HB704 Alabama 2012 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Bill Poole
Republican
Session: Regular Session 2012
Title: Tuscaloosa, police officers and firefighters, retirement system, disability, termination of employment, contributions, deferred retirement, further provided for, Act 99-568, 1999 Reg. Sess. am'd.
Summary: HB704 amends the Tuscaloosa police and firefighter retirement system to rework termination rules, contributions, and the Deferred Retirement Option Plan (DROP).
What This Bill Does
It says if a member leaves or is discharged before retirement, they forfeit benefits but may receive refunds of their contributed funds, minus half of any sick benefits. It changes how contributions work by having the city 'pick up' 11.25% of a member’s salary in place of direct employee contributions, while keeping other existing contribution structures and tax treatment. It establishes or clarifies city contributions of 13% (or 13.25%) of eligible members’ salaries, and creates a DROP option available after 25 years of service with 1–3 year periods, rules for how benefits are calculated, how the DROP account earns interest, and what happens on death or disability.

Who It Affects
Police officers and firefighters in the City of Tuscaloosa who are members of the retirement system; their termination outcomes, contribution arrangements, and DROP eligibility are affected.
Surviving spouses, dependent children, other eligible beneficiaries, and estates of those members; they are affected by death benefit rules, refunds of contributions, and how DROP distributions may be paid.

Key Provisions
4.03 Termination of Employment: If a member leaves before retirement, they forfeit retirement benefits but may be refunded contributed funds minus half of any sick benefits; death scenarios have specific refund rules to spouses, guardians, beneficiaries, or estates.
6.03 Member Contributions: Pre-Act 99-568, members contributed 7% of salary; the city will pick up 11.25% of salary in lieu of direct member contributions, with deductions from salary that do not reduce pay or pension base, and with tax treatment aligned to code requirements.
6.05 City Contributions: The city must contribute 13% (13.25% if applicable) of the salary of each eligible member into the fund, with deductions handled as specified.
7.14 Deferred Retirement Option Plan (DROP): Eligible after 25 years; 1–3 year DROP period; DROP funds continue to receive contributions; benefits during DROP are calculated with specific rules, and distributions can be lump-sum or periodic; death or disability rules apply, and the DROP election is irrevocable unless permanent disability occurs.

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