Alabama 2022 Regular Session

Alabama House Bill HB69 Compare Versions

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

Old	New	Differences
1	1	1 HB69
2	2	2 214921-1
3	3	3 By Representative Pettus
4	4	4 RFD: Ways and Means General Fund
5	5	5 First Read: 11-JAN-22
6	6	6 PFD: 01/06/2022
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14	14	7
15	15	8 SYNOPSIS: This bill would reopen the State Police Tier
16	16	9 II Plan to any employee of the Alabama State Law
17	17	10 Enforcement Agency who is certified by the Alabama
18	18	11 Peace Officers' Standards and Training Commission
19	19	12 and performs law enforcement duties and would
20	20	13 modify the Tier II benefits received by State
21	21	14 Police Tier II members to allow 25-year retirement
22	22	15 and hazardous duty time, and would clarify that an
23	23	16 employee of the Alabama State Law Enforcement
24	24	17 Agency who is certified by the Alabama Peace
25	25	18 Officers' Standards and Training Commission is a
26	26	19 state policeman.
27	27	20
28	28	21 A BILL
29	29	22 TO BE ENTITLED
30	30	23 AN ACT
31	31	24
32	32	25 To amend Sections 36-27-1, 36-27-16, as amended by
33	33	26 Act 2021-270, and 41-27-7, Code of Alabama 1975, relating to
34	34	27 retirement benefits for employees who are members of the
35	35	Page 1 1 Employees' Retirement System; to reopen the State Police Tier
36	36	2 II Plan to any employee of the Alabama State Law Enforcement
37	37	3 Agency who is certified by the Alabama Peace Officers'
38	38	4 Standards and Training Commission and performs law enforcement
39	39	5 duties; to modify the Tier II benefits received by all State
40	40	6 Police Tier II members; and to clarify that employees of the
41	41	7 Alabama State Law Enforcement Agency are state policemen for
42	42	8 retirement purposes.
43	43	9 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
44	44	10 Section 1. Sections 36-27-1, 36-27-16, as amended
45	45	11 by Act 2021-270, and 41-27-7 of the Code of Alabama 1975, are
46	46	12 amended to read as follows:
47	47	13 "§36-27-1.
48	48	14 "When used in this article, the following terms
49	49	15 shall have the following meanings, respectively, unless the
50	50	16 context clearly indicates otherwise:
51	51	17 "(1) RETIREMENT SYSTEM. The Employees' Retirement
52	52	18 System of Alabama as defined in Section 36-27-2.
53	53	19 "(2) EMPLOYEE. Any regular employee of the State of
54	54	20 Alabama whose salary is paid by state warrant by the state,
55	55	21 except a member of the Legislature of the state, a person who
56	56	22 is covered or eligible to be covered under the Teachers'
57	57	23 Retirement System of Alabama or any other retirement system to
58	58	24 which contributions are made by the state, an elective
59	59	25 official of the state government, and a temporary employee or
60	60	26 person engaged under retainer or special agreement. In all
61	61	27 cases of doubt the Board of Control shall determine who is an
62	62	Page 2 1 employee within the meaning of this article. The term shall
63	63	2 include any regular employee of the Alabama state hospitals
64	64	3 and Partlow State School and Hospital and the Alabama State
65	65	4 Port Authority, however paid.
66	66	5 "(3) EMPLOYER. The State of Alabama or any
67	67	6 department, commission, institution, or any other agency of
68	68	7 and within the state by which an employee is paid, including
69	69	8 employers as provided in Section 36-27-6.
70	70	9 "(4) MEMBER. Any employee included in the membership
71	71	10 of the system as provided in Section 36-27-4.
72	72	11 "(5) BOARD OF CONTROL. The board provided for in
73	73	12 Section 36-27-23 to administer the retirement system.
74	74	13 "(6) MEDICAL BOARD. The board of physicians provided
75	75	14 for in Section 36-27-23.
76	76	15 "(7) SERVICE. Service as an employee paid for by an
77	77	16 employer.
78	78	17 "(8) PRIOR SERVICE. Service rendered prior to the
79	79	18 date of establishment of the retirement system for which
80	80	19 credit is allowable under Section 36-27-11.
81	81	20 "(9) MEMBERSHIP SERVICE. Service as an employee
82	82	21 rendered while a member of the retirement system and on
83	83	22 account of which contributions are made.
84	84	23 "(10) CREDITABLE SERVICE. "Prior service" plus
85	85	24 "membership service" rendered since last becoming a member.
86	86	25 "(11) BENEFICIARY. Any person in receipt of a
87	87	26 pension, an annuity, a retirement allowance or other benefit
88	88	27 as provided by this article.
89	89	Page 3 1 "(12) REGULAR INTEREST. Interest compounded annually
90	90	2 at the rate determined by the Board of Control in accordance
91	91	3 with subsection (f) of Section 36-27-25.
92	92	4 "(13) ACCUMULATED CONTRIBUTIONS. The sum of all the
93	93	5 amounts deducted from the compensation of a member credited to
94	94	6 his or her individual account in the Annuity Savings Fund,
95	95	7 together with regular interest thereon, as provided in Section
96	96	8 36-27-24.
97	97	9 "(14) EARNABLE COMPENSATION. The full rate of
98	98	10 compensation that would be payable to an employee if he or she
99	99	11 worked the full normal work-time. In cases where compensation
100	100	12 includes maintenance, the Board of Control shall fix the value
101	101	13 of that part of the compensation not paid in money. Earnable
102	102	14 compensation shall not exceed the limitations imposed by
103	103	15 Section 401(a)(17) of the Internal Revenue Code for public
104	104	16 pension funds, except that any employee who was a member of
105	105	17 the Employees' Retirement System before the first plan year
106	106	18 beginning after December 31, 1995, shall not be subject to the
107	107	19 earning limitations set forth in Section 401(a)(17). For Tier
108	108	20 I plan members, the term earnable compensation for retirement
109	109	21 purposes shall not include subsistence payments that are made
110	110	22 to a member and shall include overtime payments that are made
111	111	23 to a member; however, earnable compensation shall not exceed
112	112	24 120 percent of any members' annual base compensation as
113	113	25 certified by the employer. For Tier II plan members, earnable
114	114	26 compensation shall include overtime payments that are made to
115	115	27 the member but shall not include subsistence payments that are
116	116	Page 4 1 made to the member and shall not exceed one hundred
117	117	2 twenty-five percent (125%) of the member's annual base
118	118	3 compensation, as certified by the employer.
