116977-2:n:01/21/2010:JRC/mfp LRS2010-469R1
| SYNOPSIS: | Under existing law, the Teachers' Retirement System (TRS) and the Employees' Retirement System (ERS) are reopened, from time to time, to allow members to purchase credit in the system for prior service. |
| This bill would reopen the TRS and ERS to allow certain members to purchase prior service credit in the system for prior employment service as a student assistant or work/study student at a public college or university in Alabama. |
To reopen the Teachers' Retirement System and the Employees' Retirement System for purchase of certain prior service credit in the system by an active and contributing member who was employed as a student assistant or work/study student at a public college or university in Alabama.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Any active and contributing member of the Teachers' Retirement System or the Employees' Retirement System who has 10 years of credible service in either system may claim and purchase service credit in the system for prior service for employment as a student assistant or work/study student at a public college or university in Alabama if the employment occurred between January 1, 1973, and December 31, 1975, and if the member complies with the conditions prescribed in subsection (b).
(b) Any member eligible to claim and purchase the service credit pursuant to subsection (a) shall be awarded credible service with the Teachers' Retirement System or Employees' Retirement System on the basis of one twelfth of a year for each month or portion of month of employment service only if the member pays into the retirement system or fund prior to the date of retirement of the member and prior to October 1, 2011, a sum equal to the full actuarially determined cost for each year, or a portion thereof, of service credit, as determined by the system's actuary.
(c) Proof of service and time of service shall be made by the member by affidavit with any supporting letter or other documentation submitted to the Teachers' Retirement System or Employees' Retirement System and, upon receipt thereof, the system shall promptly calculate the necessary contributions of the member and advise the member thereof. Upon timely payment by the member, the service credit shall be allowed the member.
(d) The provisions of this section shall terminate on October 1, 2011, and no person shall be eligible to utilize the options granted if not fully exercised and paid prior to such date.
Section 2. Any year of service purchased under the provisions of this act shall not be considered in determining the out-of-pocket premium amount charged to retirees under the provisions of Section 16-25A-8.1 or Section 36-29-19.7, Code of Alabama 1975. Also, any service purchased under this act shall not entitle a member to be eligible for benefits under either the Public Education Employees' Health Insurance Plan or the State Employees' Health Insurance Plan any earlier than the member could have reached eligibility under the plan without the service purchased under the provisions of this act.
Section 3. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.