Alabama 2022 Regular Session

Alabama Senate Bill SB230 Compare Versions

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

Old	New	Differences
1	1	1 SB230
2	2	2 216781-1
3	3	3 By Senator Albritton
4	4	4 RFD: Finance and Taxation General Fund
5	5	5 First Read: 17-FEB-22
6	6
7	7	Page 0 1 216781-1:n:01/31/2022:KMS/cr LSA2022-436
8	8	2
9	9	3
10	10	4
11	11	5
12	12	6
13	13	7
14	14	8 SYNOPSIS: This bill would modify the retirement
15	15	9 benefits for Tier II plan members of the Employees'
16	16	10 Retirement System by providing 30-year service
17	17	11 retirement, allowing the conversion of sick leave
18	18	12 into creditable service, and, for firefighters, law
19	19	13 enforcement officers, and correctional officers,
20	20	14 providing hazardous duty time.
21	21	15 This bill would also increase the Tier II
22	22	16 plan member contribution rate.
23	23	17
24	24	18 A BILL
25	25	19 TO BE ENTITLED
26	26	20 AN ACT
27	27	21
28	28	22 To amend Sections 36-26-36.1, 36-27-16, as amended
29	29	23 by Act 2021-270, 2021 Regular Session, 36-27-24, and 36-27-59,
30	30	24 Code of Alabama 1975, relating to retirement benefits for
31	31	25 employees who are members of the Employees' Retirement System;
32	32	26 to modify the retirement benefits for Tier II plan members of
33	33	27 the system by providing 30-year service retirement, allowing
34	34	Page 1 1 the conversion of sick leave into creditable service, and, for
35	35	2 firefighters, law enforcement officers, and correctional
36	36	3 officers, providing hazardous duty time; and to increase the
37	37	4 Tier II plan member contribution rate.
38	38	5 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
39	39	6 Section 1. Sections 36-26-36.1, 36-27-16, as amended
40	40	7 by Act 2021-270, 2021 Regular Session, 36-27-24, and 36-27-59
41	41	8 of the Code of Alabama 1975, are amended to read as follows:
42	42	9 "§36-26-36.1.
43	43	10 "(a) Any Tier I or Tier II plan member of the
44	44	11 Teachers' or Employees' Retirement System of Alabama not
45	45	12 otherwise covered by a provision to convert unused sick leave
46	46	13 into membership service for purposes of service retirement
47	47	14 may, at their option and in lieu of receiving payment for 50
48	48	15 percent of their accrued and unused sick leave at the time of
49	49	16 their retirement as provided in Section 36-26-36, or any other
50	50	17 payment that may be provided for such unused sick leave, use
51	51	18 their accrued sick leave, up to a maximum number of 180
52	52	19 accrued sick leave days or as otherwise allowed by law,
53	53	20 whichever is greater, to be included as membership service in
54	54	21 determining the total years of creditable service in the
55	55	22 Employees' Retirement System of Alabama or the Teachers'
56	56	23 Retirement System of Alabama; provided that no employee of an
57	57	24 employer participating in the Employees' Retirement System
58	58	25 pursuant to Section 36-27-6 shall be entitled to the benefits
59	59	26 provided herein unless such employer shall elect to come under
60	60	27 the provisions of this section and further elects to fund the
61	61	Page 2 1 benefits provided herein. Unused sick leave may be converted
62	62	2 to membership service only for the purpose of applying for
63	63	3 service retirement and may be considered in the determination
64	64	4 of eligibility for retirement. The conversion shall not apply
65	65	5 to eligibility for deferred retirement. It is further provided
66	66	6 that if a Tier I or Tier II plan member eligible for service
67	67	7 retirement is also eligible for disability retirement the
68	68	8 member may elect disability retirement and also receive credit
69	69	9 for accumulated sick leave pursuant to this section. No Tier I
70	70	10 or Tier II plan member shall receive both service credit
71	71	11 provided for by this section and payment or partial payment
72	72	12 for accrued sick leave pursuant to any other provision of law.
73	73	13 "(b) The conversion of accrued sick leave into
74	74	14 creditable service provided in this section shall not apply to
75	75	15 any Tier II plan member.
76	76	16 "§36-27-16.
77	77	17 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
78	78	18 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
79	79	19 "a. Any Tier I plan member who withdraws from
80	80	20 service upon or after attainment of age 60 and any Tier II
81	81	21 plan member who withdraws from service upon or after
82	82	22 attainment of age 62 may retire upon written application to
83	83	23 the Board of Control setting forth at what time, not less than
84	84	24 30 days nor more than 90 days subsequent to the execution and
85	85	25 filing thereof, he or she desires to be retired; provided,
86	86	26 that any such member who became a member on or after October
87	87	27 1, 1963, shall have completed 10 or more years of creditable
88	88	Page 3 1 service; provided further, that a Tier I plan member employed
89	89	2 as a state policeman shall be eligible to file application for
90	90	3 service retirement upon attaining age 52 and a Tier II plan
91	91	4 member employed as a state policeman or employed as a
92	92	5 correctional officer, firefighter, or law enforcement officer
93	93	6 as defined in Section 36-27-59 with at least ten 10 years of
94	94	7 creditable service as a correctional officer, firefighter, or
95	95	8 law enforcement officer shall be eligible to file application
96	96	9 for service retirement upon attaining age 56.
97	97	10 "b. Any Tier I plan member who has attained age 60,
98	98	11 or age 52 in the case of a state policeman and any Tier II
99	99	12 plan member who has attained age 62, or age 56 in the case of
100	100	13 a state policeman or in the case of a correctional officer,
101	101	14 firefighter, or law enforcement officer as defined in Section
102	102	15 36-27-59 who has at least ten 10 years of creditable service
103	103	16 as a correctional officer, firefighter, or law enforcement
104	104	17 officer, and has previously withdrawn from service may retire
105	105	18 upon written application to the Board of Control setting forth
106	106	19 at what time, not less than 30 days nor more than 90 days
107	107	20 subsequent to the execution and filing thereof, he or she
108	108	21 desires to be retired; provided, the member shall have at the
109	109	22 time of his or her withdrawal from service completed the age
110	110	23 and service requirements established by the Board of Control
111	111	24 for eligibility for deferred benefits; provided, that such
112	112	25 minimum number of years of creditable service shall not be
113	113	26 less than 10 years nor more than 25 years.
114	114	Page 4 1 "c. In addition to any law or part of law relating
115	115	2 to service retirement under the Employees' Retirement System
116	116	3 of Alabama, any Tier I plan member of the Employees'
117	117	4 Retirement System who withdraws from service after completion
118	118	5 of not less than 25 years of creditable service, or any Tier
119	119	6 II plan member who withdraws from service after completion of
120	120	7 not less than 30 years of creditable service, may retire
121	121	8 without a reduction in retirement allowance upon written
122	122	9 application to the Board of Control of the Employees'
123	123	10 Retirement System setting forth the first day of which month,
124	124	11 not less than 30 days or more than 90 days subsequent to the
125	125	12 execution and filing thereof, he or she desires to be retired,
126	126	13 provided that no person whose employer participates in the
127	127	14 Employees' Retirement System under Section 36-27-6 shall be
128	128	15 entitled to the benefits provided in this paragraph for Tier I
129	129	16 members unless such employer elects to come under the
130	130	17 provisions of the paragraph. Any employer making such election
131	131	18 must bear the cost of such benefit.
