[{"id":315144225,"codeId":62346,"versionId":55274,"parentId":62329,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.139","shortTitle":"Section 45-37A-51.139","catchLine":"Appeal of Decisions of the Board.","title":"Section 45-37A-51.139 Appeal of Decisions of the Board.","sectionRange":null,"content":"(a) Any decision of the board denying a benefit claimed may be subject to review by the circuit court, in the manner and subject to the limitations herein provided. An employee may secure a review of a decision of the board by mandamus proceedings in the circuit court, which proceedings the employee shall institute, in the court by filing therein a petition for mandamus. The petition may designate the board as respondent or the members thereof as respondents. Each respondent shall be served with process, unless the respondent or his or her or its attorney accepts service. The petition for mandamus shall be barred if it is not filed within 90 days from the date whereon the board of managers makes its final decision on the benefit claimed, provided written notice of such final decision of the board shall be given by certified or registered mail, postage prepaid, and properly addressed, to the claimant or his or her attorney within 10 days after such final decision of the board. If timely notice shall not be given as provided in the last preceding sentence, claimant shall not be barred from filing mandamus until the expiration of 80 days from the mailing of notice as above provided; but in no event, anything therein to the contrary notwithstanding, shall mandamus be filed after one year from the date of such final decision of the board; provided further that no final decision made by the board prior to January 1, 1969, shall be subject to review by mandamus or otherwise unless permitted by the law in effect at the time such decision was made and then only in the manner permitted by the law in effect on that date; provided further that any such final decision made by the board after January 1, 1969, and prior to May 1, 2006, shall be governed by the 80-day clause of the last preceding sentence, but in such case such mandamus proceeding shall not be filed after May 1, 2007. In the proceedings in the circuit court, any evidence relevant on any issue involved in the review shall be admissible, subject to the ordinary rules of evidence. If the submission in the mandamus proceedings is solely upon the proceedings before the board, the decision of the board upon all matters of fact shall be final and conclusive, unless it affirmatively appears that its decision is plainly and manifestly wrong.
(b) If in the circuit court evidence is received, in addition to that considered by the board, the decision of the board upon all matters of fact, nevertheless, shall be final and conclusive, except to the extent limited by the next following sentence. If the circuit court, after hearing all the evidence offered, determines that had the decision rendered by the board been rendered after hearing such evidence that such decision would not have been manifestly wrong, then the circuit court shall sustain the decision of the board; and if the circuit court, after considering all the evidence offered, determines that the decision rendered by the board would have been manifestly wrong had such decision been rendered after considering all the evidence considered by the circuit court, then in that event the circuit court shall render the decision which that court concludes should be rendered on all the evidence considered by that court. The provision of Section 45-37A-51.226, prohibiting a resolution of the board allowing an extraordinary disability benefit unless such resolution be passed within 12 months after the accident resulting in disability, or as otherwise provided herein, shall not be construed to prohibit the circuit court in a mandamus proceeding from rendering a judgment in favor of the claimant for extraordinary benefits even where the circuit court shall direct the board to adopt a resolution in favor of the claimant in compliance with the judgment of the circuit court.
The Legislature reserves the power to amend, alter, or repeal this subpart or any provision thereof. If any person who may be entitled to voluntarily retire and obtain a retirement allowance under this subpart shall so voluntarily retire before exercise of the reserved power such person shall have a contractual lien upon the fund for each and every amount to which he or she may be or become entitled in accordance with the terms of the law existing at the time of such voluntary retirement. If any employee becomes totally disabled before exercise of the reserved power, such employee shall have a contractual lien upon the fund for each and every amount to which he or she may be or become entitled in accordance with the terms of the law existing at the time of commencement of such disability.
","history":"(Act 2006-339, p. 851, Art. III, § 12.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51334,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315203564,"codeId":62348,"versionId":55276,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.160","shortTitle":"Section 45-37A-51.160","catchLine":"General Rule.","title":"Section 45-37A-51.160 General Rule.","sectionRange":null,"content":"Each qualified employee in the city who is in the classified service or full-time unclassified service hired after January 1, 1989, including each qualified employee in the full-time service of the police and fire departments shall be a participant in the system, except as provided in Section 45-37A-51.161. Those officers and appointed employees, who have not timely elected to participate as set forth in Section 45-37A-51.162, shall not participate in the pension system.
","history":"(Act 2006-339, p. 851, Art. IV, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51336,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315203565,"codeId":62349,"versionId":55277,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.161","shortTitle":"Section 45-37A-51.161","catchLine":"Exception to General Rule.","title":"Section 45-37A-51.161 Exception to General Rule.","sectionRange":null,"content":"(a) Anything herein to the contrary notwithstanding, no member of the pension system provided by the following legislation, if such legislation is applicable to the city, shall be a member of the system:
(1) The Policemen’s Pension and Relief Plan provided by Act 502 of the 1923 Session of the Legislature of Alabama, as amended or codified.
(2) The Firemen’s Pension and Relief Plan provided by Act 307 of the 1943 Session of the Legislature of Alabama, as amended (Acts 1943, p. 264).
(3) The Limited Policemen’s Retirement and Relief System provided by Act 470 of the 1955 Regular Session of the Legislature of Alabama, as amended (Acts 1955, p. 1067).
(4) Limited Firemen’s Pension and Relief System provided by Act 217 of the 1966 Special Session of the Legislature of Alabama, as amended (Acts 1966, p. 280).
(b) No person who may enter the service on or after September 19, 1939, whether in the police or fire department or not, shall become a member of the aforesaid policemen’s pension and relief plans or of aforesaid firemen’s pension and relief plans, but shall become a member of the system as a qualified employee in the classified service. In the event of reentry into the service of the police department of a former member of the policemen’s plan shall again become a member of the policemen’s plan if otherwise eligible for membership therein, and that in the event of reentry into the service of the fire department of a former member of the firemen’s plan shall again become a member of the firemen’s plan if otherwise eligible for membership therein. In the event any member of such policemen’s plans or firemen’s plans be transferred within the service to a department of the city other than the police or fire department shall become a member of the system, and all his or her contributions to the policemen’s or firemen’s plan after date of establishment, plus matching contributions of the city, shall be transferred to the fund of the system.
(a) Elected officials. (1) Each officer shall be eligible to become a member of the system by exercising the option hereby given in the manner and within the time provided for in this subsection and not thereafter.
(2) Any person who is an officer may exercise such option within 90 days from the date upon which such person shall officially take office.
(3) An officer desiring to become a member under this subsection shall deliver to the city director of finance, within the time above specified, a signed statement reciting that the officer elects to become a member of the system. The election thus made shall be irrevocable. After electing to become a member, an officer shall be subject to all burdens and entitled to all rights attached to membership in the system, including the subjection of the officer to salary deductions and entitlement to contributions by the city on his or her behalf to the fund in accordance with this subpart, for salary deductions and contributions by the city to the pension fund on behalf of members of the system.
(4)a. As herein used, the term prior service means a person’s service as an officer prior to such officer’s entering the system; the term liability for unpaid contributions means the liability an officer shall discharge to convert his or her prior service to credited service, the amount of which liability shall be the sum of these two amounts:
1. The sum of all contributions the officer would have paid the system from his or her salary during such officer’s prior service had his or her salary been subject to deductions for contributions, at the rate applicable when the officer received such salary.
2. Interest at the rate of four percent per annum prior to July 1, 2006, and used in the most recent earnings assumption in the actuarial report compounded annually thereafter, on each separate contribution the officer would have made to the system had the officer been a member during his or her prior service calculated from the date whereon such officer would have made such contribution had such officer been a member of the system to the date he or she pays such contribution.
b. No officer shall receive credit for pension purposes for prior service unless he or she converts such prior service to credited service as herein provided.
(5) When an officer becomes a member of the system the officer may then, but not thereafter, elect to convert prior service to credited service. Upon electing to convert his or her prior service to credited service the officer shall then discharge his or her liability for unpaid contributions in one of the manners prescribed in the two sentences next following. The officer may discharge such liability by then paying to the system the full amount of such liability. Unless the officer then discharges in full such liability, at the end of each payroll period following the officer’s election to convert prior service to credited service, the city, in addition to deductions from the officer’s salary and expense allowance to the extent that the option to include expense allowances is to be included in pension calculations and is subject to pension contributions, otherwise provided for, shall deduct from such salary, and expense allowance as necessary, for each payroll period an amount equal to five percent prior to July 1, 2006, and the rate used in the current employees’ rate of contribution subsequent thereto, of such liability for unpaid contributions, together with interest thereon at the rate used in the most recent earnings assumption in the actuarial report compounded annually per annum from the date whereon the officer enters the system until such liability, including interest, is fully discharged.
(6) Contemporaneously with the officer’s discharging his or her liability for unpaid contributions for all or any part of such officer’s prior service converted to credited service, or with the city’s making any payment to the general employees’ system through salary deductions to discharge such liability, the city shall pay to the fund of the general employees’ system from the general funds of the city an amount equal to the sum of these two amounts:
a. The sum of all payments the city would have made from the general funds of the city to the fund of the general employees’ pension system if the officer had been a member of the system during all of that period of prior service which he or she converts to credited service.
b. Interest at the rate of four percent per annum prior to July 1, 2006, and six percent compounded annually per annum subsequent thereto, on each separate payment the city would have made to the fund from the general funds of the city from the dates on which the city would have made the respective payments had the officer been a member of the system on the date on which the city makes such payments.
(b) Appointed employees. Each appointed employee shall be eligible to become a member of the system by exercising the option hereby given in the manner and within the time provided for in this subsection and not thereafter. An appointed employee desiring to become a member under this subsection shall deliver to the city director of finance officer, within 30 days of employment if hired before July 1, 2006, and 90 days if hired subsequent thereto, a statement signed by him or her reciting that he or she elects to become a member of the system. The election thus made shall be irrevocable. After electing to become a member, an appointed employee shall be subject to all burdens and entitled to all rights attached to membership in the system, including the subjection of the appointed employee to salary deductions and entitlement to contributions by the city on his or her behalf to the fund in accordance with this subpart, for salary deductions and contributions by the city to the pension fund on behalf of members of the system.
(c) Unclassified service. Each qualified employee of the city who was in the unclassified service prior to January 1, 1989, shall have been eligible to participate in the system provided such qualified employee elected in writing to so participate within 15 days of his or her first having become a qualified employee in the unclassified service; or each qualified employee of the city who is in the unclassified service or is newly hired or rehired on or after January 1, 1989, by the city as provided in subsection (d) shall be eligible to participate in the system.
(d) Unclassified service. Effective January 1, 1989, each newly hired or rehired employee of the city who is in the unclassified service and who is normally scheduled to work 16 days per month or more, shall be a participant in the system. Each such employee who was employed by the city on January 1, 1989, and immediately preceding such day, shall have had the option (1) to elect to continue to participate in any unclassified pension plan which was provided by the city, thereby permanently and irrevocably waiving any credit in this system under this provision; or (2) to have elected participation in this system not later than May 15, 1989. Selection of option (2) gave such participant the right to purchase prior unclassified service as described in Section 45-37A-51.198.
Payment for such time under 10 years earned prior to January 1, 1989, has been made in full. If such service totals were more than 10 years, selection of option (2) provided the participant with credit for one-half of each year completed in the unclassified service of the city prior to becoming a participant or employee member and required the payment only of any refund of contributions from any unclassified service pension directly to this system. The option herein provided shall have been exercised not later than May 15, 1989. In the event an individual did not exercise this option in writing, that individual was continued in any unclassified service pension plan under option (1).
","history":"(Act 2006-339, p. 851, Art. IV, § 4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51339,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315203568,"codeId":62352,"versionId":55280,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.164","shortTitle":"Section 45-37A-51.164","catchLine":"Board of Health.","title":"Section 45-37A-51.164 Board of Health.","sectionRange":null,"content":"Participants who were members of the system prior to June 1, 1994, and who made a written election to continue participation in the system are participants, subject to exception herein. No board of health employees hired after June 1, 1994, are eligible to participate in the system.
","history":"(Act 2006-339, p. 851, Art. IV, § 5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51340,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315203569,"codeId":62353,"versionId":55281,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.165","shortTitle":"Section 45-37A-51.165","catchLine":"Reemployment.","title":"Section 45-37A-51.165 Reemployment.","sectionRange":null,"content":"(a) In the event a participant should cease to be a participant hereunder, should elect a return of his or her contributions as provided in Section 45-37A-51.234 hereof, and should thereafter again become a participant hereunder, such participant shall have the right to elect to have his or her previously credited service reinstated. Should he or she so elect, the participant shall be liable to the fund for the amount of the contributions previously refunded to such participant and the city director of finance shall deduct the liability from the salary in 20 monthly installments of approximately equal amounts including interest from the date of such refund of contributions at such rate used in the most recent earnings assumption in the actuarial report compounded annually per annum. Alternatively, the city director of finance shall be authorized to set such monthly installments, including interest as herein specified, over such lesser number of months as shall provide for monthly installments of not less than ten dollars ($10).
(b) Effective July 1, 2006, any city employee, who has prior service time with the city but has not prior to that date purchased his or her prior service time with the city, shall have until July 1, 2009, to apply to purchase this prior city service time. Any employee who does not purchase his or her prior service time with the city by July 1, 2009, cannot use service time purchased after that date for the purpose of the DROP benefit set forth in Section 45-37A-51.245.
(c) All employees of the city who are hired or rehired after July 1, 2006, shall have one year from the effective date of reemployment within which to apply for the purchase of prior city service time or thereafter forfeit the ability to apply for credit for prior city service time.
Employees of the library board, airport authority, emergency management district/agency, communication district, and civic center authority may participate in the benefits of this plan under the terms of Division 9.
","history":"(Act 2006-339, p. 851, Art. IV, § 7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51342,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315203571,"codeId":62355,"versionId":55283,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.167","shortTitle":"Section 45-37A-51.167","catchLine":"Executive Exempt Service Employees.","title":"Section 45-37A-51.167 Executive Exempt Service Employees.","sectionRange":null,"content":"Executive exempt service employees under Section 45-37-121.25 shall be members of the system for the department in which they serve unless the exempt person elects in writing to forfeit such participation.
","history":"(Act 2006-339, p. 851, Art. IV, § 8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51343,"hierarchyLevel":6,"createdAt":"2026-09-02T19:07:32.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":315857639,"codeId":61621,"versionId":54601,"parentId":61620,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-38-241.20","shortTitle":"Section 45-38-241.20","catchLine":"Definitions.","title":"Section 45-38-241.20 Definitions.","sectionRange":null,"content":"The following words, terms, and phrases where used in this subpart shall have the following respective meanings, except where the context clearly indicates a different meaning:
(1) FISCAL YEAR. The period commencing on October 1 of each calendar year and ending on September 30 of the next succeeding calendar year.
(2) LAMAR COUNTY. Lamar County in this state.
(3) MONTH. A calendar month.
(4) QUARTERLY PERIOD. The period of three months ending on the last day of each March, June, September, or December.
(5) REGISTERED SELLER. The person registered with the Department of Revenue pursuant to the state use tax statutes or licensed under the state sales tax statutes.
(6) STATE SALES TAX. The tax imposed by the state sales tax statutes.
(7) STATE SALES TAX STATUTES. Division 1 of Article 1 of Chapter 23 of Title 40.
(8) STATE USE TAX. Tax imposed by the state use tax statutes.
(9) STATE USE TAX STATUTES. Article 2 of Chapter 23 of Title 40.
(10) THIS STATE. The State of Alabama.
(b) In addition to the foregoing definitions, all words, terms, and phrases that are defined in the state sales tax statutes or in the state use tax statutes, where used in this subpart, shall have the meaning respectively ascribed to them in the state sales tax statutes or in the state use tax statutes, as the case may be, except where the context clearly indicates a different meaning.
","history":"(Acts 1977, 1st Ex. Sess., No. 38, p. 1449, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51989,"hierarchyLevel":5,"createdAt":"2026-09-03T19:06:27.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320248228,"codeId":62356,"versionId":55284,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.168","shortTitle":"Section 45-37A-51.168","catchLine":"Others Authorized to Participate.","title":"Section 45-37A-51.168 Others Authorized to Participate.","sectionRange":null,"content":"Any one for whom the Legislature has authorized participation herein is otherwise qualified to participate.","history":"(Act 2006-339, p. 851, Art. IV, § 9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51344,"hierarchyLevel":6,"createdAt":"2026-09-10T17:07:15.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320248229,"codeId":62357,"versionId":55285,"parentId":62330,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-51.169","shortTitle":"Section 45-37A-51.169","catchLine":"Correction of Errors.","title":"Section 45-37A-51.169 Correction of Errors.","sectionRange":null,"content":"(a) The system shall have the authority to recalculate benefits if a mistake in payments has occurred. If the system mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as practicable after the mistake is discovered.
