SB173 Alabama 2015 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2015

Title

Peace Officers' Annuity and Benefit Fund, calculation of benefits, manner of, fees adjusted per recommendation of actuary, Secs. 36-21-68, 36-21-73 am'd.

Summary

SB173 would let the Alabama Peace Officers' Annuity and Benefit Fund raise member fees up to $40 per month based on the fund's actuary and clarify how benefit adjustments are determined.

What This Bill Does

It authorizes the fund's board to set an initial membership fee and a monthly fee up to $40, based on the actuary's recommendation and fund operating costs. After six months from passage, all new applicants must join with the initial $20 fee and a $20-per-month amount set by the board (subject to the actuary's guidance). It also clarifies that any adjustments to payments, annuities, and benefits must be calculated according to the actuary's recommendations, and it maintains existing procedures for handling nonpayment and refunds.

Who It Affects

• Peace officers who are or become members of the Alabama Peace Officers' Annuity and Benefit Fund: fees they pay (initial and monthly) may increase up to $40 per month; new applicants follow the six-month rule; nonpayment can lead to termination with refund options.
• The fund's Board of Commissioners and the actuary: responsible for setting fees up to $40, determining the fee structure, and guiding any adjustments to payments and benefits to keep the fund actuarially sound.

Key Provisions

• The board may set an initial membership fee and a monthly fee up to $40 for members, based on the actuary's recommendation and fund costs.
• Six months after passage, all new applicants must join the fund with an initial $20 fee and a $20-per-month payment, with the exact monthly amount determined by the board using the actuary's guidance.
• Monthly fees must be paid by the tenth day of each month; if a member misses payments for 60 days, the board can terminate membership and refund payments according to existing rules.
• Adjustments to proposed payments, annuities, and benefits must be made up or down as recommended by the fund's actuary, and the board is required to apply those adjustments.
• The fund must appoint an actuary to perform actuarial valuations every three years (or sooner if needed) to determine what benefits can be paid while keeping the fund solvent; changes from these valuations apply to current recipients.
• The act becomes effective immediately after the governor signs it or otherwise becomes law.

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

Subjects

Peace Officers' Annuity and Benefit Fund