HB533 Alabama 2013 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Greg Wren
Republican
Session: Regular Session 2013
Title: Montgomery, municipal employees, retirement system further provided for, Act 2009-473, 2009 Reg. Sess., am'd.
Summary: HB533 overhauls Montgomery's Employees' Retirement System by updating retirement rules, adding a Group I Cash Balance Plan starting Oct 1, 2013 (with optional participation for some older members), and tightening governance and contributions.
What This Bill Does
It combines and restates the 2009 act to change retirement age, creditable service, distribution options, employee contributions, and benefits for new members from Oct 1, 2013 onward. It creates a Group I Cash Balance Plan for Group I employees (general municipal and airport) and allows certain pre-2013 members to elect to participate, with elections governed by board rules. It relaxes or increases disability retirement criteria (subject to mayor approval) and updates contribution methods, IRS compliance, and auditing requirements, while clarifying board authority and outside counsel/advisor qualifications. It also introduces the ERIP (early retirement incentive program), sets contribution rates (6% for most groups, 7% for Group II Age 62, and potential increases by up to 1% annually, up to 8%), and strengthens governance, funding, and benefit formulas across plan groups.

Who It Affects
Group I employees (general municipal and airport workers) who become or opt to remain in the Group I Cash Balance Plan, with changes to age requirements, creditable service, and city/employee contributions beginning Oct 1, 2013.
Group II employees (fire and police) who face revised retirement ages, disability retirement rules, and overall plan governance changes, along with eligibility restrictions for ERIP participation.

Key Provisions
Creates a new Group I Cash Balance Plan for Group I employees joining on/after Oct 1, 2013, with some pre-2013 members eligible to elect participation.
Authorizes the board (with mayoral approval) to modify disability retirement thresholds or eliminate disability retirement for any or all plans.
Updates definitions, clarifies authority to hire outside legal advisors and auditors, and sets minimum qualifications for system auditors.
Updates IRS-compliant provisions, revises how city contributions are calculated, and changes the mechanism for member contribution deductions (most groups at 6%, Group II Age 62 at 7%, with potential annual increases up to 8%).
Implements the Employee Retention Incentive Program (ERIP) with specific retirement allowance calculations and lump-sum payments; ERIP eligibility excludes some groups and can be suspended.
Defines governance structure for investment trustees, board duties, actuarial oversight, and annual reporting requirements; requires audits and cost-of-living adjustment review every two years.
Maintains and adjusts benefit formulas, including spousal and survivor benefits, vesting retirement options, and return of contributions, while ensuring pre-existing benefits remain protected under the act.

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