The Retirement Systems of Alabama released a statement earlier this week regarding the implementation of the Local Government Fairness Act, which is officially known as Act 2019-132.
As a result of numerous phone calls we have received and widespread misconceptions about the requirements necessary to comply with the provisions of Act 2019-132, our ARSEA/APEAL staff met with RSA officials to address these issues.
Perhaps the most common misconception is that it will be mandatory to increase the existing Tier I employees’ contribution in order to provide the Tier I benefit to Tier II employees. Make no mistake, TIER I EMPLOYEE CONTRIBUTIONS MAY REMAIN UNCHANGED AT 5% AND 6%.
Our legislative staff was involved in every step of the measure, and we can tell you with certainty that we would NEVER accept a mandatory requirement.
After meeting with RSA, we ask you to take the following into consideration:
We hope this information resolves any misunderstandings regarding Act 2019-132.
This is one example of how ARSEA/APEAL works for our members’ interests when issues, controversies, and questions arise. If you are not currently a member of ARSEA/APEAL, we encourage you to join our association immediately so you, too, will be privy to future important updates as the transition to once again offering Tier 1 benefits becomes a reality.
For membership information or questions regarding 2019-132, contact Evans Brown at 800-844-7732.