HB289 Alabama 2010 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Co-Sponsors

Barbara Bigsby BoydDemetrius C. Newton

Session

Regular Session 2010

Title

Employees' Retirement System, pension accumulation fund, accrued liability contribution rate authorized to be computed by Board of Control over 30-year period, Sec. 36-27-24 am'd.

Summary

HB289 would extend the period used to calculate the accrued liability contribution rate for Alabama's Employees' Retirement System from 20 years to 30 years.

What This Bill Does

The bill changes the maximum funding horizon used to determine the accrued liability contribution rate, allowing it to be spread over up to 30 years instead of 20. The contribution rate would still be set as a percentage of total annual compensation intended to liquidate accrued liability, but over the longer period. The overall structure of the system’s funds and contribution mechanics remains the same, though annual contribution amounts could be affected by the longer funding horizon.

Who It Affects

• Active and future members of the Employees' Retirement System, as changes to the funding period can influence long-term contribution levels and how liabilities are funded that affect their benefits.
• Employers funding the system (state agencies and departments) whose required contributions to the Pension Accumulation Fund, Annuity Savings Fund, and Expense Fund may be influenced by the revised funding period.

Key Provisions

• Amends Section 36-27-24 to increase the maximum funding period for the accrued liability contribution rate from 20 years to 30 years.
• The accrued liability contribution rate would be calculated as a percentage of total annual compensation sufficient to liquidate the accrued liability over the longer period, as determined by the Board of Control and actuarial valuation.
• Keeps the existing three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and current contribution mechanics, with changes primarily affecting the funding period used in calculations.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employees' Retirement System