Alabama 2023 Regular Session

Alabama Senate Bill SB68 Compare Versions

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44 By Senator Chambliss
55 RFD: Finance and Taxation General Fund
66 First Read: 21-Mar-23
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11-5 SB68 EnrolledSB68 Enrolled
11+5 KJMJUA-1 03/13/2023 KMS (L)cr 2023-642
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13-Enrolled, An Act,
13+SYNOPSIS:
14+This bill would reopen the State Police Tier II
15+Plan to any employee of the Alabama State Law
16+Enforcement Agency who is certified by the Alabama
17+Peace Officers' Standards and Training Commission and
18+performs law enforcement duties and would modify the
19+Tier II benefits received by State Police Tier II
20+members to allow 25-year retirement and hazardous duty
21+time, and would clarify that an employee of the Alabama
22+State Law Enforcement Agency who is certified by the
23+Alabama Peace Officers' Standards and Training
24+Commission is a state policeman.
25+A BILL
26+TO BE ENTITLED
27+AN ACT
1428 To amend Sections 36-27-1, 36-27-16, as last amended by
1529 Acts 2022-184 and 2022-351, 2022 Regular Session, and 41-27-7,
1630 Code of Alabama 1975, relating to retirement benefits for
1731 employees who are members of the Employees' Retirement System;
1832 to reopen the State Police Tier II Plan to any employee of the
1933 Alabama State Law Enforcement Agency who is certified by the
2034 Alabama Peace Officers' Standards and Training Commission and
21-performs law enforcement duties; to modify the Tier II
22-benefits received by all State Police Tier II members; and to
23-clarify that employees of the Alabama State Law Enforcement
24-Agency are state policemen for retirement purposes.
25-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26-Section 1. Sections 36-27-1, 36-27-16, as last amended
27-by Acts 2022-184 and 2022-351, 2022 Regular Session, and
28-41-27-7 of the Code of Alabama 1975, are amended to read as
29-follows:
30-"§36-27-1
31-When used in this article, the following terms shall
32-have the following meanings, respectively, unless the context
33-clearly indicates otherwise:
34-(1) RETIREMENT SYSTEM. The Employees' Retirement System
35-of Alabama as defined in Section 36-27-2.
36-(2) EMPLOYEE. Any regular employee of the State of
37-Alabama whose salary is paid by state warrant by the state,
38-except a member of the Legislature of the state, a person who
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64+performs law enforcement duties; to modify the Tier II
65+benefits received by all State Police Tier II members; and to
66+clarify that employees of the Alabama State Law Enforcement
67+Agency are state policemen for retirement purposes.
68+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
69+Section 1. Sections 36-27-1, 36-27-16, as last amended
70+by Acts 2022-184 and 2022-351, 2022 Regular Session, and
71+41-27-7 of the Code of Alabama 1975, are amended to read as
72+follows:
73+"§36-27-1
74+When used in this article, the following terms shall
75+have the following meanings, respectively, unless the context
76+clearly indicates otherwise:
77+(1) RETIREMENT SYSTEM. The Employees' Retirement System
78+of Alabama as defined in Section 36-27-2.
79+(2) EMPLOYEE. Any regular employee of the State of
80+Alabama whose salary is paid by state warrant by the state,
81+except a member of the Legislature of the state, a person who
6882 is covered or eligible to be covered under the Teachers'
6983 Retirement System of Alabama or any other retirement system to
7084 which contributions are made by the state, an elective
7185 official of the state government, and a temporary employee or
7286 person engaged under retainer or special agreement. In all
7387 cases of doubt the Board of Control shall determine who is an
7488 employee within the meaning of this article. The term shall
7589 include any regular employee of the Alabama state hospitals
7690 and Partlow State School and Hospital and the Alabama State
7791 Port Authority, however paid.
78-(3) EMPLOYER. The State of Alabama or any department,
79-commission, institution, or any other agency of and within the
80-state by which an employee is paid, including employers as
81-provided in Section 36-27-6.
82-(4) MEMBER. Any employee included in the membership of
83-the system as provided in Section 36-27-4.
84-(5) BOARD OF CONTROL. The board provided for in Section
85-36-27-23 to administer the retirement system.
86-(6) MEDICAL BOARD. The board of physicians provided for
87-in Section 36-27-23.
88-(7) SERVICE. Service as an employee paid for by an
89-employer.
90-(8) PRIOR SERVICE. Service rendered prior to the date
91-of establishment of the retirement system for which credit is
92-allowable under Section 36-27-11.
93-(9) MEMBERSHIP SERVICE. Service as an employee rendered
94-while a member of the retirement system and on account of
95-which contributions are made.
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121+(3) EMPLOYER. The State of Alabama or any department,
122+commission, institution, or any other agency of and within the
123+state by which an employee is paid, including employers as
124+provided in Section 36-27-6.
125+(4) MEMBER. Any employee included in the membership of
126+the system as provided in Section 36-27-4.
127+(5) BOARD OF CONTROL. The board provided for in Section
128+36-27-23 to administer the retirement system.
129+(6) MEDICAL BOARD. The board of physicians provided for
130+in Section 36-27-23.
131+(7) SERVICE. Service as an employee paid for by an
132+employer.
133+(8) PRIOR SERVICE. Service rendered prior to the date
134+of establishment of the retirement system for which credit is
135+allowable under Section 36-27-11.
136+(9) MEMBERSHIP SERVICE. Service as an employee rendered
137+while a member of the retirement system and on account of
138+which contributions are made.
125139 (10) CREDITABLE SERVICE. "Prior service" plus
126140 "membership service" rendered since last becoming a member.
127141 (11) BENEFICIARY. Any person in receipt of a pension,
128142 an annuity, a retirement allowance or other benefit as
129143 provided by this article.
130144 (12) REGULAR INTEREST. Interest compounded annually at
131145 the rate determined by the Board of Control in accordance with
132146 subsection (f) of Section 36-27-25.
133147 (13) ACCUMULATED CONTRIBUTIONS. The sum of all the
134148 amounts deducted from the compensation of a member credited to
135-his or her individual account in the Annuity Savings Fund,
136-together with regular interest thereon, as provided in Section
137-36-27-24.
138-(14) EARNABLE COMPENSATION. The full rate of
139-compensation that would be payable to an employee if he or she
140-worked the full normal work-time. In cases where compensation
141-includes maintenance, the Board of Control shall fix the value
142-of that part of the compensation not paid in money. Earnable
143-compensation shall not exceed the limitations imposed by
144-Section 401(a)(17) of the Internal Revenue Code for public
145-pension funds, except that any employee who was a member of
146-the Employees' Retirement System before the first plan year
147-beginning after December 31, 1995, shall not be subject to the
148-earning limitations set forth in Section 401(a)(17). For Tier
149-I plan members, the term earnable compensation for retirement
150-purposes shall not include subsistence payments that are made
151-to a member and shall include overtime payments that are made
152-to a member; however, earnable compensation shall not exceed
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178+his or her individual account in the Annuity Savings Fund,
179+together with regular interest thereon, as provided in Section
180+36-27-24.
181+(14) EARNABLE COMPENSATION. The full rate of
182+compensation that would be payable to an employee if he or she
183+worked the full normal work-time. In cases where compensation
184+includes maintenance, the Board of Control shall fix the value
185+of that part of the compensation not paid in money. Earnable
186+compensation shall not exceed the limitations imposed by
187+Section 401(a)(17) of the Internal Revenue Code for public
188+pension funds, except that any employee who was a member of
189+the Employees' Retirement System before the first plan year
190+beginning after December 31, 1995, shall not be subject to the
191+earning limitations set forth in Section 401(a)(17). For Tier
192+I plan members, the term earnable compensation for retirement
193+purposes shall not include subsistence payments that are made
194+to a member and shall include overtime payments that are made
195+to a member; however, earnable compensation shall not exceed
182196 120 percent of any members' annual base compensation as
183197 certified by the employer. For Tier II plan members, earnable
184198 compensation shall include overtime payments that are made to
185199 the member but shall not include subsistence payments that are
186200 made to the member and shall not exceed one hundred
187201 twenty-five percent (125%) of the member's annual base
188202 compensation, as certified by the employer.