132	132	19 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
133	133	20 "a. Upon retirement from service, a Tier I plan
134	134	21 member shall receive a service retirement allowance which
135	135	22 shall consist of:
136	136	23 "1. An annuity which shall be the actuarial
137	137	24 equivalent of his or her accumulated contributions at the time
138	138	25 of his or her retirement; except, that in the case of a state
139	139	26 policeman who has completed 20 years of creditable service as
140	140	27 a state policeman who retires after age 56 but prior to age
141	141	Page 5 1 60, the annuity shall be equal to the annuity that would have
142	142	2 been payable upon service retirement at age 60 had the member
143	143	3 continued in service to age 60 without change in compensation;
144	144	4 "2. A pension which shall be equal to the annuity
145	145	5 allowance at age of retirement, but not to exceed an annuity
146	146	6 allowable at age 65, computed on the basis of contributions
147	147	7 made prior to attainment of age 65; except, that in the case
148	148	8 of a state policeman who has completed 20 years of creditable
149	149	9 service as a state policeman who retires after age 56 but
150	150	10 prior to age 60, the pension shall be equal to the annuity
151	151	11 that he or she would have received had he or she contributed
152	152	12 to age 60 without change in compensation; and
153	153	13 "3. An additional pension, if he or she has a prior
154	154	14 service certificate in full force and effect, which shall be
155	155	15 equal to the annuity which would have been provided at the age
156	156	16 of retirement, but which shall not exceed an annuity allowable
157	157	17 at age 65 by twice the contributions which he or she would
158	158	18 have made during the period of prior service with which he or
159	159	19 she is credited had the system been in operation and had he or
160	160	20 she contributed thereunder; except, that in case of a state
161	161	21 policeman who has completed 20 years of creditable service as
162	162	22 a state policeman who retired after age 56 but prior to age
163	163	23 60, an additional pension, if he or she has a prior service
164	164	24 certificate in full force and effect, which shall be equal to
165	165	25 the annuity which would have been provided at age 60, but
166	166	26 which shall not exceed an annuity allowable at age 60 by twice
167	167	27 the contributions which he or she would have made during the
168	168	Page 6 1 period of prior service with which he or she is credited had
169	169	2 the system been in operation and had he or she contributed
170	170	3 thereunder.
171	171	4 "b. Notwithstanding the provisions of subparagraphs
172	172	5 1., 2., and 3. of paragraph a. of this subdivision, a state
173	173	6 policeman who is a Tier I plan member and who has completed 20
174	174	7 years of service as a state policeman who retires after age 52
175	175	8 but prior to age 56 shall receive:
176	176	9 "1. An annuity which shall be equal to the annuity
177	177	10 that would have been payable had the member continued in
178	178	11 service for four years without change in compensation;
179	179	12 "2. A pension which shall be equal to the annuity
180	180	13 that he or she would have received had he or she contributed
181	181	14 for four years without change in compensation; and
182	182	15 "3. An additional pension, if he or she has a prior
183	183	16 service certificate in full force and effect, which shall be
184	184	17 equal to the annuity which would have been provided at the age
185	185	18 of retirement, but which shall not exceed an annuity allowable
186	186	19 at the age of retirement plus four years by twice the
187	187	20 contributions which he or she would have made during the
188	188	21 period of prior service with which he or she is credited had
189	189	22 the system been in operation and had he or she contributed
190	190	23 thereunder. In lieu of a determination of the actual
191	191	24 compensation of a member that was received during such prior
192	192	25 service, the Board of Control may use for the purpose of this
193	193	26 article the compensation rate which, if it had progressed with
194	194	27 the rates of salary increase shown in the tables as prescribed
195	195	Page 7 1 in subsection (n) of Section 36-27-23, would have resulted in
196	196	2 the same average salary of the member for the five years
197	197	3 immediately preceding the date of establishment as the records
198	198	4 show the member actually received.
199	199	5 "c. The annual service retirement pension payable to
200	200	6 a Tier I plan member not employed as a state policeman
201	201	7 retiring on or after October 1, 1975, shall not be less than
202	202	8 an amount which, when added to his or her annuity, is equal to
203	203	9 the greater of the following two amounts:
204	204	10 "1. Two and one-eightieth percent of the member's
205	205	11 average final compensation multiplied by the number of years
206	206	12 of his or her creditable service; or
207	207	13 "2. If he or she became a member before October 1,
208	208	14 1965, $72.00 seventy-two dollars ($72) multiplied by the
209	209	15 number of years of his or her creditable service not in excess
210	210	16 of 25 years.
211	211	17 "d. The annual service retirement pension payable to
212	212	18 a Tier I plan member employed as a state policeman retiring on
213	213	19 or after October 1, 1975, shall not be less than an amount
214	214	20 which, when added to his or her annuity is equal to the
215	215	21 greater of the following two amounts:
216	216	22 "1. Two and seven-eighths percent of the member's
217	217	23 average final compensation multiplied by the number of years
218	218	24 of his or her creditable service. Creditable service for any
219	219	25 state policeman under the age of 56 years who has completed 20
220	220	26 years of creditable service as a state policeman shall include
221	221	27 a bonus equal to four additional years. Creditable service for
222	222	Page 8 1 a state policeman 56 years or older shall include a bonus
223	223	2 equal to the years or portion thereof remaining until the
224	224	3 member reaches age 60; or
225	225	4 "2. If he or she became a member before October 1,
226	226	5 1965, $86.40 eighty-six dollars forty cents ($86.40)
227	227	6 multiplied by the number of years of his or her creditable
228	228	7 service not in excess of 25 years; provided, however, that if
229	229	8 such member has completed 20 years of creditable service as a
230	230	9 state policeman and has not attained age 60 at the time of
231	231	10 retirement, the pension shall be determined as provided in
232	232	11 this subparagraph on the basis of the number of years of
233	233	12 creditable service which he or she would have had if he or she
234	234	13 had remained in service for four years, except that, in the
235	235	14 case of those state policemen retiring at age 56 or after, the
236	236	15 number of years in determining the pension shall not exceed
237	237	16 the number of years of creditable service which he or she
238	238	17 would have had if he or she had remained in service to age 60.
239	239	18 "e. Upon retirement from service, a Tier II plan
240	240	19 member who is not employed as a state policeman shall receive
241	241	20 a service retirement allowance which shall consist of an
242	242	21 annuity which shall be the actuarial equivalent of the
243	243	22 member's accumulated contributions at the time of retirement
244	244	23 and a pension which, when added to the member's annuity, shall
245	245	24 be equal to one and sixty-five hundredths percent (1.65%) of
246	246	25 the member's average final compensation multiplied by the
247	247	26 number of years of creditable service. Notwithstanding the
248	248	27 foregoing, the service retirement allowance shall not exceed
249	249	Page 9 1 eighty percent (80%) of the member's average final
250	250	2 compensation.
251	251	3 "f. Upon retirement from service, a Tier II plan
252	252	4 member who is employed as a state policeman shall receive a
253	253	5 service retirement allowance which shall consist of an annuity
254	254	6 which shall be the actuarial equivalent of the member's
255	255	7 accumulated contributions at the time of retirement and a
256	256	8 pension which, when added to the member's annuity, shall be
257	257	9 equal to two and three-eighths percent (2.375%) of the
258	258	10 member's average final compensation multiplied by the member's
259	259	11 number of years of creditable service. Notwithstanding the
260	260	12 foregoing, the service retirement allowance shall not exceed
261	261	13 eighty percent (80%) of the member's average final
262	262	14 compensation.
263	263	15 "g. Anything in this article to the contrary
264	264	16 notwithstanding, in the application of the foregoing
265	265	17 provisions of this subdivision to a member whose creditable
266	266	18 service includes a period of service as a state policeman and
267	267	19 a period of service in another employment classification, the
268	268	20 benefit rates applicable to a member employed as a state
269	269	21 policeman shall apply to all creditable service as a state
270	270	22 policeman, and the benefit rates applicable to a member not
271	271	23 employed as a state policeman shall apply to all creditable
272	272	24 service, but in all other respects the pension under this
273	273	25 subdivision shall be determined on the basis of the member's
274	274	26 employment classification at the time of his or her withdrawal
275	275	27 from service.
