FISCAL NOTE

House Bill 26 as passed the House of Representatives removes the one-year notification deadline that a member of the Judicial Retirement Fund (JRF), transferring from the Teachers’ Retirement System (TRS) or the Employees’ Retirement System (ERS), must notify the Employees’ Retirement System (ERS) Board of Control to transfer the member’s creditable service and contributions to the JRF.

According to the actuary for the Retirement Systems of Alabama (RSA), this bill would increase the unfunded liability of the JRF by an estimated $800,000. This liability would be offset by increasing the JRF Tier 2 employer contribution rates by 0.17% and decreasing the JRF Tier 1 employer contribution rates by 0.03%. These rate changes would increase total JRF employer contributions by an estimated $17,000 annually beginning in FY 2023.