HB525 Alabama 2011 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2011

Title

Teachers' Retirement System, Board of Control, membership and qualifications altered, Sec. 16-25-19 am'd.

Summary

HB525 changes the Teachers' Retirement System Board of Control by altering its size, adding new qualifications, and requiring diversity and a transitional timeline.

What This Bill Does

It reduces/changes the Board of Control to 13 trustees and reorganizes membership into specified ex officio, elected, and appointed seats. It adds stricter qualifications, requiring most members to have expertise in investments, finance, or related fields, and prohibits holding certain other state jobs or employment with firms doing business with the retirement system. It requires the board to reflect diversity and sets a transition timeline: current terms end June 30, 2011; new terms begin after July 1, 2011, with the first meeting by August 1, 2011. It also maintains standard governance provisions such as oath of office, voting rules, and annual reporting.

Who It Affects

• Active and retired members of the Alabama Teachers' Retirement System, since they select the 10 elected trustees and are affected by the new qualifications and transition timeline.
• Public employers and institutions (state/local education agencies, higher education, and firms that do business with the retirement system) because the bill imposes conflict-of-interest restrictions and designates appointing authorities for board seats.

Key Provisions

• Amends Section 16-25-19 to change the Board of Control to 13 trustees with defined categories for ex officio, elected, and appointed members (including local education employees, state officials, education association representatives, postsecondary institution appointees, and elected members from the retirement system).
• Adds new qualification requirements: except for officeholders, trustees must be experts in investments, market analysis, or financial planning, and may not hold full-time employment with the state, counties, municipalities, educational institutions, or related agencies; also forbids employment by firms doing business with the retirement system.
• Requires board membership to reflect inclusive diversity across race, gender, geography, urban/rural status, and economic background.
• Provides an orderly transition: current board terms expire June 30, 2011; new terms begin after qualification but no earlier than July 1, 2011; first meeting of the reconstituted board by August 1, 2011.
• Maintains general governance provisions such as oath of office, voting rules (one vote per trustee; majority required), annual financial reporting, and the board’s ability to hire necessary actuarial and administrative staff; effective date is immediate upon governor’s 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

Teachers' Retirement System