276	276	Page 10 1 "h. The annual service retirement pension payable to
277	277	2 any state employee who had attained age 60 on or before
278	278	3 October 1, 1945, who declined membership in the Employees'
279	279	4 Retirement System of Alabama in the manner prescribed in
280	280	5 Section 36-27-4 and who retires as a state employee after
281	281	6 completing a minimum of 15 years' service shall be $72.00
282	282	7 seventy-two dollars ($72) multiplied by the number of years of
283	283	8 his or her service not in excess of 25 years.
284	284	9 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
285	285	10 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
286	286	11 "a. Upon application of a Tier I plan member in
287	287	12 service or of his or her employer, any member who has had 10
288	288	13 or more years of creditable service who becomes disabled may
289	289	14 be retired on a disability retirement allowance by the Board
290	290	15 of Control not less than 30 nor more than 90 days next
291	291	16 following the date of filing of such application; provided,
292	292	17 that the medical board, after a medical examination of such
293	293	18 member, shall certify that such member is mentally or
294	294	19 physically incapacitated for the further performance of duty,
295	295	20 that such incapacity is likely to be permanent and that such
296	296	21 member should be retired. Upon the application of a Tier II
297	297	22 plan member in service or his or her employer, any member who
298	298	23 has had 10 or more years of creditable service may be retired
299	299	24 by the Board of Control on a disability retirement allowance
300	300	25 not less than 30 nor more than 90 days next following the date
301	301	26 of filing such application; provided, that the medical board,
302	302	27 after a medical examination of such member, shall certify that
303	303	Page 11 1 the member is totally and permanently mentally or physically
304	304	2 incapacitated from regular and substantial gainful employment,
305	305	3 and that member should be retired.
306	306	4 "b. Without regard to the number of years of
307	307	5 creditable service, a member employed as a state policeman, a
308	308	6 municipal police officer or a deputy sheriff, or a member
309	309	7 employed as a state, municipal, or county firefighter who is
310	310	8 not covered through his or her current employer under the
311	311	9 United States Social Security Act, who as a result of his or
312	312	10 her employment, in the line of duty and not as a result of his
313	313	11 or her own misconduct, shall become permanently and totally
314	314	12 disabled to the extent that he or she cannot perform his or
315	315	13 her duties or duties of a less strenuous nature, as an
316	316	14 employee of the State of Alabama or as an employee of an
317	317	15 employer participating under the provisions of Section
318	318	16 36-27-6, shall be retired on a disability retirement
319	319	17 allowance, not less than 30 nor more than 90 days next
320	320	18 following the date of filing of such application, provided
321	321	19 that the medical board, after a medical examination of such
322	322	20 member shall certify that such member is mentally or
323	323	21 physically incapacitated for the further performance of duty,
324	324	22 that such incapacity is likely to be permanent, and that such
325	325	23 member should be retired.
326	326	24 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
327	327	25 "a. Upon retirement for disability, a member shall
328	328	26 receive a service retirement allowance if he or she is a Tier
329	329	27 I plan member and he or she has attained age 60 or if he or
330	330	Page 12 1 she is a Tier II plan member and he or she has attained age
331	331	2 62, or if any law or part of any law pertaining to retirement
332	332	3 under the Employees' Retirement System of Alabama provides for
333	333	4 service retirement after the completion of 25 years of
334	334	5 creditable service or 30 years of creditable service without a
335	335	6 reduction in the retirement allowance and the member has
336	336	7 completed 25 years of creditable service or 30 years of
337	337	8 creditable service, whichever is applicable, or, in the case
338	338	9 of a state policeman, if he or she is a Tier I plan member and
339	339	10 he or she has attained age 52 or, in the case of a state
340	340	11 policeman or a correctional officer, firefighter, or law
341	341	12 enforcement officer as defined in Section 36-27-59 with at
342	342	13 least ten 10 years of creditable service as a correctional
343	343	14 officer, firefighter, or law enforcement officer, if he or she
344	344	15 is a Tier II plan member and he or she has attained age 56;
345	345	16 otherwise, he or she shall receive a disability retirement
346	346	17 allowance which shall consist of:
347	347	18 "1. An annuity which shall be the actuarial
348	348	19 equivalent of his or her accumulated contributions at the time
349	349	20 of his or her retirement;
350	350	21 "2. A pension which shall be equal to the pension
351	351	22 that would have been payable under subparagraphs 2 and 3 of
352	352	23 paragraph a. of subdivision (2) of subsection (a) of this
353	353	24 section upon service retirement at age 65 had the member
354	354	25 continued in service to that age without change in
355	355	26 compensation.
356	356	Page 13 1 "b. The annual disability retirement pension payable
357	357	2 to a Tier I plan member not employed as a state policeman
358	358	3 retiring on or after October 1, 1975, shall not be less than
359	359	4 an amount which when added to his or her annuity is equal to
360	360	5 the greatest of the following two amounts:
361	361	6 "1. Two and one-eightieth percent of the member's
362	362	7 average final compensation multiplied by the number of years
363	363	8 of creditable service.
364	364	9 "2. If he or she became a member before October 1,
365	365	10 1965, $54.00 fifty-four dollars ($54) multiplied by the number
366	366	11 of years of his or her creditable service not in excess of 25
367	367	12 years.
368	368	13 "c. The annual disability retirement pension payable
369	369	14 to a Tier I plan member employed as a state policeman retiring
370	370	15 on or after October 1, 1975, shall not be less than an amount
371	371	16 which when added to his or her annuity is equal to the greater
372	372	17 of the following two amounts:
373	373	18 "1. Two and seven-eighths percent of the member's
374	374	19 average final compensation multiplied by the number of years
375	375	20 of his or her creditable service. Creditable service for any
376	376	21 state policeman under the age of 56 years who has completed 20
377	377	22 years of creditable service as a state policeman shall include
378	378	23 a bonus equal to four additional years. Creditable service for
379	379	24 a state policeman 56 years or older shall include a bonus
380	380	25 equal to the years or portion thereof remaining until the
381	381	26 member reaches age 60; or
382	382	Page 14 1 "2. If he or she became a member before October 1,
383	383	2 1965, $64.80 sixty-four dollars eighty cents ($64.80)
384	384	3 multiplied by the number of years of his or her creditable
385	385	4 service not in excess of 25 years.
386	386	5 "d. The annual disability retirement allowance
387	387	6 payable to a Tier II plan member not employed as a state
388	388	7 policeman shall be equal to one and sixty-five hundredths
389	389	8 percent (1.65%) of the member's average final compensation
390	390	9 multiplied by the number of years of creditable service.
391	391	10 "e. The annual disability retirement allowance
392	392	11 payable to a Tier II plan member employed as a state policeman
393	393	12 shall be equal to two and three-eighths percent (2.375%) of
394	394	13 the member's average final compensation multiplied by the
395	395	14 number of years of creditable service.
396	396	15 "f. Anything in this chapter to the contrary
397	397	16 notwithstanding in the application of the provisions of this
398	398	17 subdivision to a member whose creditable service includes a
399	399	18 period of service as a state policeman and a period of service
400	400	19 in another employment classification the benefit rates
401	401	20 applicable to a member employed as a state policeman shall
402	402	21 apply to all creditable service as a state policeman, and the
403	403	22 benefit rates applicable to a member not employed as a state
404	404	23 policeman shall apply to all other creditable service, but in
405	405	24 all other respects the pension under this subdivision shall be
406	406	25 determined on the basis of the member's employment
407	407	26 classification at the time of his or her withdrawal from
408	408	27 service.