(b) If the benefit was mistakenly set too low, the system shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate of five percent compounded annually per annum from the date the unpaid amounts accrued to the date of payment.
(c) If the benefit was mistakenly set too high, the system may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if the amount of benefits was mistakenly set too high; and the error was undiscovered for three years or longer; and the error was not the result of incorrect information supplied by the affected member or beneficiary; then upon discovery of the mistake, the benefit shall be adjusted to the correct level; but the recipient of the benefit need not repay the system the excess amount received in error for the period exceeding the past 36 months. The recipient shall repay the overage for the immediate 36 months, unless otherwise provided herein.
(a)(1) Effective on and after April 12, 2006, through June 30, 2021, each participant shall contribute to the cost of the system, and the city shall deduct from the participant’s pay, an amount equal to not less than six percent nor more than seven percent of actual monthly salary.
(2) Regardless of the initial participation date or hire date of any participant, and notwithstanding subdivision (1), effective on and after July 1, 2021, each participant shall contribute to the cost of the system, and the city shall deduct from the pay of each participant, an amount equal to seven and one-half percent of actual monthly salary. (b) Should the city through error, inadvertence, or otherwise, neglect to make proper deduction for the fund from the salary of any employee member for any payroll period, the employee member shall be liable to the fund for the amount or amounts that should have been deducted and shall pay that amount to the custodian on demand. (c) Notwithstanding this section, participants who are employees of the Jefferson County Department of Health shall contribute six percent to seven percent of actual pay to the fund. The board of managers upon approval of each employer, including the board of health, shall have authority to adopt a program and plan amendments relating to that employer’s employees meeting the requirements of the United States Internal Revenue Code, as amended, to allow employer payment of required participant contributions in lieu of salary or wages.
","history":"(Act 2006-339, p. 851, Art. V, § 2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51348,"hierarchyLevel":6,"createdAt":"2026-09-10T17:07:15.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320248232,"codeId":62360,"versionId":55288,"parentId":62331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.192","shortTitle":"Section 45-37A-21.192","catchLine":"City’s Contributions.","title":"Section 45-37A-21.192 City’s Contributions.","sectionRange":null,"content":"(a) The city shall pick up employer payment of required participants’ contributions in lieu of salary or wages through a program and plan amendments relating to the city’s employees meeting the requirements of the United States Internal Revenue Code, as amended.
(b)(1) Beginning July 1, 1995, the contribution of the employer, excluding the board of health and employees of the board of health, shall be determined by the actuary of the board at the level necessary to fully fund the system. The actuary shall be required to make the determination for each actuarial year.
(2) Beginning on July 1, 2017, the employer’s total minimum rate of contribution into the fund, excluding the board of health, shall increase to 7.25 percent.
(3) Beginning on July 1, 2018, the employer’s total minimum rate of contribution into the fund, excluding the board of health, shall increase to 8.50 percent.
(4) Beginning on July 1, 2020, the employer’s total minimum rate of contribution into the fund, excluding the board of health, shall increase to nine percent.
(5) Notwithstanding anything to the contrary contained in this subpart, beginning July 1, 2021, the employer, including all participating constructive subsidiaries, except the board of health, shall make a contribution into the fund in an amount to be determined by the actuary of the board each fiscal year at the level necessary to do both of the following:
a. Fully fund the system based on his or her determination of the annual cost each fiscal year of the current pension benefits provided by the system.
b. Amortize the unfunded accrued liability of the system over a closed period not to exceed 30 years, with the period commencing on July 1, 2021.
(6) Notwithstanding anything to the contrary in this subsection, the employer may increase its total rate of contribution above the minimum amounts previously listed in this subsection.
(c) At the same time the deductions attributable to participants’ contributions are paid into the fund, the city shall pay into the fund the amount of contributions the city is required to pay pursuant to this section.
(a) The Jefferson County Department of Health shall pay into the fund from its general or otherwise appropriate funds its current service costs and its past service costs to be determined as of the date of the commencement of each fiscal year of the city as follows:
(1) The actuaries shall determine the normal cost of the benefits provided by the system which are attributable to health department participants.
(2) From the normal cost shall be subtracted the value of the health department participants’ contributions in the previous city fiscal year.
(3) The remainder thus arrived at shall be divided by the total covered payroll of all health department participants as of the first day of the city fiscal year, the resultant percentage shall be called the current service percentage and the current service percentage shall be multiplied by the total covered payroll of all health department participants at the end of each payroll period to determine the health department’s current service cost for the payroll period.
(4) The actuaries shall determine the single sum of unfunded accrued liability and shall amortize it from that date over a period of 30 years, attributing a ratable portion to the health department participants.
(5) This unfunded accrued liability, as amortized over 30 years, shall be divided by total covered payroll of all health department participants, the resultant percentage shall be called the past service percentage and the past service percentage shall be multiplied by the total covered payroll of all such participants at the end of each payroll period to determine the past service cost for the payroll period.
(b) During each fiscal year ending prior to October 31, 1981, the total contribution of the city shall have been not less than nine percent of total covered payroll determined under subsection (a). The amount by which such past service cost was reduced hereunder in any fiscal year of the city must have been paid by such city into the fund within the next two succeeding fiscal years of the city as an addition to past service cost as computed for the fiscal year in which such additional payment was made, except to the extent which the city had applicable credits under subdivision (2).
Anything herein to the contrary notwithstanding, contributions of participant and the city in effect immediately prior to the adoption of this subpart shall continue to be deducted and paid into the fund until such time as the percentages provided for in Sections 45-37A-51.190, 45-37A-51.191, and 45-37A-51.192 are determined as therein required.
","history":"(Act 2006-339, p. 851, Art. V, § 5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51351,"hierarchyLevel":6,"createdAt":"2026-09-10T17:07:15.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320248235,"codeId":62363,"versionId":55291,"parentId":62331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.195","shortTitle":"Section 45-37A-21.195","catchLine":"New Participants.","title":"Section 45-37A-21.195 New Participants.","sectionRange":null,"content":"(a) Credit for service with the county or other municipality and with the city as a temporary employee hired on or after September 1, 1969, but before July 1, 2009.
(1) In the event a qualified employee becoming a participant herein on or after September 1, 1969, shall have, prior to becoming a participant, been employed (i) by the county under the provisions of a merit system applicable to the county, (ii) by any other municipality in the county under the provisions of the merit system applicable to such municipality, or (iii) by the city under the provisions of the merit system applicable to the city as a temporary employee, he or she may receive credit for the prior service by paying to the city director of finance within 60 days after a verified, written calculation has been provided to the participant in an amount to be determined as follows:
a. There shall first be determined the salary paid the participant each month of the prior service by the city or by the county or such other municipality.
b. There shall then be computed the contribution which would have been deducted if the participant had received such salary from the city as a participant hereunder, the contribution and deduction being determined in accordance with this subpart on the date he or she became a participant in the system.
c. There shall then be determined the total of interest on deductions at the rate used in the most recent earnings assumption in the actuarial report compounded annually on such deductions, from the date they would have been made if the participant had received such salary as a participant to the date he or she actually became a participant in the system.
d. The total of the deductions which would have been made plus interest at the rate used in the most recent earnings assumption in the actuarial report compounded annually as both are determined in this section shall be the amount payable.
(2) The new participant is limited to purchasing a maximum of five years’ service.
(3) Any time purchased may not be used for the purposes of acquiring rights under the DROP plan.
(4) No purchased credited service time may be used for the purposes of determining vesting rights in the plan.
(b) Credit for service with the county or other municipality and with the city as a temporary employee hired on or after July 1, 2009.
(1) In the event a member employee becoming a participant herein, on or after July 1, 2009, shall have prior to becoming a member been employed (i) by the county under the provisions of a merit system applicable to the county, (ii) by any other municipality in the county under the provisions of the merit system applicable to such municipality, or (iii) by the city under the provisions of the merit system applicable to the city as a temporary employee; he or she may receive credit for the prior service by paying to the city director of finance within 60 days after a verified, written calculation has been provided to the participant in an amount to be determined as follows:
a. There shall first be determined the salary paid the participant each month of the prior service by the city or by the county or such other municipality.
b. There shall then be computed the contribution which would have been deducted if the member had received such salary from the city as a participant hereunder, the contribution and deduction being determined in accordance with this subpart on the date he or she became a member in the system and that amount shall be multiplied by two which shall be the total of contributions due to be paid by the member plus interest as set forth below.
c. There shall then be determined the total of interest on total of contributions due from the member as set forth in paragraph b. at the rate used in the most recent earnings assumption in the actuarial report compounded annually from the date they would have been made if the member had received such salary as a participant to the date he or she actually became a member in the system calculating each separate salary deduction such member would have paid to the system had he or she been a member during all his or her prior service, which interest shall be calculated for the period beginning on the dates on which the respective salary deductions would have been paid, had he or she been subject to the salary deduction provisions during all his or her prior service, and ending on the date whereon the member discharges his or her liability for salary deductions by payment.
d. The total of all of the contributions of the member as set forth in paragraph b. which would have been made plus interest at the rate used in the most recent earnings assumption in the actuarial report compounded annually as both are determined in this section shall be the amount payable.
e. The member desiring credit for service with the county or other municipality and with the city as a temporary employee shall pay the total actuarial percentage of contributions plus interest for the cost of the credited service benefit.
(2) The new participant is limited to purchasing a maximum of five years’ credited service.
(3) No purchased credited service time may be used for the purposes of determining vesting rights in the plan.
(4) Any time purchased may not be used for the purposes of acquiring rights under the DROP plan.
In the event of the retirement of a police officer or a firefighter from a supplemental pension system, as established by Subpart 1, with 20 or more but less than 30 years of credited service under the system, this system shall receive from the supplemental pension system each member’s monthly contribution payments required to be paid from the supplemental pension system to this system from the police officer or firefighter’s retirement date thereunder until the date he or she would have been entitled to retire under this system with 30 years of credited service had such police officer or firefighter continued to serve without retiring and without interruption as a participant in this system. The city shall then pay the employer’s required contributions pursuant to Section 45-37A-51.192 from its general fund or other appropriate funds to the fund within 30 days from the date of receipt of the member’s monthly contribution payments from the supplemental pension system.
","history":"(Act 2006-339, p. 851, Art. V, § 7; Act 2021-245, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51353,"hierarchyLevel":6,"createdAt":"2026-09-10T17:07:15.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320248237,"codeId":62365,"versionId":55293,"parentId":62331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.197","shortTitle":"Section 45-37A-21.197","catchLine":"Refund of Erroneous Contributions.","title":"Section 45-37A-21.197 Refund of Erroneous Contributions.","sectionRange":null,"content":"In the event contributions shall have been deducted from an employee who is not a participant herein and shall have been paid into the fund, the deductions shall be refunded to the employee. Similarly, any contributions made to the fund by the city on behalf of the nonparticipating employee shall be refunded to the city.
","history":"(Act 2006-339, p. 851, Art. V, § 8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51354,"hierarchyLevel":6,"createdAt":"2026-09-10T17:07:15.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320307629,"codeId":62366,"versionId":55294,"parentId":62331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.198","shortTitle":"Section 45-37A-21.198","catchLine":"Purchase of Credit for Prior Unclassified Service.","title":"Section 45-37A-21.198 Purchase of Credit for Prior Unclassified Service.","sectionRange":null,"content":"(a) Any employee member having been a full-time employee in the unclassified service of the city, prior to January 1, 1989, as a common laborer for less than 10 years, shall have had the election options available under the terms of subsection (d) of Section 45-37A-51.162 and Section 45-37A-51.163 and shall have purchased time not later than May 15, 1989. In the case of reemployment of an unclassified employee, such employee with unclassified time prior to January 1, 1989, and having received a return of contributions at his or her termination of prior employment, may purchase this creditable service time as otherwise provided in Section 45-37A-51.195. The city shall pay an amount equal to the employee’s total cost of purchase for prior credited service into the fund for the city’s contribution for the period of service.
(b) To receive credit in the system for such prior unclassified service, the employee member shall first have waived in writing all his or her rights to allowances or benefits under any retirement or relief system created only for unclassified employees of the city and shall have paid the amount into the fund within 60 days after date that this section becomes effective or that he or she becomes a participant; whichever of these periods last expires.
Constructive employees of the city, excluding the employees of the board of health, who are eligible to participate in the plan under Division 9 shall pay the same contribution rate as employees of the city.
","history":"(Act 2006-339, p. 851, Art. V, § 10.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51356,"hierarchyLevel":6,"createdAt":"2026-09-10T19:07:01.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320307631,"codeId":62368,"versionId":55296,"parentId":62331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.200","shortTitle":"Section 45-37A-21.200","catchLine":"Contributions of Subsidiaries of City.","title":"Section 45-37A-21.200 Contributions of Subsidiaries of City.","sectionRange":null,"content":"Constructive subsidiaries of the city, excluding the board of health as set forth herein, the employees of which are eligible to participate in the plan under Division 9, shall pay the same contribution rate as the city and shall contribute to the plan as determined herein.
","history":"(Act 2006-339, p. 851, Art. V, § 11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51357,"hierarchyLevel":6,"createdAt":"2026-09-10T19:07:01.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320307632,"codeId":62369,"versionId":55297,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.220","shortTitle":"Section 45-37A-21.220","catchLine":"Normal Retirement Benefit.","title":"Section 45-37A-21.220 Normal Retirement Benefit.","sectionRange":null,"content":"(a) A participant having attained age 60 or older and having completed five or more years of credited service, or having completed 30 or more years of credited service without regard to age, shall be entitled upon his or her voluntary retirement to a monthly retirement benefit equal to one of the following:
(1) With respect to a retiree who first became a participant on or before the first day of July after nine years after date of establishment, 40 percent of his or her final average salary, plus 1.3334 percent of his or her final average salary multiplied by his or her years of credited service in excess of 15 years.
(2) With respect to a retiree who first becomes a participant subsequent to the first day of July nine years after date of establishment, and becomes entitled to a normal retirement benefit and retires on or before July 1, 1990, 2 percent of his or her final average salary shall be multiplied by such retiree’s years of credited service.
(3) With respect to a retiree who first becomes a participant subsequent to the first day of July nine years after the establishment, and becomes entitled to a normal retirement benefit and retires after July 1, 1990, and on or before June 30, 2001, 2.25 percent of his or her final average salary multiplied by such retiree’s years of credited service.
(4) With respect to a retiree who first becomes a participant subsequent to the first day of July nine years after the establishment, and becomes entitled to a normal retirement benefit and retires on or after July 1, 2001, 2.5 percent of his or her final average salary multiplied by such retiree’s years of credited service, subject to any future action of the board of managers.
(b) Effective July 1, 2006, the retiree of the board of health who becomes entitled to a normal retirement benefit and retires after that date, 2.5 percent of his or her final average salary multiplied by such retiree’s years of credited service shall be the normal retirement benefit of such participant, subject to any future action of the board of managers.
(c) Subject to the provisions of Section 45-37A-51.237, the amount of any retirement benefit determined under this section which may have commenced to be paid in accordance with the system shall continue to be paid throughout the life of the retiree.
(d) Notwithstanding anything to the contrary contained in this section, yet subject to subsection (e), all participants who first become participants on or after July 1, 2017, and who have attained age 62 or older and have completed 10 or more years of credited service, or who have completed 30 or more years of credited service without regard to age, and who become entitled to a normal retirement benefit, shall be entitled on his or her voluntary retirement to a monthly retirement benefit equal to 2.25 percent of his or her final average salary multiplied by the retiree’s years of credited service subject to the limitation in subsection (b) of Section 45-37A-51.221.
(e) Notwithstanding anything to the contrary contained in this section, any participant who first becomes a participant on or after July 1, 2021, other than fire and police employees, and who becomes entitled to a normal retirement benefit, shall be entitled on his or her voluntary retirement to a monthly retirement benefit equal to 1.75 percent of his or her final average salary multiplied by his or her years of credited service, subject to the limitation in subsection (b) of Section 45-37A-51.221, if he or she satisfies either of the following:
a. Has attained the age of 62 years or older, regardless of the date of termination of employment, and has completed 10 or more years of credited service, as of the date of termination of employment.
b. Has attained the age of 55 years or older, regardless of the date of termination of employment, and has completed 30 or more years of credited service, as of the date of termination of employment.
