|Committee: Ways and Means General Fund||Sponsor: Ingram|
|Analyst: Julie Knight||Date: 02/23/2021|
House Bill 264 as introduced allows Tier II plan members of the Employees’ Retirement System (ERS) to: 1) convert accrued sick leave into creditable service and 2) withdraw from service after the completion of at least 30 years of creditable service.
In addition, for pay dates beginning October 1, 2021, the bill increases the member contribution rate for Tier II plan members from 6% currently to 6.75% per payroll period; and increases the member contribution rate for Tier II firefighters, law enforcement officers, or correctional officers from 7% currently to 8% per payroll period.
According to the actuary for the Retirement Systems of Alabama (RSA), this bill would increase total ERS contributions by an estimated $162,000 for Fiscal Year 2023, with approximately $45,000 being paid from the State General Fund appropriation to agencies/entities, through the adjustment in the employer contribution rate for Tier I and Tier II, due to the increase in the unfunded liability associated with the benefit adjustments.
|Steve Clouse, Chair|
Ways and Means General Fund