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Retirement benefits change approved for Andalusia employees

Employees with the City of Andalusia will be moving to a new tier of benefits through the Retirement Systems of Alabama.

The city council on Tuesday approved moving employees currently at Tier II benefits to Tier I through RSA. Tier 1 RSA members are eligible to retire at any age after 25 years or more of service, or at the age of 60 with 10 years of service. As Tier 2 members, employees were eligible to retire at age 62, or 56 for certified law enforcement and firefighters.

“This will involve an increase (in city’s paid contribution), but I believe it is worth it to allow our employees to move to the highest tier of RSA,” said Mayor Earl Johnson.

The change in benefits was approved by unanimous vote.

The city council also discussed the following items.

  • Approved the transfer of $126,000 from the city’s General Fund into the Contingency Fund and also moved $330,000 from the General Fund into the Capital Improvements Fund.
  • The council held a first reading for an ordinance to partipate in Alabama’s Back to School Tax Holiday. According to the Alabama Retail Association, this year’s tax holiday begins on Friday, July 16 and ends Sunday, July 18.

The next meeting of the city council is scheduled for Tuesday, April 20, 6 p.m., at city hall. A work session is held prior the meeting, at 5:30 p.m., in the downstairs conference room. The public is invited to attend.