HB471 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: John F. Knight Jr
Democrat
Session: Regular Session 2018
Title: Montgomery and Montgomery Airport Authority, authorized to join Employees' Retirement System of Alabama and transfer assets and liabilities from existing Employees' Retirement System of the City of Montgomery under certain conditions
Summary: The bill lets the City of Montgomery and the Montgomery Airport Authority join the Employees' Retirement System of Alabama, transfer assets and liabilities from the city's retirement system, and continue certain Act 2013-385 retirement plans for those who do not transfer.
What This Bill Does
It authorizes the city and airport authority to participate in ERSA and move assets and liabilities from the City of Montgomery's current retirement system. ERSA will maintain and administer the retirement plans from Act 2013-385 for employees who do not transfer or are not automatically transferred to ERSA's Tier I or Tier II plans. It also sets different employee options based on when they started work, allows termination of the old city retirement system after joining ERSA, and requires annual pension funding amounts to be included in the city’s and airport authority’s budgets. New hires after joining will participate in ERSA.

Who It Affects
The City of Montgomery and the Montgomery Airport Authority and their current retirement system participants, who may join ERSA and transfer assets/liabilities, with the possibility of terminating the old city retirement system.
Employees and retirees of the City of Montgomery (including police and fire personnel) who started work before or after October 1, 2013, who will select among Act 2013-385, Tier I, or Tier II plans, with new hires subsequently becoming ERSA members.

Key Provisions
City of Montgomery and Montgomery Airport Authority may join ERSA and transfer assets and liabilities from the City's retirement system to ERSA.
ERSA may maintain and administer the retirement plans from Act 2013-385 for employees who do not transfer or who are not automatically transferred to Tier I or Tier II.
Upon acceptance, the City of Montgomery's retirement system may be terminated under terms set by ERSA's board
Pre-October 1, 2013 employees may choose Act 2013-385 or Tier I; post-October 1, 2013 employees will be Tier II unless police/fire employees opt to stay under Act 2013-385;
New hires after the joining date participate in ERSA.
Participants who stay under Act 2013-385 or Tier I become ERSA members for administration purposes.
Annual pension funding amounts are included in the budgets of the City of Montgomery and the Montgomery Airport Authority.
The act becomes effective immediately after passage and governor approval.

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