within two years of
	1010	+	15 December 28, 2001. Any member participating in the Employees'
	1011	+	16 Retirement System under Section 36-27-6, who has eligible
	1012	+	17 prior service under this section and who also had no prior
	1013	+	18 eligibility to purchase prior service credit under this
	1014	+	19 subsection, may purchase prior service credit under this
	1015	+	20 section at the same rate provided in subsection (b) within one
	1016	+	21 year of the effective date of his or her enrollment with the
	1017	+	22 Employees' Retirement System or within one year of August 1,
	1018	+	23 2004. The member may purchase his or her claimed credit in
	1019	+	24 increments of five years, unless the total service credit is
	1020	+	25 less than five years, in which case the service shall be
	1021	+	26 purchased in its entirety. The member shall provide
	1022	+	27 certification from each employing agency, on forms prescribed
	1023	+	Page 38 1 by the Teachers' or Employees' Retirement System, of each year
	1024	+	2 of claimed service, as a prerequisite to payment under this
	1025	+	3 section.
	1026	+	4 "(d) The provisions of this section shall not apply
	1027	+	5 to any Tier II plan member."
	1028	+	6 Section 2. This act shall become effective
	1029	+	7 immediately following its passage and approval by the
	1030	+	8 Governor, or its otherwise becoming law.
	1031	+	Page 39 1
1076	1032		2
1077		-	3
1078		-	4
1079		-	Speaker of the House of Representatives
1080		-
1081		-	5
1082		-	6 President and Presiding Officer of the Senate
1083		-	House of Representatives7
1084		-	I hereby certify that the within Act originated in8
1085		-	9 and was passed by the House 02-MAR-22, as amended.
1086		-	10
1087		-	11 Jeff Woodard
1088		-	12 Clerk
1089		-	13
1090		-	14
1091		-	Senate15 06-APR-22 Amended and Passed
1092		-	House16 07-APR-22
1093		-	Concurred in Sen-
1094		-	ate Amendment
1095		-	17
1096		-	Page 43
	1033	+	House of Representatives3
	1034	+	Read for the first time and re-4
	1035	+	5 ferred to the House of Representa-
	1036	+	6 tives committee on Ways and Means
	1037	+	General Fund.......................7 .......08-FEB-22
	1038	+	8
	1039	+	Read for the second time and placed9
	1040	+	on the calendar 1 amendment ......10 .......16-FEB-22
	1041	+	11
	1042	+	Read for the third time and passed12
	1043	+	as amended.........................13 .......02-MAR-22
	1044	+	Yeas 100, Nays 0, Abstains 014
	1045	+	15
	1046	+	16 Jeff Woodard
	1047	+	17 Clerk
	1048	+	18
	1049	+	Page 40