189203 (15) AVERAGE FINAL COMPENSATION. For any Tier I plan
190204 member, the average annual compensation of the member, with
191205 respect to which he or she had made contributions pursuant to
192-subsection (b) of Section 36-27-24 during the three years, in
193-his or her last 10 years of creditable service for which the
194-average is highest or during his or her entire period of
195-creditable service if less than three years; except, that for
196-any period prior to November 1, 1959, the compensation used in
197-computing the average shall include compensation in excess of
198-the maximum amount with respect to which members were required
199-to contribute. For any Tier II plan member, the average annual
200-compensation of the member, with respect to which he or she
201-has made contributions pursuant to subsection (b) of Section
202-36-27-24 during the five years, in his or her last ten 10
203-years of creditable service for which the average is highest
204-or during his or her entire period of creditable service if
205-less than five years.
206-(16) ANNUITY. Payments for life derived from the
207-"accumulated contributions" of a member. All annuities shall
208-be payable in equal monthly installments.
209-(17) PENSION. Payments for life derived from money
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235+subsection (b) of Section 36-27-24 during the three years, in
236+his or her last 10 years of creditable service for which the
237+average is highest or during his or her entire period of
238+creditable service if less than three years; except, that for
239+any period prior to November 1, 1959, the compensation used in
240+computing the average shall include compensation in excess of
241+the maximum amount with respect to which members were required
242+to contribute. For any Tier II plan member, the average annual
243+compensation of the member, with respect to which he or she
244+has made contributions pursuant to subsection (b) of Section
245+36-27-24 during the five years, in his or her last ten 10
246+years of creditable service for which the average is highest
247+or during his or her entire period of creditable service if
248+less than five years.
249+(16) ANNUITY. Payments for life derived from the
250+"accumulated contributions" of a member. All annuities shall
251+be payable in equal monthly installments.
252+(17) PENSION. Payments for life derived from money
239253 provided by the employer. All pensions shall be payable in
240254 equal monthly installments.
241255 (18) RETIREMENT ALLOWANCE. The sum of the "annuity" and
242256 the "pension."
243257 (19) RETIREMENT. Withdrawal from active service with a
244258 retirement allowance or optional benefit in lieu thereof
245259 granted under this article.
246260 (20) ANNUITY RESERVE. The present value of all payments
247261 to be made on account of any annuity or benefit in lieu of any
248262 annuity computed upon the basis of the mortality tables
249-adopted by the Board of Control and regular interest.
250-(21) PENSION RESERVE. The present value of all payments
251-to be made on account of any pension or benefit in lieu of any
252-pension computed upon the basis of the mortality tables
253-adopted by the Board of Control and regular interest.
254-(22) ACTUARIAL EQUIVALENT. A benefit of equal value
255-when computed upon the basis of the mortality tables adopted
256-by the Board of Control and regular interest.
257-(23) STATE POLICEMAN. An employee in the classified
258-service under the Merit System Act approved by the State
259-Personnel Board to perform the duties of highway patrolman or
260-a beverage control agent or a crime investigator. The term
261-includes any employee hired by of the Alabama State Law
262-Enforcement Agency after January 1, 2015, who is certified by
263-the Alabama Peace Officers' Standards and Training Commission
264-and performs law enforcement duties. Such an employee of the
265-Alabama State Law Enforcement Agency shall pay the same
266-employee contribution rate as and receive the same benefits as
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292+adopted by the Board of Control and regular interest.
293+(21) PENSION RESERVE. The present value of all payments
294+to be made on account of any pension or benefit in lieu of any
295+pension computed upon the basis of the mortality tables
296+adopted by the Board of Control and regular interest.
297+(22) ACTUARIAL EQUIVALENT. A benefit of equal value
298+when computed upon the basis of the mortality tables adopted
299+by the Board of Control and regular interest.
300+(23) STATE POLICEMAN. An employee in the classified
301+service under the Merit System Act approved by the State
302+Personnel Board to perform the duties of highway patrolman or
303+a beverage control agent or a crime investigator. The term
304+includes any employee hired by of the Alabama State Law
305+Enforcement Agency after January 1, 2015, who is certified by
306+the Alabama Peace Officers' Standards and Training Commission
307+and performs law enforcement duties. Such an employee of the
308+Alabama State Law Enforcement Agency shall pay the same
309+employee contribution rate as and receive the same benefits as
296310 Tier II law enforcement officers, as defined by Section
297311 36-27-59(a)(3). The term shall not include a member employed
298312 as a policeman under Section 36-27-6.
299313 (24) TIER I PLAN. The defined benefit pension plan
300314 provided by the Retirement System to Tier I plan members.
301315 (25) TIER II PLAN. The defined benefit pension plan
302316 provided by the Retirement System to Tier II plan members.
303317 (26) TIER I PLAN MEMBER. Any member of the Retirement
304318 System who had service for which he or she received credit in
305319 the Employees' Retirement System or in the Teachers'
306-Retirement System prior to January 1, 2013.
307-(27) TIER II PLAN MEMBER. Any member of the Retirement
308-System who first began eligible employment with an Employees'
309-Retirement System or a Teachers' Retirement System
310-participating employer on or after January 1, 2013, and who
311-had no eligible service in the Employees' Retirement System or
312-the Teachers' Retirement System prior to January 1, 2013."
313-"§36-27-16
314-(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
315-ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
316-a. Any Tier I plan member who withdraws from service
317-upon or after attainment of age 60 and any Tier II plan member
318-who withdraws from service upon or after attainment of age 62
319-may retire upon written application to the Board of Control
320-setting forth at what time, not less than 30 days nor more
321-than 90 days subsequent to the execution and filing thereof,
322-he or she desires to be retired; provided, that any such
323-member who became a member on or after October 1, 1963, shall
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349+Retirement System prior to January 1, 2013.
350+(27) TIER II PLAN MEMBER. Any member of the Retirement
351+System who first began eligible employment with an Employees'
352+Retirement System or a Teachers' Retirement System
353+participating employer on or after January 1, 2013, and who
354+had no eligible service in the Employees' Retirement System or
355+the Teachers' Retirement System prior to January 1, 2013."
356+"§36-27-16
357+(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
358+ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
359+a. Any Tier I plan member who withdraws from service
360+upon or after attainment of age 60 and any Tier II plan member
361+who withdraws from service upon or after attainment of age 62
362+may retire upon written application to the Board of Control
363+setting forth at what time, not less than 30 days nor more
364+than 90 days subsequent to the execution and filing thereof,
365+he or she desires to be retired; provided, that any such
366+member who became a member on or after October 1, 1963, shall
353367 have completed 10 or more years of creditable service;
354368 provided further, that a Tier I or Tier II plan member
355369 employed as a state policeman shall be eligible to file
356370 application for service retirement upon attaining age 52 and a
357371 Tier II plan member employed as a state policeman or employed
358372 as a correctional officer, firefighter, or law enforcement
359373 officer as defined in Section 36-27-59 with at least 10 years
360374 of creditable service as a correctional officer, firefighter,
361375 or law enforcement officer shall be eligible to file
362376 application for service retirement upon attaining age 56.
363-b. Any Tier I plan member who has attained age 60, or
364-age 52 in the case of a state policeman and any Tier II plan
365-member who has attained age 62, or age 56 52 in the case of a
366-state policeman, or age 56 in the case of a correctional
367-officer, firefighter, or law enforcement officer as defined in
368-Section 36-27-59 who has at least 10 years of creditable
369-service as a correctional officer, firefighter, or law
370-enforcement officer, and has previously withdrawn from service
371-may retire upon written application to the Board of Control
372-setting forth at what time, not less than 30 days nor more
373-than 90 days subsequent to the execution and filing thereof,
374-he or she desires to be retired; provided, the member shall
375-have at the time of his or her withdrawal from service
376-completed the age and service requirements established by the
377-Board of Control for eligibility for deferred benefits;
378-provided, that the minimum number of years of creditable
379-service shall not be less than 10 years nor more than 25
380-years.
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406+b. Any Tier I plan member who has attained age 60, or
407+age 52 in the case of a state policeman and any Tier II plan
408+member who has attained age 62, or age 56 52 in the case of a
409+state policeman, or age 56 in the case of a correctional
410+officer, firefighter, or law enforcement officer as defined in
411+Section 36-27-59 who has at least 10 years of creditable
412+service as a correctional officer, firefighter, or law
413+enforcement officer, and has previously withdrawn from service
414+may retire upon written application to the Board of Control
415+setting forth at what time, not less than 30 days nor more
416+than 90 days subsequent to the execution and filing thereof,
417+he or she desires to be retired; provided, the member shall
418+have at the time of his or her withdrawal from service
419+completed the age and service requirements established by the
420+Board of Control for eligibility for deferred benefits;
421+provided, that the minimum number of years of creditable
422+service shall not be less than 10 years nor more than 25
423+years.
