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HB130 • 2026

Teachers' Retirement System, reopened to allow the purchase of credit for prior service rendered to the St. Clair County DAY Program, Incorporated

Teachers' Retirement System, reopened to allow the purchase of credit for prior service rendered to the St. Clair County DAY Program, Incorporated

Education Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Hill (J)
Last action
2026-02-05
Official status
Pending Committee Action in Second House
Effective date
Not listed

Plain English Breakdown

The bill specifies an effective date of June 1, 2026, but does not state when the governing body must vote or how long they have to make this election.

Allowing St. Clair County Day Program Workers to Buy Retirement Credit

This law lets the governing body of the St. Clair County DAY Program choose to join the Teachers' Retirement System and allows current staff to pay for credit on time they worked there before joining.

What This Bill Does

  • Allows the governing body of the St. Clair County Day Program, Incorporated, to vote by resolution to let its executive officers and full-time employees become eligible for the Teachers' Retirement System.
  • Requires the program to pay employer costs based on employee salaries if contributions come from those salaries.
  • Permits the program's resolution to count past work time as creditable service only for staff who are working there when the new system starts.
  • States that any benefits paid out cannot exceed what was contributed plus interest, with no cost to the State of Alabama.

Who It Names or Affects

  • Executive officers and full-time employees of the St. Clair County Day Program, Incorporated
  • The governing body of the St. Clair County Day Program, Incorporated

Terms To Know

Purchase credit for prior service
Paying money to count past work time toward retirement benefits.
Resolution
An official vote or decision made by a governing body.

Limits and Unknowns

  • The option to buy credit for past service only applies to employees and officers who are working at the program on the date it officially joins the system.
  • Benefits from this specific purchase of prior service cannot exceed the amount paid in by the worker and employer, plus interest earned.

Bill History

  1. 2026-02-05 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 301 (Yeas 96, Nays 0)

  2. 2026-02-05 House

    Third Reading in House of Origin (Yeas 96, Nays 0)

  3. 2026-02-05 Senate

    Pending Committee Action in Second House

  4. 2026-02-05 Senate

    Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

  5. 2026-01-29 House

    Read for the Second Time and placed on the Calendar

  6. 2026-01-28 House

    Reported Out of Committee House of Origin

  7. 2026-01-13 House

    Pending Committee Action in House of Origin

  8. 2026-01-13 House

    Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

Teachers' Retirement System, reopened to allow the purchase of credit for prior service rendered to the St. Clair County DAY Program, Incorporated

Current Bill Text

Read the full stored bill text
HB130 INTRODUCED
Page 0
HB130
84QLAFH-1
By Representative Hill
RFD: Ways and Means Education
First Read: 13-Jan-26
PFD: 07-Jan-26
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84QLAFH-1 01/06/2026 KMS (L)cr 2025-3430
Page 1
PFD: 07-Jan-26
SYNOPSIS:
This bill would reopen the Teachers' Retirement
System to allow an active, vested, and contributing
member to purchase credit in the system for prior
service rendered to the St. Clair County Day Program,
Incorporated.
A BILL
TO BE ENTITLED
AN ACT
To reopen the Teachers' Retirement System to permit
purchase of credit in the system for prior service rendered to
the St. Clair County Day Program, Incorporated.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) The governing body of the St. Clair
County Day Program, Incorporated, by resolution legally
adopted to conform to the rules prescribed by the Board of
Control of the Teachers' Retirement System, may elect to have
its executive officers and full-time employees, from whatever
source and in whatever manner paid, become eligible to
participate in the Teachers' Retirement System of Alabama,
subject to all rules, regulations, and conditions thereof.
(b) After the governing body of the St. Clair County
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HB130 INTRODUCED
Page 2
(b) After the governing body of the St. Clair County
Day Program, Incorporated, has made an election through a
resolution as provided in subsection (a), its employees and
executive officers may participate in and be entitled to all
benefits of the Teachers' Retirement System of Alabama;
provided, that where contributions are made from salaries paid
by the St. Clair County Day Program, Incorporated, the St.
Clair County Day Program, Incorporated, shall pay the employer
cost, calculated as a percentage of the salaries of those
employees, to be contributed as employer contributions in
accordance with Section 16-25-21, Code of Alabama 1975. The
amount shall be paid monthly and at the same time as the
members' contributions are made to the Teachers' Retirement
System.
(c) The governing body of the St. Clair County Day
Program, Incorporated, may provide in its resolution to the
Teachers' Retirement System's Board of Control that all
service rendered by an eligible employee or executive officer
to the program, before the effective date of the program's
election to come under the Teachers' Retirement System, shall
be creditable service to the employee or executive officer;
provided, that any provision shall apply only to those
employees and officers who were in the active service of the
program on the effective date of the program's election to be
covered under the Teachers' Retirement System; and provided
further, that the resolution also states that the St. Clair
County Day Program, Incorporated, shall assume and pay, as
required, all costs necessary to fund the crediting of the
previous service, the costs to be determined by the actuary
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HB130 INTRODUCED
Page 3
previous service, the costs to be determined by the actuary
employed by the Teachers' Retirement System Board of Control.
All benefits that accrue and are payable to any beneficiary
hereunder shall be limited to, and shall not exceed, the
amount paid in by the beneficiary and the employer plus his or
her portion of the interest earned and the enhancement of his
or her monies by investing them, less cost of administration,
at no cost to the State of Alabama.
Section 2. This act shall become effective on June 1,
2026.
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