HB521 Summary

• Amends the City of Birmingham Retirement and Relief System to comply with mandatory provisions of the Internal Revenue Code of 1986, including rules on compensation limits, benefit distributions, and required minimum distributions for participants over age 70½.

• Expands the Board's investment powers to include alternative investments and removes restrictions requiring 50% of fixed income be invested in U.S. government securities, eliminates requirement that international equity investments be American Depository Receipts, and removes requirement that bonds be investment grade rated.

• Modifies participant contribution requirements to allow contributions between 6-7% of monthly salary or amounts necessary to satisfy funding obligations under the Pension Protection Act, with alternative option to reduce future accrued benefits instead of increasing contributions.

• Establishes new provisions for direct rollovers of lump sum distributions (minimum $500) to eligible retirement plans, military service death benefits, and required minimum distribution rules complying with Internal Revenue Code Section 401(a)(9).

• Takes effect immediately upon passage (House passed 26-MAY-11, Senate passed 02-JUN-11).