FISCAL NOTE

House Bill 79 as passed the House of Representatives changes the State Police retirement plan to provide that all employees of Alabama Law Enforcement Agency (ALEA), who are certified by the Alabama Peace Officers' Standards and Training Commission and perform law enforcement duties, would be classified as State Police and would receive State Police retirement benefits.

According to the actuary for the Retirement Systems of Alabama (RSA), based on the September 30, 2019 valuation, this bill would increase the State Police Tier II employer contribution rate by an estimated 4.33% and would decrease the rate for state Police Tier I by 2.15% due to the transfer of the legacy Firefighter, Law Enforcement Officer, Correctional Officer (FLC) members from the State Plan to the State Police Plan. This would increase the unfunded liability for the State Police Plan by $7.8 million with a decrease in the funded ratio from 54.2% to 54.0%. The estimated net increase in employer contributions would be approximately $805,000 annually.