The bill creates the Public Employees Defined Contribution Savings Fund. It would be administered by a seven-member board appointed by the state employees' association. Just the mechanism so that at some point in the future it might become funded. The new savings plan would be in addition to the tax-deferred savings plan and pension plans already provided by the Retirement Systems of Alabama. Employees are eligible for retirement after 25 years of service or after 10 years of service if they're 60 or older.
Retirement pay is based on a formula that includes years of service and salary.