(a) The minimum retirement benefit payable under Section 45-37A-51.220 shall be four hundred dollars ($400) per month. The maximum normal retirement benefit payable under Section 45-37A-51.220 shall be 75 percent of final average salary, exclusive of sick leave bonus. Notwithstanding the foregoing and to the extent applicable to governmental plans as defined in § 414(d), Internal Revenue Code, in no event may the normal retirement benefit exceed the annual dollar limits imposed by § 415(b), Internal Revenue Code, excluding contributions under § 414(h)(2), Internal Revenue Code. Further, no post severance compensation shall be included for any benefit hereunder. Post severance compensation means amounts paid by the later of: (1) Two and one-half months after an employee’s severance from employment with the employer; or (2) the end of the limitation year that includes the date of severance from employment with the employer; and those amounts would have been included in the definition of compensation if they were paid prior to the employee’s severance from employment. However, the payment shall be for (1) unused accrued bona fide sick, vacation, or other leave, but only if the employee would have been able to use the leave if the employee had continued in employment; or (2) received by an employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the employee at the same time if the employee had continued in employment with the employer and only to the extent that the payment is includible in the employee’s gross income. Notwithstanding the foregoing, in all events no benefit payments shall exceed limits imposed on governmental plans by applicable law.
(b)(1) Notwithstanding anything to the contrary contained in subsection (a), yet subject to subsection (c):
a. All participants who first become participants on or after July 1, 2017, shall be entitled to the minimum retirement benefit payable under Section 45-37A-51.220 in the amount of four hundred dollars ($400) per month.
b. The maximum normal retirement benefit payable under Section 45-37A-51.220 shall be 67.5 percent of final average salary, exclusive of sick leave bonus.
(2) Notwithstanding the foregoing and to the extent applicable to governmental plans as defined in § 414(d), Internal Revenue Code, in no event shall the normal retirement benefit exceed the annual dollar limits imposed by § 415(b), Internal Revenue Code, excluding contributions under § 414(h)(2), Internal Revenue Code. No post severance compensation shall be included for any benefit under this section. Post severance compensation means amounts paid by the later of: (1) Two and one-half months after an employee’s severance from employment with the employer; or (2) the end of the limitation year that includes the date of severance from employment with the employer; and those amounts would have been included in the definition of compensation if they were paid prior to the employee’s severance from employment. However, the payment shall be for: (1) Unused accrued bona fide sick, vacation, or other leave, but only if the employee would have been able to use the leave if the employee had continued in employment; or (2) received by an employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the employee at the same time if the employee had continued in employment with the employer and only to the extent that the payment is includible in the employee’s gross income. Notwithstanding the foregoing, in all events no benefit payments shall exceed limits imposed on governmental plans by applicable law.
(c)(1) Notwithstanding anything to the contrary contained in subsection (a) or (b), all participants who first become participants on or after July 1, 2021, other than fire and police employees, shall be entitled to all of the following:
a. The minimum retirement benefit, payable under Section 45-37A-51.220, in the amount of four hundred dollars ($400) per month, determined prior to the calculation of any survivor’s benefit election.
b. The maximum normal retirement benefit, payable under Section 45-37A-51.220, of 52.5 percent of final average salary, exclusive of sick leave bonus.
(2) Notwithstanding the foregoing and to the extent applicable to governmental plans as defined in § 414(d), Internal Revenue Code, in no event shall the normal retirement benefit exceed the annual dollar limits imposed by § 415(b), Internal Revenue Code, excluding contributions under § 414(h)(2), Internal Revenue Code. No post severance compensation shall be included for any benefit under this section. Post severance compensation means amounts paid by the later of: a. Two and one-half months after an employee’s severance from employment with the employer; or b. the end of the limitation year that includes the date of severance from employment with the employer; and those amounts would have been included in the definition of compensation if they were paid prior to the employee’s severance from employment. However, the payment shall be for: a. Unused accrued bona fide sick, vacation, or other leave, but only if the employee would have been able to use the leave if the employee had continued in employment; or b. received by an employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the employee at the same time if the employee had continued in employment with the employer and only to the extent that the payment is includible in the employee’s gross income. Notwithstanding the foregoing, in all events no benefit payments shall exceed limits imposed on governmental plans by applicable law.
(a)(1) All participants who are participants before July 1, 2017, shall vest at five years of credited service.
(2) Notwithstanding anything to the contrary contained in this section, all participants who first become participants on or after July 1, 2017, shall vest at 10 years of credited service.
(b) All participants may purchase previous city, county, and city library time by paying the contribution plus interest as provided herein.
(c) Participants of the city and other participating entities, except the board of health, upon termination of the employment after five years of actual service to the city or other employing participating entity, shall have the option to leave in the system fund all contributions made by the terminated employee and receive a monthly retirement benefit beginning at age 60 years in an amount equal to a multiplier in the applicable percentage effective on the date of retirement as set forth in Section 45-37A-51.220 of the employee’s monthly final average salary multiplied by his or her years of credited service. The benefit shall continue throughout the life of such retiree. A survivor’s benefit calculated as described in Section 45-37A-51.228, shall be provided to the survivors of the retiree pursuant to this provision if the retired employee has reached age 60 years. In the event that a terminated employee dies prior to receiving a benefit hereunder, or a terminated employee elects at any time to withdraw the contributions from the system fund, then the contributions shall be paid to the employee or his or her designee without interest and the terminated employee and those claiming under him or her, shall have no further rights in the fund. The amount payable, calculated by using the multiplier in the applicable percentage effective on the date of retirement per year of credited service, shall be reduced by being calculated at a lower percentage per year of credited service if for any reason current service retirees receive less percentage per year of credited service.
(d) Notwithstanding anything to the contrary contained in subsection (c), all participants who first become participants on or after July 1, 2017, upon termination of the employment after 10 years of actual service to the city or other employing participating entity, may leave in the system fund all contributions made by the former employee and receive a monthly retirement benefit beginning at age 62 years in an amount equal to a multiplier in the applicable percentage effective on the date of retirement as set forth in Section 45-37A-51.220 of the employee’s monthly final average salary multiplied by his or her years of credited service. The benefit shall continue throughout the life of the retiree. A survivor’s benefit calculated as described in Section 45-37A-51.228, shall be provided to the survivors of the retiree pursuant to this provision if the retired employee has reached age 62 years. In the event that a terminated employee dies prior to receiving a benefit under this section, or a terminated employee elects at any time to withdraw the contributions from the system fund, then the contributions shall be paid to the employee or his or her designee without interest and the terminated employee and those claiming under him or her shall have no further rights in the fund. The amount payable, calculated by using the multiplier in the applicable percentage effective on the date of retirement per year of credited service, shall be reduced by being calculated at a lower percentage per year of credited service if for any reason current service retirees receive less percentage per year of credited service.
(e) That portion of a terminated participant’s benefit that is forfeited shall be used only to reduce future costs of the system at such time as it becomes a forfeiture.
With respect to participants who shall belong to and retire under the supplemental pension system established by Subpart 1 after having accumulated 20 or more years of credited service thereunder but prior to his or her having accumulated 30 years of credited service hereunder, benefits payable hereunder shall commence on the date on which such participant would have accumulated 30 years of credited service hereunder had such participant not retired but rather had continued in his or her employment with the city, without interruption, as a firefighter or police officer. The annual benefit thereupon payable herefrom shall be an amount equal to that which would have been payable under Section 45-37A-51.220 had such participant not retired but rather had continued in employment with the city, without interruption, as a firefighter or police officer. For the purpose of computing benefits, in the determination of the firefighter’s or police officer’s final average salary, the firefighter or police officer shall be deemed to have received as compensation the salary which was the basis of payments the supplemental pension system made to the system established by this subpart from the date whereon the firefighter or police officer retired under the supplemental pension system to the date whereon he or she begins to receive the pension payable under this section.
","history":"(Act 2006-339, p. 851, Art. VI, § 5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51362,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367022,"codeId":62373,"versionId":55301,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.224","shortTitle":"Section 45-37A-21.224","catchLine":"Involuntary Retirement.","title":"Section 45-37A-21.224 Involuntary Retirement.","sectionRange":null,"content":"(a) In the event a participant shall be involuntarily retired after having completed 20 or more years of credited service prior to attaining the age of 60 years, such participant shall be entitled to a monthly retirement benefit equal to the product of the final average salary multiplied by the applicable percentage rate determined at the date of termination, multiplied by such participant’s years of credited service. Should the participant be involuntarily retired prior to attaining age 60 his or her entitlement to the monthly retirement benefit, at this retirement date, shall additionally require that within 60 days of the involuntary retirement the agency governing tenure of service of city employees certify in writing to the board that such employee has not contributed by his or her own fault or misconduct to the separation from service. Should such certification not be made within the prescribed time, the monthly retirement benefit thus determined shall commence upon his or her attainment of age 60. However, should such employee, prior to attaining age 60 and prior to the commencement of his or her benefits, withdraw such employee’s own contributions to the system, he or she shall forfeit his or her right to the monthly retirement benefits.
(b) Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2017, in the event a participant is involuntarily retired after having completed 20 or more years of credited service prior to attaining the age of 62 years, the participant shall be entitled to a monthly retirement benefit equal to the product of the final average salary multiplied by the applicable percentage rate determined at the date of termination, multiplied by the participant’s years of credited service. If the participant is involuntarily retired prior to attaining age 62, his or her entitlement to the monthly retirement benefit at this retirement date shall additionally require that within 60 days of the involuntary retirement the agency governing tenure of service of city employees certifies in writing to the board that the employee has not contributed by his or her own fault or misconduct to the separation from service. If that certification is not made within the prescribed time, the monthly retirement benefit thus determined shall commence upon his or her attainment of age 62. If the employee, prior to attaining age 62 and prior to the commencement of his or her benefits, withdraw the employee’s own contributions to the system, the employee shall forfeit his or her right to the monthly retirement benefits.
(c) Anything herein to the contrary notwithstanding, the monthly retirement benefit shall neither commence nor be payable during any period when such involuntarily retired participant shall refuse or fail to accept employment by the city at a rate of compensation equal to that he or she was receiving at the time such retiree was involuntarily retired or separated.
(a) In the event a participant, after having accrued five or more years of credited service, shall become totally disabled to perform his or her customary duties as an employee of the city and not be entitled to an extraordinary disability allowance, he or she shall in such event be entitled to a monthly ordinary disability allowance equal to two percent of such participant’s final average salary multiplied by his or her years of credited service at the date of disability.
(b) Notwithstanding anything to the contrary contained in this section, yet subject to subsections (e) and (f), for all participants who first become participants on or after July 1, 2017, in the event a participant, after having accrued 10 or more years of credited service, becomes totally disabled to perform his or her customary duties as an employee of the city and who is not entitled to an extraordinary disability allowance, he or she shall in that event be entitled to a monthly ordinary disability allowance equal to two percent of the participant’s final average salary multiplied by his or her years of credited service at the date of disability.
(c) Benefits payable hereunder shall commence upon the cessation of the disabled participant’s drawing a salary from the city and shall continue until such time as the participant is no longer totally disabled to perform his or her customary duties or substantially comparable duties with an employer.
(d) Except as provided in subsection (g), the maximum ordinary disability allowance payable hereunder shall be two percent of final average salary per credited year of service, not to exceed 60 percent of final average salary.
(e) Anything herein to the contrary notwithstanding, an ordinary disability allowance shall be computed and paid throughout the continuance of such disability as provided and at the rate prescribed by the law in effect at the time of the commencement of such disability. If any disability beneficiary should become separated from the service and withdraw such disability beneficiary’s contributions, his or her right to continuance of disability benefits shall immediately cease.
(f) Notwithstanding anything to the contrary contained in this section, for all participants who incur a disability on or after July 1, 2021, other than fire and police employees, in the event the participant, after having accrued 10 or more years of credited service, becomes totally disabled to perform his or her customary duties as an employee of the city and who is not entitled to an extraordinary disability allowance, he or she shall in that event be entitled to a monthly ordinary disability allowance equal to 1.75 percent of his or her final average salary multiplied by his or her years of credited service at the date of disability.
(g) Notwithstanding anything to the contrary contained in this section, for all participants who incur a disability on or after July 1, 2021, other than fire and police employees, the maximum ordinary disability allowance payable hereunder shall be 1.75 percent of final average salary per year of credited service, not to exceed 52.5 percent of final average salary.
(a) Extraordinary disability allowance for participants joining the system prior to January 1, 1989.
(1) In the event a participant who joins the system prior to January 1, 1989, shall become totally disabled to perform his or her customary duties by reason of personal injury received as a result of an accident arising out of and in the course of his or her employment in the service and occurring at a definite time and place, then in the event such total disability shall continue until the participant ceases to draw salary as an employee of the city, such disabled participant shall be entitled to a monthly allowance from the fund equal to 70 percent of his or her monthly salary at the time of the accident which resulted in such total disability, subject to the offset for any workers’ compensation benefit or other such disability benefit payable by the city as set forth hereafter.
(2) Benefits payable hereunder shall commence upon the cessation of the disabled participant’s drawing a salary from the city and shall continue until such time as such participant is no longer disabled by such injury to perform his or her customary duties or substantially comparable duties at the same or greater salary or wage. If, however, such disabled participant, during the continuation of such disability, should be separated from the service of the city and should the disability cease to exist, the board, in its discretion, may continue him or her on the disability rolls until such time as in the judgment of the board he or she is able to find suitable employment at a rate of pay equal or in excess of his or her disability allowance.
(3) Application for an extraordinary disability allowance shall be made within 12 months after the accident resulting in such disability and if granted shall be granted within 12 months after the accident resulting in such disability. Applications for injuries prior to January 1, 1989, received thereafter shall not be considered and no extraordinary disability allowance shall be awarded with respect thereto.
(4) Anything herein to the contrary notwithstanding, an extraordinary disability allowance heretofore or hereafter granted shall be computed and paid throughout the continuance of such disability as provided and at the rate prescribed by the law in effect at the time of the commencement of such disability. If any extraordinary disability beneficiary should become separated from the service and withdraw his or her contributions, his or her right to continuance of disability benefits shall immediately cease.
(b) Extraordinary disability allowance for participants joining the system on or after January 1, 1989.
(1) In the event a participant who joins the system on or after January 1, 1989, shall become totally disabled to perform his or her customary duties by reason of personal injury received as a result of an accident arising out of and in the course of his or her employment in the service and occurring at a definite time and place, then in the event such total disability shall continue until the participant ceases to draw salary as an employee of the city, such disabled participant shall be entitled to a monthly allowance from the fund equal to 70 percent of his or her monthly salary at the time of the application for extraordinary disability benefits arising from the accident which resulted in such total disability. If such participant shall be eligible for extraordinary disability benefits subsequent to August 1, 2009, the extraordinary disability benefit shall be subject to the offset for any workers’ compensation benefit or other such disability benefit payable by the city as set forth hereafter.
(2) Benefits shall not be payable hereunder during any period that a disabled participant is able to perform other duties in his or her job classification or the customary duties of another job with that participant’s employer, which other duties or job has been offered to participant and which job pays a salary or wage equal to or greater than the salary or wage such participant was earning at the time of the application for the extraordinary disability benefits arising from the accident causing the disability.
(3) Benefits payable hereunder shall commence upon the cessation of the disabled participant’s drawing a salary from the city and shall continue until such time as such participant is no longer disabled by such injury to perform his or her customary or other duties, substantially comparable duties, or a substitute job as described above. If, however, such disabled participant, during the continuation of such disability, should be separated from the service of the city and should the disability cease to exist, the board, in its discretion, may continue him or her on the disability rolls until such time as in the judgment of the board he or she is able to find suitable employment with an employer at a rate of pay equal or in excess of his or her disability allowance.
(4) Upon employment by any employer, for which the disabled participant receives wages or other compensation or both, from the new employer, for duties which are alike and substantially similar to the work or job functions performed for the city by the disabled participant at the time the application for extraordinary disability was filed with the pension system under this subpart, the amount of the extraordinary disability benefit payable to the disabled participant shall be reduced by the amount, dollar for dollar, in cash or other types of compensation for which the disabled employee is required to pay taxes to the federal government, so that the extraordinary disability benefit is offset up to the total amount of the extraordinary disability benefit payable under this section.