119	119	4 "(15) AVERAGE FINAL COMPENSATION. For any Tier I
120	120	5 plan member, the average annual compensation of the member,
121	121	6 with respect to which he or she had made contributions
122	122	7 pursuant to subsection (b) of Section 36-27-24 during the
123	123	8 three years, in his or her last 10 years of creditable service
124	124	9 for which the average is highest or during his or her entire
125	125	10 period of creditable service if less than three years; except,
126	126	11 that for any period prior to November 1, 1959, the
127	127	12 compensation used in computing the average shall include
128	128	13 compensation in excess of the maximum amount with respect to
129	129	14 which members were required to contribute. For any Tier II
130	130	15 plan member, the average annual compensation of the member,
131	131	16 with respect to which he or she has made contributions
132	132	17 pursuant to subsection (b) of Section 36-27-24 during the five
133	133	18 years, in his or her last ten 10 years of creditable service
134	134	19 for which the average is highest or during his or her entire
135	135	20 period of creditable service if less than five years.
136	136	21 "(16) ANNUITY. Payments for life derived from the
137	137	22 "accumulated contributions" of a member. All annuities shall
138	138	23 be payable in equal monthly installments.
139	139	24 "(17) PENSION. Payments for life derived from money
140	140	25 provided by the employer. All pensions shall be payable in
141	141	26 equal monthly installments.
142	142	Page 5 1 "(18) RETIREMENT ALLOWANCE. The sum of the "annuity"
143	143	2 and the "pension."
144	144	3 "(19) RETIREMENT. Withdrawal from active service
145	145	4 with a retirement allowance or optional benefit in lieu
146	146	5 thereof granted under this article.
147	147	6 "(20) ANNUITY RESERVE. The present value of all
148	148	7 payments to be made on account of any annuity or benefit in
149	149	8 lieu of any annuity computed upon the basis of the mortality
150	150	9 tables adopted by the Board of Control and regular interest.
151	151	10 "(21) PENSION RESERVE. The present value of all
152	152	11 payments to be made on account of any pension or benefit in
153	153	12 lieu of any pension computed upon the basis of the mortality
154	154	13 tables adopted by the Board of Control and regular interest.
155	155	14 "(22) ACTUARIAL EQUIVALENT. A benefit of equal value
156	156	15 when computed upon the basis of the mortality tables adopted
157	157	16 by the Board of Control and regular interest.
158	158	17 "(23) STATE POLICEMAN. An employee in the classified
159	159	18 service under the Merit System Act approved by the State
160	160	19 Personnel Board to perform the duties of highway patrolman or
161	161	20 a beverage control agent or a crime investigator. The term
162	162	21 includes any employee hired by of the Alabama State Law
163	163	22 Enforcement Agency after January 1, 2015, who is certified by
164	164	23 the Alabama Peace Officers' Standards and Training Commission
165	165	24 and performs law enforcement duties. Such an employee of the
166	166	25 Alabama State Law Enforcement Agency shall pay the same
167	167	26 employee contribution rate as and receive the same benefits as
168	168	27 Tier II law enforcement officers, as defined by Section
169	169	Page 6 1 36-27-59(a)(3). The term shall not include a member employed
170	170	2 as a policeman under Section 36-27-6.
171	171	3 "(24) TIER I PLAN. The defined benefit pension plan
172	172	4 provided by the Retirement System to Tier I plan members.
173	173	5 "(25) TIER II PLAN. The defined benefit pension plan
174	174	6 provided by the Retirement System to Tier II plan members.
175	175	7 "(26) TIER I PLAN MEMBER. Any member of the
176	176	8 Retirement System who had service for which he or she received
177	177	9 credit in the Employees' Retirement System or in the Teachers'
178	178	10 Retirement System prior to January 1, 2013.
179	179	11 "(27) TIER II PLAN MEMBER. Any member of the
180	180	12 Retirement System who first began eligible employment with an
181	181	13 Employees' Retirement System or a Teachers' Retirement System
182	182	14 participating employer on or after January 1, 2013, and who
183	183	15 had no eligible service in the Employees' Retirement System or
184	184	16 the Teachers' Retirement System prior to January 1, 2013.
185	185	17 "§36-27-16.
186	186	18 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
187	187	19 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
188	188	20 "a. Any Tier I plan member who withdraws from
189	189	21 service upon or after attainment of age 60 and any Tier II
190	190	22 plan member who withdraws from service upon or after
191	191	23 attainment of age 62 may retire upon written application to
192	192	24 the Board of Control setting forth at what time, not less than
193	193	25 30 days nor more than 90 days subsequent to the execution and
194	194	26 filing thereof, he or she desires to be retired; provided,
195	195	27 that any such member who became a member on or after October
196	196	Page 7 1 1, 1963, shall have completed 10 or more years of creditable
197	197	2 service; provided further, that a Tier I or Tier II plan
198	198	3 member employed as a state policeman shall be eligible to file
199	199	4 application for service retirement upon attaining age 52 and a
200	200	5 Tier II plan member employed as a state policeman or employed
201	201	6 as a correctional officer, firefighter, or law enforcement
202	202	7 officer as defined in Section 36-27-59 with at least ten 10
203	203	8 years of creditable service as a correctional officer,
204	204	9 firefighter, or law enforcement officer shall be eligible to
205	205	10 file application for service retirement upon attaining age 56.
