HB396 Alabama 2017 Session

This bill would relate to any Class municipality and the retirement and relief system for officers and employees of the municipality

The bill would do all of the following: (1) Revise the investment powers of the board of managers to reduce the percentage of investments required to be in fixed income securities from not less than 25 percent to not less than 15 percent. (2) Delete certain language requiring an increase in contribution under certain conditions from participants; (3) Increase the contribution rate of the municipality to the pension system to a minimum of nine percent by 2020; (4) Amend the normal retirement benefit for participants who first become participants on or after July 1, 2017, by requiring a participant to attain age 62 or older and to have completed 10 or more years of credited service, or to have completed 30 or more years of credited service without regard to age for normal retirement; (5) Amend the maximum normal retirement benefit for participants who first become participants on or after July 1, 2017, by providing for a maximum normal retirement benefit of 67.5 percent of the final average salary, exclusive of any sick leave bonus or post severance compensation; (6) Amend the requirements for participants to vest for participants who first become participants on or after July 1, 2017, by providing for vesting at 10 years of credited service; (7) Amend the involuntary retirement benefit for participants who first become participants on or after July 1, 2017, by providing that a participant who is involuntarily retired after having completed 20 or more years of credited service prior to attaining the age of 62 years would be entitled to an involuntary retirement benefit; (8) Amend the ordinary disability allowance for participants who first become participants on or after July 1, 2017, by providing that a participant would be required to accrue 10 years of credited service for a participant to be eligible to participate in the ordinary disability allowance benefit; and (9) Amend the survivor's benefits for participants who first become participants on or after July 1, 2017, by providing for a participant to have 10 or more years of credible service prior to the participant's death before the participant's survivor may participate in survivor's benefits and providing that the optional survivor's benefit provided may only accrue and be payable to the benefit of a survivor or survivors from the date on which the deceased retiree or participant would have attained age 62 had he or she lived

Relating to any Class 1 municipality and the retirement and relief system for officers and employees of the municipality; to amend Sections 45-37A-51.137, 45-37A-51.190, 45-37A-51.192, 45-37A-51.220, 45-37A-51.221, 45-37A-51.222, 45-37A-51.224, 45-37A-51.225, and 45-37A-51.228, Code of Alabama 1975, as amended by Act 2006-339, 2006 Regular Session, as amended by Act 2011-585, 2011 Regular Session, as amended by Act 2014-337, 2014 Regular Session; to amend the investment powers of the board of managers to reduce the percent of investments required to be in fixed income securities; to delete certain language requiring an increase in contribution under certain conditions from participants; to amend and phase in the contribution rate of the municipality to the pension system to a minimum of nine percent; to amend the normal retirement benefit for participants who first become participants on or after July 1, 2017; to provide for a participant to attain age 62 or older and to have completed 10 or more years of credited service, or to have completed 30 or more years of credited service without regard to age for normal retirement; to amend the maximum normal retirement benefit for participants who first become participants on or after July 1, 2017, to provide for a maximum normal retirement benefit of 67.5 percent of the final average salary, exclusive of sick leave bonus or past severance compensation; to amend the requirements for vesting for participants who first become participants on or after July 1, 2017, to provide for vesting after 10 years of credited service; to amend the involuntary retirement benefit for participants who first become participants on or after July 1, 2017, to provide that a participant who is involuntarily retired after having completed 20 or more years of credited service prior to attaining the age of 62 years shall be entitled to an involuntary retirement benefit; to amend the ordinary disability allowance for participants who first become participants on or after July 1, 2017, to require a participant to have accrued 10 years of credited service for a participant to be eligible to participate in the ordinary disability allowance benefit; to amend survivor's benefits for participants who first become participants on or after July 1, 2017, to provide for a participant to have 10 or more years of credible service prior to the participant's death before the participant's survivor may participate in survivor's benefits; and to provide that the optional survivor's benefit provided may only accrue and be payable to the benefit of a survivor or survivors from the date on which the deceased retiree or participant would have attained age 62 had he or she lived.