HB538 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Allen TreadawayRepresentative
Republican
Session: Regular Session 2014
Title: Birmingham, Retirement and Relief System, investments are fixed income securities, Act 556, 1959 Reg. Sess., am'd.
Summary: HB538 updates Birmingham's retirement system by setting a minimum fixed-income share and restructuring the Board of Managers with new representation and investment rules.
What This Bill Does
It requires that at least 25% of the system's investments be fixed income securities. It creates a five-member Board of Managers for the Birmingham Retirement and Relief System, with the city president as chair and four associate members including a firefighter, a police officer, and a retiree, who are chosen through specified election processes and serve four-year terms. It gives the Board broad authority to invest in a wide range of assets, but with limits such as a maximum 60% in equity and a minimum 25% in fixed income, plus diversification and oversight rules. It also establishes a funding mechanism that mirrors city contributions to the General Retirement and Relief System for firefighters or police officers who retire after long service.

Who It Affects
Participants in the City of Birmingham Retirement and Relief System (firefighters and police officers) who will elect the Board members and have a say in representation.
Retirees from the Birmingham Firemen's and Policemen's Supplemental Pension System who vote for the retiree representative (Member No.4) and rotate that seat.
The Jefferson County Personnel Board, which appoints Member No.1 and serves as secretary through its personnel director, who attends meetings and keeps records.
The Board of Managers and the fund, which will follow new investment rules and governance to manage assets and distributions.
The General Retirement and Relief System of the City of Birmingham, which will receive specified transfers mirroring what would have been contributed for 30 years of service.

Key Provisions
Not less than 25% of the system's investments must be fixed income securities.
Board of Managers: five members including the city president (chair) and four associate members (Member Nos. 1-4) with defined qualifications and appointment/election rules.
Member No.1 appointed by the Jefferson County Personnel Board; Member No.2 a firefighter participant; Member No.3 a police officer participant; Member No.4 a retiree from the Birmingham Firemen's and Policemen's Supplemental Pension System; elections by respective groups; four-year terms.
Meetings and governance: secretary provided by the Jefferson County Personnel Board; quorum of three; rules to regulate meetings; board can adopt rules not inconsistent with the act.
Investment authority: broad list of allowed assets (various fixed income, equities, funds, real estate, international investments, etc.) with limits such as equity not exceeding 60% of total investments and fixed income not less than 25% of the fund's value; cap of 10% for any single non-guaranteed agency/entity on fixed income allocation.
Investments must be registered or traded on recognized markets (SEC-registration, NASDAQ, organized exchanges, etc.).
Funding provision: when a firefighter or police officer retires, the Board must pay monthly amounts to the General Retirement and Relief System equal to the city’s would-have-been deduction and employer match for 30 years of service, during the retirement period.
Severability and immediate effectiveness: the act’s provisions are severable and become effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Jefferson County