SB279 Alabama 2011 Session

Summary

Primary Sponsor

Del Marsh

Republican

Co-Sponsors

Scott BeasonPhillip W. WilliamsBryan Taylor

Session

Regular Session 2011

Title

State Personnel Board, adoption of tax deferred annuity and deferred compensation programs for state employees, Sec. 36-26-14 am'd.

Summary

SB279 would allow the Alabama State Personnel Board to adopt and manage tax-deferred retirement and deferred compensation plans for salaried state employees, with consolidated billing and administration through the Alabama State Employees Association at little or no net cost to the state.

What This Bill Does

If enacted, the State Personnel Board could establish tax-deferred annuity and deferred compensation plans for salaried state employees and arrange consolidated billing and administrative services. Participation would be voluntary and funded by employee payroll deductions, with the state incurring only incidental admin costs and the cost of payroll deductions/remittance. The plans would be set up as trusts for the exclusive benefit of participants and their beneficiaries and could include features allowed by the IRS, such as loans, hardship distributions, Roth deferrals, rollovers, transfers to purchase service credits, and distributions to purchase health insurance for retired public safety officers.

Who It Affects

• Salaried state employees: may voluntarily participate in tax-deferred annuity and deferred compensation plans funded through payroll deductions.
• State Personnel Board: would be authorized to adopt the plan(s) and coordinate consolidated billing and administration.
• Alabama State Employees Association or designated agent: would provide plan recommendations and handle administrative and billing services.
• Finance Director, Comptroller, or other appropriate state official: would initiate payroll deductions as directed by each employee.
• Plan participants and their beneficiaries: assets would be held in trust for their exclusive benefit and would supplement existing retirement benefits.

Key Provisions

• Amends Section 36-26-14 to authorize the Personnel Board to adopt a plan or plans for tax-deferred annuities and deferred compensation for salaried state employees and to maintain those plans.
• Plans may include provisions that keep tax-favored treatment under the IRS Code, including participant loans, unforeseeable emergency distributions, Roth deferrals, rollovers, transfers to purchase service credit, and distributions to purchase a retired public safety officer's health insurance.
• The Personnel Board may arrange for consolidated billing and efficient investment, trustee, administrative, and professional services through the Alabama State Employees Association or its designated agent so that plans operate at no cost to the state except incidental administrative expenses and the cost of payroll deductions and remittance.
• Participation is voluntary and requires written authorization from the employee to reduce cash remuneration to fund the plan.
• The plans and their trusts must be established and maintained for the exclusive benefit of participants and beneficiaries, and are to be administered as express statutory trusts.
• Effective immediately following passage and governor's approval.

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

Subjects

State Personnel Board