SB372 Alabama 2021 Session

Updated Apr 8, 2021

Summary

Primary Sponsor: Linda Coleman-MadisonSenator
Democrat
Session: Regular Session 2021
Title: Birmingham Retirement and Relief System, amended to revise, effective July 1, 2021, certain contribution rates, eligibility requirements, maximum normal retirement benefit, ordinary disability allowance, spousal survivor benefits, and early retirement benefits, Secs. 45-37A-51.190, 45-37A-51.192, 45-37A-51.196, 45-37A-51.220, 45-37A-51.221, 45-37A-51.222, 45-37A-51.225, 45-37A-51.228, 45-37A-51.232, 45-37A-51.244, 45-37A-51.302, 45-37A-51.305, 45-37A-51.306, 45-37A-51.307, 45-37A-51.308 am'd.
Summary: SB372 amends the Birmingham retirement and relief system to adjust contributions and retirement rules for new participants, starting July 1, 2021.
What This Bill Does
It sets member contributions at 7.5% of salary and requires the city and participating subsidiaries to contribute amounts determined by the actuary to fully fund the system and pay off unfunded liabilities within 30 years. It changes normal retirement eligibility and benefits for participants who join after July 1, 2021 (excluding fire and police) and lowers the annual accrual rate, capping the maximum retirement benefit. It reduces ordinary disability benefits for new disabilities after July 1, 2021. It modifies spousal survivor benefits for new participants (removing the subsidized option) and allows an actuarially reduced retirement to fund a survivor benefit; similar survivor options apply to firefighters’ and police officers’ supplemental system; and it lowers the early retirement benefit rate for new participants.

Who It Affects
Participants in the Birmingham retirement system (city employees and others covered by the system) who will face higher employee contributions and altered retirement, disability, and survivor benefit calculations for new entrants.
The City of Birmingham and participating subsidiaries (and related entities) which must fund the system at actuarially determined levels to fully fund benefits and amortize unfunded liabilities within 30 years.

Key Provisions
Participant contribution rate increased to 7.5% of actual monthly salary, effective July 1, 2021.
Employer contributions by the city and participating subsidiaries shall be set by the board's actuary to fully fund the system and amortize unfunded liabilities within 30 years.
Normal retirement eligibility and benefit for participants first joining on or after July 1, 2021 (excluding fire/police): either age 62+ with 10+ years, or age 55+ with 30+ years.
Normal retirement accrual rate for new participants reduced from 2.25% to 1.75% of final average salary per year of service; maximum normal retirement benefit capped at 52.5% of final average salary.
Ordinary disability allowance for new disabilities after July 1, 2021 reduced from 2% to 1.75% of final average salary times years of service.
Spousal survivor benefits for new participants removed as subsidized benefits; survivors may elect an actuarially reduced retirement to provide a survivor benefit (and similar option for participants in the supplemental system).
Early retirement benefit rate for new participants reduced from 1.85% to 1.45% of final average salary times years of service.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Jefferson County