SB412 Alabama 2011 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2011

Title

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

Summary

SB412 changes the Teachers' Retirement System Board of Control by reducing its size, adding diversity requirements, and tightening member qualifications and governance.

What This Bill Does

It reduces the board from 14 to 13 trustees and redefines its composition to include ex officio members and ten elected members from the retirement system. It requires most trustees to be experts in investments or finance, bans most full-time public employment for trustees, and prohibits working for firms that do business with the retirement system. It adds diversity requirements, sets transition timing for the new board, and gives the board powers to elect leadership, hire staff, publish reports, and oversee medical and actuarial functions.

Who It Affects

• Current and prospective Board of Control members (ex officio and elected) who must meet new qualifications, follow the new term structure, and participate in a new election process.
• Public education stakeholders and taxpayers, who may see a more diverse board, stricter conflict-of-interest rules, greater transparency through annual reports, and changes in who can serve on the board.

Key Provisions

• Board size changed from 14 to 13 trustees.
• Board composition includes ex officio seats (e.g., State Treasurer, Director of Finance, a public education employee appointed by the State Superintendent of Education, a postsecondary education appointee) and ten elected members representing retired members, administrators, educators, and support personnel.
• Ten elected members are chosen by statewide election from categories: two retired members, one city/county superintendent, one principal, one postsecondary education member, three K-12 teachers, and two educational support personnel.
• All non-ex officio trustees must be experts in investments, market analysis, or financial planning, with restrictions on holding full-time state or local public employment and on being employed by firms doing business with the retirement system.
• Vacancies must be filled within 30 days by appointment; trustees serve without compensation but may be reimbursed for expenses; oath of office required.
• Board decisions require a majority vote; ties cause the decision to fail; board elects a chairman and a Secretary-Treasurer to manage the system.
• Board responsibilities include maintaining data for actuarial valuation, publishing an annual financial report, and organizing medical and actuarial oversight, including appointing a medical board and an actuary.
• Section 2 requires membership to reflect statewide diversity in race, gender, geography, urban/rural status, and economy.
• Section 3 outlines an orderly transition with current terms ending June 30, 2011, new terms starting after qualification (not before July 1, 2011), and the first reconstituted board meeting by August 1, 2011.
• Section 5 makes the act effective immediately upon passage and 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

Teachers' Retirement System