|Committee: Finance and Taxation Education||Sponsor: Baker|
|Analyst: Daniel Davenport||Date: 04/06/2021|
House Bill 93 as passed the House of Representatives allows Tier II plan members of the Teachers’ Retirement System (RSA) 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 on or after 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 correctional officers, firefighters, or law enforcement officers from 7% currently to 7.75% per payroll period.
According to the actuary for the Retirement Systems of Alabama (RSA), this bill would increase total TRS employer contributions by an estimated $5.1 million for FY 2023, with approximately $3.0 million being paid from the Education Trust Fund appropriation to agencies/entities through the increase in the employer contribution rate for Tier II and Tier I by 0.05% and 0.08%, respectively, due to the increase in the unfunded liability rate associated with the change.
|Arthur Orr, Chairperson|
Finance and Taxation Education