(5) Further, should the disabled participant who is eligible to receive an extraordinary disability benefit under this section also receive workers’ compensation or other such benefit from the city, which is based upon the same injury giving rise to an extraordinary disability benefit under this section, the fund shall be entitled to reduce the extraordinary disability benefit payable to such disabled participant, dollar for dollar for each amount due to the disabled participant. For the purposes of calculating the amount of monthly reduction in extraordinary disability benefits, the weekly wage under the Workers’ Compensation Act or other such benefit shall be converted into a yearly wage by multiplying the weekly wage by 52 weeks in a year and then dividing the yearly wage by 12 for the monthly amount. The monthly amount of workers’ compensation or other such benefit paid by the city shall be subtracted from the extraordinary disability benefit due to the disabled participant to arrive at the new amount of extraordinary disability benefit due to such disabled participant from the fund while the disabled participant remains disabled under this section. If the disabled participant receives full extraordinary disability benefits, prior to receiving workers’ compensation, or other such benefit from the city, the fund shall be due a refund from the disabled participant through a reduction in the extraordinary disability benefit based upon the amount of monthly benefit, as calculated above, the disabled participant received from the city for workers’ compensation, or other such benefits, for the same period full payment was made by the fund under this section.
(6)a. Application for an extraordinary disability allowance shall be made within 12 months after the accident resulting in such disability and if granted shall be granted within 12 months after the accident resulting in such disability. For injuries occurring after January 1, 1989, the board of managers, in its sole discretion, may choose to waive this one-year limitation and grant an application for extraordinary disability allowance if granted within 36 months after the incident resulting in such disability. Applications received thereafter shall not be considered and no extraordinary disability allowance shall be awarded with respect thereto.
b. Effective January 1, 2005, the board has the discretion to waive the 36-month period and to grant extraordinary disability benefits if the application for the extraordinary disability benefits arising from the accident is filed within 60 months of the accident resulting in such disability; provided that such accident resulting in disability occurred and application for an extraordinary benefit has been filed for an accident which occurred prior to August 1, 2009.
(7) Anything herein to the contrary notwithstanding, an extraordinary disability allowance heretofore or hereafter granted shall be computed and paid throughout the continuance of such disability as provided and at the rate prescribed by the law in effect at the time of the commencement of such disability. If any extraordinary disability beneficiary should become separated from the service and withdraw his or her contributions, his or her right to continuance of disability benefits shall immediately cease.
(c) Extraordinary disability allowance for participants joining the system on or after July 1, 2005. In addition to the provision set forth in subsection (b), the board, in its discretion, in determining an application for extraordinary disability, may consider whether or not the applicant for extraordinary disability has other physical ailments, illnesses, diseases, or other maladies which contribute to the participant’s inability to perform job functions. In circumstances in which, in addition to the injuries in an accident sustained by the participant while performing job functions, there is present in the participant other significant illnesses, diseases, or other maladies which are contributing causes for the participant’s inability to perform job functions, the board, in its discretion, may offset, or reduce the total amount of the extraordinary benefit below 70 percent of the salary at the time of the application based upon the amount the other physical ailments contribute to the participant’s inability to perform job functions for the city. The board may base its decision upon the opinion of a medical expert in the field of job-related injuries. In no event shall the extraordinary disability in such cases be less than that due for ordinary disability.
(d) Certain extraordinary disability benefits for firefighters. Nothing contained in this section shall be interpreted to be in contradiction with or shall alter or replace certain benefits allowed to firefighters pursuant to Section 11-43-144, who are not eligible for workers’ compensation or any other such disability benefit from the city.
(e) Subsections (b) and (c) apply to all employees who are participants in the fund on August 1, 2009, who are not currently receiving extraordinary disability.
(f) Notwithstanding any other provision herein, the time for the filing of the application for extraordinary disability benefits on account from an accident occurring subsequent to August 1, 2009, shall be within 24 months from the date of the accident causing injury which is the basis of the application for extraordinary disability benefits or the board shall not be able to consider the application.
(a) In order for disability allowances to be awarded under Section 45-37A-51.225 or Section 45-37A-51.226, the board shall first have satisfactory proof thereof by certification of such disability of the participant applying for disability allowance, the certification being made by a licensed and practicing physician or surgeon. Additionally, the board shall have the power to require further certifications of such disability by other practicing physicians and surgeons and shall have the power to require such additional proof of total disability as in its judgment it may deem necessary.
(b) During the continuation of disability, the board may from time to time require further certification of disability by one or more licensed and practicing physicians or surgeons selected by the board and may require such additional proof of the continuation of the disability as it deems appropriate.
(c) Should a former participant who has been awarded a disability allowance under Section 45-37A-51.225 or Section 45-37A-51.226 resume his or her active duty as an employee of the city, it shall be conclusive evidence of the termination of such total disability for the purpose of the system, and any subsequent cessation of his or her active duty on account of disability, whether by reason of the same or a different cause, shall be treated as a new disability. However, should a participant who shall have been awarded an extraordinary disability allowance under Section 45-37A-51.226 or is a claimant or prospective claimant therefor resume his or her active duty as an employee for a period not exceeding a total of 180 days last ending no later than 12 months following the date of the accident which gave rise to the disability for which he or she was awarded an extraordinary disability allowance, such resumption of active duty as an employee of the city shall not be deemed to be conclusive evidence of termination of such disability. Any provisions hereof to the contrary notwithstanding, no extraordinary disability allowance shall be allowed unless granted within 12 months after the accident resulting in such disability. The board, in its sole discretion, may choose to waive this one-year limitation and grant an application for extraordinary disability allowance if granted within 60 months after the application for benefits from incident resulting in such disability.
(d) In no event shall disability allowances as provided under Section 45-37A-51.225 or Section 45-37A-51.226 be payable with respect to any period of time during which the recipient of such allowances shall be actively employed by the city, shall be due or shall have been paid any salary from or by the city.
(a) Effective July 1, 2002, in the event of the death of a retiree or participant who, on the date of his or her death was eligible for voluntary retirement under Section 45-37A-51.220, there may be payable a monthly survivor’s benefit equal to 60 percent of the monthly retirement benefit which the retiree was receiving or was entitled to receive prior to his or her death or which the participant would have been entitled to receive had he or she retired under Section 45-37A-51.220 on the day preceding his or her death; notwithstanding anything to the contrary, the survivor’s benefit may be increased pursuant to Section 45-37A-51.242. In the event any survivor is being paid an amount in excess of 60 percent of the retiree’s monthly benefit on May 1, 2006, such survivor’s benefits shall not be decreased.
(b)(1) Effective July 1, 2002, upon the death of any retiree or participant who at the time of his or her death was not eligible for voluntary retirement under Section 45-37A-51.220, but who prior to death had five or more years of creditable time, there may be payable at the option of the survivors and to the exclusion of any other death benefits provided for in this subpart or in any other pension system applicable to the city an optional survivor’s benefit according to the schedule of percentages hereinbelow set forth. For the purpose of this subsection, the optional survivor’s benefit shall be 60 percent of the applicable percentage of salary of the deceased retiree’s or participant’s final average salary, figured as of the date of death instead of the date of retirement, multiplied by his or her years of creditable time and multiplied by the percentage rate applicable to the decedent’s completed years of credited service as shown in the schedule of percentages as follows:
a. Prior to July 1, 2002, the percentage rate, effective to survivors, applicable to decedent’s completed years prior to July 1, 2002, credited service:
Credited service, 10 years = 50 percent; 11 years = 60 percent; 12 years = 70 percent; 13 years = 80 percent; 14 years = 90 percent; and 15 or more years = 100 percent. The surviving spouse and children of any firefighter or police officer who is a member of the Firemen’s and Policemen’s Supplemental Pension System applicable to the city and is employed by the city at the time of his or her death shall not be entitled to any benefit under this subsection.
b. The percentage rate, effective to survivors, applicable to decedent’s completed years after July 1, 2002, credited service:
Credited service, five years = 50 percent; six years = 60 percent; seven years = 70 percent; eight years = 80 percent; nine years = 90 percent; and 10 or more years = 100 percent. The surviving spouse and children of any firefighter or police officer who is a member of the Firemen’s and Policemen’s Supplemental Pension System applicable to the city and is employed by the city at the time of his or her death shall not be entitled to any benefit under this subsection.
c. Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2017, upon the death of any retiree or participant who at the time of his or her death was not eligible for voluntary retirement under Section 45-37A-51.220, but who prior to death had 10 or more years of creditable time, there may be payable at the option of the survivors and to the exclusion of any other death benefits provided for in this subpart or in any other pension system applicable to the city an optional survivor’s benefit according to the schedule of percentages hereinbelow set forth. For the purpose of this subsection, the optional survivor’s benefit shall be 60 percent of the applicable percentage of salary of the deceased retiree’s or participant’s final average salary, figured as of the date of death instead of the date of retirement, multiplied by his or her years of creditable time and multiplied by the percentage rate applicable to the decedent’s completed years of credited service as shown in the schedule of percentages as follows:
Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2017, the percentage rate, effective to survivors, applicable to those decedents is as follows:
Credited service, 10 years = 50 percent; 11 years = 60 percent; 12 years = 70 percent; 13 years = 80 percent; 14 years = 90 percent; and 15 or more years = 100 percent. The surviving spouse and children of any firefighter or police officer who is a member of the Firemen’s and Policemen’s Supplemental Pension System applicable to the city and is employed by the city at the time of his or her death shall not be entitled to any benefit under this subsection.
(2)a. The optional survivor’s benefit provided for under subdivision (1) may only accrue and be payable to the benefit of a survivor or survivors from the date on which the deceased retiree or participant would have attained age 60 had he or she lived, or from the date on which such person would have earned 20 years of creditable time had he or she lived and continued in the employment of the city, whichever date comes first. In order to obtain the benefit, a written request therefor shall be submitted by or on the behalf of an eligible survivor to the custodian of the fund within 180 days after date of the death of the retiree or participant. The written request may be made on behalf of surviving minor children as provided in Section 45-37A-51.229. Any eligible survivor failing to submit written request within the required time shall be barred from any right to claim or to receive the optional survivor’s benefit. Such failure to submit the written request on behalf of eligible surviving minor or minors by their legal guardian or custodian as provided in Section 45-37A-51.229 shall likewise bar such minor from claiming or receiving the optional survivor’s benefit.
b. Notwithstanding anything to the contrary contained in subsection (a), for all participants who first become participants on or after July 1, 2017, the optional survivor’s benefit provided for under subdivision (1) may only accrue and be payable to the benefit of a survivor or survivors from the date on which the deceased retiree or participant would have attained age 62 had he or she lived, or from the date on which such person would have earned 20 years of creditable time had he or she lived and continued in the employment of the city, whichever date comes first. In order to obtain the benefit, a written request shall be submitted by or on the behalf of an eligible survivor to the custodian of the fund within 180 days after date of the death of the retiree or participant. The written request may be made on behalf of surviving minor children as provided in Section 45-37A-51.229. Any eligible survivor failing to submit a written request within the required time shall be barred from any right to claim or to receive the optional survivor’s benefit. The failure to submit the written request on behalf of an eligible surviving minor or minors by their legal guardian or custodian as provided in Section 45-37A-51.229 shall likewise bar the minor from claiming or receiving the optional survivor’s benefit.
(3)a. Upon the submission of a written request for optional survivor’s benefit, as provided in subdivision (2), the contributions of the deceased paid into the fund shall remain therein, any provisions of other sections of this subpart to the contrary notwithstanding, regardless of whether any or all of the deceased’s eligible survivors die before receiving any payment of benefits. The surviving spouse may revoke any written request by giving written notice thereof to the custodian at any time prior to a benefit payment being made pursuant to such request and thereby the eligible survivor has made such request and a benefit payment has been made pursuant thereto none of the decedent’s contributions paid into the fund shall be withdrawn therefrom or paid to any survivor as a return of contributions or for any other purpose.
b. A survivor to whom a benefit payment has been made under this subsection shall not thereafter be entitled to any survivor’s benefit or death benefit under any other provisions of this or other pension systems applicable to the city and further, a survivor to whom a survivor’s benefit or death benefit payment has been made under any other provisions of this subpart or under any other pension system applicable to the city shall not thereafter be entitled to any benefits under this subsection.
(c) Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2021, upon the retirement of any legally married participant, prior to payment of any retirement benefit and in accordance with procedures established by the city, the participant shall elect to either: a. Provide a monthly spousal survivor’s benefit upon the participant’s death; or b. receive an unreduced monthly retirement benefit.
(1) If a legally married participant elects to provide a spousal survivor’s benefit upon the participant’s death, then upon the participant’s death: a. The monthly spousal survivor’s benefit shall be equal to 60 percent of the monthly retirement benefit which the retiree was receiving or was entitled to receive prior to his or her death or which the participant would have been entitled to receive had he or she retired under Section 45-37A-51.220 on the day preceding his or her death; and b. the monthly retirement benefit payable to the participant during his or her life shall be reduced to reflect the spousal survivor’s benefit on an actuarially equivalent basis pursuant to certain actuarial factors adopted by the board.
(2) If a legally married participant elects to receive an unreduced monthly retirement benefit, then upon the participant’s death, no monthly spousal survivor’s benefit will be payable, and the monthly retirement benefit payable to the participant during his or her life will not be reduced to reflect any spousal survivor’s benefit. To effect a participant’s election to receive an unreduced monthly retirement benefit, the participant’s spouse, at the time of the participant’s election, shall agree to the participant’s election and waive any spousal survivor’s benefits in accordance with procedures established by the city.
(d) Notwithstanding anything contained in this section, for all participants who first become participants prior to July 1, 2021, the minimum survivor’s benefit payable to the spouse of the deceased retiree shall be three hundred twenty dollars ($320) per month under the conditions provided in Section 45-37A-51.229.
(a) The surviving spouse of the deceased or participant described in Section 45-37A-51.228 shall be eligible to receive a survivor’s benefit. The next foregoing sentence shall apply to a spouse married to the retiree or participant at the time of such retiree’s or participant’s death, regardless of whether the marriage occurred before or after the retiree’s or participant’s departure from service. The surviving spouse shall continue to be eligible to receive the monthly survivor’s benefit until he or she shall die or remarry, whichever shall first occur. If a survivor’s benefit ceases because the survivor remarries, in the event the marriage is terminated by annulment, divorce, or death of the survivor’s spouse, then on such termination the survivor shall be eligible to receive the survivor’s benefits.
(b) In the event the deceased retiree or participant should not be survived by his or her spouse or in the event the spouse should fail to qualify hereunder, a survivor’s benefit shall be payable to the child or children of the deceased retiree or participant. No survivor’s benefit shall be payable to such child if married or over age 18, except that with respect to an unmarried child or children who shall continue to be a student regularly attending school, benefits shall continue to be payable until they attain age 23. The exclusion of a child over age 18 from the benefit shall not apply to a child who is an unmarried disabled child within the definition of disabled child contained in the sentence next following. As herein used the term disabled child means a son or daughter, regardless of age, who becomes disabled prior to attaining age 18 and afflicted with a medically determinable physical or mental impairment or impairments, by reason of which impairment or impairments the son or daughter has been unable, and continues to be unable, to engage in any substantial gainful activity.
Should a participant be killed in the line of his or her duty, there may be payable to his or her spouse and child or children a service connected death benefit which shall be determined as follows:
(1) Spouse benefit. The surviving spouse shall receive a monthly benefit equal to 60 percent of the monthly salary of the deceased participant and shall additionally receive an amount equal to 10 percent of the salary for each eligible child of the deceased participant. However, in no event shall the monthly benefit payable to the spouse hereunder exceed 75 percent of the monthly salary of the deceased participant.
(2) Child or children benefit. Should there be no surviving spouse or should the surviving spouse fail to qualify hereunder, there shall be payable to or for the benefit of such deceased participant’s child or children a monthly benefit equal to 60 percent of the deceased participant’s monthly salary as provided in Section 45-37A-51.229.
(3) Deceased participant’s monthly salary. For the purpose of this section, the deceased participant’s monthly salary shall mean his or her final average salary except that with respect to a participant who should be killed in the line of service prior to having accumulated five years of credited service hereunder, it shall mean his or her monthly salary as of the date of injury which resulted in his or her death.
(a) The survivors of the deceased participant described in Section 45-37A-51.229 shall be eligible to receive a service connected death benefit if they continued to be legally married on the date of the death of the deceased participant. Further, the survivor shall continue to be eligible to receive the monthly service connected death benefit until he or she shall die or remarry, whichever shall first occur.
(b) Service connection death benefits attributable or payable to or on behalf of the deceased participant’s child or children shall only be payable with respect to such child or children who are both unmarried and 18 years of age or younger except that with respect to an unmarried child or children who shall continue to be a student regularly attending school, or unmarried and disabled children, benefits shall continue to be payable until they attain age 23.
