SB304 Alabama 2010 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

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

SB304 would extend the maximum period used to calculate the accrued liability contributions for the Employees' Retirement System from 20 years to 30 years.

What This Bill Does

Specifically, the bill amends Section 36-27-24 to let the funding period for the accrued liability contribution rate be up to 30 years (up from 20). The actuary would continue to base rates on annual valuations, but the longer period changes how liabilities are spread over time. This could influence how much employers contribute each year and how funds are allocated among the three retirement funds.

Who It Affects

• Active and future members of the Employees' Retirement System (state employees) — their accrued liability contributions are determined by this funding period and may be spread over a longer time.
• Employers (state agencies and departments) — their required employer contributions could change as the accrued liability rate is calculated over a longer period.

Key Provisions

• Increase the maximum funding period for calculating the accrued liability contribution from 20 years to 30 years.
• Preserve the existing three-fund structure (Annuity Savings Fund, Pension Accumulation Fund, Expense Fund) and the role of the Board of Control and actuary in setting and applying contribution rates.

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