SB397 Summary

• Amends Act 99-568 to modify the retirement system for Tuscaloosa police officers and firefighters, changing service requirements and benefit calculations for new members hired after the effective date.

• Reduces retirement eligibility for new members to 25 years of service regardless of age, or 20 years of service with eligibility at age 52 (compared to prior requirements of 25 years or age 60 with 20 years).

• Increases member contribution rates from 11.25% to 11.50% of salary and increases city contribution rates from 13.25% to 13.50% of salary for eligible members.

• Extends the Deferred Retirement Option Plan (DROP) period from a maximum of 3 years to 5 years, allowing members to accumulate benefits in an account credited with interest during their employment.

• Makes survivor benefits immediately payable for spouses and dependent children of members hired after the effective date who die after completing 20 years of service but before reaching retirement age eligibility.