410424 c. In addition to any law or part of law relating to
411425 service retirement under the Employees' Retirement System of
412426 Alabama, any Tier I plan member of the Employees' Retirement
413427 System or Tier II plan member employed as a state policeman
414428 who withdraws from service after completion of not less than
415429 25 years of creditable service, or any Tier II plan member who
416430 withdraws from service after completion of not less than 30
417431 years of creditable service, may retire without a reduction in
418432 retirement allowance upon written application to the Board of
419433 Control of the Employees' Retirement System setting forth the
420-first day of which month, not less than 30 days or more than
421-90 days subsequent to the execution and filing thereof, he or
422-she desires to be retired, provided that no person whose
423-employer participates in the Employees' Retirement System
424-under Section 36-27-6 shall be entitled to the benefits
425-provided in this paragraph for Tier I members unless the
426-employer elects to come under the provisions of the paragraph.
427-Any employer making this election must bear the cost of the
428-benefit.
429-(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
430-a. Upon retirement from service, a Tier I plan member
431-shall receive a service retirement allowance which shall
432-consist of:
433-1. An annuity which shall be the actuarial equivalent
434-of his or her accumulated contributions at the time of his or
435-her retirement; except, that in the case of a state policeman
436-who has completed 20 years of creditable service as a state
437-policeman who retires after age 56 but prior to age 60, the
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463+first day of which month, not less than 30 days or more than
464+90 days subsequent to the execution and filing thereof, he or
465+she desires to be retired, provided that no person whose
466+employer participates in the Employees' Retirement System
467+under Section 36-27-6 shall be entitled to the benefits
468+provided in this paragraph for Tier I members unless the
469+employer elects to come under the provisions of the paragraph.
470+Any employer making this election must bear the cost of the
471+benefit.
472+(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
473+a. Upon retirement from service, a Tier I plan member
474+shall receive a service retirement allowance which shall
475+consist of:
476+1. An annuity which shall be the actuarial equivalent
477+of his or her accumulated contributions at the time of his or
478+her retirement; except, that in the case of a state policeman
479+who has completed 20 years of creditable service as a state
480+policeman who retires after age 56 but prior to age 60, the
467481 annuity shall be equal to the annuity that would have been
468482 payable upon service retirement at age 60 had the member
469483 continued in service to age 60 without change in compensation;
470484 2. A pension which shall be equal to the annuity
471485 allowance at age of retirement, but not to exceed an annuity
472486 allowable at age 65, computed on the basis of contributions
473487 made prior to attainment of age 65; except, that in the case
474488 of a state policeman who has completed 20 years of creditable
475489 service as a state policeman who retires after age 56 but
476490 prior to age 60, the pension shall be equal to the annuity
477-that he or she would have received had he or she contributed
478-to age 60 without change in compensation; and
479-3. An additional pension, if he or she has a prior
480-service certificate in full force and effect, which shall be
481-equal to the annuity which would have been provided at the age
482-of retirement, but which shall not exceed an annuity allowable
483-at age 65 by twice the contributions which he or she would
484-have made during the period of prior service with which he or
485-she is credited had the system been in operation and had he or
486-she contributed thereunder; except, that in case of a state
487-policeman who has completed 20 years of creditable service as
488-a state policeman who retired after age 56 but prior to age
489-60, an additional pension, if he or she has a prior service
490-certificate in full force and effect, which shall be equal to
491-the annuity which would have been provided at age 60, but
492-which shall not exceed an annuity allowable at age 60 by twice
493-the contributions which he or she would have made during the
494-period of prior service with which he or she is credited had
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520+that he or she would have received had he or she contributed
521+to age 60 without change in compensation; and
522+3. An additional pension, if he or she has a prior
523+service certificate in full force and effect, which shall be
524+equal to the annuity which would have been provided at the age
525+of retirement, but which shall not exceed an annuity allowable
526+at age 65 by twice the contributions which he or she would
527+have made during the period of prior service with which he or
528+she is credited had the system been in operation and had he or
529+she contributed thereunder; except, that in case of a state
530+policeman who has completed 20 years of creditable service as
531+a state policeman who retired after age 56 but prior to age
532+60, an additional pension, if he or she has a prior service
533+certificate in full force and effect, which shall be equal to
534+the annuity which would have been provided at age 60, but
535+which shall not exceed an annuity allowable at age 60 by twice
536+the contributions which he or she would have made during the
537+period of prior service with which he or she is credited had
524538 the system been in operation and had he or she contributed
525539 thereunder.
526540 b. Notwithstanding the provisions of subparagraphs 1.,
527541 2., and 3. of paragraph a. of this subdivision, a state
528542 policeman who is a Tier I plan member and who has completed 20
529543 years of service as a state policeman who retires after age 52
530544 but prior to age 56 shall receive:
531545 1. An annuity which shall be equal to the annuity that
532546 would have been payable had the member continued in service
533547 for four years without change in compensation;
534-2. A pension which shall be equal to the annuity that
535-he or she would have received had he or she contributed for
536-four years without change in compensation; and
537-3. An additional pension, if he or she has a prior
538-service certificate in full force and effect, which shall be
539-equal to the annuity which would have been provided at the age
540-of retirement, but which shall not exceed an annuity allowable
541-at the age of retirement plus four years by twice the
542-contributions which he or she would have made during the
543-period of prior service with which he or she is credited had
544-the system been in operation and had he or she contributed
545-thereunder. In lieu of a determination of the actual
546-compensation of a member that was received during that prior
547-service, the Board of Control may use for the purpose of this
548-article the compensation rate which, if it had progressed with
549-the rates of salary increase shown in the tables as prescribed
550-in subsection (n) of Section 36-27-23, would have resulted in
551-the same average salary of the member for the five years
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577+2. A pension which shall be equal to the annuity that
578+he or she would have received had he or she contributed for
579+four years without change in compensation; and
580+3. An additional pension, if he or she has a prior
581+service certificate in full force and effect, which shall be
582+equal to the annuity which would have been provided at the age
583+of retirement, but which shall not exceed an annuity allowable
584+at the age of retirement plus four years by twice the
585+contributions which he or she would have made during the
586+period of prior service with which he or she is credited had
587+the system been in operation and had he or she contributed
588+thereunder. In lieu of a determination of the actual
589+compensation of a member that was received during that prior
590+service, the Board of Control may use for the purpose of this
591+article the compensation rate which, if it had progressed with
592+the rates of salary increase shown in the tables as prescribed
593+in subsection (n) of Section 36-27-23, would have resulted in
594+the same average salary of the member for the five years
581595 immediately preceding the date of establishment as the records
582596 show the member actually received.
583597 c. The annual service retirement pension payable to a
584598 Tier I plan member not employed as a state policeman retiring
585599 on or after October 1, 1975, shall not be less than an amount
586600 which, when added to his or her annuity, is equal to the
587601 greater of the following two amounts:
588602 1. Two and one-eightieth percent of the member's
589603 average final compensation multiplied by the number of years
590604 of his or her creditable service; or
591-2. If he or she became a member before October 1, 1965,
592-seventy-two dollars ($72) multiplied by the number of years of
593-his or her creditable service not in excess of 25 years.
594-d. The annual service retirement pension payable to a
595-Tier I plan member employed as a state policeman retiring on
596-or after October 1, 1975, shall not be less than an amount
597-which, when added to his or her annuity, is equal to the
598-greater of the following two amounts:
599-1. Two and seven-eighths percent of the member's
600-average final compensation multiplied by the number of years
601-of his or her creditable service. Creditable service for any
602-state policeman under the age of 56 years who has completed 20
603-years of creditable service as a state policeman shall include
604-a bonus equal to four additional years. Creditable service for
605-a state policeman 56 years or older shall include a bonus
606-equal to the years or portion thereof remaining until the
607-member reaches age 60; or
608-2. If he or she became a member before October 1, 1965,
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634+2. If he or she became a member before October 1, 1965,
635+seventy-two dollars ($72) multiplied by the number of years of
636+his or her creditable service not in excess of 25 years.