(a) Effective as of July 1, 2002, in the event a firefighter or police officer retires under the supplemental pension system established by Subpart 1, after having accumulated 20 years of credited service under the system and shall die prior to the date on which the participant would have accumulated 30 years of credited service under this system had he or she not retired but had he or she continued in employment with the city, without interruption, as a firefighter or police officer, the participant’s survivor or survivors shall not receive any benefit therefrom. However, should the retired firefighter or police officer die subsequent to the date on which he or she would have accumulated 30 years of credited service hereunder, and should the retiree or participant be survived by a spouse to whom he or she was legally married at the time of the retiree’s or participant’s death, regardless of whether the marriage occurred before or after the retiree’s departure from service, the surviving spouse shall be entitled to receive until such time as the spouse should remarry, a monthly survivor’s benefit in the amount equal to 60 percent of the monthly retirement benefit which the retiree was receiving or entitled to receive on the date of his or her death as if the surviving spouse or survivors was entitled to a benefit under Section 45-37A-51.228 and Section 45-37A-51.229. If a survivor’s benefit ceases because the survivor remarries, in the event the marriage is terminated by annulment, divorce, or death of the survivor’s spouse, then on such termination the survivor again shall be eligible to receive the survivor’s benefits.
(b) Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2021, in the event a legally married firefighter or police officer retires under the supplemental pension system established by Subpart 1, after having accumulated 20 years of credited service under the system, and dies prior to the date on which the participant would have accumulated 30 years of credited service under this system had he or she not retired but had continued in employment with the city, without interruption, as a firefighter or police officer, the participant’s spousal survivor shall not receive any benefit therefrom. However, should the retired firefighter or police officer die after the date on which he or she would have accumulated 30 years of credited service hereunder and be survived by a spouse to whom he or she was legally married at the time of the retiree’s or participant’s death, regardless of whether the marriage occurred before or after the participant’s departure from service, a spousal survivor’s benefit may be payable pursuant to any of the following:
(1) Upon the retirement of the legally married participant, prior to payment of any retirement benefit and in accordance with procedures established by the city, the participant shall elect to either: a. Provide a spousal survivor’s benefit upon the participant’s death; or b. receive an unreduced monthly retirement benefit.
(2) If a participant elects to provide a spousal survivor’s benefit, then upon the participant’s death: a. The monthly spousal survivor’s benefit shall be equal to 60 percent of the monthly retirement benefit which the retiree was receiving or was entitled to receive prior to his or her death or which the participant would have been entitled to receive had he or she retired on the day preceding his or her death as if the surviving spouse was entitled to a benefit under Section 45-37A-51.228(c) and Section 45-37A-51.229; and b. the monthly retirement benefit payable to the participant during his or her life will be reduced to reflect the spousal survivor’s benefit on an actuarially equivalent basis pursuant to certain actuarial factors adopted by the board. The survivor’s benefit shall cease if the survivor remarries; provided, however, in the event the survivor remarries and that marriage is terminated by annulment, divorce, or death of the survivor’s spouse, then on such termination, the survivor again shall be eligible to receive the survivor’s benefit.
(3) If a legally married participant elects to receive an unreduced monthly retirement benefit, then upon the participant’s death, no monthly spousal survivor’s benefit will be payable, and the monthly retirement benefit payable to the participant during his or her life will not be reduced to reflect any spousal survivor’s benefit. To effect a participant’s election to receive an unreduced monthly retirement benefit, the participant’s spouse, at the time of the participant’s election, shall agree to the participant’s election and waive any spousal survivor’s benefits in accordance with procedures established by the city.
In the event a participant shall die prior to retirement and without a surviving spouse or children eligible for benefits hereunder, there shall be payable to the severance beneficiary, as defined in Section 45-37A-51.236, in an amount equal to the participant’s total contributions to the system, without interest, less an amount, equal to one-half the total of all disability retirement benefits paid to the deceased participant prior to his or her death, if any, to participant’s severance beneficiary.
","history":"(Act 2006-339, p. 851, Art. VI, § 15.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51372,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367032,"codeId":62381,"versionId":55311,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.234","shortTitle":"Section 45-37A-21.234","catchLine":"Termination of Employment; Ineligibility; Return of Contributions.","title":"Section 45-37A-21.234 Termination of Employment; Ineligibility; Return of Contributions.","sectionRange":null,"content":"(a) In the event a participant shall terminate or be terminated from his or her employment with the city due to disability and such participant shall cease to be eligible for participation herein or in the event such participant shall cease to be a qualified employee and shall elect to terminate his or her participation in the system, the total amount of participant’s contributions, without interest thereon, shall be payable to the former participant, less an amount equal to one-half the total of all disability retirement benefits paid to the former participant. This section shall not require a return of contributions to an involuntary retiree who elects not to withdraw his or her contributions pursuant to Section 45-37A-51.224.
(b) In the event a participant shall terminate or be terminated from his or her employment with the city for any reason other than disability and such participant shall cease to be eligible for participation herein or in the event such participant shall cease to be a qualified employee and shall elect to terminate his or her participation in the system, there shall be payable to the former participant an amount equal to the amount of the participant’s contributions without interest, less one-half of any benefit payments which may have been made. This section shall not require a return of contributions to an involuntary retiree who elects not to withdraw his or her contributions pursuant to Section 45-37A-51.224.
Only in the event a return of contributions is otherwise required herein shall this section apply. A return of contributions, as provided herein, shall be payable to the former participant, if living. In the event of death, if there is a survivor and there are accrued benefits, there shall be no return of contributions, but survivor’s benefits shall be payable as set forth in Section 45-37A-51.228. If there are accrued benefits but no survivor, or if there are no accrued benefits, the return of contribution shall be made to the former participant’s severance beneficiary named in accordance with Section 45-37A-51.236. In the event the former participant shall have died and shall have not, while an active participant in the system, designated a beneficiary in writing, the return of contributions, if no accrued benefits to survivors, shall be paid in the following order of preference:
(1) To his or her personal representative if one qualifies and makes demand therefor within 60 days after the death of such participant.
(2) To his or her surviving spouse.
(3) To his or her surviving children in equal shares.
(4) To his or her surviving parents in equal shares.
(5) To his or her surviving brothers and sisters in equal shares.
(a) The custodian shall keep a book or record in which any employee member may designate the name of a person to receive return of contributions made by him or her in the event of his or her death prior to commencement of accrual of a retirement allowance in his or her favor. Any such designation may be changed from time to time by an employee member. Each such designation shall be signed and dated by the employee member, and the last signed and dated designation shall prevail over any former designation. The rights of the last designated severance beneficiary shall be governed by Section 45-37A-51.235.
(b) If a firefighter or police officer has executed an instrument providing for the board of managers of the supplemental pension system established by Subpart 1 to receive return of contributions made by him or her in the event of his or her death, then the right of the board of managers to receive the return of the contributions shall prevail over the claim of the severance beneficiary, or spouse, or children, or father, or mother, or sisters, or brothers, or personal representative of such deceased firefighter or police officer.
(a) Anything herein to the contrary notwithstanding and except as provided in subsection (b), no retirement benefits of whatever kind or description shall be payable to any former participant for any period during which the former participant is employed by the city, is due a salary from the city, or has been paid a salary by the city, except persons elected by the people to serve the city shall have the option of continuing to receive either retirement benefits or the compensation for the office to which that person is elected, or that person may choose to receive both such benefits and compensation.
(b)(1) For the purposes of this section, “retired public safety officer” means a retired law enforcement officer who was employed by the city or a retired firefighter who was employed by the city.
(2) Notwithstanding subsection (a), a retired public safety officer who was employed by the city may be subsequently rehired by the city during times of critical personnel shortages to provide public safety services as provided in this subsection and may continue to receive retirement benefits of whatever kind or description for any period during which the public safety officer is reemployed by the city.
(3) A retired public safety officer rehired by the city shall be retired for at least 45 consecutive days prior to reemployment with the city.
(4) The retired public safety officer shall not accrue additional retirement service credit for any portion of the period of reemployment.
(5) The retired public safety officer and the city shall make the contributions that would be required for members and employers under the system during the entire period of subsequent employment, and the portion of the contributions paid by the participant during the term of reemployment is not refundable at the termination of the subsequent employment period.
(6) The period of reemployment for a retired public safety officer pursuant to this subsection shall be no more than a total of 10 years from the date of rehire by the city.
(7) The chief of police or the fire chief shall have the sole discretion to select retired public safety officers for reemployment under this subsection pursuant to the established guidelines of the Personnel Board of Jefferson County.
(8)a. The city may not employ a number of retired law enforcement officers pursuant to this section that exceeds 20 percent of the city’s entire authorized police force on May 18, 2017.
b. The city may not employ a number of retired firefighters pursuant to this section that exceeds 20 percent of the city’s entire authorized firefighter force on May 18, 2017.
(9)a. The city shall employ retired law enforcement officers only at ranks below sergeant and may not promote subsequently employed retired law enforcement officers above the rank of sergeant at any time during the subsequent employment.
b. The city shall employ retired firefighters only at ranks below lieutenant and may not promote subsequently employed retired firefighters above the rank of lieutenant at any time during the subsequent employment.
(c) Prior to the implementation of this section, the city shall obtain an actuarial study certifying to the governing body of the City of Birmingham that the act is cost neutral to the retirement system of the city.
The determination of the rights of a retiree to benefits or rights of survivors or named beneficiaries to death or other benefits under this system shall be determined on the basis of the law governing the system which is in effect on the date of retirement of the retiree or death of the participant as the case may be and the right of any beneficiaries or contingent payees as herein provided shall be determined on the basis of the law governing this system which is in effect on the date of the death of the retiree or participant which gave rise to the rights of the beneficiary or contingent payee.
","history":"(Act 2006-339, p. 851, Art. VI, § 20.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51377,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367037,"codeId":62386,"versionId":55316,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.239","shortTitle":"Section 45-37A-21.239","catchLine":"Payment of Benefits to Minor Children.","title":"Section 45-37A-21.239 Payment of Benefits to Minor Children.","sectionRange":null,"content":"In the event that benefits become payable hereunder to minor children, payments shall be made to the legal guardian of the minor children or, in the absence of a legal guardian, to the person who has custody of the children. The benefit shall be payable to the use and benefit of the children.
","history":"(Act 2006-339, p. 851, Art. VI, § 21.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51378,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367038,"codeId":62389,"versionId":55317,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.240","shortTitle":"Section 45-37A-21.240","catchLine":"Law Applicable to Measurement of Benefits.","title":"Section 45-37A-21.240 Law Applicable to Measurement of Benefits.","sectionRange":null,"content":"The rights of any person heretofore or hereafter retired shall continue to be measured and governed by the terms of the system in effect at the time of such retirement and should such person die during continuance of such retirement the right of the spouse, child, or children of such deceased retired person and the rights of the spouse, child, or children of any other deceased person or participant shall be measured and governed by the terms of the system in effect at the time of the death of such deceased person or participant.","history":"(Act 2006-339, p. 851, Art. VI, § 22.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51379,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367039,"codeId":62390,"versionId":55318,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.241","shortTitle":"Section 45-37A-21.241","catchLine":"Board of Health Retired Employees.","title":"Section 45-37A-21.241 Board of Health Retired Employees.","sectionRange":null,"content":"(a) Employees of the board of health, upon termination of such employment after 10 years of actual service to the board of health, shall have the option to leave in the system fund all contributions made by such terminated employee and receive a monthly retirement benefit beginning at age 60, in the amount equal to two percent of such employee’s monthly final average salary multiplied by his or her years of credited service. The benefit shall continue throughout the life of the retiree. A survivor’s benefit calculated as described in Section 45-37A-51.228 shall be provided to survivors or retirees under this provision if such retired employee has reached age 60 years, however the survivor’s benefit rate shall be 60 percent of the retiree’s benefit or as determined by the board of managers. In the event that a terminated employee dies, prior to receiving a benefit hereunder, or elects at any time to withdraw the contribution to the system fund, then such contribution shall be paid to the employee or his or her designee without interest and the terminated employee, and those claiming under him or her, shall have no further rights in the fund.
(b) The actuary who prepares the annual analysis of the system shall determine the annual cost of this provision, based upon such assumptions as the actuary shall find are reasonable, and certify the cost to the city and to the board of health.
(c) This provision shall become effective following the date of adoption hereof if the board of health shall have irrevocably committed to pay the vesting benefit contained herein. Such payments may be from funds of the board of health or from employee salary deductions as the board of health may determine.
(a) Upon approval of the governing body of the municipality primarily served by the system and upon approval of the board of managers, an increase in the amount of benefits, including improvements in the terms of benefits: (1) for future retirees, benefits or improvements such as earlier vesting, decreased retirement age, increase in multiplier used in calculating monthly benefit, or other like improvements may be granted; and (2) for current retirees cost of living increases may be granted, subject to the requirements of the United States Internal Revenue Code and regulations therewith. Such increases shall apply to participants or retirees of the board of health.
(b) Prior to approving an increase in the above described benefits, the board shall obtain the actuarial evaluation of the fund. Such evaluation shall project the actuarial cost of benefits for the succeeding plan year and shall combine therewith the applicable payment required under the current and any future plan for amortizing unfunded accrued liability. This total amount shall be deducted from the total of participant’s and city contributions. The remaining balance shall become the total available for benefit increases. Upon approval of the board and the municipal governing body, this amount may be used to pay the cost, as determined by the board’s actuary, of benefit increases, improved vesting provisions, cost of living increases for past retirees, a reserve, and other benefits which may be adopted. Such benefit increases may be discontinued or reduced in the event participant and city contributions are not sufficient to pay all cost thereof determined by the actuary. Such increases shall apply to participants or retirees of the board of health.
(a) In addition to the benefits described herein for normal retirement, ordinary disability, and extraordinary disability, every participant retired from city service or receiving a disability benefit immediately following having been in the city service, which participant did not have active city service after July 1, 1989, did not retire after July 1, 1990, or did not otherwise become eligible for a benefit calculated at 2.25 percent, per year after July 1, 1990, shall have received after three years of retirement or disability under this system an increase in monthly benefit in the amount of one hundred fifty dollars ($150). Present and future surviving spouses or the survivors of the retirees, who are not entitled to the 2.25 percent of the final average salary, shall have received a monthly benefit increase in the amount of the percent of the one hundred fifty dollars ($150) the surviving spouse or the survivor would normally be entitled to receive pursuant to Sections 10 to 13, inclusive, of Article VI of Act 929, 1951 Regular Session (Acts 1951, p. 1579). This section shall be effective retroactively to January 1, 1994, with payment to have begun as soon as administratively possible, with retroactive payment and no interest. No participant receiving or entitled to a benefit calculated at more than two percent per year of service shall have been eligible for the one hundred fifty dollars ($150) per month payment. No amounts shall be paid if at any time the contributions to the fund do not cover the normal cost of the fund. This provision shall not apply to retirees or disability recipients from the board of health.
(b) Effective July 1, 2001, in addition to the benefits described herein for normal retirement, ordinary disability, and extraordinary disability, every participant retired from city service or receiving a disability benefit immediately following having been in the city service, or who did not otherwise become eligible for a benefit calculated at 2.5 percent per year after July 1, 2001, any retiree of the system, excluding those retirees and survivors of the board of health, who having been a permanent classified city employee or a six months permanent unclassified employee who was retired and receiving a retirement benefit, shall have received an increase in the amount of two hundred dollars ($200) per month; and, any survivor of such retiree or participant, excluding those retirees and survivors of the board of health, shall have received an increased monthly benefit based upon the applicable percentage of benefit to which the survivor was otherwise entitled determined as of the date of death of such retiree or participant.
(c) No benefit shall be granted under this section until an actuarial determination has been made that there are sufficient funds within the system to fund the benefits. At any time the benefit increase may be discontinued or reduced in the event participant and city contributions are not sufficient to pay all costs of the system. These increases may be changed or adjusted in the event the board of managers and the city council approve a revised employee pension benefit program. The increase herein provided may be changed if necessary or desirable to meet current or future state or federal law or regulations.
(a) Participants in the city and other participating employing entities, except the board of health, having attained age 55 or older and completed 25 or more years of credited service, shall be entitled, upon voluntary retirement, to a monthly retirement benefit equal to 1.85 percent of the monthly final average salary of the participant multiplied by the participant’s years of credited service. Subject to Section 45-37A-51.237, the amount of any retirement benefit provided pursuant to this section shall continue to accrue throughout the life of the retiree. Survivors of participants retiring shall receive all survivors’ benefits available to normal retirees who are eligible for benefits under Section 45-37A-51.220.
