SB366 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Dick Brewbaker
Republican
Session: Regular Session 2013
Title: Montgomery, municipal employees, retirement system further provided for, Act 2009-473, 2009 Reg. Sess., am'd.
Summary: This act overhauls Montgomery's Employees' Retirement System by combining and updating the 2009 law, creating a new cash balance plan for Group I employees, establishing a new Group II retirement structure for new hires after October 1, 2013, and adjusting retirement ages, benefits, contributions, and governance.
What This Bill Does
It restates and consolidates Act 2009-473, updates retirement ages and creditable service rules, and introduces a Group I Cash Balance Plan for eligible Group I employees (with an option for some pre-2013 members to join). It also sets that new Group II members after October 1, 2013 will be in the Group II Age 62 Plan, while existing Group II plans continue for earlier members. The bill gives the board and the mayor authority to adjust disability retirement rules, updates city and employee contribution calculations to comply with the IRS, and adds governance improvements including outside legal advisors and auditors; it also eliminates mandatory retirement provisions and adds an Employee Retention Incentive Program (ERIP).

Who It Affects
Group I employees (general municipal and airport workers) who become or are members after October 1, 2013 will participate in the Group I Cash Balance Plan with pay credits and a cash balance account; eligible members who were in the system before October 1, 2013 may elect to join the cash balance plan.
Group II employees (police and fire) who become members after October 1, 2013 will be in the Group II Age 62 Plan (new default for Group II), with existing Group II 20-Year and 25-Year plans continuing for earlier members; there are also related disability, death, and vesting provisions and member contribution rules that affect these groups.

Key Provisions
Creates Group I Cash Balance Plan for eligible Group I/I-A employees and allows certain pre-2013 members to elect participation, including defined pay credits and a cash balance account.
Establishes Group II Age 62 Plan for new Group II members after October 1, 2013 (while preserving Group II 20-Year and 25-Year plans for earlier members).
Authorizes the board, with mayoral approval, to modify disability retirement requirements or eliminate disability retirement in any or all plans, and to adjust related benefits or vesting options.
Reforms contributions: city contributions and employee (member) contributions are defined, with the city allowed to raise employee contribution rates by up to 1% per year (not to exceed 8%), and specifies deductions by group.
Adds an Employee Retention Incentive Program (ERIP) providing a lump-sum retirement option and reduced retirement benefits, with specific rules for rehiring and repayment; ERIP is not available to Group II Age 62 Plan members or Group I Cash Balance Plan members.
Reorganizes system accounts into Members' Account, Accumulation Account, and Expense Account; requires annual independent audits, board-approved investment management, and OCR-compliant funding and distributions under IRC rules (including 401(a) distributions and 415 limitations).
Introduces additional governance and compliance measures, including outside legal advisors and auditors, minimum qualifications for auditors, and definitions to align with Internal Revenue Code requirements, while eliminating certain historical provisions such as mandatory retirement.

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