637+d. The annual service retirement pension payable to a
638+Tier I plan member employed as a state policeman retiring on
639+or after October 1, 1975, shall not be less than an amount
640+which, when added to his or her annuity, is equal to the
641+greater of the following two amounts:
642+1. Two and seven-eighths percent of the member's
643+average final compensation multiplied by the number of years
644+of his or her creditable service. Creditable service for any
645+state policeman under the age of 56 years who has completed 20
646+years of creditable service as a state policeman shall include
647+a bonus equal to four additional years. Creditable service for
648+a state policeman 56 years or older shall include a bonus
649+equal to the years or portion thereof remaining until the
650+member reaches age 60; or
651+2. If he or she became a member before October 1, 1965,
638652 eighty-six dollars forty cents ($86.40) multiplied by the
639653 number of years of his or her creditable service not in excess
640654 of 25 years; provided, however, that if the member has
641655 completed 20 years of creditable service as a state policeman
642656 and has not attained age 60 at the time of retirement, the
643657 pension shall be determined as provided in this subparagraph
644658 on the basis of the number of years of creditable service
645659 which he or she would have had if he or she had remained in
646660 service for four years, except that, in the case of those
647661 state policemen retiring at age 56 or after, the number of
648-years in determining the pension shall not exceed the number
649-of years of creditable service which he or she would have had
650-if he or she had remained in service to age 60.
651-e. Upon retirement from service, a Tier II plan member
652-who is not employed as a state policeman shall receive a
653-service retirement allowance which shall consist of an annuity
654-which shall be the actuarial equivalent of the member's
655-accumulated contributions at the time of retirement and a
656-pension which, when added to the member's annuity, shall be
657-equal to one and sixty-five hundredths percent (1.65%) of the
658-member's average final compensation multiplied by the number
659-of years of creditable service. The service retirement
660-allowance for a member who retires with 30 years of creditable
661-service before reaching the age of 62 shall be reduced by two
662-percent (2%) for each year of the difference between age 62
663-and the age at retirement of the member. Notwithstanding the
664-foregoing, the service retirement allowance shall not exceed
665-eighty percent (80%) of the member's average final
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691+years in determining the pension shall not exceed the number
692+of years of creditable service which he or she would have had
693+if he or she had remained in service to age 60.
694+e. Upon retirement from service, a Tier II plan member
695+who is not employed as a state policeman shall receive a
696+service retirement allowance which shall consist of an annuity
697+which shall be the actuarial equivalent of the member's
698+accumulated contributions at the time of retirement and a
699+pension which, when added to the member's annuity, shall be
700+equal to one and sixty-five hundredths percent (1.65%) of the
701+member's average final compensation multiplied by the number
702+of years of creditable service. The service retirement
703+allowance for a member who retires with 30 years of creditable
704+service before reaching the age of 62 shall be reduced by two
705+percent (2%) for each year of the difference between age 62
706+and the age at retirement of the member. Notwithstanding the
707+foregoing, the service retirement allowance shall not exceed
708+eighty percent (80%) of the member's average final
695709 compensation.
696710 f. Upon retirement from service, a Tier II plan member
697711 who is employed as a state policeman shall receive a service
698712 retirement allowance which shall consist of an annuity which
699713 shall be the actuarial equivalent of the member's accumulated
700714 contributions at the time of retirement and a pension which,
701715 when added to the member's annuity, shall be equal to two and
702716 three-eighths percent (2.375%) of the member's average final
703717 compensation multiplied by the member's number of years of
704718 creditable service. The service retirement allowance for a
705-member who retires with 30 years of creditable service before
706-reaching the age of 62 shall be reduced by two percent (2%)
707-for each year of the difference between age 62 and the age at
708-retirement of the member. Notwithstanding the foregoing, the
709-service retirement allowance shall not exceed eighty percent
710-(80%) of the member's average final compensation. Creditable
711-service for any Tier II plan member who is employed as a state
712-policeman shall include one year of hazardous duty time for
713-every five years of service as a state policeman.
714-g. Anything in this article to the contrary
715-notwithstanding, in the application of the foregoing
716-provisions of this subdivision to a member whose creditable
717-service includes a period of service as a state policeman and
718-a period of service in another employment classification, the
719-benefit rates applicable to a member employed as a state
720-policeman shall apply to all creditable service as a state
721-policeman, and the benefit rates applicable to a member not
722-employed as a state policeman shall apply to all creditable
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748+member who retires with 30 years of creditable service before
749+reaching the age of 62 shall be reduced by two percent (2%)
750+for each year of the difference between age 62 and the age at
751+retirement of the member. Notwithstanding the foregoing, the
752+service retirement allowance shall not exceed eighty percent
753+(80%) of the member's average final compensation. Creditable
754+service for any Tier II plan member who is employed as a state
755+policeman shall include one year of hazardous duty time for
756+every five years of service as a state policeman.
757+g. Anything in this article to the contrary
758+notwithstanding, in the application of the foregoing
759+provisions of this subdivision to a member whose creditable
760+service includes a period of service as a state policeman and
761+a period of service in another employment classification, the
762+benefit rates applicable to a member employed as a state
763+policeman shall apply to all creditable service as a state
764+policeman, and the benefit rates applicable to a member not
765+employed as a state policeman shall apply to all creditable
752766 service, but in all other respects the pension under this
753767 subdivision shall be determined on the basis of the member's
754768 employment classification at the time of his or her withdrawal
755769 from service.
756770 h. The annual service retirement pension payable to any
757771 state employee who had attained age 60 on or before October 1,
758772 1945, who declined membership in the Employees' Retirement
759773 System of Alabama in the manner prescribed in Section 36-27-4
760774 and who retires as a state employee after completing a minimum
761775 of 15 years' service shall be seventy-two dollars ($72)
762-multiplied by the number of years of his or her service not in
763-excess of 25 years.
764-(b)(1) RETIREMENT OF DISABLED EMPLOYEES; ELIGIBILITY
765-FOR DISABILITY RETIREMENT BENEFITS.
766-a. Upon application of a Tier I plan member in service
767-or of his or her employer, any member who has had 10 or more
768-years of creditable service who becomes disabled may be
769-retired on a disability retirement allowance by the Board of
770-Control not less than 30 nor more than 90 days next following
771-the date of filing of the application; provided, that the
772-medical board, after a medical examination of the member,
773-shall certify that the member is mentally or physically
774-incapacitated for the further performance of duty, that the
775-incapacity is likely to be permanent and that the member
776-should be retired. Upon the application of a Tier II plan
777-member in service or his or her employer, any member who has
778-had 10 or more years of creditable service may be retired by
779-the Board of Control on a disability retirement allowance not
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805+multiplied by the number of years of his or her service not in
806+excess of 25 years.
807+(b)(1) RETIREMENT OF DISABLED EMPLOYEES; ELIGIBILITY
808+FOR DISABILITY RETIREMENT BENEFITS.
809+a. Upon application of a Tier I plan member in service
810+or of his or her employer, any member who has had 10 or more
811+years of creditable service who becomes disabled may be
812+retired on a disability retirement allowance by the Board of
813+Control not less than 30 nor more than 90 days next following
814+the date of filing of the application; provided, that the
815+medical board, after a medical examination of the member,
816+shall certify that the member is mentally or physically
817+incapacitated for the further performance of duty, that the
818+incapacity is likely to be permanent and that the member
819+should be retired. Upon the application of a Tier II plan
820+member in service or his or her employer, any member who has
821+had 10 or more years of creditable service may be retired by
822+the Board of Control on a disability retirement allowance not
809823 less than 30 nor more than 90 days next following the date of
810824 filing the application; provided, that the medical board,
811825 after a medical examination of the member, shall certify that
812826 the member is totally and permanently mentally or physically
813827 incapacitated from regular and substantial gainful employment,
814828 and that member should be retired.
815829 b. Without regard to the number of years of creditable
816830 service, a member employed as a state policeman, a municipal
817831 police officer or a deputy sheriff, or a member employed as a
818832 state, municipal, or county firefighter who is not covered
819-through his or her current employer under the United States
820-Social Security Act, who as a result of his or her employment,
821-in the line of duty and not as a result of his or her own
822-misconduct, shall become permanently and totally disabled to
823-the extent that he or she cannot perform his or her duties or
824-duties of a less strenuous nature, as an employee of the State
825-of Alabama or as an employee of an employer participating
826-under the provisions of Section 36-27-6, shall be retired on a
827-disability retirement allowance, not less than 30 nor more
828-than 90 days next following the date of filing of the
829-application, provided that the medical board, after a medical
830-examination of the member shall certify that the member is
831-mentally or physically incapacitated for the further
832-performance of duty, that the incapacity is likely to be
833-permanent, and that the member should be retired.