206	206	11 "b. Any Tier I plan member who has attained age 60,
207	207	12 or age 52 in the case of a state policeman and any Tier II
208	208	13 plan member who has attained age 62, or age 56 52 in the case
209	209	14 of a state policeman, or age 56 in the case of a correctional
210	210	15 officer, firefighter, or law enforcement officer as defined in
211	211	16 Section 36-27-59 who has at least ten 10 years of creditable
212	212	17 service as a correctional officer, firefighter, or law
213	213	18 enforcement officer, and has previously withdrawn from service
214	214	19 may retire upon written application to the Board of Control
215	215	20 setting forth at what time, not less than 30 days nor more
216	216	21 than 90 days subsequent to the execution and filing thereof,
217	217	22 he or she desires to be retired; provided, the member shall
218	218	23 have at the time of his or her withdrawal from service
219	219	24 completed the age and service requirements established by the
220	220	25 Board of Control for eligibility for deferred benefits;
221	221	26 provided, that such minimum number of years of creditable
222	222	Page 8 1 service shall not be less than 10 years nor more than 25
223	223	2 years.
224	224	3 "c. In addition to any law or part of law relating
225	225	4 to service retirement under the Employees' Retirement System
226	226	5 of Alabama, any Tier I plan member of the Employees'
227	227	6 Retirement System or Tier II plan member employed as a state
228	228	7 policeman who withdraws from service after completion of not
229	229	8 less than 25 years of creditable service may retire without a
230	230	9 reduction in retirement allowance upon written application to
231	231	10 the Board of Control of the Employees' Retirement System
232	232	11 setting forth the first day of which month, not less than 30
233	233	12 days or more than 90 days subsequent to the execution and
234	234	13 filing thereof, he or she desires to be retired, provided that
235	235	14 no person whose employer participates in the Employees'
236	236	15 Retirement System under Section 36-27-6 shall be entitled to
237	237	16 the benefits provided in this paragraph unless such employer
238	238	17 elects to come under the provisions of the paragraph. Any
239	239	18 employer making such election must bear the cost of such
240	240	19 benefit.
241	241	20 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
242	242	21 "a. Upon retirement from service a Tier I plan
243	243	22 member shall receive a service retirement allowance which
244	244	23 shall consist of:
245	245	24 "1. An annuity which shall be the actuarial
246	246	25 equivalent of his or her accumulated contributions at the time
247	247	26 of his or her retirement; except, that in the case of a state
248	248	27 policeman who has completed 20 years of creditable service as
249	249	Page 9 1 a state policeman who retires after age 56 but prior to age
250	250	2 60, the annuity shall be equal to the annuity that would have
251	251	3 been payable upon service retirement at age 60 had the member
252	252	4 continued in service to age 60 without change in compensation;
253	253	5 "2. A pension which shall be equal to the annuity
254	254	6 allowance at age of retirement, but not to exceed an annuity
255	255	7 allowable at age 65, computed on the basis of contributions
256	256	8 made prior to attainment of age 65; except, that in the case
257	257	9 of a state policeman who has completed 20 years of creditable
258	258	10 service as a state policeman who retires after age 56 but
259	259	11 prior to age 60, the pension shall be equal to the annuity
260	260	12 that he or she would have received had he or she contributed
261	261	13 to age 60 without change in compensation; and
262	262	14 "3. An additional pension, if he or she has a prior
263	263	15 service certificate in full force and effect, which shall be
264	264	16 equal to the annuity which would have been provided at the age
265	265	17 of retirement, but which shall not exceed an annuity allowable
266	266	18 at age 65 by twice the contributions which he or she would
267	267	19 have made during the period of prior service with which he or
268	268	20 she is credited had the system been in operation and had he or
269	269	21 she contributed thereunder; except, that in case of a state
270	270	22 policeman who has completed 20 years of creditable service as
271	271	23 a state policeman who retired after age 56 but prior to age
272	272	24 60, an additional pension, if he or she has a prior service
273	273	25 certificate in full force and effect, which shall be equal to
274	274	26 the annuity which would have been provided at age 60, but
275	275	27 which shall not exceed an annuity allowable at age 60 by twice
276	276	Page 10 1 the contributions which he or she would have made during the
277	277	2 period of prior service with which he or she is credited had
278	278	3 the system been in operation and had he or she contributed
279	279	4 thereunder.
280	280	5 "b. Notwithstanding the provisions of subparagraphs
281	281	6 1., 2., and 3. of paragraph a. of this subdivision, a state
282	282	7 policeman who is a Tier I plan member and who has completed 20
283	283	8 years of service as a state policeman who retires after age 52
284	284	9 but prior to age 56 shall receive:
285	285	10 "1. An annuity which shall be equal to the annuity
286	286	11 that would have been payable had the member continued in
287	287	12 service for four years without change in compensation;
288	288	13 "2. A pension which shall be equal to the annuity
289	289	14 that he or she would have received had he or she contributed
290	290	15 for four years without change in compensation; and
291	291	16 "3. An additional pension, if he or she has a prior
292	292	17 service certificate in full force and effect, which shall be
293	293	18 equal to the annuity which would have been provided at the age
294	294	19 of retirement, but which shall not exceed an annuity allowable
295	295	20 at the age of retirement plus four years by twice the
296	296	21 contributions which he or she would have made during the
297	297	22 period of prior service with which he or she is credited had
298	298	23 the system been in operation and had he or she contributed
299	299	24 thereunder. In lieu of a determination of the actual
300	300	25 compensation of a member that was received during such prior
301	301	26 service, the Board of Control may use for the purpose of this
302	302	27 article the compensation rate which, if it had progressed with
303	303	Page 11 1 the rates of salary increase shown in the tables as prescribed
304	304	2 in subsection (n) of Section 36-27-23, would have resulted in
305	305	3 the same average salary of the member for the five years
306	306	4 immediately preceding the date of establishment as the records
307	307	5 show the member actually received.