409	409	Page 15 1 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
410	410	2 ACCOUNT OF DISABILITY. Once each year during the first five
411	411	3 years following the retirement of a member on a disability
412	412	4 retirement allowance and once every three-year period
413	413	5 thereafter, the Board of Control may, and upon his or her
414	414	6 application shall, require any disability beneficiary who has
415	415	7 not yet attained age 60 if the beneficiary is a Tier I plan
416	416	8 member or age 62 if the beneficiary is a Tier II plan member
417	417	9 to undergo a medical examination, such examination to be made
418	418	10 at the place of residence of such beneficiary or other place
419	419	11 mutually agreed upon by a physician or physicians of, or
420	420	12 designated by, the medical board. Should any disability
421	421	13 beneficiary who has not yet attained age 60, if the
422	422	14 beneficiary is a Tier I plan member or age 62 if the
423	423	15 beneficiary is a Tier II plan member, refuse to submit to such
424	424	16 medical examination, his or her allowance may be discontinued
425	425	17 until his or her withdrawal of such refusal, and, should his
426	426	18 or her refusal continue for one year, all his or her rights in
427	427	19 and to his or her pension may be revoked by the Board of
428	428	20 Control; provided, that these requirements relative to the
429	429	21 medical examination shall not apply in the case of a state
430	430	22 policeman retired for disability and who has attained age 52
431	431	23 if he or she is a Tier I plan member or in the case of a state
432	432	24 policeman or a correctional officer, firefighter, or law
433	433	25 enforcement officer as defined in Section 36-27-59 with at
434	434	26 least ten 10 years of creditable service as a correctional
435	435	27 officer, firefighter, or law enforcement officer retired for
436	436	Page 16 1 disability who has attained age 56 if he or she is a Tier II
437	437	2 plan member. Should the medical board report and certify to
438	438	3 the Board of Control that a disability beneficiary who is a
439	439	4 Tier I plan member is engaged in or is able to engage in a
440	440	5 gainful occupation paying more than the difference between his
441	441	6 or her retirement allowance and his or her average final
442	442	7 compensation and should the Board of Control concur in such
443	443	8 report, then the amount of his or her pension shall be reduced
444	444	9 to an amount which, together with his or her annuity and the
445	445	10 amount earnable by him or her shall equal the amount of his or
446	446	11 her average final compensation. Should his or her earning
447	447	12 capacity be later changed, the amount of his or her pension
448	448	13 may be further modified; provided, that the new pension shall
449	449	14 not exceed the amount of the pension originally granted nor an
450	450	15 amount which, when added to the amount earnable by the
451	451	16 beneficiary, together with this annuity exceeds the amount of
452	452	17 his or her average final compensation.
453	453	18 "Should the medical board report and certify to the
454	454	19 Board of Control that a disability beneficiary who is a Tier
455	455	20 II plan member has the capacity to engage in regular and
456	456	21 substantial gainful employment, the Board of Control shall
457	457	22 discontinue the beneficiary's retirement allowance until the
458	458	23 beneficiary is otherwise eligible for service retirement.
459	459	24 "(c) Disposition of contributions and allowances
460	460	25 upon death, etc., of member.
461	461	26 "(1) Should a member cease to be an employee except
462	462	27 by death or by retirement under the provisions of this
463	463	Page 17 1 article, the contributions standing to the credit of his or
464	464	2 her individual account in the Annuity Savings Fund shall be
465	465	3 paid to him or her upon demand and, in addition to such
466	466	4 payment, there shall be paid five-tenths of the interest
467	467	5 accumulations standing to the credit of his or her individual
468	468	6 account if he or she shall have not less than three but less
469	469	7 than 16 years of membership service, six-tenths of such
470	470	8 interest accumulations if he or she shall have not less than
471	471	9 16 but less than 21 years of membership service, seven-tenths
472	472	10 of such interest accumulations if he or she shall have not
473	473	11 less than 21 but less than 26 years of membership service and
474	474	12 eight-tenths of such interest accumulations if he or she shall
475	475	13 have not less than 26 years of membership service.
476	476	14 "(2) In case of the death of a member eligible for
477	477	15 service retirement pursuant to subsection (a) of this section,
478	478	16 an allowance shall be paid to the surviving spouse, or to such
479	479	17 other person who the member shall have designated, in an
480	480	18 amount that would have been payable if the member had retired
481	481	19 immediately prior to his or her death and had elected Option
482	482	20 3, as set forth in subsection (d) of this section or,
483	483	21 alternatively, if the surviving spouse or other designee
484	484	22 desires, he or she may choose to receive, in lieu of the
485	485	23 allowance provided under Option 3, the accumulated
486	486	24 contributions of the member plus an amount equal to the
487	487	25 accumulated contributions of the member not to exceed
488	488	26 $5,000.00 five thousand dollars ($5,000) or the accumulated
489	489	Page 18 1 contributions of the member plus the benefit provided by
490	490	2 Section 36-27B-3 if a benefit is payable under such section;
491	491	3 "(3) In case of the death of a Tier I plan member
492	492	4 not eligible for service retirement, after completion of 25
493	493	5 years of creditable service, an allowance shall be paid to the
494	494	6 surviving spouse, or to such other person who the member shall
495	495	7 have designated, in an amount that would have been payable if
496	496	8 the member had retired for disability immediately prior to his
497	497	9 or her death and had elected Option 3 as set forth in
498	498	10 subsection (d) of this section or, alternatively, if the
499	499	11 surviving spouse or other designee desires, he or she may
500	500	12 choose to receive, in lieu of the allowance provided under
501	501	13 Option 3, the accumulated contributions of the member plus an
502	502	14 amount equal to the accumulated contributions of the member
503	503	15 not to exceed $5,000.00 five thousand dollars ($5,000) or the
504	504	16 accumulated contributions of the member plus the benefit
505	505	17 provided by Section 36-27B-3 if a benefit is payable under
506	506	18 such section. For purposes of this subsection only, hazardous
507	507	19 duty time, as set forth in subdivision (b)(1) of Section
508	508	20 36-27-59, may be used in calculating the requisite years of
509	509	21 service for firefighters, law enforcement officers, and
510	510	22 correctional officers even if the member has not otherwise
511	511	23 attained 25 years of creditable service;
512	512	24 "(4) Upon the death of a member on account of whom
513	513	25 no survivor allowance is payable under subdivisions (2) or (3)
514	514	26 of this subsection, the accumulated contributions of the
515	515	27 member plus an amount equal to the accumulated contributions
516	516	Page 19 1 not to exceed $5,000 five thousand dollars ($5,000) or the
517	517	2 accumulated contributions of the member plus the benefit
518	518	3 provided by Section 36-27B-3 if a benefit is payable under
519	519	4 such section shall be paid to his or her estate or to such
520	520	5 person as he or she shall have nominated by written
521	521	6 designation duly executed and filed with the Board of Control.
