HB524 Alabama 2011 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2011

Title

Employees' Retirement System, Board of Control, membership and qualifications altered, Sec. 36-27-23 am'd.

Summary

HB524 would alter the Board of Control for the Employees' Retirement System of Alabama and add new qualifications for its members.

What This Bill Does

It changes who makes up the 13-member Board of Control and sets new eligibility rules for members. The board would include ex officio leaders, three governor-appointed state employees, two elected state employees, two elected retired beneficiaries, two elected from employers participating in the system, and two appointees by the House Speaker and Senate President Pro Tempore. It also requires board members to be experts in investments, finance, or related fields, and restricts most members from holding other full-time public jobs or working for businesses that do business with the retirement system. The bill also sets transition timelines from the old board to the new one and requires the board to handle governance duties like appointing a Secretary-Treasurer, hiring actuaries, keeping records, and publishing annual reports.

Who It Affects

• Governor and other ex officio leaders (Governor as chair; State Treasurer, State Personnel Director, and Director of Finance) who will serve on the Board.
• Three state employees appointed by the Governor ( Merit System employees with at least 10 years of creditable state service) who would become trustees.
• Full-time State Employees who are members of the State Employees' Retirement System who can vote to elect two board members.
• Retired state employees and retirees from cities, counties, or public agencies who can elect two retired-member trustees.
• Employees of employers participating in the retirement system who can elect two trustees from among themselves.
• Two individuals appointed by the Speaker of the House and two appointed by the President Pro Tempore of the Senate.
• All board members (except certain ex officio members) who must meet new professional qualifications and avoid conflicts of interest (no full-time state/local job; cannot be employed by businesses that do business with the retirement system).
• The broader public and retirees who are affected by the transition plan and governance changes.

Key Provisions

• Amends Section 36-27-23 to redefine the Board of Control as a 13-member body with specified categories and appointment/election methods.
• Defines membership as: Governor (chair, ex officio); State Treasurer (ex officio); State Personnel Director (ex officio); Director of Finance (ex officio); three Governor-appointed state employees; two elected State Employees' Retirement System members; two elected retired beneficiaries; two elected from employer participants; two appointed by the House Speaker; and two appointed by the Senate President Pro Tempore.
• Requires most trustees to be experts in investments, market analysis, or financial planning, with restrictions on holding other full-time state/local offices or employment with firms doing business with the Retirement System.
• Sets terms and transition: appointed members serve three-year terms; transition from the old board to the new one begins after June 30, 2011 with new terms starting no earlier than July 1, 2011 and first meeting by August 1, 2011.
• Board responsibilities include electing a Secretary-Treasurer (CEO), hiring actuaries and other required services, managing funds, maintaining records, and publishing an annual financial report.
• Diversity provision to reflect the state's racial, gender, geographic, urban/rural, and economic diversity where possible.
• The act is effective immediately upon passage and approval.

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