308	308	6 "c. The annual service retirement pension payable to
309	309	7 a Tier I plan member not employed as a state policeman
310	310	8 retiring on or after October 1, 1975, shall not be less than
311	311	9 an amount which, when added to his or her annuity, is equal to
312	312	10 the greater of the following two amounts:
313	313	11 "1. Two and one-eightieth percent of the member's
314	314	12 average final compensation multiplied by the number of years
315	315	13 of his or her creditable service; or
316	316	14 "2. If he or she became a member before October 1,
317	317	15 1965, $72.00 multiplied by the number of years of his or her
318	318	16 creditable service not in excess of 25 years.
319	319	17 "d. The annual service retirement pension payable to
320	320	18 a Tier I plan member employed as a state policeman retiring on
321	321	19 or after October 1, 1975, shall not be less than an amount
322	322	20 which, when added to his or her annuity is equal to the
323	323	21 greater of the following two amounts:
324	324	22 "1. Two and seven-eighths percent of the member's
325	325	23 average final compensation multiplied by the number of years
326	326	24 of his or her creditable service. Creditable service for any
327	327	25 state policeman under the age of 56 years who has completed 20
328	328	26 years of creditable service as a state policeman shall include
329	329	27 a bonus equal to four additional years. Creditable service for
330	330	Page 12 1 a state policeman 56 years or older shall include a bonus
331	331	2 equal to the years or portion thereof remaining until the
332	332	3 member reaches age 60; or
333	333	4 "2. If he or she became a member before October 1,
334	334	5 1965, $86.40 multiplied by the number of years of his or her
335	335	6 creditable service not in excess of 25 years; provided,
336	336	7 however, that if such member has completed 20 years of
337	337	8 creditable service as a state policeman and has not attained
338	338	9 age 60 at the time of retirement, the pension shall be
339	339	10 determined as provided in this subparagraph on the basis of
340	340	11 the number of years of creditable service which he or she
341	341	12 would have had if he or she had remained in service for four
342	342	13 years, except that, in the case of those state policemen
343	343	14 retiring at age 56 or after, the number of years in
344	344	15 determining the pension shall not exceed the number of years
345	345	16 of creditable service which he or she would have had if he or
346	346	17 she had remained in service to age 60.
347	347	18 "e. Upon retirement from service, a Tier II plan
348	348	19 member who is not employed as a state policeman shall receive
349	349	20 a service retirement allowance which shall consist of an
350	350	21 annuity which shall be the actuarial equivalent of the
351	351	22 member's accumulated contributions at the time of retirement
352	352	23 and a pension which, when added to the member's annuity, shall
353	353	24 be equal to one and sixty-five hundredths percent (1.65%) of
354	354	25 the member's average final compensation multiplied by the
355	355	26 number of years of creditable service. Notwithstanding the
356	356	27 foregoing, the service retirement allowance shall not exceed
357	357	Page 13 1 eighty percent (80%) of the member's average final
358	358	2 compensation.
359	359	3 "f. Upon retirement from service, a Tier II plan
360	360	4 member who is employed as a state policeman shall receive a
361	361	5 service retirement allowance which shall consist of an annuity
362	362	6 which shall be the actuarial equivalent of the member's
363	363	7 accumulated contributions at the time of retirement and a
364	364	8 pension which, when added to the member's annuity, shall be
365	365	9 equal to two and three-eighths percent (2.375%) of the
366	366	10 member's average final compensation multiplied by the member's
367	367	11 number of years of creditable service. Notwithstanding the
368	368	12 foregoing, the service retirement allowance shall not exceed
369	369	13 eighty percent (80%) of the member's average final
370	370	14 compensation. Creditable service for any Tier II plan member
371	371	15 who is employed as a state policeman shall include one year of
372	372	16 hazardous duty time for every five years of service as a state
373	373	17 policeman.
374	374	18 "g. Anything in this article to the contrary
375	375	19 notwithstanding, in the application of the foregoing
376	376	20 provisions of this subdivision to a member whose creditable
377	377	21 service includes a period of service as a state policeman and
378	378	22 a period of service in another employment classification, the
379	379	23 benefit rates applicable to a member employed as a state
380	380	24 policeman shall apply to all creditable service as a state
381	381	25 policeman, and the benefit rates applicable to a member not
382	382	26 employed as a state policeman shall apply to all creditable
383	383	27 service, but in all other respects the pension under this
384	384	Page 14 1 subdivision shall be determined on the basis of the member's
385	385	2 employment classification at the time of his or her withdrawal
386	386	3 from service.
387	387	4 "h. The annual service retirement pension payable to
388	388	5 any state employee who had attained age 60 on or before
389	389	6 October 1, 1945, who declined membership in the Employees'
390	390	7 Retirement System of Alabama in the manner prescribed in
391	391	8 Section 36-27-4 and who retires as a state employee after
392	392	9 completing a minimum of 15 years' service shall be $72.00
393	393	10 multiplied by the number of years of his or her service not in
394	394	11 excess of 25 years.
395	395	12 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
396	396	13 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
397	397	14 "a. Upon application of a Tier I plan member in
398	398	15 service or of his or her employer, any member who has had 10
399	399	16 or more years of creditable service who becomes disabled may
400	400	17 be retired on a disability retirement allowance by the Board
401	401	18 of Control not less than 30 nor more than 90 days next
402	402	19 following the date of filing of such application; provided,
403	403	20 that the medical board, after a medical examination of such
404	404	21 member, shall certify that such member is mentally or
405	405	22 physically incapacitated for the further performance of duty,
406	406	23 that such incapacity is likely to be permanent and that such
407	407	24 member should be retired. Upon the application of a Tier II
408	408	25 plan member in service or his or her employer, any member who
409	409	26 has had 10 or more years of creditable service may be retired
410	410	27 by the Board of Control on a disability retirement allowance
411	411	Page 15 1 not less than 30 nor more than 90 days next following the date
412	412	2 of filing such application; provided, that the medical board,
413	413	3 after a medical examination of such member, shall certify that
414	414	4 the member is totally and permanently mentally or physically
415	415	5 incapacitated from regular and substantial gainful employment,
416	416	6 and that member should be retired.