834-(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
835-a. Upon retirement for disability a member shall
836-receive a service retirement allowance based on age and
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865861 Page 16
862+through his or her current employer under the United States
863+Social Security Act, who as a result of his or her employment,
864+in the line of duty and not as a result of his or her own
865+misconduct, shall become permanently and totally disabled to
866+the extent that he or she cannot perform his or her duties or
867+duties of a less strenuous nature, as an employee of the State
868+of Alabama or as an employee of an employer participating
869+under the provisions of Section 36-27-6, shall be retired on a
870+disability retirement allowance, not less than 30 nor more
871+than 90 days next following the date of filing of the
872+application, provided that the medical board, after a medical
873+examination of the member shall certify that the member is
874+mentally or physically incapacitated for the further
875+performance of duty, that the incapacity is likely to be
876+permanent, and that the member should be retired.
877+(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
878+a. Upon retirement for disability a member shall
879+receive a service retirement allowance based on age and
866880 service if he or she is a Tier I plan member and he or she has
867881 attained age 60 or if he or she is a Tier II plan member and
868882 he or she has attained age 62, or if any law or part of any
869883 law pertaining to retirement under the Employees' Retirement
870884 System of Alabama provides for service retirement after the
871885 completion of 25 years of creditable service or 30 years of
872886 creditable service without a reduction in the retirement
873887 allowance and the member has completed 25 years of creditable
874888 service or 30 years of creditable service, whichever is
875889 applicable, or, in the case of a state policeman, if he or she
876-is a Tier I plan member and he or she has attained age 52 or,
877-in the case of a state policeman or a correctional officer,
878-firefighter, or law enforcement officer as defined in Section
879-36-27-59 with at least 10 years of creditable service as a
880-correctional officer, firefighter, or law enforcement officer,
881-if he or she is a Tier II plan member and he or she has
882-attained age 56 otherwise eligible to retire ; otherwise, he or
883-she shall receive a disability retirement allowance which
884-shall consist of:
885-1. An annuity which shall be the actuarial equivalent
886-of his or her accumulated contributions at the time of his or
887-her retirement;
888-2. A pension which shall be equal to the pension that
889-would have been payable under subparagraphs (a)(2)a.2. and
890-(a)(2)a.3. of this section upon service retirement at age 65
891-had the member continued in service to that age without change
892-in compensation.
893-b. The annual disability retirement pension payable to
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919+is a Tier I plan member and he or she has attained age 52 or,
920+in the case of a state policeman or a correctional officer,
921+firefighter, or law enforcement officer as defined in Section
922+36-27-59 with at least 10 years of creditable service as a
923+correctional officer, firefighter, or law enforcement officer,
924+if he or she is a Tier II plan member and he or she has
925+attained age 56 otherwise eligible to retire ; otherwise, he or
926+she shall receive a disability retirement allowance which
927+shall consist of:
928+1. An annuity which shall be the actuarial equivalent
929+of his or her accumulated contributions at the time of his or
930+her retirement;
931+2. A pension which shall be equal to the pension that
932+would have been payable under subparagraphs (a)(2)a.2. and
933+(a)(2)a.3. of this section upon service retirement at age 65
934+had the member continued in service to that age without change
935+in compensation.
936+b. The annual disability retirement pension payable to
923937 a Tier I plan member not employed as a state policeman
924938 retiring on or after October 1, 1975, shall not be less than
925939 an amount which when added to his or her annuity is equal to
926940 the greatest of the following two amounts:
927941 1. Two and one-eightieth percent of the member's
928942 average final compensation multiplied by the number of years
929943 of creditable service.
930944 2. If he or she became a member before October 1, 1965,
931945 fifty-four dollars ($54) multiplied by the number of years of
932946 his or her creditable service not in excess of 25 years.
933-c. The annual disability retirement pension payable to
934-a Tier I plan member employed as a state policeman retiring on
935-or after October 1, 1975, shall not be less than an amount
936-which when added to his or her annuity is equal to the greater
937-of the following two amounts:
938-1. Two and seven-eighths percent of the member's
939-average final compensation multiplied by the number of years
940-of his or her creditable service. Creditable service for any
941-state policeman under the age of 56 years who has completed 20
942-years of creditable service as a state policeman shall include
943-a bonus equal to four additional years. Creditable service for
944-a state policeman 56 years or older shall include a bonus
945-equal to the years or portion thereof remaining until the
946-member reaches age 60; or
947-2. If he or she became a member before October 1, 1965,
948-sixty-four dollars eighty cents ($64.80) multiplied by the
949-number of years of his or her creditable service not in excess
950-of 25 years.
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976+c. The annual disability retirement pension payable to
977+a Tier I plan member employed as a state policeman retiring on
978+or after October 1, 1975, shall not be less than an amount
979+which when added to his or her annuity is equal to the greater
980+of the following two amounts:
981+1. Two and seven-eighths percent of the member's
982+average final compensation multiplied by the number of years
983+of his or her creditable service. Creditable service for any
984+state policeman under the age of 56 years who has completed 20
985+years of creditable service as a state policeman shall include
986+a bonus equal to four additional years. Creditable service for
987+a state policeman 56 years or older shall include a bonus
988+equal to the years or portion thereof remaining until the
989+member reaches age 60; or
990+2. If he or she became a member before October 1, 1965,
991+sixty-four dollars eighty cents ($64.80) multiplied by the
992+number of years of his or her creditable service not in excess
993+of 25 years.
980994 d. The annual disability retirement allowance payable
981995 to a Tier II plan member not employed as a state policeman
982996 shall be equal to one and sixty-five hundredths percent
983997 (1.65%) of the member's average final compensation multiplied
984998 by the number of years of creditable service.
985999 e. The annual disability retirement allowance payable
9861000 to a Tier II plan member employed as a state policeman shall
9871001 be equal to two and three-eighths percent (2.375%) of the
9881002 member's average final compensation multiplied by the number
9891003 of years of creditable service.
990-f. Anything in this chapter to the contrary
991-notwithstanding in the application of the provisions of this
992-subdivision to a member whose creditable service includes a
993-period of service as a state policeman and a period of service
994-in another employment classification the benefit rates
995-applicable to a member employed as a state policeman shall
996-apply to all creditable service as a state policeman, and the
997-benefit rates applicable to a member not employed as a state
998-policeman shall apply to all other creditable service, but in
999-all other respects the pension under this subdivision shall be
1000-determined on the basis of the member's employment
1001-classification at the time of his or her withdrawal from
1002-service.
1003-(3) REEXAMINATION OF BENEFICIARIES RETIRED ON ACCOUNT
1004-OF DISABILITY. Once each year during the first five years
1005-following the retirement of a member on a disability
1006-retirement allowance and once every three-year period
1007-thereafter, the Board of Control may, and upon his or her
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1033+f. Anything in this chapter to the contrary
1034+notwithstanding in the application of the provisions of this
1035+subdivision to a member whose creditable service includes a
1036+period of service as a state policeman and a period of service
1037+in another employment classification the benefit rates
1038+applicable to a member employed as a state policeman shall
1039+apply to all creditable service as a state policeman, and the
1040+benefit rates applicable to a member not employed as a state
1041+policeman shall apply to all other creditable service, but in
1042+all other respects the pension under this subdivision shall be
1043+determined on the basis of the member's employment
1044+classification at the time of his or her withdrawal from
1045+service.
