SB366 Summary: Montgomery Employees' Retirement System

• Combines, amends, and restates the existing retirement system (Act 2009-473) for City of Montgomery employees effective October 1, 2013.

• Creates a new Group I Cash Balance Plan for new members and existing members who elect to participate, with pay credits ranging from 11-15% of earnable compensation based on years of service and interest credits based on 30-year Treasury yields.

• Establishes a new Group II Age 62 Plan for firefighters and police officers hired on or after October 1, 2013, requiring age 62 or 25 years of service with at least 10 years of service for early retirement.

• Modifies employee contribution rates: 6% for most plans (up to 8% with mayor and board approval) and 7% for Group II Age 62 Plan members.

• Authorizes the board with mayor approval to increase creditable service requirements or eliminate disability retirement benefits under any or all retirement plans.