HB456 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Phil Williams
Republican
Session: Regular Session 2015
Title: Retirement System, investment portfolio biannually audited, report to Legislature
Summary: The bill requires the Retirement Systems of Alabama to hire an independent firm to biannually analyze its investments and report the findings to the Legislature.
What This Bill Does
It mandates a biannual portfolio analysis of RSA investments by an independent brokerage firm and requires a report to be delivered to the Legislature. The analysis compares expenses, allocations, and actual returns to similar plans in other states, includes RSA employee compensation data, and focuses on private placement investments to ensure best practices and arms-length transactions. The chosen firm may not manage state retirement funds, and the act sets an effective date after passage for implementation.

Who It Affects
Retirement Systems of Alabama (RSA) and its Boards of Control must hire and rely on an independent brokerage firm to perform the analysis and report results.
The Alabama Legislature (and state oversight) will receive the biannual reports for review and monitoring of investment performance, expenses, and practices.

Key Provisions
Boards of Control must contract with an independent brokerage firm to perform a biannual portfolio analysis of RSA investments.
The analysis must be based on industry best practices and compare plan expenses, portfolio allocations, and actual returns to other states and municipalities with comparable plans.
The report must include data on RSA employee compensation to ensure Alabama is within industry norms.
The analysis must focus on private placement investments to ensure best practices and arms-length transactions.
The brokerage firm selected may not be hired to manage any state retirement funds.
The report must be presented to the Legislature on or before the tenth legislative day of each regular session.
Effective date: the act becomes effective on the first day of the third month following its 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: Retirement Systems