522	522	7 "(d) Optional allowances. With the provision that
523	523	8 the election of an option shall be effective on the effective
524	524	9 date of retirement, any member may elect prior to retirement
525	525	10 to receive, in lieu of his or her retirement allowance payable
526	526	11 throughout life, the actuarial equivalent, at that time, of
527	527	12 his or her retirement allowance in a reduced retirement
528	528	13 allowance payable throughout life with the provisions that:
529	529	14 "(1) OPTION 1. If he or she dies before he or she
530	530	15 has received in annuity payments the present value of his or
531	531	16 her annuity as it was at the time of his or her retirement,
532	532	17 the balance shall be paid to his or her legal representatives
533	533	18 or to the person as he or she shall nominate by written
534	534	19 designation duly acknowledged and filed with the Board of
535	535	20 Control;
536	536	21 "(2) OPTION 2. Upon his or her death, his or her
537	537	22 reduced retirement allowance shall be continued throughout the
538	538	23 life of and paid to the person as he or she shall nominate by
539	539	24 written designation duly acknowledged and filed with the Board
540	540	25 of Control at the time of his or her retirement;
541	541	26 "(3) OPTION 3. Upon his or her death, one half of
542	542	27 his or her reduced allowance shall be continued throughout the
543	543	Page 20 1 life of and paid to the person as he or she shall nominate by
544	544	2 written designation duly acknowledged and filed with the Board
545	545	3 of Control at the time of his or her retirement; or
546	546	4 "(4) OPTION 4. Some other benefit or benefits shall
547	547	5 be paid either to the member or to the person or persons as he
548	548	6 or she shall nominate; provided, that such other benefits,
549	549	7 together with the reduced retirement allowance, shall be
550	550	8 certified by the actuary to be of equivalent actuarial value
551	551	9 to his or her retirement allowance and shall be approved by
552	552	10 the Board of Control.
553	553	11 "(5) OPTION 5. At the time of retirement, he or she
554	554	12 shall receive a partial lump sum distribution as a single
555	555	13 payment not to exceed the sum of 24 months of the maximum
556	556	14 monthly retirement allowance the member could receive. This
557	557	15 option may be elected in addition to the election of another
558	558	16 option under this subsection and the further reduced monthly
559	559	17 retirement allowance shall be calculated in accordance with
560	560	18 the selected option. This option shall not be available to a
561	561	19 member who is receiving a disability retirement.
562	562	20 "(e) Effect of return to active service. Should any
563	563	21 beneficiary be restored to active service, his or her
564	564	22 retirement allowance shall be suspended until he or she again
565	565	23 withdraws from service and he or she shall not again become a
566	566	24 member of the retirement system nor shall he or she make
567	567	25 contributions; except, that should such beneficiary who has
568	568	26 been restored to active service continue in service for a
569	569	27 period of two or more years from the date of his or her
570	570	Page 21 1 reentry into active service, he or she may request the Board
571	571	2 of Control to allow him or her to again become a member of the
572	572	3 retirement system. The Board of Control may grant the request
573	573	4 for restoration to membership; provided, that such beneficiary
574	574	5 whose retirement allowance has been suspended shall repay to
575	575	6 the system all moneys monies received by him or her as
576	576	7 benefits during any periods subsequent to the date of his or
577	577	8 her reentry into active service and shall make a contribution
578	578	9 equal to the amount he or she would have contributed had he or
579	579	10 she been a member during the period of his or her restoration
580	580	11 to active service on a suspended allowance basis together with
581	581	12 the interest which would have been credited to the
582	582	13 contributions on account of such period of restoration up to
583	583	14 the date such contribution is made.
584	584	15 "(f)(1) REDETERMINATION, ETC., OF CERTAIN
585	585	16 ALLOWANCES. All retirement allowance payments due on or after
586	586	17 October 1, 1975, to members who retired prior to that date
587	587	18 shall be redetermined as if the provisions of this section in
588	588	19 effect on October 1, 1975, were in effect at the time the
589	589	20 member retired. Anything in this article to the contrary
590	590	21 notwithstanding, the annual retirement allowance of any member
591	591	22 not employed as a state policeman who retired on or before
592	592	23 January 1, 1956, shall not be less than $79.20 seventy-nine
593	593	24 dollars twenty cents ($79.20) multiplied by the number of
594	594	25 years of his or her creditable service not in excess of 30
595	595	26 years in the case of service retirement of $59.40 fifty-nine
596	596	27 dollars forty cents ($59.40) multiplied by the number of years
597	597	Page 22 1 of his or her creditable service not in excess of 30 years in
598	598	2 the case of disability retirement. Any increase provided in
599	599	3 the retirement allowance payment under this subdivision for a
600	600	4 member who retired under the provisions of any optional
601	601	5 benefit elected pursuant to subsection (d) of this section
602	602	6 shall accrue only to the retired member, and no person
603	603	7 designated to receive any payments after the death of a
604	604	8 retired member under the provisions of any such optional
605	605	9 benefit shall receive any increase in such payments under this
606	606	10 subdivision. Notwithstanding, any member who retired prior to
607	607	11 October 1, 1975, and who chose either Option 2 or Option 3 may
608	608	12 elect to receive a reduced allowance and to stipulate that the
609	609	13 actuarial equivalent of the increase in his or her retirement
610	610	14 allowance, which became effective on that date, be ascribed to
611	611	15 his or her designated beneficiary; provided, that such member
612	612	16 shall clearly express this intention by filing a written
613	613	17 application to the effect with the Secretary-Treasurer of the
614	614	18 Employees' Retirement System of Alabama prior to October 1,
615	615	19 1976.
616	616	20 "(2) Any person who, prior to October 1, 1963, was
617	617	21 in receipt of a benefit pursuant to Act No. 376, approved
618	618	22 November 6, 1959, but was not a member of the system at the
619	619	23 time of retirement, shall not be entitled to receive an annual
620	620	24 retirement allowance from the system, effective October 1,
621	621	25 1971, as follows:
622	622	26 "a. If such person was retired on or before January
623	623	27 1, 1956, an amount equal to $79.20 seventy-nine dollars twenty
624	624	Page 23 1 cents ($79.20) multiplied by the number of years of his or her
625	625	2 creditable service not in excess of 30 years.
626	626	3 "b. If such person was retired after January 1,
627	627	4 1956, an amount equal to $72.00 seventy-two dollars ($72)
628	628	5 multiplied by the number of years of his or her creditable
629	629	6 service not in excess of 25 years.
630	630	7 "(3) Prior to October 31, 1975, any beneficiary may
631	631	8 elect to leave on deposit with the system all or a specified
632	632	9 part of any increase in his or her monthly retirement
633	633	10 allowance payments arising in accordance with subdivisions (1)
634	634	11 or (2) of this subsection over the monthly allowance which he
635	635	12 or she was receiving prior to October 1, 1975. The portion of
636	636	13 each monthly payment left in the system in accordance with
637	637	14 such election shall be credited, together with regular
638	638	15 interest thereon, to the individual account of such
639	639	16 beneficiary. Upon the death of such beneficiary the total
640	640	17 amount standing to his or her credit, including regular
641	641	18 interest to the date of death, shall be paid in a lump sum to
642	642	19 his or her legal representatives or to such person as he or
643	643	20 she shall have nominated by written designation duly
644	644	21 acknowledged and filed with the Board of Control.
645	645	22 "(g) Notwithstanding any other provisions of this
646	646	23 section to the contrary, when a designated beneficiary for a
647	647	24 member predeceases the member who is receiving a monthly
648	648	25 benefit allowance provided under Option 2, 3, or 4, the member
649	649	26 may designate a replacement beneficiary for the deceased
650	650	27 beneficiary to become effective two years after the date of
651	651	Page 24 1 designation of the replacement beneficiary and an actuarial
652	652	2 adjustment in the monthly benefit allowance of the member to
653	653	3 cover any cost associated with designating a replacement
654	654	4 beneficiary shall be reflected thereafter in the monthly
655	655	5 benefit allowance received by the member, commencing with the
656	656	6 first benefit allowance check received by the member following
657	657	7 the date of designation of the replacement beneficiary.
