HB73 Alabama 2014 Session

Summary

Primary Sponsor

Johnny Mack Morrow

Democrat

Session

Regular Session 2014

Title

Retirement Systems of Alabama, secretary-treasurer, investment decision authorized without approval of Board of Control, Employees' Retirement System, Teachers' Retirement System, Secs. 16-25-20, 36-27-25 am'd.

Summary

The bill would give the Retirement Systems of Alabama’s Secretary-Treasurer authority to invest the Employees', Teachers', and Judicial Retirement Funds without prior approval from their Boards of Control.

What This Bill Does

It transfers investment decision-making power to the Secretary-Treasurer for the listed funds. It creates a three-person Investment Committee to review recommendations and approve or disapprove investments according to board policies, with approvals documented in writing. It also allows the Teachers' Retirement System to hire its own legal counsel, sets criteria for a consulting bank, and maintains existing fund-interest and deposit arrangements.

Who It Affects

• Participants and beneficiaries of the Employees' Retirement System, the Teachers' Retirement System, and the Judicial Retirement Fund, whose investment decisions would be managed by the Secretary-Treasurer rather than the boards.
• Members of the Board of Control for the Employees' Retirement System and the Teachers' Retirement System, whose direct investment oversight would shift toward a policy-based framework and the new Investment Committee.

Key Provisions

• The Secretary-Treasurer is authorized to invest and reinvest funds (Employees', Teachers', and Judicial Retirement Fund) without prior approval from the Board of Control, subject to board-approved policies and prudent standards.
• An Investment Committee of three Board members (including the Director of Finance) will act as the board's agent to consider investment recommendations and approve/disapprove them per board policies, with at least two votes required and written confirmation for transactions.
• The Secretary-Treasurer may examine offers, initiate inquiries, review investment quality, and make purchases and sales deemed in the best interest of the funds, within the framework of the Investment Committee and any designated consultant.
• The Board may appoint a consultant bank (Alabama-based, with at least $300 million in capital and an organized investment department) to assist in investments; the bank cannot sell securities to the retirement system other than U.S. government securities or non-commissioned repurchase agreements.
• The Secretary-Treasurer must semiannually report all purchases and sales of investments to the Board of Control.
• The Teachers' Retirement System may employ its own legal counsel and conduct litigation through that counsel.
• Regular interest provisions and deposits to the State Treasury for the various funds are maintained, with specified rates and procedures for posting and funding.
• The act becomes effective immediately following passage and approval by the Governor.

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

Subjects

Retirement