417	417	7 "b. Without regard to the number of years of
418	418	8 creditable service, a member employed as a state policeman, a
419	419	9 municipal police officer or a deputy sheriff, or a member
420	420	10 employed as a state, municipal, or county firefighter who is
421	421	11 not covered through his or her current employer under the
422	422	12 United States Social Security Act, who as a result of his or
423	423	13 her employment, in the line of duty and not as a result of his
424	424	14 or her own misconduct, shall become permanently and totally
425	425	15 disabled to the extent that he or she cannot perform his or
426	426	16 her duties or duties of a less strenuous nature, as an
427	427	17 employee of the State of Alabama or as an employee of an
428	428	18 employer participating under the provisions of Section
429	429	19 36-27-6, shall be retired on a disability retirement
430	430	20 allowance, not less than 30 nor more than 90 days next
431	431	21 following the date of filing of such application, provided
432	432	22 that the medical board, after a medical examination of such
433	433	23 member shall certify that such member is mentally or
434	434	24 physically incapacitated for the further performance of duty,
435	435	25 that such incapacity is likely to be permanent, and that such
436	436	26 member should be retired.
437	437	27 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
438	438	Page 16 1 "a. Upon retirement for disability a member shall
439	439	2 receive a service retirement allowance based on age and
440	440	3 service if he or she is a Tier I plan member and he or she has
441	441	4 attained age 60 or if he or she is a Tier II plan member and
442	442	5 he or she has attained age 62, or if any law or part of any
443	443	6 law pertaining to retirement under the Employees' Retirement
444	444	7 System of Alabama provides for service retirement after the
445	445	8 completion of 25 years of creditable service without a
446	446	9 reduction in the retirement allowance and the member has
447	447	10 completed 25 years of creditable service, or, in the case of a
448	448	11 state policeman, if he or she is a Tier I plan member and he
449	449	12 or she has attained age 52 or, in the case of a state
450	450	13 policeman or a correctional officer, firefighter, or law
451	451	14 enforcement officer as defined in Section 36-27-59 with at
452	452	15 least ten years of creditable service as a correctional
453	453	16 officer, firefighter, or law enforcement officer, if he or she
454	454	17 is a Tier II plan member and he or she has attained age 56
455	455	18 otherwise eligible to retire; otherwise, he or she shall
456	456	19 receive a disability retirement allowance which shall consist
457	457	20 of:
458	458	21 "1. An annuity which shall be the actuarial
459	459	22 equivalent of his or her accumulated contributions at the time
460	460	23 of his or her retirement;
461	461	24 "2. A pension which shall be equal to the pension
462	462	25 that would have been payable under subparagraphs 2 and 3 of
463	463	26 paragraph a. of subdivision (2) of subsection (a) of this
464	464	27 section upon service retirement at age 65 had the member
465	465	Page 17 1 continued in service to that age without change in
466	466	2 compensation.
467	467	3 "b. The annual disability retirement pension payable
468	468	4 to a Tier I plan member not employed as a state policeman
469	469	5 retiring on or after October 1, 1975, shall not be less than
470	470	6 an amount which when added to his or her annuity is equal to
471	471	7 the greatest of the following two amounts:
472	472	8 "1. Two and one-eightieth percent of the member's
473	473	9 average final compensation multiplied by the number of years
474	474	10 of creditable service.
475	475	11 "2. If he or she became a member before October 1,
476	476	12 1965, $54.00 multiplied by the number of years of his or her
477	477	13 creditable service not in excess of 25 years.
478	478	14 "c. The annual disability retirement pension payable
479	479	15 to a Tier I plan member employed as a state policeman retiring
480	480	16 on or after October 1, 1975, shall not be less than an amount
481	481	17 which when added to his or her annuity is equal to the greater
482	482	18 of the following two amounts:
483	483	19 "1. Two and seven-eighths percent of the member's
484	484	20 average final compensation multiplied by the number of years
485	485	21 of his or her creditable service. Creditable service for any
486	486	22 state policeman under the age of 56 years who has completed 20
487	487	23 years of creditable service as a state policeman shall include
488	488	24 a bonus equal to four additional years. Creditable service for
489	489	25 a state policeman 56 years or older shall include a bonus
490	490	26 equal to the years or portion thereof remaining until the
491	491	27 member reaches age 60; or
492	492	Page 18 1 "2. If he or she became a member before October 1,
493	493	2 1965, $64.80 multiplied by the number of years of his or her
494	494	3 creditable service not in excess of 25 years.
495	495	4 "d. The annual disability retirement allowance
496	496	5 payable to a Tier II plan member not employed as a state
497	497	6 policeman shall be equal to one and sixty-five hundredths
498	498	7 percent (1.65%) of the member's average final compensation
499	499	8 multiplied by the number of years of creditable service.
500	500	9 "e. The annual disability retirement allowance
501	501	10 payable to a Tier II plan member employed as a state policeman
502	502	11 shall be equal to two and three-eighths percent (2.375%) of
503	503	12 the member's average final compensation multiplied by the
504	504	13 number of years of creditable service.
505	505	14 "f. Anything in this chapter to the contrary
506	506	15 notwithstanding in the application of the provisions of this
507	507	16 subdivision to a member whose creditable service includes a
508	508	17 period of service as a state policeman and a period of service
509	509	18 in another employment classification the benefit rates
510	510	19 applicable to a member employed as a state policeman shall
511	511	20 apply to all creditable service as a state policeman, and the
512	512	21 benefit rates applicable to a member not employed as a state
513	513	22 policeman shall apply to all other creditable service, but in
514	514	23 all other respects the pension under this subdivision shall be
515	515	24 determined on the basis of the member's employment
516	516	25 classification at the time of his or her withdrawal from
517	517	26 service.