(b) Notwithstanding anything to the contrary contained in this section, for all participants who first become participants on or after July 1, 2021, participants in the city and other participating constructive subsidiaries, except the board of health, having attained age 55 or older and completed 25 or more years of credited service, shall be entitled, upon voluntary retirement, to a monthly retirement benefit equal to 1.45 percent of the monthly final average salary of the participant multiplied by the participant’s years of credited service. Subject to Section 45-37A-51.237, the amount of any retirement benefit provided pursuant to this section shall continue to accrue throughout the life of the retiree. Survivors of participants retiring shall receive all survivor’s benefits available to normal retirees who are eligible for benefits under Section 45-37A-51.220 as provided under Section 45-37A-51.228.
(a) Effective July 1, 2002, a participant who retires at least 90 days following July 1, 2002, who has then completed at least 23 years of credited service, and who is otherwise entitled to retire and receive a normal retirement benefit, shall have the opportunity to elect a back drop plan. A participant eligible for the back drop plan can elect in writing at his or her retirement to retroactively drop his or her credited service in excess of 20 years, for a period of months not exceeding 36 months immediately preceding the date of retirement, the back drop period; provided that the beginning of the back drop period may not extend past the earliest date on which the participant would have qualified for a normal retirement benefit. A participant who is not actively employed may not make a back drop election. To be effective, a back drop election by a married participant shall be approved in writing by his or her spouse.
(b) Notwithstanding the provisions of Section 1 of Article VI of Act 1272, 1973 Regular Session (Act 1973, p. 2124), as amended, or otherwise stated herein, in effect as of the date of the participant’s retirement, any participant making the back drop election shall have his or her retirement benefits determined under Section 1, Article VI, Act 1272 or Section 45-37A-51.220 herein, as amended, as if retirement had occurred on the beginning date of the back drop period, so that for the purposes of calculating the retirement benefits, service during the back drop period shall not count as credited service and salary earned during the back drop period shall not be included in the calculation of final average salary and contribution made to the plan during the back drop period shall not otherwise be returned to the participant.
(c) Any participant who elects the back drop plan shall receive not less than 30 days or more than 90 days after his or her retirement, a lump-sum distribution equal to the monthly benefits that would have been paid during the back drop period if the participant’s retirement had occurred on the beginning date of the back drop period, calculated as provided in subsection (b) above, together with interest thereon at a percentage rate as the board may determine, annually, compounded monthly from the date on which each monthly benefit would have been paid; provided that no interest shall be paid unless the actuary retained by the board determined that sufficient funds are available to pay the interest on a cost-neutral basis.
(d) If any participant who elects the back drop plan dies before the lump-sum distribution referred to in subsection (c) is paid, the back drop election shall be null and void, unless otherwise authorized in writing by the retiree prior to retirement, and the benefits to which the participant and his or her surviving spouse, if any, are entitled shall be calculated as if the back drop election had never been made. The survivor may have the option of either receiving the lump-sum distribution and receiving a reduced monthly survivor’s benefit or electing to receive the retirement benefit due if no lump-sum distribution were paid. If the survivor receives a lump sum distribution as authorized by the retiree herein due to death of the retiree, the survivor benefit shall be reduced based on the recalculated final average salary.
(e) If any participant was receiving retirement benefits under a back drop election made in accordance with this section, then notwithstanding any provision of Section 45-37A-51.228, or otherwise herein, the benefits to which the participant’s surviving spouse is entitled shall be calculated on the basis of the retirement benefit which the participant was receiving as a result of the back drop election.
(f) The board shall have the authority to terminate the back drop plan created in this section prospectively at any time if it is determined that contributions to the system are not sufficient to pay the costs of the back drop plan; provided that no termination shall affect the rights of any participant, or the surviving spouse of a participant, who has properly made his or her back drop election as required herein, and the election shall have been approved by the board, but has not yet begun receiving benefits to which he or she would be entitled as a result of the election.
(g) The board is authorized, with approval of the governing body of the municipality primarily served by the system, to make any and all rules and regulations necessary to implement and administer the back drop plan which are not inconsistent with this section or applicable law.
(h) Purchased past service credit with the city or purchased service credit from the county, other municipality, or temporary service with the city may not be used to increase service in excess of 30 years in order to qualify for a DROP benefit under this section.
(i) Any purchased past service credit or purchased service credit shall have been applied and paid for into the system more than 10 years preceding the application for a DROP benefit for the purchased years of credited service to be included in determining the DROP benefit to which the participant may be allowed.
(j) A retiree, who has previously retired from the city and has not received a DROP benefit from the city and is rehired by the city, may qualify for a DROP benefit provided, upon rehire the employee shall work at least 36 consecutive months to be eligible for a DROP benefit.
(a) Effective July 1, 2006, in addition to the benefits described herein for normal retirement, ordinary disability, and extraordinary disability, every participant retired from the health department who has retired under the pension system herein, immediately following having been in the board of health service, or who did not otherwise become eligible for a benefit calculated at 2.5 percent per year after July 1, 2006, any such retiree of the board of health shall receive an increase in the amount of seventy-five dollars ($75) per month; and any survivor of such retiree or participant shall receive an increased monthly benefit based upon the applicable percentage rate of benefit to which the survivor was otherwise entitled determined as of the date of death of such retiree or participant.
(b) No benefit shall be granted under this section until an actuarial determination has been made that there are sufficient funds within the system to fund the benefits. At any time the benefit increased may be discontinued or reduced in the event board of health participant contributions are not sufficient to pay all costs of the system. These increases may be changed or adjusted in the event revised by the employee pension benefit program. The increase herein provided may be changed if necessary or desirable to meet current or future state or federal laws or regulations. The board of managers shall approve the increase before it becomes effective.
(a) Notwithstanding any provision in this subpart to the contrary, the distribution of a participant’s benefits shall be made in accordance with the following requirements and shall otherwise comply with § 401(a)(9), Internal Revenue Code, and the regulations thereunder, including Regulation 1.401(a)(9)(2), which is incorporated herein by reference:
(1) A participant’s benefits shall be distributed or shall begin to be distributed not later than April 1st of the calendar year following the later of the calendar year in which the participant attains age 70 ½ or the calendar year in which the participant retires. Such distributions shall be equal to or greater than any required distribution. Alternatively, if the distribution is to be in the form of a joint and survivor annuity or single life annuity, then distributions shall begin no later than the applicable April 1st as determined under the preceding sentence and shall be made over the life of the participant, or the lives of the participant and the participant’s designated beneficiary, in accordance with regulations.
(2) Distributions to a participant and the participant’s beneficiaries shall only be made in accordance with the incidental death benefit requirements of § 401(a)(9)(G), Internal Revenue Code, and the regulations thereunder.
(b) For purposes of this section, the life expectancy of a participant and a participant’s spouse, other than in the case of a life annuity, at the election of the participant or the participant’s spouse, may be redetermined in accordance with regulations. The election, once made, shall be irrevocable. If no election is made by the time distributions shall commence, then the life expectancy of the participant and the participant’s spouse shall not be subject to recalculation. Life expectancy and joint and last survivor expectancy shall be computed using the return multiples in Tables V and VI of Regulation 1.72 9.
(a) Notwithstanding any provision of this subpart to the contrary that would otherwise limit a distributee’s election under this section, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution that is equal to at least five hundred dollars ($500) paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) For purposes of this section the following definitions shall apply:
(1) Eligible rollover distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: Any distribution that is one of a series of substantially equal periodic payments, not less frequently than annually, made for the life, or life expectancy, of the distributee or the joint lives, or joint life expectancies, of the distributee and the distributee’s designated beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under § 401(a)(9) Internal Revenue Code; the portion of any other distribution that is not includible in gross income, determined without regard to the exclusion for net unrealized appreciation with respect to employer securities; any hardship distribution described in § 401(k)(2)(B)(i)(IV), Internal Revenue Code; and any other distribution that is reasonably expected to total less than two hundred dollars ($200) during a year.
(2) An eligible retirement plan is an individual retirement account described in § 408(a), Internal Revenue Code, an individual retirement annuity described in § 408(b), Internal Revenue Code, an annuity plan described in § 403(a), Internal Revenue Code, a Roth Individual Retirement Account (Roth IRA) described in § 408A(b), Internal Revenue Code, or a qualified trust described in § 401(a), Internal Revenue Code, that accepts the distributee’s eligible rollover distribution.
(3) Distributee. Includes an employee or former employee. In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in § 414(p), Internal Revenue Code, are distributees with regard to the interest of the spouse or former spouse.
(4) Direct rollover. A payment by the plan to the eligible retirement plan specified by the distributee.
(c) For distributions after December 31, 2009, a nonspouse beneficiary who is a designated beneficiary under § 401(a)(9)(E), Internal Revenue Code, and the regulations thereunder, by a direct trustee-to-trustee transfer, direct rollover, may roll over all or any portion of his or her distribution to an Individual Retirement Account (IRA) the beneficiary establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise shall satisfy the definition of an eligible rollover distribution under § 401(a)(31), Internal Revenue Code.
In the case of a death or disability occurring on or after January 1, 2007, if a participant dies while performing qualified military service, as defined in § 414(u), Internal Revenue Code, the survivors of the employee are entitled to any additional benefits, other than benefit accruals relating to the period of qualified military service, provided under the plan as if the participant had resumed and then terminated employment on account of death.
","history":"(Act 2011-585, p. 1289, § 7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51388,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367048,"codeId":62399,"versionId":55327,"parentId":62332,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.250","shortTitle":"Section 45-37A-21.250","catchLine":"Pension Funding Equity Act of 2004.","title":"Section 45-37A-21.250 Pension Funding Equity Act of 2004.","sectionRange":null,"content":"Solely for purposes of calculating DROP benefits and for converting lump sum amounts for compliance with § 415, Internal Revenue Code, if the system provides a benefit in a form that is subject to the minimum present value requirements of § 417(e)(3), Internal Revenue Code, in a fiscal year beginning in 2004 or 2005, the actuarially equivalent straight life annuity that is used for demonstrating compliance with § 415, Internal Revenue Code, shall be the greater of: (1) The straight life annuity determined using the plan rate and plan mortality table and (2) the straight life annuity determined using 5.5 percent and the applicable mortality table. A benefit is subject to the minimum present value requirements of § 417(e)(3), Internal Revenue Code, if it is any benefit other than a nondecreasing annuity payable for a period of not less than the life of the participant, or, in the case of a qualified preretirement survivor annuity, the life of the surviving spouse, or such other benefit described in this subpart.
","history":"(Act 2011-585, p. 1289, § 8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51389,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367049,"codeId":62400,"versionId":55328,"parentId":62333,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.260","shortTitle":"Section 45-37A-21.260","catchLine":"Loans to Participants.","title":"Section 45-37A-21.260 Loans to Participants.","sectionRange":null,"content":"The board shall have the right to lend to any employee member from the fund such an amount of money as will not cause the aggregate of indebtedness of the employee member to the fund immediately after such loan to exceed 50 percent of the amount of contribution returnable to him or her or to those claiming under him or her, were he or she to become separated from the service immediately after such loan. Interest on such loan shall be charged at the rate of six to seven percent per annum as determined by the board annually.
","history":"(Act 2006-339, p. 851, Art. VII, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51391,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367050,"codeId":62401,"versionId":55329,"parentId":62333,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.261","shortTitle":"Section 45-37A-21.261","catchLine":"Repayment of Loan.","title":"Section 45-37A-21.261 Repayment of Loan.","sectionRange":null,"content":"Any loan made to a participant from the fund pursuant to Section 45-37A-51.260 shall be repayable in either monthly or quarterly installments over a period not to exceed 36 months from the date of issuance of such loan as the board in its discretion may require and at an interest rate of six to seven percent per annum as determined by the board, annually.
","history":"(Act 2006-339, p. 851, Art. VII, § 2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51392,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367051,"codeId":62402,"versionId":55330,"parentId":62333,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.262","shortTitle":"Section 45-37A-21.262","catchLine":"Life Insurance; Security.","title":"Section 45-37A-21.262 Life Insurance; Security.","sectionRange":null,"content":"(a) Should a participant obtaining a loan terminate employment for any reason, the participant shall be required to post security or collateral to allow for payments on the loan to continue subsequent to retirement or repay the loan balance within 60 days after termination, or the participant’s retirement benefit under Division 6 shall be affected. The entire pension loan, including interest thereon, shall be paid in full prior to receiving any pension benefits funds or return of contributions. Provided however, if the participant is due to collect a retirement benefit beginning immediately upon termination, the posting of insurance and/or security shall allow the payments to be deducted from the participant’s pension check. Such security may include a policy of insurance on his or her life, all premiums payable by the participant, providing for the insurance company to repay the unpaid balance of the loan in the event of his or her death or such other security as the treasurer of the fund may require. In no event may the participant be required to maintain an amount of life insurance exceeding the unpaid balance of the loan attributable to the participant applying therefor.
(b) Should the participant fail to repay his or her loan in full or as otherwise set forth in section (b) the participant shall not be permitted to draw a pension benefit calculated in Division 6, but may only receive a return of contributions, less any unpaid pension loan balance.
Any debt or liability of a participant to the fund or to the city shall be offset against, recouped from, and deducted from, any amount due from the fund to the employee member or those claiming under him or her either as return of contributions or as disability or retirement payments or death benefits, and only the balance, if any, shall be payable by the fund.
","history":"(Act 2006-339, p. 851, Art. VIII, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51395,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367053,"codeId":62404,"versionId":55332,"parentId":62334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.281","shortTitle":"Section 45-37A-21.281","catchLine":"False Representations.","title":"Section 45-37A-21.281 False Representations.","sectionRange":null,"content":"It shall be a misdemeanor, and punishable as such, for any participant or beneficiary to knowingly make any false representation to the board or to the secretary of the board or to the city director of finance or the custodian or to any investigator or agent of the board with respect to any matter pertaining to the administration of the system.
","history":"(Act 2006-339, p. 851, Art. VIII, § 2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51396,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367054,"codeId":62405,"versionId":55333,"parentId":62334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.282","shortTitle":"Section 45-37A-21.282","catchLine":"Exemptions.","title":"Section 45-37A-21.282 Exemptions.","sectionRange":null,"content":"Neither all nor any portion of the fund, whether in cash, securities, or otherwise, nor any income or yield thereof, shall be subject to or exacted on account of, any tax. No retirement or disability allowance nor any amount payable thereunder shall be subject to assignment or to any process for the collection of debts, action of court, or otherwise, provided this shall not apply to setoff, recoupment, assignments, debts, or pension loans to the fund or to the city. Except with respect to the return of contributions provided for in Section 45-37A-51.234, no liability of the fund for return of contributions shall be subject to assignment, action of court and, subject to Section 45-37A-51.235 in relation to payment to personal representatives, no liability of the fund for return of contributions shall be subject to any process for the collection of debts or other court action.
","history":"(Act 2006-339, p. 851, Art. VIII, § 3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51397,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367055,"codeId":62406,"versionId":55334,"parentId":62334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.283","shortTitle":"Section 45-37A-21.283","catchLine":"Members in Armed Forces.","title":"Section 45-37A-21.283 Members in Armed Forces.","sectionRange":null,"content":"Notwithstanding any provision of this subpart to the contrary, contributions, benefits, and service credit with respect to qualified military service shall be provided in accordance with § 414(u), Internal Revenue Code.
","history":"(Act 2006-339, p. 851, Art. VIII, § 4; Act 2011-585, p. 1289, § 9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51398,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367056,"codeId":62407,"versionId":55335,"parentId":62334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.284","shortTitle":"Section 45-37A-21.284","catchLine":"Actuarial Assumptions.","title":"Section 45-37A-21.284 Actuarial Assumptions.","sectionRange":null,"content":"(a) Effective date. Except as provided by the Pension Benefit Guaranty Corporation (PBGC) and the Internal Revenue Service, the limitations of this section shall first apply in determining the amount payable to a participant having an annuity starting date in a fiscal year beginning on or after January 1, 2008.
