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FISCAL NOTE
House Bill 136
Committee: Fiscal Responsibility Sponsor: Representative Teri Collins
Analyst: Cary Dean Date: 02/18/2025
House Bill 136 as introduced would reopen participation in the Deferred Retirement Option
Program (DROP) to certain members of the Teacher's Retirement System (TRS) that are
classroom teachers. This bill would prohibit participation in DROP after July 31, 2031.
According to the actuary for the Retirement Systems of Alabama, this bill would increase the
unfunded actuarial accrued liability of TRS by $159.1 million; however this increase could be
offset by an increase in the employer contributions paid to the TRS of 0.24% percentage points
for Tier I members and 0.17% percentage points for Tier II members.