658	658	8 "(h) Notwithstanding any provision of this section
659	659	9 to the contrary, if a retired member who is receiving a
660	660	10 monthly benefit allowance provided under Option 2, 3, or 4
661	661	11 divorces his or her designated beneficiary, the member may
662	662	12 designate a replacement beneficiary for the beneficiary to
663	663	13 become effective two years after the date of designation of
664	664	14 the replacement beneficiary and an actuarial adjustment in the
665	665	15 monthly benefit allowance of the member to cover any cost
666	666	16 associated with designating a replacement beneficiary shall be
667	667	17 reflected thereafter in the monthly benefit allowance received
668	668	18 by the member, commencing with the first benefit allowance
669	669	19 check received by the member following the date of designation
670	670	20 of the replacement beneficiary.
671	671	21 "(i) Any future act to increase the retirement age
672	672	22 for Tier II plan members above the age of 62 shall require a
673	673	23 two-thirds vote of the elected membership of each house of the
674	674	24 Legislature.
675	675	25 "§36-27-24.
676	676	26 "(a) Effective October 1, 1997, all the assets of
677	677	27 the retirement system shall be credited according to the
678	678	Page 25 1 purpose for which they are held among three funds, namely, the
679	679	2 Annuity Savings Fund, the Pension Accumulation Fund, and the
680	680	3 Expense Fund. The operation of the former Pension Reserve Fund
681	681	4 and the Annuity Reserve Fund shall be discontinued as of such
682	682	5 date and the balance of the former Pension Reserve Fund shall
683	683	6 be transferred to the Pension Accumulation Fund, and the
684	684	7 balance of the former Annuity Reserve Fund shall be
685	685	8 transferred to the Pension Accumulation Fund.
686	686	9 "(b) Annuity Savings Fund. The Annuity Savings Fund
687	687	10 shall be a fund in which shall be accumulated contributions
688	688	11 from the compensation of members to provide for their
689	689	12 annuities.
690	690	13 "Contributions to and payments from the Annuity
691	691	14 Savings Fund shall be made as follows: Effective October 1,
692	692	15 1971, each employer shall cause to be deducted from the salary
693	693	16 of each member on each and every payroll of such employer for
694	694	17 each and every payroll period five percent of his or her
695	695	18 earnable compensation; except, that in the case of a state
696	696	19 policeman, the rate of 10 percent of earnable compensation
697	697	20 shall apply, and in computing all retirement benefits it shall
698	698	21 be assumed that a seven percent rate of contribution had
699	699	22 applied with respect to service as a state policeman prior to
700	700	23 July 1, 1957. For all pay dates beginning on or after October
701	701	24 1, 2011, each employer, except those employers participating
702	702	25 pursuant to Section 36-27-6, shall cause to be deducted from
703	703	26 the salary of each member on each and every payroll of such
704	704	27 employer for each and every payroll period seven and
705	705	Page 26 1 one-quarter percent (7.25%) of his or her earnable
706	706	2 compensation; except, that in the case of a state policeman,
707	707	3 the rate of ten percent (10%) of earnable compensation shall
708	708	4 apply. For all pay dates beginning on or after October 1,
709	709	5 2012, each employer, except those employers participating
710	710	6 pursuant to Section 36-27-6, shall cause to be deducted from
711	711	7 the salary of each Tier I plan member on each and every
712	712	8 payroll of such employer for each and every payroll period
713	713	9 seven and one-half percent (7.5%) of his or her earnable
714	714	10 compensation; except, that in the case of a state policeman,
715	715	11 the rate of ten percent (10%) of earnable compensation shall
716	716	12 apply. For all pay dates beginning on or after January 1,
717	717	13 2013, each employer shall cause to be deducted from the salary
718	718	14 of each Tier II plan member on each and every payroll period
719	719	15 six percent (6%) of his or her earnable compensation; except
720	720	16 that in the case of a state policeman, the rate of ten percent
721	721	17 (10%) shall apply and in the case of a correctional officer,
722	722	18 firefighter, or law enforcement officer as defined in Section
723	723	19 36-27-59, the rate of seven percent (7%) shall apply. For all
724	724	20 pay dates beginning on or after October 1, 2022, for all
725	725	21 employers, each employer shall cause to be deducted from the
726	726	22 salary of each Tier II plan member on each and every payroll
727	727	23 period six and one-half percent (6.5%) of his or her earnable
728	728	24 compensation. Any employer participating under Section
729	729	25 36-27-6, by adoption of a resolution, may elect for the
730	730	26 increases in employee contributions provided by Act 2011-676
731	731	27 to be withheld from the earnable compensation of employees of
732	732	Page 27 1 the employer. In determining the amount earnable by a member
733	733	2 in a payroll period, the Board of Control may consider the
734	734	3 rate of annual compensation payable to such member on the
735	735	4 first day of the payroll period as continuing through such
736	736	5 payroll period, and it may omit deductions from compensation
737	737	6 for any period less than a full payroll period if an employee
738	738	7 was not a member on the first day of the payroll period, and,
739	739	8 to facilitate the making of deductions, it may modify the
740	740	9 deductions required of any member by such an amount as shall
741	741	10 not exceed one tenth of one percent of the annual compensation
742	742	11 upon the basis of which such deductions are made.
743	743	12 "The deductions provided for in this subsection
744	744	13 shall be made notwithstanding that the minimum compensation
745	745	14 provided for by law for any member shall be reduced thereby.
746	746	15 Every member shall be deemed to consent and agree to the
747	747	16 deduction made and provided for in this subsection and shall
748	748	17 receipt for his or her full salary or compensation and payment
749	749	18 of salary or compensation less such deductions shall be a full
750	750	19 and complete discharge and acquittance of all claims and
751	751	20 demands whatsoever for the services rendered by such person
752	752	21 during the period covered by such payment, except as to the
753	753	22 benefits provided under this article. The employer shall
754	754	23 certify to the Board of Control in each and every payroll or
755	755	24 in such other manner as the board may prescribe the amounts to
756	756	25 be deducted, and each of the amounts shall be deducted and,
757	757	26 when deducted, shall be paid into the Annuity Savings Fund and
758	758	27 shall be credited, together with regular interest thereon, to
759	759	Page 28 1 the individual account of the member from whose compensation
760	760	2 the deduction was made.
761	761	3 "In addition to the contributions deducted from
762	762	4 compensation as provided in this subsection, subject to the
763	763	5 approval of the Board of Control, any member may deposit in
764	764	6 the Annuity Savings Fund by a single payment or by an
765	765	7 increased rate of contribution an amount computed to be
766	766	8 sufficient to purchase an additional annuity which, together
767	767	9 with his or her prospective retirement allowance, will provide
768	768	10 for him or her a total retirement allowance not to exceed one
769	769	11 half of his or her average final compensation at age 60. Such
770	770	12 additional amounts so deposited shall become a part of his or
771	771	13 her accumulated contributions, except in the case of
772	772	14 retirement, when they shall be treated as excess contributions
773	773	15 returnable to the member in cash or as an annuity of
774	774	16 equivalent actuarial value and shall not be considered in
775	775	17 computing his or her pension.
776	776	18 "The contributions and interest credits of a member
777	777	19 withdrawn by him or her or paid to his or her estate or to his
778	778	20 or her designated beneficiary in event of his or her death
779	779	21 shall be paid from the Annuity Savings Fund. Should a member
780	780	22 cease to be a member other than by retirement under the
781	781	23 provisions of this article, an amount equivalent to the
782	782	24 difference, if any, between his or her accumulated
783	783	25 contributions and the amount then paid shall be transferred to
784	784	26 the Expense Fund. Upon the retirement of a member or the death
785	785	27 of an eligible member where an allowance to a surviving spouse
786	786	Page 29 1 or other designated beneficiary is payable, his or her
787	787	2 accumulated contributions shall be transferred from the
788	788	3 Annuity Savings Fund to the Pension Accumulation Fund.
