HB574 Alabama 2015 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2015

Title

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

Summary

HB574 would reorganize the Teachers' Retirement System Board of Control and add new qualifications for its members.

What This Bill Does

It creates a 14-member Board of Control with a mix of ex officio seats and 10 elected trustees drawn from the retirement system. Most elected members must be investment/financial experts, but some appointed or ex officio members are exempt from this requirement. It sets rules on eligibility, term length, annual financial training, and conflicts of interest; requires the board to oversee funding and reporting, appoint a chair and a Secretary-Treasurer, and hire necessary actuaries and staff. It also mandates diversity in membership, provides transition timelines, and makes the act effective immediately.

Who It Affects

• Active and retired members of the Teachers' Retirement System who would elect or be elected/appointed as trustees (e.g., teachers, principals, superintendents, educational support personnel, postsecondary educators, and retirees).
• State and local education officials who hold ex officio seats (e.g., State Superintendent of Education, State Treasurer, Director of Finance, Chancellor of Postsecondary Education) and elected/appointed state leaders (Governor, Lieutenant Governor, Speaker, President Pro Tempore).
• Vendors or businesses that currently do business with the Teachers' Retirement System, who are barred from serving on the Board.

Key Provisions

• The Board of Control is changed to 14 trustees, including ex officio members and 10 elected members from the retirement system.
• Among the 10 elected members, specific places are designated for retired members, a city/county superintendent, a principal, a postsecondary education representative, three K-12 teachers, and two educational support personnel; all elected by retirement system members in a statewide election.
• Except for ex officio or certain appointed seats, members must be investment/financial experts; terms and election rules are established for these positions.
• No member may hold a full-time state/local office (with specific exceptions) or work for a business that does business with the retirement system; annual financial training is required for all trustees.
• Vacancies must be filled within 30 days by appointment; trustees serve without pay but may be reimbursed for expenses; an oath of office is required for all trustees.
• The Board elects a chairman and a Secretary-Treasurer (the latter acts as chief executive); it may hire actuaries and other staff as needed, with compensation set by the Board.
• The Board must keep data for actuarial valuations and publish an annual financial report on the retirement system's finances.
• The Attorney General serves as legal adviser; a medical board and an actuary are designated to oversee medical exams and fund management.
• The membership should reflect the diversity of the state, to the extent possible.
• There is an orderly transition plan to the new Board, with the first meeting of the reconstituted Board by October 1, 2015, and the act taking effect immediately.

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

Subjects

Teachers' Retirement System