The bill introduces a new section, Section 36-27-49.4, to the Code of Alabama 1975, allowing members of the Teachers' Retirement System and the Employees' Retirement System to purchase up to four years of creditable service for federal nonmilitary employment with the United States. To qualify, members must have at least 10 years of contributing membership service credit and must meet specific conditions, including contributing the full actuarially determined cost for each year of claimed service, obtaining certification from the federal retirement system, and purchasing credit in increments of at least one year.

Additionally, the bill stipulates that members cannot receive credit for federal employment if they are entitled to benefits from another public retirement or pension plan for the same service, although participation in the federal Social Security program is exempt from this restriction. If the claimed federal service is deemed unqualified, any contributions made will be refunded. The bill also allows the retirement system to deduct necessary administrative costs from the retirement allowance of members who receive this credit. The act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 36-27-15
Engrossed: 36-27-49
Enrolled: 36-27-49