1046+(3) REEXAMINATION OF BENEFICIARIES RETIRED ON ACCOUNT
1047+OF DISABILITY. Once each year during the first five years
1048+following the retirement of a member on a disability
1049+retirement allowance and once every three-year period
1050+thereafter, the Board of Control may, and upon his or her
10371051 application shall, require any disability beneficiary who has
10381052 not yet attained age 60 if the beneficiary is a Tier I plan
10391053 member or age 62 if the beneficiary is a Tier II plan member
10401054 to undergo a medical examination, the examination to be made
10411055 at the place of residence of the beneficiary or other place
10421056 mutually agreed upon by a physician or physicians of or
10431057 designated by the medical board. Should any disability
10441058 beneficiary who has not yet attained age 60 , if the
10451059 beneficiary is a Tier I plan member or age 62 , if the
10461060 beneficiary is a Tier II plan member , refuse to submit to the
1047-medical examination, his or her allowance may be discontinued
1048-until his or her withdrawal of the refusal, and, should his or
1049-her refusal continue for one year, all his or her rights in
1050-and to his or her pension may be revoked by the Board of
1051-Control; provided, that these requirements relative to the
1052-medical examination shall not apply in the case of a state
1053-policeman retired for disability and who has attained age 52
1054-if he or she is a Tier I plan member or in the case of a state
1055-policeman or a correctional officer, firefighter, or law
1056-enforcement officer as defined in Section 36-27-59 with at
1057-least 10 years of creditable service as a correctional
1058-officer, firefighter, or law enforcement officer retired for
1059-disability who has attained age 56 if he or she is a Tier II
1060-plan member. Should the medical board report and certify to
1061-the Board of Control that a disability beneficiary who is a
1062-Tier I plan member is engaged in or is able to engage in a
1063-gainful occupation paying more than the difference between his
1064-or her retirement allowance and his or her average final
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1090+medical examination, his or her allowance may be discontinued
1091+until his or her withdrawal of the refusal, and, should his or
1092+her refusal continue for one year, all his or her rights in
1093+and to his or her pension may be revoked by the Board of
1094+Control; provided, that these requirements relative to the
1095+medical examination shall not apply in the case of a state
1096+policeman retired for disability and who has attained age 52
1097+if he or she is a Tier I plan member or in the case of a state
1098+policeman or a correctional officer, firefighter, or law
1099+enforcement officer as defined in Section 36-27-59 with at
1100+least 10 years of creditable service as a correctional
1101+officer, firefighter, or law enforcement officer retired for
1102+disability who has attained age 56 if he or she is a Tier II
1103+plan member. Should the medical board report and certify to
1104+the Board of Control that a disability beneficiary who is a
1105+Tier I plan member is engaged in or is able to engage in a
1106+gainful occupation paying more than the difference between his
1107+or her retirement allowance and his or her average final
10941108 compensation and should the Board of Control concur in the
10951109 report, then the amount of his or her pension shall be reduced
10961110 to an amount which, together with his or her annuity and the
10971111 amount earnable by him or her, shall equal the amount of his
10981112 or her average final compensation. Should his or her earning
10991113 capacity be later changed, the amount of his or her pension
11001114 may be further modified; provided, that the new pension shall
11011115 not exceed the amount of the pension originally granted nor an
11021116 amount which, when added to the amount earnable by the
11031117 beneficiary, together with this annuity exceeds the amount of
1104-his or her average final compensation.
1105-Should the medical board report and certify to the
1106-Board of Control that a disability beneficiary who is a Tier
1107-II plan member has the capacity to engage in regular and
1108-substantial gainful employment, the Board of Control shall
1109-discontinue the beneficiary's retirement allowance until the
1110-beneficiary is otherwise eligible for service retirement.
1111-(c) Disposition of contributions and allowances upon
1112-death, etc., of member.
1113-(1) Should a member cease to be an employee except by
1114-death or by retirement under the provisions of this article,
1115-the contributions standing to the credit of his or her
1116-individual account in the Annuity Savings Fund shall be paid
1117-to him or her upon demand and, in addition to the payment,
1118-there shall be paid five-tenths of the interest accumulations
1119-standing to the credit of his or her individual account if he
1120-or she shall have not less than three but less than 16 years
1121-of membership service, six-tenths of the interest
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1147+his or her average final compensation.
1148+Should the medical board report and certify to the
1149+Board of Control that a disability beneficiary who is a Tier
1150+II plan member has the capacity to engage in regular and
1151+substantial gainful employment, the Board of Control shall
1152+discontinue the beneficiary's retirement allowance until the
1153+beneficiary is otherwise eligible for service retirement.
1154+(c) Disposition of contributions and allowances upon
1155+death, etc., of member.
1156+(1) Should a member cease to be an employee except by
1157+death or by retirement under the provisions of this article,
1158+the contributions standing to the credit of his or her
1159+individual account in the Annuity Savings Fund shall be paid
1160+to him or her upon demand and, in addition to the payment,
1161+there shall be paid five-tenths of the interest accumulations
1162+standing to the credit of his or her individual account if he
1163+or she shall have not less than three but less than 16 years
1164+of membership service, six-tenths of the interest
11511165 accumulations if he or she shall have not less than 16 but
11521166 less than 21 years of membership service, seven-tenths of the
11531167 interest accumulations if he or she shall have not less than
11541168 21 but less than 26 years of membership service and
11551169 eight-tenths of the interest accumulations if he or she shall
11561170 have not less than 26 years of membership service.
11571171 (2) In case of the death of a member eligible for
11581172 service retirement pursuant to subsection (a), an allowance
11591173 shall be paid to the surviving spouse, if designated as the
11601174 sole beneficiary, in an amount that would have been payable if
1161-the member had retired immediately prior to his or her death
1162-and had elected Option 2, as set forth in subsection (d), or
1163-to such other person who the member shall have designated, in
1164-an amount that would have been payable if the member had
1165-retired immediately prior to his or her death and had elected
1166-Option 3, as set forth in subsection (d). Alternatively, if
1167-the surviving spouse or other designee desires, he or she may
1168-choose to receive, in lieu of the allowance provided under
1169-Option 2 or Option 3, the accumulated contributions of the
1170-member plus an amount equal to the accumulated contributions
1171-of the member not to exceed five thousand dollars ($5,000) or
1172-the accumulated contributions of the member plus the benefit
1173-provided by Section 36-27B-3 if a benefit is payable under
1174-that section;
1175-(3) In case of the death of a Tier I plan member not
1176-eligible for service retirement, after completion of 25 years
1177-of creditable service, an allowance shall be paid to the
1178-surviving spouse, if designated as the sole beneficiary, in an
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12071203 Page 22
1204+the member had retired immediately prior to his or her death
1205+and had elected Option 2, as set forth in subsection (d), or
1206+to such other person who the member shall have designated, in
1207+an amount that would have been payable if the member had
1208+retired immediately prior to his or her death and had elected
1209+Option 3, as set forth in subsection (d). Alternatively, if
1210+the surviving spouse or other designee desires, he or she may
1211+choose to receive, in lieu of the allowance provided under
1212+Option 2 or Option 3, the accumulated contributions of the
1213+member plus an amount equal to the accumulated contributions
1214+of the member not to exceed five thousand dollars ($5,000) or
1215+the accumulated contributions of the member plus the benefit
1216+provided by Section 36-27B-3 if a benefit is payable under
1217+that section;
1218+(3) In case of the death of a Tier I plan member not
1219+eligible for service retirement, after completion of 25 years
1220+of creditable service, an allowance shall be paid to the
1221+surviving spouse, if designated as the sole beneficiary, in an
12081222 amount that would have been payable if the member had retired
12091223 immediately prior to his or her death and had elected Option
12101224 2, as set forth in subsection (d), or to such other person who
12111225 the member shall have designated, in an amount that would have
12121226 been payable if the member had retired for disability
12131227 immediately prior to his or her death and had elected Option 3
12141228 as set forth in subsection (d). Alternatively, if the
12151229 surviving spouse or other designee desires, he or she may
12161230 choose to receive, in lieu of the allowance provided under
12171231 Option 2 or Option 3, the accumulated contributions of the
1218-member plus an amount equal to the accumulated contributions
1219-of the member not to exceed five thousand dollars ($5,000) or
1220-the accumulated contributions of the member plus the benefit
1221-provided by Section 36-27B-3 if a benefit is payable under
1222-that section. For purposes of this subsection only, hazardous
1223-duty time, as set forth in subdivision (b)(1) of Section
1224-36-27-59, may be used in calculating the requisite years of
1225-service for firefighters, law enforcement officers, and
1226-correctional officers even if the member has not otherwise
1227-attained 25 years of creditable service;
1228-(4) Upon the death of a member on account of whom no
1229-survivor allowance is payable under subdivisions (2) or (3) of
1230-this subsection, the accumulated contributions of the member
1231-plus an amount equal to the accumulated contributions not to
1232-exceed five thousand dollars ($5,000) or the accumulated
1233-contributions of the member plus the benefit provided by
1234-Section 36-27B-3 if a benefit is payable under that section
1235-shall be paid to his or her estate or to such person as he or
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12641260 Page 23
1261+member plus an amount equal to the accumulated contributions
1262+of the member not to exceed five thousand dollars ($5,000) or
1263+the accumulated contributions of the member plus the benefit
1264+provided by Section 36-27B-3 if a benefit is payable under
1265+that section. For purposes of this subsection only, hazardous
1266+duty time, as set forth in subdivision (b)(1) of Section
1267+36-27-59, may be used in calculating the requisite years of
1268+service for firefighters, law enforcement officers, and
1269+correctional officers even if the member has not otherwise
1270+attained 25 years of creditable service;
1271+(4) Upon the death of a member on account of whom no
1272+survivor allowance is payable under subdivisions (2) or (3) of
1273+this subsection, the accumulated contributions of the member
1274+plus an amount equal to the accumulated contributions not to
1275+exceed five thousand dollars ($5,000) or the accumulated
1276+contributions of the member plus the benefit provided by
1277+Section 36-27B-3 if a benefit is payable under that section
1278+shall be paid to his or her estate or to such person as he or
12651279 she shall have nominated by written designation duly executed
12661280 and filed with the Board of Control.
