SB299 Alabama 2010 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Co-Sponsors

Phil PooleTom ButlerGeorge M. “Marc” KeaheyWendell MitchellArthur OrrPriscilla DunnLinda Coleman-MadisonT.D. “Ted” LittleHinton MitchemRoger Bedford, Jr.Rusty GloverLarry MeansZeb LittleJimmy Holley

Session

Regular Session 2010

Title

Alabama Firefighters Annuity and Benefit Fund, established, voluntary participation established for paid and volunteer firefighters, board of commissioners to administer, funding through voluntary payments with ad valorem tax payments, investment of assets by Employees' Retirement System, qualified service, disability and death benefits, annual audits and reports, duties to Insurance Department

Summary

SB299 creates the Alabama Firefighters Annuity and Benefit Fund with a board to administer voluntary firefighter retirement, disability, and death benefits, funded by member dues and investments managed through the ERS.

What This Bill Does

It establishes a new voluntary retirement fund for paid and volunteer firefighters and sets up a Board of Commissioners to run it. The fund’s assets are invested and reinvested by the Employees' Retirement System of Alabama (ERS) for a reasonable fee. Firefighters may join voluntarily and must pay monthly dues of $20, with an initial $20 fee for new members and an optional $2 tax check-off; benefits include retirement at 62 with 25 years of service, disability payments, and a $2,500 death benefit, plus refunds and withdrawal options under defined rules. The fund is subject to actuarial reviews and periodic adjustments, and benefits are not guaranteed against future legislative changes.

Who It Affects

• Firefighters (paid and volunteer) who choose to join the Fund and pay monthly dues, potentially earning retirement, disability, and death benefits, as well as eligibility for prior service credit and refunds.
• Beneficiaries, retirees, and survivors who may receive retirement or disability benefits and/or death benefits, including the $2,500 lump-sum death benefit and any applicable refunds or ongoing annuity payments.

Key Provisions

• Creates the Alabama Firefighters Annuity and Benefit Fund and a Board of Commissioners to administer it, with assets invested through the Employees' Retirement System of Alabama (ERS).
• ER S will invest and reinvest fund assets for a reasonable fee; the fund’s investments follow ERS policies.
• Participation in the Fund is voluntary for both paid and volunteer firefighters; members pay a regular $20 monthly fee, with new applicants required to pay a $20 initial fee plus $20 monthly payments beginning six months after passage.
• A voluntary $2 check-off on ad valorem tax statements can be used to fund the program; the collected amount is remitted to the Fund.
• The Board has authority to collect funds, administer the program, pay benefits, and hire necessary professionals (actuaries, attorneys, etc.).
• A retirement benefit begins at age 62 with at least 25 years of qualified service; monthly benefit amounts are determined by the fund’s actuary and approved by the Board.
• Disability benefits are available for line-of-duty disability, with monthly amounts structured by service length and a maximum period of 24 months before retirement eligibility rules apply; medical examinations may be required.
• Death benefits include a $2,500 lump-sum to designated beneficiaries, plus possible refunds of membership fees if death occurs in the line of duty.
• Refunds and withdrawals allow members to withdraw 90% of amounts previously paid, with a 36-month window to reinstate if they return to firefighting; account termination occurs if not reinstated, with loss of prior service credit upon later rejoining.
• Armed Forces credit: members leaving to serve and returning within six months can receive up to five years of prior service credit.
• Members may purchase prior state firefighter service credit by lump-sum actuarial payment within two years of joining.
• Actuarial oversight: a dedicated actuary conducts valuations every three years (or earlier if needed); the Board may adjust benefits up or down based on the actuary’s findings, with changes applying to all current recipients.
• Benefits and annuities are not subject to assignment or garnishment, and payments are made directly to the member or beneficiary.
• The Act includes ongoing recordkeeping, semiannual financial reports, and annual audits by the Chief Examiner of the Department of Examiners of Public Accounts.
• The act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Firefighters