AL
Alabama House Bill HB346

Alabama 2022 Regular Session

Alabama House Bill HB346 Compare Versions

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11 1 HB346
2-2 217404-2
2+2 217404-1
33 3 By Representative Ellis
44 4 RFD: County and Municipal Government
55 5 First Read: 15-FEB-22
66
7-Page 0 HB346
8-1
9-2 ENROLLED, An Act,
10-3 Relating to the Employees' Retirement System of
11-4 Alabama; to amend Section 36-27-6.5, Code of Alabama 1975, to
12-5 remove the date limitation on a participating local employer
13-6 for electing to provide to its Tier II plan members the same
14-7 retirement benefits as provided to Tier I plan members.
15-8 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
16-9 Section 1. Section 36-27-6.5 of the Code of Alabama
17-10 1975, is amended to read as follows;
18-11 "§36-27-6.5.
19-12 "(a) Any employer participating in the Employees'
20-13 Retirement System of Alabama pursuant to Section 36-27-6, may,
21-14 by adoption of a resolution by May 8, 2021, may elect to
22-15 provide to its Tier II plan members the same retirement
23-16 benefits provided to Tier I plan members. Provided, however,
24-17 the Employees' Retirement System Board of Control, based on a
25-18 staff review of the historical compliance with ERS
26-19 requirements as well as the financial stability of the local
27-20 government entity, may elect to deny the election authorized
28-21 herein in this section. The local entity may petition the
29-22 Board of Control for a reconsideration of its action by May 8,
30-23 2021. The election shall be irrevocable and shall be effective
31-24 at the beginning of the fiscal year following the date the
32-25 resolution is received by the ERS.
33-Page 1 HB346
34-1 "(b) Any employer that has not increased the Tier I
35-2 member contribution rates as provided in Act 2011-676 shall
36-3 develop a plan to gradually increase the member contribution
37-4 rates as provided herein in this section. The plan shall be
38-5 submitted to the Employees' Retirement System before electing
39-6 to provide Tier II plan members the same retirement benefits
40-7 as Tier I plan members. Beginning in the month the election to
41-8 provide Tier II plan members the same retirement benefits
42-9 provided to Tier I plan members becomes effective, Tier II
43-10 plan members shall contribute to the Employees' Retirement
44-11 System seven and one-half percent of their earnable
45-12 compensation and Tier II plan members who are firefighters,
46-13 law enforcement officers, or correctional officers, as defined
47-14 in Section 36-27-59(a), shall contribute to the Employees'
48-15 Retirement System eight and one-half percent of their earnable
49-16 compensation.
50-17 "(c) Anything in this article to the contrary
51-18 notwithstanding, in the application of the provisions of
52-19 Sections 36-27-16 and 16-25-14 to a member whose creditable
53-20 service includes periods of service to different Tier plans,
54-21 the benefit rates of each respective Tier plan will be
55-22 applicable to the creditable service earned while in each
56-23 respective Tier plan. In all other respects, the pension under
57-24 this subsection shall be determined on the basis of the
58-Page 2 HB346
59-1 member's Tier plan at the time of his or her withdrawal from
60-2 service."
61-3 Section 2. This act shall become effective
62-4 immediately following its passage and approval by the
63-5 Governor, or its otherwise becoming law.
64-Page 3 HB346
65-1
7+Page 0 1 217404-1:n:02/10/2022:KMS/cr LSA2022-629
668 2
679 3
6810 4
69-Speaker of the House of Representatives
70-
7111 5
72-6 President and Presiding Officer of the Senate
73-House of Representatives7
74-I hereby certify that the within Act originated in8
75-9 and was passed by the House 01-MAR-22.
76-10
77-11 Jeff Woodard
78-12 Clerk
79-13
80- 14
12+6
13+7
14+8 SYNOPSIS: Under existing law, any local employer
15+9 participating in the Employees' Retirement System
16+10 of Alabama, by adoption of a resolution before May
17+11 8, 2021, may elect to provide to its Tier II plan
18+12 members the same retirement benefits provided to
19+13 Tier I plan members.
20+14 This bill would remove the date limitation.
8121 15
82-Senate16 06-APR-22 Passed
83- 17
84-Page 4
22+16 A BILL
23+17 TO BE ENTITLED
24+18 AN ACT
25+19
26+20 Relating to the Employees' Retirement System of
27+21 Alabama; to amend Section 36-27-6.5, Code of Alabama 1975, to
28+22 remove the date limitation on a participating local employer
29+23 for electing to provide to its Tier II plan members the same
30+24 retirement benefits as provided to Tier I plan members.
31+25 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
32+26 Section 1. Section 36-27-6.5 of the Code of Alabama
33+27 1975, is amended to read as follows;
34+Page 1 1 "§36-27-6.5.
35+2 "(a) Any employer participating in the Employees'
36+3 Retirement System of Alabama pursuant to Section 36-27-6, may,
37+4 by adoption of a resolution by May 8, 2021, may elect to
38+5 provide to its Tier II plan members the same retirement
39+6 benefits provided to Tier I plan members. Provided, however,
40+7 the Employees' Retirement System Board of Control, based on a
41+8 staff review of the historical compliance with ERS
42+9 requirements as well as the financial stability of the local
43+10 government entity, may elect to deny the election authorized
44+11 herein in this section. The local entity may petition the
45+12 Board of Control for a reconsideration of its action by May 8,
46+13 2021. The election shall be irrevocable and shall be effective
47+14 at the beginning of the fiscal year following the date the
48+15 resolution is received by the ERS.
49+16 "(b) Any employer that has not increased the Tier I
50+17 member contribution rates as provided in Act 2011-676 shall
51+18 develop a plan to gradually increase the member contribution
52+19 rates as provided herein in this section. The plan shall be
53+20 submitted to the Employees' Retirement System before electing
54+21 to provide Tier II plan members the same retirement benefits
55+22 as Tier I plan members. Beginning in the month the election to
56+23 provide Tier II plan members the same retirement benefits
57+24 provided to Tier I plan members becomes effective, Tier II
58+25 plan members shall contribute to the Employees' Retirement
59+26 System seven and one-half percent of their earnable
60+27 compensation and Tier II plan members who are firefighters,
61+Page 2 1 law enforcement officers, or correctional officers, as defined
62+2 in Section 36-27-59(a), shall contribute to the Employees'
63+3 Retirement System eight and one-half percent of their earnable
64+4 compensation.
65+5 "(c) Anything in this article to the contrary
66+6 notwithstanding, in the application of the provisions of
67+7 Sections 36-27-16 and 16-25-14 to a member whose creditable
68+8 service includes periods of service to different Tier plans,
69+9 the benefit rates of each respective Tier plan will be
70+10 applicable to the creditable service earned while in each
71+11 respective Tier plan. In all other respects, the pension under
72+12 this subsection shall be determined on the basis of the
73+13 member's Tier plan at the time of his or her withdrawal from
74+14 service."
75+15 Section 2. This act shall become effective
76+16 immediately following its passage and approval by the
77+17 Governor, or its otherwise becoming law.
78+Page 3