FISCAL NOTE

House Bill 69 as introduced 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, 2020 valuation, this bill would increase the unfunded liability for the State Police Plan by $11.4 million with a decrease in the funded ratio from 52.7% to 52.5%.This liability would be offset by increasing the State Police Tier II employer contribution rate by an estimated 5.68% and would decrease the rate for State Police Tier I by 1.34%, due to the transfer of the legacy Firefighter, Law Enforcement Officer, Correctional Officer (FLC) members from the ERS State Plan to the State Police Plan. These rate increases would have a net increase of total employer contributions by approximately $2 million annually.