12671281 (d) Optional allowances. With the provision that the
12681282 election of an option shall be effective on the effective date
12691283 of retirement, any member may elect prior to retirement to
12701284 receive, in lieu of his or her retirement allowance payable
12711285 throughout life, the actuarial equivalent, at that time, of
12721286 his or her retirement allowance in a reduced retirement
12731287 allowance payable throughout life with the provisions that:
12741288 (1) OPTION 1. If he or she dies before he or she has
1275-received in annuity payments the present value of his or her
1276-annuity as it was at the time of his or her retirement, the
1277-balance shall be paid to his or her legal representatives or
1278-to the person as he or she shall nominate by written
1279-designation duly acknowledged and filed with the Board of
1280-Control;
1281-(2) OPTION 2. Upon his or her death, his or her reduced
1282-retirement allowance shall be continued throughout the life of
1283-and paid to the person as he or she shall nominate by written
1284-designation duly acknowledged and filed with the Board of
1285-Control at the time of his or her retirement;
1286-(3) OPTION 3. Upon his or her death, one half of his or
1287-her reduced allowance shall be continued throughout the life
1288-of and paid to the person as he or she shall nominate by
1289-written designation duly acknowledged and filed with the Board
1290-of Control at the time of his or her retirement; or
1291-(4) OPTION 4. Some other benefit or benefits shall be
1292-paid either to the member or to the person or persons as he or
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13211317 Page 24
1318+received in annuity payments the present value of his or her
1319+annuity as it was at the time of his or her retirement, the
1320+balance shall be paid to his or her legal representatives or
1321+to the person as he or she shall nominate by written
1322+designation duly acknowledged and filed with the Board of
1323+Control;
1324+(2) OPTION 2. Upon his or her death, his or her reduced
1325+retirement allowance shall be continued throughout the life of
1326+and paid to the person as he or she shall nominate by written
1327+designation duly acknowledged and filed with the Board of
1328+Control at the time of his or her retirement;
1329+(3) OPTION 3. Upon his or her death, one half of his or
1330+her reduced allowance shall be continued throughout the life
1331+of and paid to the person as he or she shall nominate by
1332+written designation duly acknowledged and filed with the Board
1333+of Control at the time of his or her retirement; or
1334+(4) OPTION 4. Some other benefit or benefits shall be
1335+paid either to the member or to the person or persons as he or
13221336 she shall nominate; provided, that those other benefits,
13231337 together with the reduced retirement allowance, shall be
13241338 certified by the actuary to be of equivalent actuarial value
13251339 to his or her retirement allowance and shall be approved by
13261340 the Board of Control .; or
13271341 (5) OPTION 5. At the time of retirement, he or she
13281342 shall receive a partial lump sum distribution as a single
13291343 payment not to exceed the sum of 24 months of the maximum
13301344 monthly retirement allowance the member could receive. This
13311345 option may be elected in addition to the election of another
1332-option under this subsection and the further reduced monthly
1333-retirement allowance shall be calculated in accordance with
1334-the selected option. This option shall not be available to a
1335-member who is receiving a disability retirement.
1336-(e) Effect of return to active service. Should any
1337-beneficiary be restored to active service, his or her
1338-retirement allowance shall be suspended until he or she again
1339-withdraws from service and he or she shall not again become a
1340-member of the retirement system nor shall he or she make
1341-contributions; except, that should the beneficiary who has
1342-been restored to active service continue in service for a
1343-period of two or more years from the date of his or her
1344-reentry into active service, he or she may request the Board
1345-of Control to allow him or her to again become a member of the
1346-retirement system. The Board of Control may grant the request
1347-for restoration to membership; provided, that the beneficiary
1348-whose retirement allowance has been suspended shall repay to
1349-the system all monies received by him or her as benefits
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13781374 Page 25
1375+option under this subsection and the further reduced monthly
1376+retirement allowance shall be calculated in accordance with
1377+the selected option. This option shall not be available to a
1378+member who is receiving a disability retirement.
1379+(e) Effect of return to active service. Should any
1380+beneficiary be restored to active service, his or her
1381+retirement allowance shall be suspended until he or she again
1382+withdraws from service and he or she shall not again become a
1383+member of the retirement system nor shall he or she make
1384+contributions; except, that should the beneficiary who has
1385+been restored to active service continue in service for a
1386+period of two or more years from the date of his or her
1387+reentry into active service, he or she may request the Board
1388+of Control to allow him or her to again become a member of the
1389+retirement system. The Board of Control may grant the request
1390+for restoration to membership; provided, that the beneficiary
1391+whose retirement allowance has been suspended shall repay to
1392+the system all monies received by him or her as benefits
13791393 during any periods subsequent to the date of his or her
13801394 reentry into active service and shall make a contribution
13811395 equal to the amount he or she would have contributed had he or
13821396 she been a member during the period of his or her restoration
13831397 to active service on a suspended allowance basis together with
13841398 the interest that would have been credited to the
13851399 contributions on account of the period of restoration up to
13861400 the date the contribution is made.
13871401 (f)(1) REDETERMINATION, ETC., OF CERTAIN ALLOWANCES.
13881402 All retirement allowance payments due on or after October 1,
1389-1975, to members who retired prior to that date shall be
1390-redetermined as if the provisions of this section in effect on
1391-October 1, 1975, were in effect at the time the member
1392-retired. Anything in this article to the contrary
1393-notwithstanding, the annual retirement allowance of any member
1394-not employed as a state policeman who retired on or before
1395-January 1, 1956, shall not be less than seventy-nine dollars
1396-twenty cents ($79.20) multiplied by the number of years of his
1397-or her creditable service not in excess of 30 years in the
1398-case of service retirement of fifty-nine dollars forty cents
1399-($59.40) multiplied by the number of years of his or her
1400-creditable service not in excess of 30 years in the case of
1401-disability retirement. Any increase provided in the retirement
1402-allowance payment under this subdivision for a member who
1403-retired under the provisions of any optional benefit elected
1404-pursuant to subsection (d) shall accrue only to the retired
1405-member, and no person designated to receive any payments after
1406-the death of a retired member under the provisions of any
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1432+1975, to members who retired prior to that date shall be
1433+redetermined as if the provisions of this section in effect on
1434+October 1, 1975, were in effect at the time the member
1435+retired. Anything in this article to the contrary
1436+notwithstanding, the annual retirement allowance of any member
1437+not employed as a state policeman who retired on or before
1438+January 1, 1956, shall not be less than seventy-nine dollars
1439+twenty cents ($79.20) multiplied by the number of years of his
1440+or her creditable service not in excess of 30 years in the
1441+case of service retirement of fifty-nine dollars forty cents
1442+($59.40) multiplied by the number of years of his or her
1443+creditable service not in excess of 30 years in the case of
1444+disability retirement. Any increase provided in the retirement
1445+allowance payment under this subdivision for a member who
1446+retired under the provisions of any optional benefit elected
1447+pursuant to subsection (d) shall accrue only to the retired
1448+member, and no person designated to receive any payments after
1449+the death of a retired member under the provisions of any
14361450 optional benefit shall receive any increase in payments under
14371451 this subdivision. Notwithstanding, any member who retired
14381452 prior to October 1, 1975, and who chose either Option 2 or
14391453 Option 3 may elect to receive a reduced allowance and to
14401454 stipulate that the actuarial equivalent of the increase in his
14411455 or her retirement allowance, which became effective on that
14421456 date, be ascribed to his or her designated beneficiary;
14431457 provided, that the member shall clearly express this intention
14441458 by filing a written application to the effect with the
14451459 Secretary-Treasurer of the Employees' Retirement System of
1446-Alabama prior to October 1, 1976.
1447-(2) Any person who, prior to October 1, 1963, was in
1448-receipt of a benefit pursuant to Act No. 376, approved
1449-November 6, 1959, but was not a member of the system at the
1450-time of retirement shall not be entitled to receive an annual
1451-retirement allowance from the system, effective October 1,
1452-1971, as follows:
1453-a. If the person was retired on or before January 1,
1454-1956, an amount equal to seventy-nine dollars twenty cents
1455-($79.20) multiplied by the number of years of his or her
1456-creditable service not in excess of 30 years.