789	789	4 "Notwithstanding the preceding provisions, no
790	790	5 deductions shall be made from any member's salary on account
791	791	6 of which the employer's contributions are in default.
792	792	7 "The State Personnel Board, with the approval of the
793	793	8 Governor, may provide that the state shall pick up member
794	794	9 contributions to the Employees' Retirement System of Alabama
795	795	10 as required by this subsection on behalf of all state
796	796	11 employees who participate in the Employees' Retirement System
797	797	12 by a corresponding reduction in the salary of the member, such
798	798	13 pick-up to be mandatory for all such employees, and the
799	799	14 contributions so picked up shall be treated as employer
800	800	15 contributions in determining tax treatment under the Internal
801	801	16 Revenue Code. These contributions shall be paid from the same
802	802	17 source of funds which is used in paying earnings to the
803	803	18 employee. If employee contributions are so picked up they
804	804	19 shall be treated for all other purposes of state law in the
805	805	20 same manner and to the same extent as employee contributions
806	806	21 made prior to the date picked up.
807	807	22 "(c) Pension Accumulation Fund. The Pension
808	808	23 Accumulation Fund shall be the fund in which shall be
809	809	24 accumulated all reserves other than the amounts held in the
810	810	25 Annuity Savings Fund for the payment of all pensions, all
811	811	26 allowances granted to surviving spouses or other designated
812	812	27 beneficiaries and other benefits payable from contributions
813	813	Page 30 1 made by the employer and from which shall be paid all
814	814	2 pensions, all allowances granted to surviving spouses or other
815	815	3 designated beneficiaries and other benefits on account of
816	816	4 members with prior service credit.
817	817	5 "Contributions to and payments from the Pension
818	818	6 Accumulation Fund shall be made as follows: On account of each
819	819	7 member there shall be paid monthly by the employer an amount
820	820	8 equal to a certain percentage of the earnable compensation of
821	821	9 each member to be known as the "normal contribution" and an
822	822	10 additional amount equal to a percentage of his or her earnable
823	823	11 compensation to be known as the "accrued liability
824	824	12 contribution," and these two amounts shall be paid monthly
825	825	13 into the Pension Accumulation Fund; provided, that in the case
826	826	14 of a state policeman, such percentage rates of contributions
827	827	15 shall be calculated separately. The percentage rate of such
828	828	16 contributions shall be fixed for each fiscal year on the basis
829	829	17 of the liabilities of the retirement system as shown by the
830	830	18 last annual actuarial valuation, and such percentage rate as
831	831	19 established by such valuation shall take effect the following
832	832	20 October 1 and continue in effect for the fiscal year.
833	833	21 "On the basis of regular interest and of such
834	834	22 mortality and other tables as shall be adopted by the Board of
835	835	23 Control, the actuary engaged by the board to make such
836	836	24 valuation required by this article during the period over
837	837	25 which the accrued liability contribution is payable shall,
838	838	26 immediately after making such valuation, determine the uniform
839	839	27 and constant percentage of the earnable compensation of the
840	840	Page 31 1 average new entrant which, if contributed on the basis of his
841	841	2 or her compensation throughout his or her entire period of
842	842	3 active service, would be sufficient to provide for the payment
843	843	4 of any pension payable on his or her account. The percentage
844	844	5 rate so determined shall be known as the "normal contribution"
845	845	6 rate. The normal rate of contributions shall be determined by
846	846	7 the actuary after each valuation.
847	847	8 "The accrued liability contribution rate shall be
848	848	9 computed by the actuary on the basis of each valuation as the
849	849	10 percentage rate of the total annual compensation of all
850	850	11 members which is sufficient to liquidate the accrued liability
851	851	12 over a period to be determined by the Board of Control which
852	852	13 shall be not less than 10 nor more than 30 years.
853	853	14 "The unfunded accrued liability shall be computed by
854	854	15 the actuary as the total liabilities of the system which are
855	855	16 not dischargeable by the assets of the Annuity Savings Fund
856	856	17 and the Pension Accumulation Fund and the present value of the
857	857	18 aforesaid normal contributions.
858	858	19 "For purposes of computing the unfunded accrued
859	859	20 liability the assets shall be determined as follows:
860	860	21 "On September 30, 1997, the assets shall be
861	861	22 determined by using the market value of such assets. For
862	862	23 subsequent years the value of the assets shall be determined
863	863	24 by the system's actuary using a five year smoothed market
864	864	25 value.
865	865	26 "The total amount payable in each year to the
866	866	27 Pension Accumulation Fund shall be not less than the sum of
867	867	Page 32 1 the percentage rates known as the normal contribution rate and
868	868	2 the accrued liability contribution rate of the total
869	869	3 compensation earnable by all members during the preceding
870	870	4 year.
871	871	5 "All interest and dividends earned on the funds of
872	872	6 the retirement system shall be credited to the Pension
873	873	7 Accumulation Fund. The amounts needed to allow a regular
874	874	8 interest on the reserves in the Annuity Savings Fund shall be
875	875	9 transferred in accordance with this article from the Pension
876	876	10 Accumulation Fund. The Board of Control, in its discretion,
877	877	11 may transfer to and from the Pension Accumulation Fund the
878	878	12 amounts of any surplus or deficit which may develop in the
879	879	13 Annuity Savings Fund, or the Expense Fund.
880	880	14 "Upon the death of a member on account of whom no
881	881	15 survivor allowance is payable under subdivisions (2) and (3)
882	882	16 of subsection (c) of Section 36-27-16, the death benefit as
883	883	17 provided in subdivision (4) of subsection (c) of Section
884	884	18 36-27-16 equal to the accumulated contributions, not to exceed
885	885	19 $5,000.00 five thousand dollars ($5,000), shall be payable
886	886	20 from the Pension Accumulation Fund.
887	887	21 "(d) Expense Fund. The Expense Fund shall be the
888	888	22 fund from which the expenses of the administration of the
889	889	23 retirement system shall be paid, exclusive of amounts payable
890	890	24 as retirement allowances and as other benefits provided in
891	891	25 this chapter. In addition thereto and on account of each
892	892	26 member of the retirement system, there shall be paid monthly
893	893	27 by the employer an amount equal to a certain percentage of the
894	894	Page 33 1 earnable compensation of each member for the administrative
895	895	2 expenses of the retirement system. The percentage rate of such
896	896	3 contribution shall be fixed by the Board of Control on the
897	897	4 basis of the cost exclusive of that provided by interest not
898	898	5 returnable. Any amounts credited to the accounts of the
899	899	6 members withdrawing before retirement and not returnable under
900	900	7 the provisions of subsection (c) of Section 36-27-16 shall be
901	901	8 credited to the Expense Fund.
902	902	9 "(e) Employer's contributions. For each biennium
903	903	10 beginning October 1, 1965, each employer shall pay to the
904	904	11 retirement system the rates provided in this section and
905	905	12 thereafter, at least 30 days preceding October 1 of each
906	906	13 fiscal year, the Board of Control shall certify to the chief
907	907	14 fiscal officer of each employer the percentage rates of
908	908	15 earnable compensation of the members required to be paid to
909	909	16 the retirement system in accordance with subsections (c) and
910	910	17 (d) of this section.
911	911	18 "The employer's contribution on account of the
912	912	19 membership of employees whose salaries are paid in whole or in
913	913	20 part from funds derived from federal grants shall be paid from
914	914	21 funds derived from the federal grants in accordance with
915	915	22 statutes governing the administration of the grants and in
916	916	23 proportion to salaries paid therefrom. At such time and in
917	917	24 such manner as may be required, the Board of Control shall
918	918	25 certify to each department of state receiving a federal grant
919	919	26 the amount due and payable from the grant as the employer's
920	920	27 contribution to the retirement system on account of the
921	921	Page 34 1 membership of the department whose salaries are paid in whole
922	922	2 or in part from funds derived from such federal grants. The
923	923	3 fiscal agent of the department shall authorize the state
924	924	4 Comptroller to draw a warrant or warrants in payment of the
925	925	5 amount certified as due and payable from federal grants.
