HB510 Alabama 2015 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Bill Poole
Republican
Session: Regular Session 2015
Title: Tuscaloosa Co., retirement system for police officers and firefighters, pension benefits, member contribution, Act 99-568, 1999 Reg. Sess., am'd.
Summary: HB510 updates Tuscaloosa County's police and fire retirement system by increasing funding, extending the DROP, and adding a new eligibility age (52) for new hires to start benefits.
What This Bill Does
The bill requires the city to pick up member contributions at roughly 11.25% to 11.50% of salary and to contribute 13.25% to 13.50% of salary to the retirement fund. It extends the Deferred Retirement Option Plan (DROP) to allow a period of up to five years and outlines how DROP funds are deposited and later distributed. It also adds a rule that firefighters and police hired after the act's effective date can begin drawing monthly pension benefits only at age 52 or if they qualify for disability benefits. Some rules for benefit calculations will apply to new members as described in the amended sections.

Who It Affects
Active and future members of the Tuscaloosa County retirement system for police officers and firefighters (including new hires after the act’s effective date) who will face higher city-funded contributions, potential changes to DROP participation, and the new 52-year eligibility for benefits for new hires.
The City of Tuscaloosa and the retirement system board, which must fund higher contribution levels (city contributions and city-picked-up member contributions) and administer the extended DROP and related benefit provisions.

Key Provisions
Section 4.01(g): New subsection establishing that firefighters or police officers hired after the act’s effective date become eligible to draw monthly pension benefits only upon reaching age 52 or eligibility for disability benefits.
Section 6.03: City shall pick up member contributions, about 11.25% to 11.50% of salary, with deductions that do not reduce the member's salary, pension base, or final average salary; these contributions are treated as city contributions for tax purposes.
Section 6.05: City contributions (non-picked-up) must be 13.25% to 13.50% of the member's salary (excluding bonuses).
Section 7.14: DROP eligibility expanded to allow a DROP period of 1–5 years; DROP accounts receive monthly deposits with interest; options for distribution after DROP include lump-sum or periodic payments; DROP elections are irrevocable unless disability occurs; post-DROP death rules and distribution mechanics are specified.
Section 4.01 and related sections: Amendments to retirement benefit calculations and related provisions apply to new members and adjust certain benefits, while preserving minimums and other existing benefit structures for those who qualify under the amended rules.
Effective date: The act becomes effective on the first day of the third month after passage.

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