(b) Applicable interest rate. For purposes of the fund’s provisions relating to the calculation of the present value of a benefit payment that is subject to § 417(e), Internal Revenue Code, as well as any other fund provision referring directly or indirectly to the applicable interest rate or applicable mortality table used for purposes of § 417(e), Internal Revenue Code, any provision prescribing the use of the annual rate of interest on 30-year United States Treasury securities shall be implemented by instead using the rate of interest determined by applicable interest rate described by § 417(e), Internal Revenue Code, after its amendment by the federal Pension Protection Act. Specifically, the applicable interest rate shall be the adjusted first, second, and third segment rates applied under the rules similar to the rules of § 430(h)(2)(C), Internal Revenue Code, for the calendar month, lookback month, before the first day of the fiscal year in which the annuity starting date occurs, stability period. For this purpose, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under § 430(h)(2)(C), Internal Revenue Code, if:
(1) § 430(h)(2)(D), Internal Revenue Code, were applied by substituting the average yields for the month described in the preceding paragraph for the average yields for the 24-month period described in such section, and
(2) § 430(h)(2)(G)(i)(II), Internal Revenue Code, were applied by substituting § 417(e)(3)(A)(ii)(II), Internal Revenue Code, for § 412(b)(5)(B)(ii)(II), Internal Revenue Code, and
(3) The applicable percentage under § 430(h)(2)(G), Internal Revenue Code, is treated as being 20 percent in 2008, 40 percent in 2009, 60 percent in 2010, and 80 percent in 2011.
(c) Applicable mortality assumption. For purposes of the fund’s provisions relating to the calculation of the present value of a benefit payment that is subject to § 417(e), Internal Revenue Code, as well as any other fund provision referring directly or indirectly to the applicable interest rate, any provision directly or indirectly prescribing the use of the mortality table described in Revenue Ruling 2001-62 shall be amended to prescribe the use of the applicable annual mortality table within the meaning of § 417(e)(3)(B), Internal Revenue Code, as initially described in Revenue Ruling 2007-67.
It being recognized that it is desirable to allow as participants in the system employees of certain departments and authorities, the employees of the following such employers shall be included as constructive employees of the city and as participants in the system under the terms and conditions set forth herein subject only to any qualifications or limitations hereinafter provided.
","history":"(Act 2006-339, p. 851, Art. IX, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51401,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367058,"codeId":62409,"versionId":55337,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.301","shortTitle":"Section 45-37A-21.301","catchLine":"Board of Health.","title":"Section 45-37A-21.301 Board of Health.","sectionRange":null,"content":"Employees of the board of health, who were hired prior to June 1, 1994, and who have elected to continue to participate in the system until such employee shall elect to terminate participation in the system, shall be deemed constructively employees of the city during all their time in the service of the board of health, whether past, present, or future, and the retrospective and prospective terms of the system shall be retrospectively and prospectively applied to such constructive employees as fully and restrictively, and with like effect as though the board of health were actually such subsidiary board or department at all times past, present, and future and as though the employees thereof were actually employees of the city at all times while in the service of the board of health, past, present, or future. For the purposes of application of the terms of the system, such constructive employees of the city shall be deemed as in the classified service of the city during such period or periods, whether past, present, or future, as they may be or may have been subject to the same civil service system as that to which employees of the city may be or may have been contemporaneously subject, and shall be governed accordingly by the retrospective and prospective provisions of the system. However, any such constructive employee who may or may have become an employee member after the effective date by virtue of Section 45-37A-51.160 and prior to June 1, 1994, shall be entitled to count as creditable time his or her prior service time as well as his or her paid membership time. In case of existence in the same county of two cities having the classification as a Class 1 municipality that one which first entered such population class shall be deemed the city referred to in this and the next succeeding sections.
","history":"(Act 2006-339, p. 851, Art. IX, § 2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51402,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367059,"codeId":62410,"versionId":55338,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.302","shortTitle":"Section 45-37A-21.302","catchLine":"Civic Center.","title":"Section 45-37A-21.302 Civic Center.","sectionRange":null,"content":"(a) For the purpose of the application of the system to the extent herein provided, and for that purpose only, and except as may be otherwise or differently provided herein, the employment by the civic center of employee members shall be deemed constructively employment by the city during all of their time in the service of the civic center after the adoption of this section, with like effect as though the employee members, while working for the civic center, were actually working as employees of the city, subject to this pension system. This section shall not apply unless all of the conditions hereinafter specified are met.
(1) This section shall not apply to any employee member unless within 30 days after he or she leaves the service of the city he or she is employed by the civic center on a salary payable at regular specified intervals; any person employed by the civic center on a part time basis before he or she leaves, or when he or she leaves, the service of the city shall be within the scope of the next foregoing sentence, if he or she continues in the employ of the civic center.
(2) This section shall not apply unless the employee member leaves in the system fund the contributions made by him or her to the fund.
(3) This section shall not apply unless, within the time below stated, the civic center gives written notice to the board of managers that the civic center elects for this section to apply to the employment of the employee member by the civic center. This section shall not apply unless the board of managers receives notice within 45 days of the employee member’s leaving the service of the city. The board, in its discretion, may accept and treat as binding notice received after that time, if the board finds that delay in forwarding the notice was justified. After giving notice, it shall be the duty of the civic center to make or cause to be made and paid into the pension fund deductions from the salary of its employee who is the subject of the notice, and to do so in all respects as is provided by the system for the city to make deductions and pay into the fund from salaries of its employees who are employee members, and it shall be the further duty of the civic center to make the employer’s required contributions pursuant to Section 45-37A-51.192 to the fund from its own funds in respect to any employee who is the subject of the notice, in all respects as it is made the duty of the city to make the employer’s required contributions pursuant to Section 45-37A-51.192 in respect of its employees who are employee members, and it shall be the further duty of the civic center to fully cooperate with the board of managers, the city director of finance, and the custodian in the administration of the system.
(b) After the board of managers receives the certificate from the civic center, the election made by civic center for this section to apply to the employee member named in the certificate shall be irrevocable.
For the purpose of application of the terms of the system, and for such purpose only, and except as may be hereinafter otherwise or differently provided in this and Section 45-37A-51.305, on and after September 1, 1969, the civil defense agency whose territorial jurisdiction or responsibilities include the territory of the city shall be deemed constructively a subsidiary board or department of the city during the civil defense agency’s subsequent existence, and the employees thereof in the classified service shall be deemed constructively employees of the city during all their time in the service of the civil defense agency subsequent to September 1, 1969, and thereafter the terms of the system shall be prospectively applied to such constructive employees as fully and restrictively, and with like effect, as though the civil defense agency were actually such subsidiary board or department and as through employees of the city at all times while in the service of the civil defense agency subsequent to September 1, 1969.
","history":"(Act 2006-339, p. 851, Art. IX, § 4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51404,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367061,"codeId":62412,"versionId":55340,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.304","shortTitle":"Section 45-37A-21.304","catchLine":"Duties of Board of Health.","title":"Section 45-37A-21.304 Duties of Board of Health.","sectionRange":null,"content":"After July 1, 1945, it shall be the duty of the board of health, as an independent agency and not as a subsidiary board or department of the city, to make or cause to be made and paid into the fund deductions from the salaries of all of its employees who are employee members, and to do so in all respects as is provided by the system for the city to make deductions and pay into the fund from salaries of its employees who are employee members, and it shall be the further duty of the board of health, as such independent agency, to make matching contributions to the fund from its own funds in respect of its employees who are employee members, in all respects as it is made the duty of the city to make matching contributions in respect of its employees who are employee members, and it shall be the further duty of the board of health, as such independent agency, to fully cooperate with the board of managers, the city director of finance, and the custodian in the administration of the system, and, thereinabout, to make available to them all such records and information pertaining to employees of the board of health as they or either of them may request for the purpose of administration of the system.
","history":"(Act 2006-339, p. 851, Art. IX, § 5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51405,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367062,"codeId":62413,"versionId":55341,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.305","shortTitle":"Section 45-37A-21.305","catchLine":"Duties of the Civil Defense Agency.","title":"Section 45-37A-21.305 Duties of the Civil Defense Agency.","sectionRange":null,"content":"After September 1, 1969, it shall be the duty of the civil defense agency, or its successor agency, as an independent agency and not as a subsidiary board or department of the city, to make or cause to be made and paid into the fund deductions from the salaries of all of its employees who are employee members, and to do so in all respects as is provided by the system for the city to make deductions and pay into the fund from salaries of its employees who are employee members, and it shall be the further duty of the civil defense agency, or its successor agency, as such independent agency, to make the employer’s required contributions pursuant to Section 45-37A-51.192 to the fund from its own funds in respect of its employees who are employee members, in all respects as it is made the duty of the city to make the employer’s required contributions pursuant to Section 45-37A-51.192 in respect of its employees who are employee members, and it shall be the further duty of the civil defense agency, as such independent agency, to fully cooperate with the board of managers, the city director of finance, and the custodian in the administration of the system, and, thereinabout, to make available to them all such records and information pertaining to employees of the civil defense agency as they or either of them may request for the purpose of administration of the system.
","history":"(Act 2006-339, p. 851, Art. IX, § 6; Act 2021-245, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51406,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367063,"codeId":62414,"versionId":55342,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.306","shortTitle":"Section 45-37A-21.306","catchLine":"Employees of the Library Board.","title":"Section 45-37A-21.306 Employees of the Library Board.","sectionRange":null,"content":"(a) Employees of the library board shall be deemed constructive employees of the city during their time of service with the library board, whether past, present, or future. The retrospective and the prospective term of the system shall be retrospectively applied to constructive employees as though the library board was actually a subsidiary department of the city at all times, past, present, or future. The employees of the library board shall be governed accordingly by the retrospective and prospective provisions of the system.
(b) After the first pay period after August 1, 1999, it shall be the duty of the library board as an independent agency and not as a subsidiary or department of the city, to do all of the following:
(1) To pay into the fund deductions from the salaries and wages of its employees who are members of the system.
(2) To make the employer’s required contributions pursuant to Section 45-37A-51.192 to the fund from its own funds in respect to its employees who are members, in all respects as it is made the duty of the city to make the employer’s required contributions pursuant to Section 45-37A-51.192 in respect to its employees.
(3) To fully cooperate with the board of managers, the finance director of the city, and the custodian in the administration of the system.
(4) To make available to the system all records and information pertaining to employees of the library board as they may request for the purpose of the administration of the system.
For the purpose of the application of the terms of the system, and for such purpose only, employees of the Birmingham Airport Authority, or for any other entity having similar jurisdiction over the Birmingham Municipal Airport, shall be deemed constructively employees of the city and the airport authority shall be deemed constructively a department of the city in the same manner and under the same terms as apply to the classified and unclassified employees of the city. The airport authority shall make or cause to be made and paid into the fund, deductions from the salaries of all of its employees who are employee members, and shall make the employer’s required contributions pursuant to Section 45-37A-51.192, all under the same terms as the city employee deduction and the employer’s required contributions pursuant to Section 45-37A-51.192 are made. The airport authority shall make this information available to the board of managers, the director of finance, and the custodian in the administration of the system. This provision shall not apply until a resolution of the airport authority requesting participation in the system is delivered to and approved by the board of managers. The airport authority may choose to allow its executive director and department heads, or any of them, to decline participation in the system and thereby waive and forfeit all service credit. The airport authority shall determine which of its job classifications are to be considered in the classified service for the purposes of this system.
","history":"(Act 2006-339, p. 851, Art. IX, § 8; Act 2021-245, § 1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":51408,"hierarchyLevel":6,"createdAt":"2026-09-10T21:07:42.000Z","updatedAt":"2026-10-02T05:05:14.000Z"},{"id":320367065,"codeId":62416,"versionId":55344,"parentId":62335,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"45-37A-21.308","shortTitle":"Section 45-37A-21.308","catchLine":"Birmingham Emergency Management Agency/District.","title":"Section 45-37A-21.308 Birmingham Emergency Management Agency/District.","sectionRange":null,"content":"(a) Employees of the Birmingham Emergency Management Agency/District, or for any other entity having similar jurisdiction over the emergency management countywide, shall be deemed constructive employees of the city during such time in the service of the agency, whether past, present, or future. The retrospective and prospective term of the system shall be applied retrospectively to constructive employees as though the district were actually a subsidiary department of the city at all times past, present, or future. For the purpose of the application of the system, constructive employees shall be deemed as employees in the classified service of the city during the period or periods, whether past, present, or future, as the case may be, or may have been subject to the civil service system as that to which employees of the city may be or may have been contemporaneously subject. The employees of the agency shall be governed accordingly by the retrospective and prospective provisions of the system.
(b) It shall be the duty of the emergency management agency/district, as an independent agency and not as a subsidiary or department of the city, to pay into the fund deductions from the salaries and wages of its employees who are members of the system. It shall be the further duty of the district, as an independent agency, to make the employer’s required contributions pursuant to Section 45-37A-51.192 to the fund from its own funds in respect to its employees who are members, in all respects as it is made the duty of the city to make the employer’s required contributions pursuant to Section 45-37A-51.192 in respect to its employees who are members of the system. It shall further be the duty of the district, as an independent agency, to fully cooperate with the board of managers, the finance director of the city, and the custodian in the administration of the system, to make available to them all records and information pertaining to employees of the district as they may request for the purpose of the administration of the system.
There are specifically excluded from the gross receipts or gross sales of a utility, all revenues derived from any of the following:
(1) The furnishing of utility services which the State of Alabama is prohibited from taxing under the Constitution or laws of the United States of America or the Constitution of Alabama of 2022.
(2) The furnishing of utility services which are otherwise taxed under Sections 40-23-1 to 40-23-36, inclusive.
(3) Wholesale sales.
(4) The furnishing of electricity, natural gas, or domestic water for use or consumption by, in, or for the direct production, generation, processing, storage, delivery, or transmission of electricity, natural gas, or domestic water.
(5) The furnishing of electricity to a manufacturer or compounder for use in an electrolytic or electrothermal manufacturing or compounding process.
(6) The furnishing of natural gas to a manufacturer or compounder as a chemical raw material in the manufacturing or compounding of tangible personal property, but not as fuel or energy.
(7) The furnishing of natural gas to be used by a manufacturer or compounder to chemically convert raw materials prior to the use of the converted raw materials in an electrolytic or electrothermal manufacturing or compounding process.
(8) The use or consumption of electricity by an incorporated municipality, a board, or a corporation organized under the authority of any incorporated municipality in furnishing or providing street lighting or traffic-control systems; the use or consumption of telephone services by an incorporated municipality in providing fire alarm systems; and the use or consumption of domestic water by an incorporated municipality in extinguishing fires, explosions, or conflagrations.
(9)a. The furnishing of natural gas or electricity for use or consumption as fuel or energy in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses.
b. The exclusion provided in this subdivision shall not include the furnishing of natural gas or electricity for use or consumption as fuel or energy in the production of industrial hemp or hemp, as defined in Section 2-8-381, or cannabis, as defined in Section 20-2A-3.
(10) The furnishing of utility services through the use of a prepaid telephone calling card.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §5; Acts 1969, No. 993, p. 1757; Acts 1975, No. 1198, p. 2374, §1; Acts 1976, No. 387, p. 491, §2; Acts 1992, No. 92-623, p. 1466, §4; Acts 1995, No. 95-742, p. 1687, §1; Acts 1997, No. 97-867, 1st Ex. Sess., p. 208, §1; Act 2026-595, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38793,"hierarchyLevel":3,"createdAt":"2026-09-11T21:06:57.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":321067537,"codeId":18146,"versionId":54593,"parentId":18118,"effectiveDate":null,"supersessionDate":"2029-09-01","type":"Section","displayId":"40-21-103","shortTitle":"Section 40-21-103","catchLine":"Exclusions. (Effective September 1, 2026)","title":"Section 40-21-103 Exclusions. (Effective September 1, 2026)","sectionRange":null,"content":"The storage, use, or other consumption of utility services in the State of Alabama is hereby specifically excluded from the tax herein levied:
(1) Whenever the State of Alabama is prohibited from taxing such storage, use, or consumption under the Constitution or laws of the United States of America or the Constitution of Alabama of 2022;
(2) Whenever any tax relating to the sale, use, storage, or consumption of the utility services is levied under the provisions of Article 2 of Chapter 23, or under the provisions of Sections 40-23-1 through 40-23-36, or the Alabama Transaction Tax Act of 1992 if enacted into law;
(3) Whenever the purchase of the utility services is at a wholesale sale;
(4) Whenever electricity, natural gas, or domestic water is used or consumed directly in or for the production, generation, processing, storage, delivery, or transmission of electricity, natural gas, or domestic water;
(5) Whenever electricity purchased for storage, use, or other consumption is used or consumed by a manufacturer or compounder in an electrolytic or electrothermal manufacturing or compounding process;
(6) Whenever natural gas purchased for storage, use, or other consumption is used or consumed by a manufacturer or compounder as a chemical raw material in the manufacturing or compounding of tangible personal property, but not as fuel or energy;
(7) Whenever natural gas purchased for storage, use, or other consumption is used by a manufacturer or compounder to chemically convert raw materials prior to the use of the converted raw materials in an electrolytic or electrothermal manufacturing or compounding process;
(8) Whenever the sales price of utility services is included as a part of the gross receipts or gross sales of a utility subject to the utility gross receipts tax for the purpose of calculating the utility gross receipts tax payable by the utility;
(9) Whenever electricity purchased for storage, use, or other consumption is used or consumed in a process for the isotopic enrichment of uranium and when the electricity is purchased from a subsidiary corporation of the corporation engaged in the isotopic enrichment of uranium;
(10) Whenever utility services are furnished through the use of a prepaid telephone calling card; and
(11)a. Whenever natural gas or electricity purchased for storage, use, or other consumption is used or consumed as fuel or energy in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses.
b. The exclusion provided in this subdivision shall not include natural gas or electricity purchased for storage, use, or other consumption as fuel or energy in the production of industrial hemp or hemp, as defined in Section 2-8-381, or cannabis, as defined in Section 20-2A-3.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88; Acts 1975, No. 1193, p. 2340, §1; Acts 1992, No. 92-623, p. 1466, §10; Act 97-867, 1st Ex. Sess., p. 208, §2; Act 2026-595, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38804,"hierarchyLevel":3,"createdAt":"2026-09-11T21:06:57.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":321126944,"codeId":18083,"versionId":54595,"parentId":18057,"effectiveDate":"2029-09-01","supersessionDate":null,"type":"Section","displayId":"40-21-83","shortTitle":"Section 40-21-83","catchLine":"Exclusions. (Effective September 1, 2029)","title":"Section 40-21-83 Exclusions. (Effective September 1, 2029)","sectionRange":null,"content":"There are specifically excluded from the gross receipts or gross sales of a utility, all revenues derived from any of the following:
(1) The furnishing of utility services which the State of Alabama is prohibited from taxing under the Constitution or laws of the United States of America or the Constitution of Alabama of 2022.
