HB352 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Richard Lindsey
Democrat
Session: Regular Session 2010
Title: Teachers' Retirement System and Employees' Retirement System, pension accumulation fund, accrued liability contribution rate authorized to be computed by Board of Control over 30-year period, Sec. 16-25-21, 36-27-24 am'd.
Summary: HB352 would extend the maximum period for funding unfunded accrued liabilities in the Teachers' Retirement System and Employees' Retirement System from 20 years to 30 years.
What This Bill Does
It changes the amortization period used to calculate the accrued liability contribution rate, allowing a period of up to 30 years to liquidate unfunded liabilities. The accrued liability contribution rate would still be a percentage of total annual compensation, determined by actuarial valuations, but the liquidating period would now be within a 10 to 30 year range. By spreading liabilities over a longer time, annual contributions from members and employers could be adjusted accordingly, depending on actuarial results. The bill preserves the existing three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and the current contribution and funding framework.

Who It Affects
Members of the Teachers' Retirement System and Employees' Retirement System (teachers and other employees) — their accrued liability contribution rate would be set to liquidate liabilities over a longer amortization period, potentially changing annual deductions.
Employers funding the systems (local boards of education, the State Board of Education, universities, and related groups) — they would continue deducting and remitting contributions based on the new amortization window and valuation-driven rates, with existing reporting requirements.

Key Provisions
Amends sections 16-25-21 and 36-27-24 to raise the maximum period for liquidating unfunded accrued liability from 20 years to 30 years for the Teachers' Retirement System and Employees' Retirement System.
The accrued liability contribution rate remains a percentage of total annual compensation, determined by actuarial valuations, with the liquidation period determined by the Board of Control and not less than 10 or more than 30 years.
Retains the three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and related funding, transfers, and reporting requirements, including valuation methods and interfund transfers as needed.
Effective date: the act would become effective immediately after passage and Governor approval (or upon becoming law otherwise).

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