2012 Legislative Update ERS Employees Retirement System June 2012
Jun 4, 2012
HB255 (Act 2012-302) requires retirement contributions on overtime pay with earnable compensation capped at 120% of base pay for all members of the TRS and ERS.
SB213 (Act 2012-412) requires members of TRS, ERS, and JRF convicted of a felony offense related to their public position to forfeit their right to lifetime retirement benefits. However, the employee would receive a refund of his or her retirement contributions. This legislation is not retroactive and does not affect any member that has already been found guilty of an offense.
SB388 (Act 2012-377) creates a Tier 2 Defined Benefit plan for all TRS and ERS members hired on or after January 1, 2013. New members will pay lower contribution rates, but will not be able to draw a retirement benefit until they reach age 62. State Police, law enforcement, firefighters, and correctional officers will be able to draw a benefit at age 56. (Local agencies that did not elect to increase employee contributions will have an increase in employee contributions.)
TIER 2 Retirement Benefits
Members hired for the first time on or after January 1, 2013:
ERS state employees, local employees, & FLC – 1.65%
State Police – 2.375%
Regular State Employee & Local Employee – 6%
FLC (state and local) – 7:
State Police – 10%
Alabama Division
