|Committee: Ways and Means General Fund||Sponsor: Ingram|
|Analyst: Daniel Davenport||Date: 02/16/2022|
House Bill 308 as amended and reported by the Committee on Ways and Means General Fund 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. This bill also allows Tier II firefighters, law enforcement officers, and correctional officers to receive hazardous duty time.
In addition, for pay dates beginning October 1, 2022, the bill increases the member contribution rate for Tier II plan members from 6% currently to 6.5% per payroll period; and increases the member contribution rate for Tier II firefighters, law enforcement officers, or correctional officers from 7% currently to 7.5% per payroll period.
According to the actuary for the Retirement Systems of Alabama (RSA), this bill would increase total ERS employer contributions by an estimated $1.55 million for Fiscal Year 2024, with approximately $434,000 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 $12.5 million increase in unfunded liability associated with the benefit adjustments.
|Steve Clouse, Chair|
Ways and Means General Fund