(2) The furnishing of utility services which are otherwise taxed under Sections 40-23-1 to 40-23-36, inclusive.
(3) Wholesale sales.
(4) The furnishing of electricity, natural gas, or domestic water for use or consumption by, in, or for the direct production, generation, processing, storage, delivery, or transmission of electricity, natural gas, or domestic water.
(5) The furnishing of electricity to a manufacturer or compounder for use in an electrolytic or electrothermal manufacturing or compounding process.
(6) The furnishing of natural gas to a manufacturer or compounder as a chemical raw material in the manufacturing or compounding of tangible personal property, but not as fuel or energy.
(7) The furnishing of natural gas to be used by a manufacturer or compounder to chemically convert raw materials prior to the use of the converted raw materials in an electrolytic or electrothermal manufacturing or compounding process.
(8) The use or consumption of electricity by an incorporated municipality, a board, or corporation organized under the authority of any incorporated municipality in furnishing or providing street lighting or traffic-control systems; the use or consumption of telephone services by an incorporated municipality in providing fire alarm systems; and the use or consumption of domestic water by an incorporated municipality in extinguishing fires, explosions, or conflagrations.
(9) The furnishing of natural gas or electricity for use or consumption as fuel or energy in and for the heating of poultry houses.
(10) The furnishing of utility services through the use of a prepaid telephone calling card.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §5; Acts 1969, No. 993, p. 1757; Acts 1975, No. 1198, p. 2374, §1; Acts 1976, No. 387, p. 491, §2; Acts 1992, No. 92-623, p. 1466, §4; Acts 1995, No. 95-742, p. 1687, §1; Acts 1997, No. 97-867, 1st Ex. Sess., p. 208, §1; Act 2026-595, §1; Act 2026-595, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38794,"hierarchyLevel":3,"createdAt":"2026-09-11T21:31:09.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":321126945,"codeId":18146,"versionId":54594,"parentId":18118,"effectiveDate":"2029-09-01","supersessionDate":null,"type":"Section","displayId":"40-21-103","shortTitle":"Section 40-21-103","catchLine":"Exclusions. (Effective September 1, 2029)","title":"Section 40-21-103 Exclusions. (Effective September 1, 2029)","sectionRange":null,"content":"The storage, use, or other consumption of utility services in the State of Alabama is hereby specifically excluded from the tax herein levied:
(1) Whenever the State of Alabama is prohibited from taxing such storage, use, or consumption under the Constitution or laws of the United States of America or the Constitution of Alabama of 2022;
(2) Whenever any tax relating to the sale, use, storage, or consumption of the utility services is levied under the provisions of Article 2 of Chapter 23, or under the provisions of Sections 40-23-1 through 40-23-36, or the Alabama Transaction Tax Act of 1992 if enacted into law;
(3) Whenever the purchase of the utility services is at a wholesale sale;
(4) Whenever electricity, natural gas, or domestic water is used or consumed directly in or for the production, generation, processing, storage, delivery, or transmission of electricity, natural gas, or domestic water;
(5) Whenever electricity purchased for storage, use, or other consumption is used or consumed by a manufacturer or compounder in an electrolytic or electrothermal manufacturing or compounding process;
(6) Whenever natural gas purchased for storage, use, or other consumption is used or consumed by a manufacturer or compounder as a chemical raw material in the manufacturing or compounding of tangible personal property, but not as fuel or energy;
(7) Whenever natural gas purchased for storage, use, or other consumption is used by a manufacturer or compounder to chemically convert raw materials prior to the use of the converted raw materials in an electrolytic or electrothermal manufacturing or compounding process;
(8) Whenever the sales price of utility services is included as a part of the gross receipts or gross sales of a utility subject to the utility gross receipts tax for the purpose of calculating the utility gross receipts tax payable by the utility;
(9) Whenever electricity purchased for storage, use, or other consumption is used or consumed in a process for the isotopic enrichment of uranium and when the electricity is purchased from a subsidiary corporation of the corporation engaged in the isotopic enrichment of uranium; and
(10) Whenever utility services are furnished through the use of a prepaid telephone calling card.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88; Acts 1975, No. 1193, p. 2340, §1; Acts 1992, No. 92-623, p. 1466, §10; Act 97-867, 1st Ex. Sess., p. 208, §2; Act 2026-595, §1; Act 2026-595, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38805,"hierarchyLevel":3,"createdAt":"2026-09-11T21:31:09.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":328076691,"codeId":16761,"versionId":54599,"parentId":16689,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-19","shortTitle":"Section 40-18-19","catchLine":"Exemptions - Generally.","title":"Section 40-18-19 Exemptions - Generally.","sectionRange":null,"content":"(a) The following exemptions from income taxation shall be allowed to every individual resident taxpayer:
(1) Retirement allowances, pensions and annuities, or optional allowances, approved by the Board of Control of the Teachers’ Retirement System of Alabama, which exempt status is set out in Section 16-25-23.
(2) Retirement allowances, pensions and annuities, or optional allowances, approved by the Board of Control of the Employees’ Retirement System of Alabama, which exempt status is set out in Section 36-27-28.
(3) The first eight thousand dollars ($8,000) of any retirement compensation, retirement allowances, pensions and annuities, or optional allowances, received by any eligible firefighter, as defined in Sections 36-32-1 and 36-32-2, or his or her designated beneficiary, from any firefighting agency established in the State of Alabama, but only if the retirement compensation, retirement allowances, pensions and annuities, or optional allowances are awarded as a result of fire protection services rendered. This subdivision shall become effective for the taxable years beginning January 1, 1987, and thereafter; provided, that for the taxable years beginning on or after January 1, 1991, all of the pension and retirement payments shall be exempt from taxation.
(4) The first eight thousand dollars ($8,000) of any retirement compensation, retirement allowances, pensions and annuities, or optional allowances received by any eligible peace officer, as defined in Section 36-21-60, or his or her designated beneficiary, from any police retirement system established in the State of Alabama, but only if the retirement compensation, retirement allowances, pensions and annuities, or optional allowances are awarded as a result of police services rendered. This subdivision shall become effective for taxable years beginning January 1, 1984, and thereafter; provided, that for the taxable years beginning on or after January 1, 1991, all of the pension and retirement payments shall be exempt from taxation.
(5) Income received as annuities under the United States Retirement System from the United States Government Civil Service Retirement and Disability Fund, including income received from the Tennessee Valley Authority’s pension system, income received as annuities under the United States Foreign Service Retirement and Disability Fund, or income received from any other United States government retirement and disability fund.
(6) Beginning January 1, 1991, all payments made on or after such date to a retiree or his or her designated beneficiary under a “defined benefit plan,” as defined under 26 U.S.C. § 414(j), to the extent such payment would be taxable for federal income tax purposes.
(7) Net income realized by individuals and partnerships from time to time in the business of conducting a financial business employing monied capital coming into competition with the business of national banks, but only if the individuals and partnerships are subject to an excise tax imposed by this state on or with respect to such income.
(8) In the case of a single person or a married person not living with a spouse, a personal exemption of one thousand five hundred dollars ($1,500) or, in the case of a head of a family or a married person living with a spouse, a personal exemption of three thousand dollars ($3,000), but spouses living together shall receive only one personal exemption of three thousand dollars ($3,000) against their aggregate income, and in case they make separate returns each spouse must claim a personal exemption of one thousand five hundred dollars ($1,500).
(9)a. Three hundred dollars ($300) for each person, other than a spouse, who is dependent upon the taxpayer, and over half of whose support, for the calendar year in which the taxable year for the taxpayer begins, was received from the taxpayer.
b. For tax years beginning after December 31, 2006, for taxpayers with adjusted gross income equal to or less than twenty thousand dollars ($20,000), one thousand dollars ($1,000) for each person other than a spouse, who is dependent upon the taxpayer, and over half of whose support, for the calendar year in which the taxable year for the taxpayer begins, was received from the taxpayer.
c. For tax years beginning after December 31, 2006, for taxpayers with adjusted gross income in excess of twenty thousand dollars ($20,000) and equal to or less than one hundred thousand dollars ($100,000), five hundred dollars ($500) for each person other than a spouse, who is dependent upon the taxpayer, and over half of whose support, for the calendar year in which the taxable year for the taxpayer begins, was received from the taxpayer.
d. For tax years beginning after December 31, 2021, for taxpayers with adjusted gross income equal to or less than fifty thousand dollars ($50,000), one thousand dollars ($1,000) for each person other than a spouse, who is dependent upon the taxpayer, and over half of whose support, for the calendar year in which the taxable year for the taxpayer begins, was received from the taxpayer.
e. For tax years beginning after December 31, 2021, for taxpayers with adjusted gross income in excess of fifty thousand dollars ($50,000) and equal to or less than one hundred thousand dollars ($100,000), five hundred dollars ($500) for each person other than a spouse, who is dependent upon the taxpayer, and over half of whose support, for the calendar year in which the taxable year for the taxpayer begins, was received from the taxpayer.
For the purposes of this section, “dependent” shall mean: A son or daughter of the taxpayer or a descendant of either; a stepson or stepdaughter of the taxpayer; a brother, sister, stepbrother, or stepsister of the taxpayer; the father or mother of the taxpayer or an ancestor of either; a stepfather or stepmother of the taxpayer; a son or daughter of a brother or sister of the taxpayer; a brother or sister of the father or mother of the taxpayer; or a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the taxpayer. As used in this paragraph, the terms “brother” and “sister” include a brother or sister by the half blood. For the purpose of determining whether any of the foregoing relationships exist, a legally adopted child of a person shall be considered a child of the person by blood.
(10) Beginning January 1, 1998, all income, interest, dividends, gains, or benefits of any kind received from savings accounts or prepaid tuition contracts administered under Title 16, Chapter 33C, are exempt from all income taxation by the state and by all of its political subdivisions to the extent that the amounts remain on deposit in the PACT Trust Fund or the ACES Trust Fund, or are used to pay the designated beneficiary’s qualified higher education expenses as defined in 26 U.S.C. § 529, or are refunded under such terms as would not carry a penalty under 26 U.S.C. § 529.
(11) Beginning January 1, 2016, all income, interest, dividends, gains, or benefits of any kind received from ABLE savings accounts administered under Title 16, Chapter 33C, are exempt from all income taxation by the state and by all of its political subdivisions to the extent that the amounts remain on deposit in the ABLE Trust Fund, or are used to pay the designated beneficiary’s qualified disability expenses as defined in 26 U.S.C. § 529A, or are refunded under such terms as would not carry a penalty under 26 U.S.C. § 529A, or other applicable federal law.
(12) Beginning January 1, 2018, amounts received by an individual from sources within a foreign country or countries which constitute a housing allowance, and earned income attributable to services performed by such individual received during the tax period are exempt from all income taxation by the state and by all of its political subdivisions to the extent such income is exempt from federal income tax pursuant to 26 U.S.C. § 911.
(13)a. Beginning January 1, 2023, the first six thousand dollars ($6,000) of taxable retirement income.
b. This exemption may only be claimed by individual taxpayers who are 65 years of age or older.
(14) Beginning January 1, 2027 through December 31, 2029, the first five thousand dollars ($5,000) of income received by a member of the Alabama National Guard as payment for inactive duty training (IDT) as described in 37 U.S.C. § 206.
(b) Of the following personal exemptions allowed resident taxpayers, each nonresident individual taxpayer shall be allowed that proportion thereof that the adjusted gross income received by the nonresident individual taxpayer from sources within the State of Alabama bears to his or her adjusted gross income received from sources within and without the State of Alabama: In the case of a single person or a married person not living with a spouse, a personal exemption of one thousand five hundred dollars ($1,500) or, in the case of a head of a family or a married person living with a spouse, a personal exemption of three thousand dollars ($3,000), spouses living together shall receive but one personal exemption of three thousand dollars ($3,000) against their aggregate income; and, in case they make separate returns, each spouse must claim a personal exemption of one thousand five hundred dollars ($1,500); and the amount in subdivision (a)(9) for each person, other than a spouse, who is dependent upon and receiving his or her chief support from the taxpayer.
(c) The Department of Revenue may adopt rules as necessary to implement and administer the provisions of this section.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §388; Acts 1945, No. 39, p. 45; Acts 1947, No. 367, p. 254; Acts 1953, No. 693, p. 945; Acts 1959, No. 112, p. 634, §1; Acts 1965, No. 552, p. 1021, §1; Acts 1969, Ex. Sess., No. 20, p. 44, §1; Acts 1982, No. 82-441, p. 692, §1; Acts 1982, No. 82-465, p. 759, §4; Acts 1982, 1st Ex. Sess., No. 82-667, p. 85, §4; Acts 1987, No. 87-630, p. 1130; Acts 1990, No. 90-596, p. 1041, §1; Acts 1991, No. 91-480, p. 869, §1; Acts 1997, No. 97-547, p. 957, §2; Act 2006-62, p. 75, §1; Act 2006-352, p. 927, §1; Act 2015-442, p. 1419, §1; Act 2018-232, §1; Act 2022-292, §1; Act 2022-297, §1; Act 2022-294, §2; Act 2026-603, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38339,"hierarchyLevel":3,"createdAt":"2026-09-23T17:06:05.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":328789623,"codeId":60710,"versionId":53734,"parentId":60700,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-559","shortTitle":"Section 40-18-559","catchLine":"Rulemaking Authority.","title":"Section 40-18-559 Rulemaking Authority.","sectionRange":null,"content":"(a) The department shall adopt rules pursuant to the Alabama Administrative Procedure Act to administer and implement this article, inclusive of the responsibility of the board. The rules shall provide for all of the following:
(1) That the tax credits will not reduce the distribution for the Alabama Special Mental Health Fund.
(2) That the tax credits shall be awarded based on the order in which the credits are requested.
(b) The department shall prescribe the method by which the tax credits are to be issued to eligible taxpayers.
","history":"(Act 2025-404, §10; Act 2026-34, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38694,"hierarchyLevel":3,"createdAt":"2026-09-24T17:05:43.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":328789624,"codeId":60711,"versionId":53735,"parentId":60700,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-560","shortTitle":"Section 40-18-560","catchLine":"Rulemaking Authority of State Treasurer; Program Publicity. [Repealed]","title":"Section 40-18-560 Rulemaking Authority of State Treasurer; Program Publicity. [Repealed]","sectionRange":null,"content":"THIS SECTION WAS REPEALED BY ACT 2026-34, EFFECTIVE FEBRUARY 4, 2026.
","history":"(Act 2025-404, §11; Act 2026-34, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38695,"hierarchyLevel":3,"createdAt":"2026-09-24T17:05:43.000Z","updatedAt":"2026-10-02T05:05:11.000Z"}]