HB671 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Joe Hubbard
Democrat
Co-Sponsor: Greg Wren
Session: Regular Session 2012
Title: Montgomery, retirement system, mayor authorized to increase employee contribution to eight percent upon approval of the retirement board, Act 2009-473, 2009 Reg. Sess., am'd
Summary: HB671 allows the Montgomery mayor, with retirement board approval, to increase employee retirement contributions from 6% up to 8% of earnable pay, with annual increases capped at 1 percentage point.
What This Bill Does
It amends Section 7 of Act 2009-473 to authorize increases in member contributions up to 8%, subject to board approval. Deductions can be calculated based on the first day of a payroll period and may omit deductions for partial periods. The change affects how much city employees contribute to their retirement, while the overall structure of the retirement system (three accounts and how contributions are credited and used) remains the same.

Who It Affects
City of Montgomery employees who are members of the Employees' Retirement System: their payroll deductions for retirement could rise from 6% to as much as 8% of earnable compensation, with board-approved annual increases.
Montgomery's Retirement System administration and City leadership (the mayor and the retirement board): responsible for implementing and approving any contribution rate changes and overseeing the payroll deduction process.

Key Provisions
Authorizes the mayor to raise the member contribution amount from 6% up to 8% of the member's earnable compensation, with approval of the retirement board, and allows increases of up to 1 percentage point per year.
Payroll deduction rules: the board may determine earnable compensation using the rate on the first day of the payroll period and may omit deductions for periods shorter than a full payroll period.
Keeps the existing three-account structure (Members' Account, Accumulation Account, and Expenses Account) and the general method of crediting and transferring contributions to the appropriate accounts.

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