HB44 Alabama 2015 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2015
Title: State Personnel Board, tax deferred annuity and deferred compensation programs, county employees authorized to participate, Sec. 36-26-14 am'd.
Summary: HB44 authorizes county employees to participate in the State Personnel Board’s tax-deferred annuity and deferred compensation programs, with prior approval by the county employer.
What This Bill Does
It amends Section 36-26-14 to allow county employees to participate in the deferred compensation plans maintained by the State Personnel Board, with pre-participation approval by the employing county or subdivision. It allows the plans to include features that preserve tax-favored treatment under IRS rules (such as loans, hardship distributions, Roth deferrals, rollovers, and similar options). It enables consolidated billing and administrative services so the plans can operate with little or no cost to the state beyond incidental expenses and payroll deductions. Participation remains voluntary and is funded by employee payroll deductions, with retiree health insurance costs possibly deducted from deferred compensation distributions under IRS guidelines.

Who It Affects
County employees: may participate in the deferred compensation plans on a voluntary basis, through payroll deductions after county approval.
County employers / counties or political subdivisions: must approve participation before employees join and will facilitate payroll deductions and program setup.
State government / State Personnel Board: administers the plans, seeks to keep them tax-favored, and aims to run them with minimal state cost beyond incidental expenses.
Retirees receiving monthly benefits: may have retiree health insurance costs deducted from their deferred compensation distributions under IRS guidelines.

Key Provisions
Amends Section 36-26-14 to authorize county employees to participate in deferred compensation plans, with prior approval by the employing county or subdivision.
Allows plans to include features that maintain tax-favored status under IRS rules (loans, hardship distributions, Roth deferrals, rollovers, etc.).
Authorizes consolidated billing and efficient services so the plans operate with little or no cost to the state beyond incidental administrative expenses and payroll deductions.
Participation is voluntary and funded by employee payroll deductions, as directed by the employer and appropriate state officials.
Permits deduction of retiree health insurance costs from deferred compensation distributions for eligible participants, per IRS guidelines.
Affirms that plan assets are held for the exclusive benefit of participants and beneficiaries and that the plan functions as a statutory trust.
Effective immediately following passage and 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: State Personnel Board