SB292 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Hank Sanders
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: SB292 raises the maximum period to calculate the accrued liability contribution rate for the Teachers' Retirement System and Employees' Retirement System from 20 years to 30 years.
What This Bill Does
It lets the Board of Control choose an amortization period for unfunded liabilities up to 30 years (between 10 and 30). It requires actuarial valuations to determine both a normal contribution rate and an accrued liability contribution rate, expressed as a percentage of total annual pay, to liquidate the unfunded liability over the chosen period. It maintains the three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and governs how contributions are collected, allocated, and transferred between funds. It also provides for state pickup of employee contributions for state employees and outlines related funding and tax treatment.

Who It Affects
Members of the Teachers' Retirement System and Employees' Retirement System, whose contribution rates and benefits may be affected by extending the amortization period.
Employers such as local boards of education, the State Board of Education, the universities, and related entities, who must calculate, remit, and manage employer and employee contributions and fund transfers.

Key Provisions
Extends the maximum period for calculating the accrued liability contribution rate from 20 years to 30 years for both the Teachers' Retirement System and Employees' Retirement System.
Authorizes the Board of Control to set an amortization period for unfunded accrued liability between 10 and 30 years.
Requires the actuary to determine a normal contribution rate and an accrued liability contribution rate after each valuation, based on total annual compensation, to liquidate unfunded liability over the period.
Maintains the three funds (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and details how balances and contributions move between them, including death benefits and survivor provisions.
Prescribes how employer and member contributions are collected, reported, and remitted, including timing and reporting formats.
Allows for state pickup of employee contributions for state employees with corresponding tax treatment and administrative procedures.
Specifies death benefits in certain cases and how accumulated contributions are handled upon retirement or death.
Provides for appropriations and the funding of administrative expenses through the Expense Fund.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Employees' Retirement System