SB397 Alabama 2014 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2014

Title

Tuscaloosa Co., retirement system for police officers and firefighters, pension benefits, member contribution, Act 99-568, 1999 Reg. Sess., am'd.

Summary

SB397 updates Tuscaloosa's police officer and firefighter retirement system by changing contributions, expanding survivor benefits, revising retirement rules, and extending the DROP period to five years.

What This Bill Does

It alters retirement calculations and eligibility, increases city contributions and shifts some member contributions to be paid by the city, expands death and survivor benefits, and lengthens the Deferred Retirement Option Plan (DROP) to allow up to five years. It also sets new rules for members who join the plan after the act’s effective date, including how their benefits and survivors are handled. In addition, it establishes minimum benefit levels and adjusts benefit formulas with service-based adjustments.

Who It Affects

• Current and future police officers and firefighters in the City of Tuscaloosa, who would see changes to retirement eligibility, pension calculations, and how contributions are paid.
• Surviving spouses and dependent children of those officers and firefighters, who would receive revised survivor and dependent benefits under the plan.

Key Provisions

• Section 4.01 retirement: retirement benefits are calculated with a new formula (4.4% of pension base times service, adjusted by -6% per year under 25 and +6% per year over 25 up to 5 years) plus a separate 1.5% of final average salary times service payable at or after age 65; new post-effective-date hires have specific eligibility rules (25 years regardless of age; or 20 years and age 52 for those with less than 25 years).
• Minimum benefits: at least $848.28 monthly for those with at least 15 years of service; a separate $300 minimum for certain earlier-Act benefits; and consideration of actuarial value if benefits start before age 65.
• Death benefits (Section 4.04): surviving spouses receive 42.41% of the pension base; each eligible dependent child receives 25.45% per child (subject to an aggregate cap of 76.35%); maximum survivor benefits are specified and adjustments may occur; remarriage and other beneficiary rules are defined.
• Member contributions (Section 6.03): the city will pick up a larger share of member contributions (11.25% or 11.50% of salary) in lieu of direct member deductions; such picked-up contributions are deducted from salary but do not reduce pension base or final average salary and are treated as city contributions for tax purposes.
• City contributions (Section 6.05): the city must contribute 13.25% to 13.50% of each eligible member's salary into the pension fund (non-picked-up amounts).
• DROP provisions (Section 7.14): the DROP period can be 1, 2, 3, 4, or up to 5 years; eligible at 25 years; the DROP balance earns interest (up to 4% annually, compounded monthly); distributions can be lump sum or periodic payments; if a member does not retire by the end of the DROP period, the account balance can be forfeited and benefit terms revert to regular retirement rules; death during DROP has specified payout rules to beneficiaries.
• Applicability to new members: benefits and survivor provisions described apply to persons becoming members after the act’s effective date, with corresponding changes for their surviving spouses and dependent children.

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

Subjects

Tuscaloosa County