Teachers' Retirement System and Employees' Retirement System; purchase of certain federal service credit by participating member

SB 280 allows Alabama state employees and teachers enrolled in the Employees' Retirement System or Teachers' Retirement System to purchase retirement credit for public service performed with the federal government. This expands existing rules that already permit purchasing credit for certain out-of-state or public education service. To qualify, members must have at least 10 years of contributing service in Alabama's system, pay the full actuarial cost for each year of federal service, and obtain written certification from the federal government. Credit must be purchased in one-year increments (or the full remaining period if less than one year). The bill takes effect October 1, 2026.