518	518	Page 19 1 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
519	519	2 ACCOUNT OF DISABILITY. Once each year during the first five
520	520	3 years following the retirement of a member on a disability
521	521	4 retirement allowance and once every three-year period
522	522	5 thereafter, the Board of Control may, and upon his or her
523	523	6 application shall, require any disability beneficiary who has
524	524	7 not yet attained age 60 if the beneficiary is a Tier I plan
525	525	8 member or age 62 if the beneficiary is a Tier II plan member
526	526	9 to undergo a medical examination, such examination to be made
527	527	10 at the place of residence of such beneficiary or other place
528	528	11 mutually agreed upon by a physician or physicians of or
529	529	12 designated by the medical board. Should any disability
530	530	13 beneficiary who has not yet attained age 60, if the
531	531	14 beneficiary is a Tier I plan member or age 62, if the
532	532	15 beneficiary is a Tier II plan member, refuse to submit to such
533	533	16 medical examination, his or her allowance may be discontinued
534	534	17 until his or her withdrawal of such refusal, and, should his
535	535	18 or her refusal continue for one year, all his or her rights in
536	536	19 and to his or her pension may be revoked by the Board of
537	537	20 Control; provided, that these requirements relative to the
538	538	21 medical examination shall not apply in the case of a state
539	539	22 policeman retired for disability and who has attained age 52
540	540	23 if he or she is a Tier I plan member or in the case of a state
541	541	24 policeman or a correctional officer, firefighter, or law
542	542	25 enforcement officer as defined in Section 36-27-59 with at
543	543	26 least ten 10 years of creditable service as a correctional
544	544	27 officer, firefighter, or law enforcement officer retired for
545	545	Page 20 1 disability who has attained age 56 if he or she is a Tier II
546	546	2 plan member. Should the medical board report and certify to
547	547	3 the Board of Control that a disability beneficiary who is a
548	548	4 Tier I plan member is engaged in or is able to engage in a
549	549	5 gainful occupation paying more than the difference between his
550	550	6 or her retirement allowance and his or her average final
551	551	7 compensation and should the Board of Control concur in such
552	552	8 report, then the amount of his or her pension shall be reduced
553	553	9 to an amount which, together with his or her annuity and the
554	554	10 amount earnable by him or her shall equal the amount of his or
555	555	11 her average final compensation. Should his or her earning
556	556	12 capacity be later changed, the amount of his or her pension
557	557	13 may be further modified; provided, that the new pension shall
558	558	14 not exceed the amount of the pension originally granted nor an
559	559	15 amount which, when added to the amount earnable by the
560	560	16 beneficiary, together with this annuity exceeds the amount of
561	561	17 his or her average final compensation.
562	562	18 "Should the medical board report and certify to the
563	563	19 Board of Control that a disability beneficiary who is a Tier
564	564	20 II plan member has the capacity to engage in regular and
565	565	21 substantial gainful employment, the Board of Control shall
566	566	22 discontinue the beneficiary's retirement allowance until the
567	567	23 beneficiary is otherwise eligible for service retirement.
568	568	24 "(c) Disposition of contributions and allowances
569	569	25 upon death, etc., of member.
570	570	26 "(1) Should a member cease to be an employee except
571	571	27 by death or by retirement under the provisions of this
572	572	Page 21 1 article, the contributions standing to the credit of his or
573	573	2 her individual account in the Annuity Savings Fund shall be
574	574	3 paid to him or her upon demand and, in addition to such
575	575	4 payment, there shall be paid five-tenths of the interest
576	576	5 accumulations standing to the credit of his or her individual
577	577	6 account if he or she shall have not less than three but less
578	578	7 than 16 years of membership service, six-tenths of such
579	579	8 interest accumulations if he or she shall have not less than
580	580	9 16 but less than 21 years of membership service, seven-tenths
581	581	10 of such interest accumulations if he or she shall have not
582	582	11 less than 21 but less than 26 years of membership service and
583	583	12 eight-tenths of such interest accumulations if he or she shall
584	584	13 have not less than 26 years of membership service.
585	585	14 "(2) In case of the death of a member eligible for
586	586	15 service retirement pursuant to subsection (a) of this section,
587	587	16 an allowance shall be paid to the surviving spouse, or to such
588	588	17 other person who the member shall have designated, in an
589	589	18 amount that would have been payable if the member had retired
590	590	19 immediately prior to his or her death and had elected Option
591	591	20 3, as set forth in subsection (d) of this section or,
592	592	21 alternatively, if the surviving spouse or other designee
593	593	22 desires, he or she may choose to receive, in lieu of the
594	594	23 allowance provided under Option 3, the accumulated
595	595	24 contributions of the member plus an amount equal to the
596	596	25 accumulated contributions of the member not to exceed
597	597	26 $5,000.00 or the accumulated contributions of the member plus
598	598	Page 22 1 the benefit provided by Section 36-27B-3 if a benefit is
599	599	2 payable under such section;
600	600	3 "(3) In case of the death of a Tier I plan member
601	601	4 not eligible for service retirement, after completion of 25
602	602	5 years of creditable service, an allowance shall be paid to the
603	603	6 surviving spouse, or to such other person who the member shall
604	604	7 have designated, in an amount that would have been payable if
605	605	8 the member had retired for disability immediately prior to his
606	606	9 or her death and had elected Option 3 as set forth in
607	607	10 subsection (d) of this section or, alternatively, if the
608	608	11 surviving spouse or other designee desires, he or she may
609	609	12 choose to receive, in lieu of the allowance provided under
610	610	13 Option 3, the accumulated contributions of the member plus an
611	611	14 amount equal to the accumulated contributions of the member
612	612	15 not to exceed $5,000.00 or the accumulated contributions of
613	613	16 the member plus the benefit provided by Section 36-27B-3 if a
614	614	17 benefit is payable under such section. For purposes of this
615	615	18 subsection only, hazardous duty time, as set forth in
616	616	19 subdivision (b)(1) of Section 36-27-59, may be used in
617	617	20 calculating the requisite years of service for firefighters,
618	618	21 law enforcement officers, and correctional officers even if
619	619	22 the member has not otherwise attained 25 years of creditable
620	620	23 service;
621	621	24 "(4) Upon the death of a member on account of whom
622	622	25 no survivor allowance is payable under subdivisions (2) or (3)
623	623	26 of this subsection, the accumulated contributions of the
624	624	27 member plus an amount equal to the accumulated contributions
625	625	Page 23 1 not to exceed $5,000 or the accumulated contributions of the
626	626	2 member plus the benefit provided by Section 36-27B-3 if a
627	627	3 benefit is payable under such section shall be paid to his or
628	628	4 her estate or to such person as he or she shall have nominated
629	629	5 by written designation duly executed and filed with the Board
630	630	6 of Control.
