HB515 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Allen TreadawayRepresentative
Republican
Session: Regular Session 2011
Title: Birmingham, firemen and police officers, pension system, supplemental, investments, Act 556, 1959 Reg. Sess. am'd.
Summary: HB515 updates Birmingham's Firemen’s and Policemen’s Supplemental Pension System by broadening investments, aligning with IRS rules, and changing governance and funding rules.
What This Bill Does
It broadens the system’s investment powers to include alternative investments and removes strict limits on fixed income and US government-only holdings, plus the requirement that bonds be investment grade. It adds a new section to ensure compliance with the Internal Revenue Code, including limits on compensation and benefits, required minimum distributions, and direct rollover rules, along with related provisions from federal law. It defines the Board of Managers arrangement and funding interactions, and requires actuarial reviews every four years to assess solvency and potential benefit changes to maintain the fund's viability.

Who It Affects
Firefighters and police officers who are participants in the Birmingham supplemental pension system (they elect two board members and could see changes to benefits if the fund’s solvency requires it, plus changes influenced by IRS rules on distributions and rollovers).
The City of Birmingham and Jefferson County personnel board (they appoint one board member and oversee governance), plus the General Retirement and Relief System (which receives certain payments and interacts with the Birmingham system on retirements).

Key Provisions
Board of Managers changes: four members (city official as chair; Member No.1 appointed by Jefferson County personnel board with professional background; Member No.2 firefighter participant; Member No.3 police officer participant); four-year terms; monthly meetings with quorum of three.
Expanded investment authority: allow alternative investments; remove the requirement that at least 50% of fixed income be US government bonds and remove investment-grade rating requirement for bonds; cap on equity investments and other SEC-listed or NASDAQ-traded securities; specify limits and risk controls for fixed income and equity allocations.
Section 8.2 (IRS compliance): apply Internal Revenue Code provisions, including compensation limits (160,000 plus COLA adjustments), 415 limits on retirement benefits, minimum distributions rules, rollover options, and other related federal provisions (HEART Act, PFEA, etc.).
Funding and solvency measures: actuarial reports required every four years to assess fund solvency and potential benefit reductions if needed to maintain solvency; the board may incur costs for actuarial and financial studies; when retiring, the system pays into the General Retirement and Relief System amounts the city would have contributed if the employee had continued to work for 30 years.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Jefferson County