1457-b. If the person was retired after January 1, 1956, an
1458-amount equal to seventy-two dollars ($72) multiplied by the
1459-number of years of his or her creditable service not in excess
1460-of 25 years.
1461-(3) Prior to October 31, 1975, any beneficiary may
1462-elect to leave on deposit with the system all or a specified
1463-part of any increase in his or her monthly retirement
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14921488 Page 27
1489+Alabama prior to October 1, 1976.
1490+(2) Any person who, prior to October 1, 1963, was in
1491+receipt of a benefit pursuant to Act No. 376, approved
1492+November 6, 1959, but was not a member of the system at the
1493+time of retirement shall not be entitled to receive an annual
1494+retirement allowance from the system, effective October 1,
1495+1971, as follows:
1496+a. If the person was retired on or before January 1,
1497+1956, an amount equal to seventy-nine dollars twenty cents
1498+($79.20) multiplied by the number of years of his or her
1499+creditable service not in excess of 30 years.
1500+b. If the person was retired after January 1, 1956, an
1501+amount equal to seventy-two dollars ($72) multiplied by the
1502+number of years of his or her creditable service not in excess
1503+of 25 years.
1504+(3) Prior to October 31, 1975, any beneficiary may
1505+elect to leave on deposit with the system all or a specified
1506+part of any increase in his or her monthly retirement
14931507 allowance payments arising in accordance with subdivisions (1)
14941508 or (2) of this subsection over the monthly allowance which he
14951509 or she was receiving prior to October 1, 1975. The portion of
14961510 each monthly payment left in the system in accordance with the
14971511 election shall be credited, together with regular interest
14981512 thereon, to the individual account of the beneficiary. Upon
14991513 the death of the beneficiary the total amount standing to his
15001514 or her credit, including regular interest to the date of
15011515 death, shall be paid in a lump sum to his or her legal
15021516 representatives or to such person as he or she shall have
1503-nominated by written designation duly acknowledged and filed
1504-with the Board of Control.
1505-(g) Notwithstanding any other provisions of this
1506-section to the contrary, when a designated beneficiary for a
1507-member predeceases the member who is receiving a monthly
1508-benefit allowance provided under Option 2, 3, or 4, the member
1509-may designate a replacement beneficiary for the deceased
1510-beneficiary to become effective two years after the date of
1511-designation of the replacement beneficiary and an actuarial
1512-adjustment in the monthly benefit allowance of the member to
1513-cover any cost associated with designating a replacement
1514-beneficiary shall be reflected thereafter in the monthly
1515-benefit allowance received by the member, commencing with the
1516-first benefit allowance check received by the member following
1517-the date of designation of the replacement beneficiary.
1518-(h) Notwithstanding any provision of this section to
1519-the contrary, if a retired member who is receiving a monthly
1520-benefit allowance provided under Option 2, 3, or 4 divorces
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15491545 Page 28
1546+nominated by written designation duly acknowledged and filed
1547+with the Board of Control.
1548+(g) Notwithstanding any other provisions of this
1549+section to the contrary, when a designated beneficiary for a
1550+member predeceases the member who is receiving a monthly
1551+benefit allowance provided under Option 2, 3, or 4, the member
1552+may designate a replacement beneficiary for the deceased
1553+beneficiary to become effective two years after the date of
1554+designation of the replacement beneficiary and an actuarial
1555+adjustment in the monthly benefit allowance of the member to
1556+cover any cost associated with designating a replacement
1557+beneficiary shall be reflected thereafter in the monthly
1558+benefit allowance received by the member, commencing with the
1559+first benefit allowance check received by the member following
1560+the date of designation of the replacement beneficiary.
1561+(h) Notwithstanding any provision of this section to
1562+the contrary, if a retired member who is receiving a monthly
1563+benefit allowance provided under Option 2, 3, or 4 divorces
15501564 his or her designated beneficiary, the member may designate a
15511565 replacement beneficiary for the beneficiary to become
15521566 effective two years after the date of designation of the
15531567 replacement beneficiary and an actuarial adjustment in the
15541568 monthly benefit allowance of the member to cover any cost
15551569 associated with designating a replacement beneficiary shall be
15561570 reflected thereafter in the monthly benefit allowance received
15571571 by the member, commencing with the first benefit allowance
15581572 check received by the member following the date of designation
15591573 of the replacement beneficiary.
1560-(i) Any future act to increase the retirement age for
1561-Tier II plan members above the age of 62 shall require a
1562-two-thirds vote of the elected membership of each house of the
1563-Legislature."
1564-"§41-27-7
1565-(a) For the purposes of this article, the term "legacy
1566-agency" means an existing agency, department, or division that
1567-is being reorganized or abolished under this article.
1568-(b) Unless otherwise provided in this article, all
1569-positions created by this article shall be in the classified
1570-service of the state Merit System.
1571-(c) All persons employed on January 1, 2015, with a
1572-legacy agency and transferred to the Alabama State Law
1573-Enforcement Agency, Department of Public Safety, or State
1574-Bureau of Investigations shall maintain his or her
1575-classification and benefits under the legacy agency. A person
1576-employed by a legacy agency on January 1, 2015, shall not
1577-receive a decrease in salary, benefits, or seniority or
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16061602 Page 29
1603+(i) Any future act to increase the retirement age for
1604+Tier II plan members above the age of 62 shall require a
1605+two-thirds vote of the elected membership of each house of the
1606+Legislature."
1607+"§41-27-7
1608+(a) For the purposes of this article, the term "legacy
1609+agency" means an existing agency, department, or division that
1610+is being reorganized or abolished under this article.
1611+(b) Unless otherwise provided in this article, all
1612+positions created by this article shall be in the classified
1613+service of the state Merit System.
1614+(c) All persons employed on January 1, 2015, with a
1615+legacy agency and transferred to the Alabama State Law
1616+Enforcement Agency, Department of Public Safety, or State
1617+Bureau of Investigations shall maintain his or her
1618+classification and benefits under the legacy agency. A person
1619+employed by a legacy agency on January 1, 2015, shall not
1620+receive a decrease in salary, benefits, or seniority or
16071621 otherwise receive a decrease in classification as a result of
16081622 the transfer to the Alabama State Law Enforcement Agency,
16091623 Department of Public Safety, or State Bureau of
16101624 Investigations.
16111625 (d) Any future change in classification shall not
16121626 result in any change in benefits an employee previously had at
16131627 a legacy agency.
16141628 (e) An employee of a legacy agency transferred to the
16151629 Alabama State Law Enforcement Agency, Department of Public
16161630 Safety, or State Bureau of Investigations under this article
1617-shall remain in his or her current classification unless
1618-appointed to the appropriate classification within the newly
1619-created department according to state Merit System procedures.
1620-(f) Any employee hired in or transferred into the
1621-Alabama State Law Enforcement Agency after January 1, 2015,
1622-who is certified by the Alabama Peace Officers' Standards and
1623-Training Commission and performs law enforcement duties shall
1624-be considered a law enforcement officer, as defined by Section
1625-36-27-59(a)(3), but is a state policeman is not eligible for
1626-the benefits specified in Section 36-26-35(d)."
1627-Section 2. This act shall become effective on the first
1628-day of the third month following its passage and approval by
1629-the Governor, or its otherwise becoming law.
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1654-________________________________________________
1655-President and Presiding Officer of the Senate
1656-________________________________________________
1657-Speaker of the House of Representatives
1658-SB68
1659-Senate 06-Apr-23
1660-I hereby certify that the within Act originated in and passed
1661-the Senate.
1662-Patrick Harris,
1663-Secretary.
1664-House of Representatives
1665-Passed: 18-Apr-23
1666-By: Senator Chambliss
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1659+Page 30
1660+shall remain in his or her current classification unless
1661+appointed to the appropriate classification within the newly
1662+created department according to state Merit System procedures.
1663+(f) Any employee hired in or transferred into the
1664+Alabama State Law Enforcement Agency after January 1, 2015,
1665+who is certified by the Alabama Peace Officers' Standards and
1666+Training Commission and performs law enforcement duties shall
1667+be considered a law enforcement officer, as defined by Section
1668+36-27-59(a)(3), but is a state policeman is not eligible for
1669+the benefits specified in Section 36-26-35(d)."
1670+Section 2. This act shall become effective on the first
1671+day of the third month following its passage and approval by
1672+the Governor, or its otherwise becoming law.
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