631	631	7 "(d) Optional allowances. With the provision that
632	632	8 the election of an option shall be effective on the effective
633	633	9 date of retirement, any member may elect prior to retirement
634	634	10 to receive, in lieu of his or her retirement allowance payable
635	635	11 throughout life, the actuarial equivalent, at that time, of
636	636	12 his or her retirement allowance in a reduced retirement
637	637	13 allowance payable throughout life with the provisions that:
638	638	14 "(1) OPTION 1. If he or she dies before he or she
639	639	15 has received in annuity payments the present value of his or
640	640	16 her annuity as it was at the time of his or her retirement,
641	641	17 the balance shall be paid to his or her legal representatives
642	642	18 or to the person as he or she shall nominate by written
643	643	19 designation duly acknowledged and filed with the Board of
644	644	20 Control;
645	645	21 "(2) OPTION 2. Upon his or her death, his or her
646	646	22 reduced retirement allowance shall be continued throughout the
647	647	23 life of and paid to the person as he or she shall nominate by
648	648	24 written designation duly acknowledged and filed with the Board
649	649	25 of Control at the time of his or her retirement;
650	650	26 "(3) OPTION 3. Upon his or her death, one half of
651	651	27 his or her reduced allowance shall be continued throughout the
652	652	Page 24 1 life of and paid to the person as he or she shall nominate by
653	653	2 written designation duly acknowledged and filed with the Board
654	654	3 of Control at the time of his or her retirement; or
655	655	4 "(4) OPTION 4. Some other benefit or benefits shall
656	656	5 be paid either to the member or to the person or persons as he
657	657	6 or she shall nominate; provided, that such other benefits,
658	658	7 together with the reduced retirement allowance, shall be
659	659	8 certified by the actuary to be of equivalent actuarial value
660	660	9 to his or her retirement allowance and shall be approved by
661	661	10 the Board of Control. ; or
662	662	11 "(5) OPTION 5. At the time of retirement, he or she
663	663	12 shall receive a partial lump sum distribution as a single
664	664	13 payment not to exceed the sum of 24 months of the maximum
665	665	14 monthly retirement allowance the member could receive. This
666	666	15 option may be elected in addition to the election of another
667	667	16 option under this subsection and the further reduced monthly
668	668	17 retirement allowance shall be calculated in accordance with
669	669	18 the selected option. This option shall not be available to a
670	670	19 member who is receiving a disability retirement.
671	671	20 "(e) Effect of return to active service. Should any
672	672	21 beneficiary be restored to active service, his or her
673	673	22 retirement allowance shall be suspended until he or she again
674	674	23 withdraws from service and he or she shall not again become a
675	675	24 member of the retirement system nor shall he or she make
676	676	25 contributions; except, that should such beneficiary who has
677	677	26 been restored to active service continue in service for a
678	678	27 period of two or more years from the date of his or her
679	679	Page 25 1 reentry into active service, he or she may request the Board
680	680	2 of Control to allow him or her to again become a member of the
681	681	3 retirement system. The Board of Control may grant the request
682	682	4 for restoration to membership; provided, that such beneficiary
683	683	5 whose retirement allowance has been suspended shall repay to
684	684	6 the system all moneys monies received by him or her as
685	685	7 benefits during any periods subsequent to the date of his or
686	686	8 her reentry into active service and shall make a contribution
687	687	9 equal to the amount he or she would have contributed had he or
688	688	10 she been a member during the period of his or her restoration
689	689	11 to active service on a suspended allowance basis together with
690	690	12 the interest which would have been credited to the
691	691	13 contributions on account of such period of restoration up to
692	692	14 the date such contribution is made.
693	693	15 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
694	694	16 ALLOWANCES. All retirement allowance payments due on or after
695	695	17 October 1, 1975, to members who retired prior to that date
696	696	18 shall be redetermined as if the provisions of this section in
697	697	19 effect on October 1, 1975, were in effect at the time the
698	698	20 member retired. Anything in this article to the contrary
699	699	21 notwithstanding, the annual retirement allowance of any member
700	700	22 not employed as a state policeman who retired on or before
701	701	23 January 1, 1956, shall not be less than $79.20 multiplied by
702	702	24 the number of years of his or her creditable service not in
703	703	25 excess of 30 years in the case of service retirement of $59.40
704	704	26 multiplied by the number of years of his or her creditable
705	705	27 service not in excess of 30 years in the case of disability
706	706	Page 26 1 retirement. Any increase provided in the retirement allowance
707	707	2 payment under this subdivision for a member who retired under
708	708	3 the provisions of any optional benefit elected pursuant to
709	709	4 subsection (d) of this section shall accrue only to the
710	710	5 retired member, and no person designated to receive any
711	711	6 payments after the death of a retired member under the
712	712	7 provisions of any such optional benefit shall receive any
713	713	8 increase in such payments under this subdivision.
714	714	9 Notwithstanding, any member who retired prior to October 1,
715	715	10 1975, and who chose either Option 2 or Option 3 may elect to
716	716	11 receive a reduced allowance and to stipulate that the
717	717	12 actuarial equivalent of the increase in his or her retirement
718	718	13 allowance, which became effective on that date, be ascribed to
719	719	14 his or her designated beneficiary; provided, that such member
720	720	15 shall clearly express this intention by filing a written
721	721	16 application to the effect with the Secretary-Treasurer of the
722	722	17 Employees' Retirement System of Alabama prior to October 1,
723	723	18 1976.