926	926	6 "(f) Appropriations. There is hereby appropriated
927	927	7 annually from the fund from which salaries of the employees of
928	928	8 each employer are paid the amounts sufficient to carry out the
929	929	9 provisions of this section. In the case of those departments
930	930	10 supported wholly by transfers from other state funds, there is
931	931	11 hereby appropriated from the supporting funds such additional
932	932	12 amounts as may be necessary to pay the employer contribution
933	933	13 of each department so supported in the same proportion as the
934	934	14 other state funds contribute to the support and maintenance of
935	935	15 such department.
936	936	16 "(g) Employer cost provided for in this article
937	937	17 together with member contributions required under this article
938	938	18 shall be paid to the Employees' Retirement System on the first
939	939	19 day of the month following the month in which the related
940	940	20 member salary is earned. Delinquent accounts shall accrue
941	941	21 interest at the actuarial assumed investment rate beginning 30
942	942	22 days after the original due date. The member contributions for
943	943	23 each member shall be reported to the Employees' Retirement
944	944	24 System in a format prescribed by the Employees' Retirement
945	945	25 System.
946	946	26 "§36-27-59.
947	947	Page 35 1 "(a) When used in this section, the following terms
948	948	2 shall have the following meanings, unless the context clearly
949	949	3 indicates otherwise:
950	950	4 "(1) CORRECTIONAL OFFICER. A full-time correctional
951	951	5 officer who is certified as a correctional officer by the
952	952	6 Alabama Peace Officers' Standards and Training Commission.
953	953	7 "(2) FIREFIGHTER. A full-time firefighter employed
954	954	8 with the State of Alabama, a municipal fire department, or a
955	955	9 fire district who has a level one minimum standard
956	956	10 certification by the Firefighters Personnel Standards and
957	957	11 Education Commission, or a firefighter employed by the Alabama
958	958	12 Forestry Commission who has been certified by the State
959	959	13 Forester as having met the wild land firefighter training
960	960	14 standard of the National Wildfire Coordinating Group.
961	961	15 "(3) LAW ENFORCEMENT OFFICER. A full-time law
962	962	16 enforcement officer, not covered as a state policeman,
963	963	17 employed with any state agency, department, board, commission,
964	964	18 or institution or a full-time law enforcement officer employed
965	965	19 by a local unit of the Employees' Retirement System under
966	966	20 Section 36-27-6 who is certified as a law enforcement officer
967	967	21 by the Alabama Peace Officers' Standards and Training
968	968	22 Commission.
969	969	23 "(b)(1) Any firefighter, law enforcement officer, or
970	970	24 correctional officer covered under the Employees' Retirement
971	971	25 System or the Teachers' Retirement System as a Tier I plan
972	972	26 member, upon attainment of the requisite years of creditable
973	973	27 service or who otherwise qualifies for service or disability
974	974	Page 36 1 retirement, shall be awarded one year of hazardous duty time
975	975	2 for every five years of service as a firefighter, a law
976	976	3 enforcement officer, or a correctional officer provided that
977	977	4 the person has made the additional contribution provided in
978	978	5 subdivision (2) or paid the additional contribution required
979	979	6 in subsection (c) for each year of service used in determining
980	980	7 hazardous duty time for the person. Proportional credit shall
981	981	8 be awarded for any period of service less than five years.
982	982	9 "(2) Effective January 1, 2001, and each pay period
983	983	10 thereafter, each active employee who is a firefighter, law
984	984	11 enforcement officer, or correctional officer, as defined in
985	985	12 subsection (a), shall contribute to the Teachers' or
986	986	13 Employees' Retirement System of Alabama six percent of his or
987	987	14 her earnable compensation. For all pay dates beginning on or
988	988	15 after October 1, 2011, each active employee who is a
989	989	16 firefighter, law enforcement officer, or correctional officer,
990	990	17 as defined in subsection (a), except those employees
991	991	18 participating pursuant to Section 36-27-6, shall contribute to
992	992	19 the Teachers' or Employees' Retirement System of Alabama eight
993	993	20 and one-quarter percent (8.25%) of his or her earnable
994	994	21 compensation. For all pay dates beginning on or after October
995	995	22 1, 2012, each active employee who is a Tier I plan member and
996	996	23 who is a firefighter, law enforcement officer, or correctional
997	997	24 officer, as defined in subsection (a), except those employees
998	998	25 participating pursuant to Section 36-27-6, shall contribute to
999	999	26 the Teachers' or Employees' Retirement System of Alabama eight
1000	1000	27 and one-half percent (8.5%) of his or her earnable
1001	1001	Page 37 1 compensation. For all pay dates beginning on or after October
1002	1002	2 1, 2022, each active employee who is a Tier II plan member and
1003	1003	3 who is a firefighter, law enforcement officer, or correctional
1004	1004	4 officer, as defined in subsection (a), shall contribute to the
1005	1005	5 Teachers' or Employees' Retirement Systems of Alabama seven
1006	1006	6 and one-half percent (7.50%) of his or her earnable
1007	1007	7 compensation. Any employer participating under Section
1008	1008	8 36-27-6, by adoption of a resolution, may elect for the
1009	1009	9 increases in employee contributions provided by Act 2011-676
1010	1010	10 to be withheld from the earnable compensation of employees of
1011	1011	11 the employer.
1012	1012	12 "(c) Any member of the Employees' Retirement System
1013	1013	13 or the Teachers' Retirement System eligible under subsection
1014	1014	14 (b) may receive credit for his or her eligible prior service
1015	1015	15 provided the member pays to the Secretary-Treasurer of the
1016	1016	16 Employees' Retirement System or the Secretary-Treasurer of the
1017	1017	17 Teachers' Retirement System one percent of his or her current
1018	1018	18 annual earnable compensation or previous year's annual
1019	1019	19 earnable compensation, whichever is higher, for each year of
1020	1020	20 claimed credit within two years of January 1, 2001, except
1021	1021	21 that any firefighter employed by the Alabama Forestry
1022	1022	22 Commission shall make such payment within two years of
1023	1023	23 December 28, 2001. Any member participating in the Employees'
1024	1024	24 Retirement System under Section 36-27-6, who has eligible
1025	1025	25 prior service under this section and who also had no prior
1026	1026	26 eligibility to purchase prior service credit under this
1027	1027	27 subsection, may purchase prior service credit under this
1028	1028	Page 38 1 section at the same rate provided in subsection (b) within one
1029	1029	2 year of the effective date of his or her enrollment with the
1030	1030	3 Employees' Retirement System or within one year of August 1,
1031	1031	4 2004. The member may purchase his or her claimed credit in
1032	1032	5 increments of five years, unless the total service credit is
1033	1033	6 less than five years, in which case the service shall be
1034	1034	7 purchased in its entirety. The member shall provide
1035	1035	8 certification from each employing agency, on forms prescribed
1036	1036	9 by the Teachers' or Employees' Retirement System, of each year
1037	1037	10 of claimed service, as a prerequisite to payment under this
1038	1038	11 section.
1039	1039	12 "(d) The provisions of this section shall not apply
1040	1040	13 to any Tier II plan member."
1041	1041	14 Section 2. This act shall become effective
1042	1042	15 immediately following its passage and approval by the
1043	1043	16 Governor, or its otherwise becoming law.
1044	1044	Page 39