724	724	19 "(2) Any person who, prior to October 1, 1963, was
725	725	20 in receipt of a benefit pursuant to Act No. 376, approved
726	726	21 November 6, 1959, but was not a member of the system at the
727	727	22 time of retirement shall not be entitled to receive an annual
728	728	23 retirement allowance from the system, effective October 1,
729	729	24 1971, as follows:
730	730	25 "a. If such person was retired on or before January
731	731	26 1, 1956, an amount equal to $79.20 multiplied by the number of
732	732	Page 27 1 years of his or her creditable service not in excess of 30
733	733	2 years.
734	734	3 "b. If such person was retired after January 1,
735	735	4 1956, an amount equal to $72.00 multiplied by the number of
736	736	5 years of his or her creditable service not in excess of 25
737	737	6 years.
738	738	7 "(3) Prior to October 31, 1975, any beneficiary may
739	739	8 elect to leave on deposit with the system all or a specified
740	740	9 part of any increase in his or her monthly retirement
741	741	10 allowance payments arising in accordance with subdivisions (1)
742	742	11 or (2) of this subsection over the monthly allowance which he
743	743	12 or she was receiving prior to October 1, 1975. The portion of
744	744	13 each monthly payment left in the system in accordance with
745	745	14 such election shall be credited, together with regular
746	746	15 interest thereon, to the individual account of such
747	747	16 beneficiary. Upon the death of such beneficiary the total
748	748	17 amount standing to his or her credit, including regular
749	749	18 interest to the date of death, shall be paid in a lump sum to
750	750	19 his or her legal representatives or to such person as he or
751	751	20 she shall have nominated by written designation duly
752	752	21 acknowledged and filed with the Board of Control.
753	753	22 "(g) Notwithstanding any other provisions of this
754	754	23 section to the contrary, when a designated beneficiary for a
755	755	24 member predeceases the member who is receiving a monthly
756	756	25 benefit allowance provided under Option 2, 3, or 4, the member
757	757	26 may designate a replacement beneficiary for the deceased
758	758	27 beneficiary to become effective two years after the date of
759	759	Page 28 1 designation of the replacement beneficiary and an actuarial
760	760	2 adjustment in the monthly benefit allowance of the member to
761	761	3 cover any cost associated with designating a replacement
762	762	4 beneficiary shall be reflected thereafter in the monthly
763	763	5 benefit allowance received by the member, commencing with the
764	764	6 first benefit allowance check received by the member following
765	765	7 the date of designation of the replacement beneficiary.
766	766	8 "(h) Notwithstanding any provision of this section
767	767	9 to the contrary, if a retired member who is receiving a
768	768	10 monthly benefit allowance provided under Option 2, 3, or 4
769	769	11 divorces his or her designated beneficiary, the member may
770	770	12 designate a replacement beneficiary for the beneficiary to
771	771	13 become effective two years after the date of designation of
772	772	14 the replacement beneficiary and an actuarial adjustment in the
773	773	15 monthly benefit allowance of the member to cover any cost
774	774	16 associated with designating a replacement beneficiary shall be
775	775	17 reflected thereafter in the monthly benefit allowance received
776	776	18 by the member, commencing with the first benefit allowance
777	777	19 check received by the member following the date of designation
778	778	20 of the replacement beneficiary.
779	779	21 "(i) Any future act to increase the retirement age
780	780	22 for Tier II plan members above the age of 62 shall require a
781	781	23 two-thirds vote of the elected membership of each house of the
782	782	24 Legislature.
783	783	25 "§41-27-7.
784	784	26 "(a) For the purposes of this article, the term
785	785	27 "legacy agency" means an existing agency, department, or
786	786	Page 29 1 division that is being reorganized or abolished under this
787	787	2 article.
788	788	3 "(b) Unless otherwise provided in this article, all
789	789	4 positions created by this article shall be in the classified
790	790	5 service of the state Merit System.
791	791	6 "(c) All persons employed on January 1, 2015, with a
792	792	7 legacy agency and transferred to the Alabama State Law
793	793	8 Enforcement Agency, Department of Public Safety, or State
794	794	9 Bureau of Investigations shall maintain his or her
795	795	10 classification and benefits under the legacy agency. A person
796	796	11 employed by a legacy agency on January 1, 2015, shall not
797	797	12 receive a decrease in salary, benefits, or seniority or
798	798	13 otherwise receive a decrease in classification as a result of
799	799	14 the transfer to the Alabama State Law Enforcement Agency,
800	800	15 Department of Public Safety, or State Bureau of
801	801	16 Investigations.
802	802	17 "(d) Any future change in classification shall not
803	803	18 result in any change in benefits an employee previously had at
804	804	19 a legacy agency.
805	805	20 "(e) An employee of a legacy agency transferred to
806	806	21 the Alabama State Law Enforcement Agency, Department of Public
807	807	22 Safety, or State Bureau of Investigations under this article
808	808	23 shall remain in his or her current classification unless
809	809	24 appointed to the appropriate classification within the newly
810	810	25 created department according to state Merit System procedures.
811	811	26 "(f) Any employee hired in or transferred into the
812	812	27 Alabama State Law Enforcement Agency after January 1, 2015,
813	813	Page 30 1 who is certified by the Alabama Peace Officers' Standards and
814	814	2 Training Commission and performs law enforcement duties shall
815	815	3 be considered a law enforcement officer, as defined by Section
816	816	4 36-27-59(a)(3), but is a state policeman is not eligible for
817	817	5 the benefits specified in Section 36-26-35(d)."
818	818	6 Section 2. This act shall become effective on the
819	819	7 first day of the third month following its passage and
820	820	8 approval by the Governor, or its otherwise becoming law.
821	821	Page 31