SB159 Alabama 2017 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Tom Whatley
Republican
Session: Regular Session 2017
Title: Education Retirees' Trust Fund for Cost-of-Living Allowances, creation in State Treasury, investment of funds
Summary: SB159 creates an irrevocable Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury to provide cost-of-living increases or one-time bonuses to Alabama education retirees.
What This Bill Does
It creates the Education Retirees' Trust Fund for Cost-of-Living Adjustments and designates the Teachers’ Retirement System Board of Control as trustees to manage and invest the fund. Funding can come from legislative appropriations, investment income, gifts, grants, and other lawful sources, and the assets are irrevocable and restricted to approved investments, administrative costs, and retiree benefits. When the TRS actuary certifies there are enough assets, the trustees transfer the needed amount to the Teachers’ Retirement System to fund the COLA or bonus. The trust aims to maximize investment earnings, minimize costs, and is exempt from state taxes and creditor claims, with annual GAAP-compliant financial statements and audits.

Who It Affects
Education retirees and their beneficiaries who may receive cost-of-living adjustments or one-time bonuses funded by the trust.
The State of Alabama and its taxpayers, since assets are dedicated to the trust, protected from state appropriation, and managed to maximize earnings and minimize costs for retiree benefits.

Key Provisions
Provision 1: Establishes the irrevocable Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury, to be created and governed by the Teachers’ Retirement System Board of Control as trustees, for providing COLAs or one-time retiree benefits.
Provision 2: Outlines funding and governance: sources of funding (appropriations, investment income, gifts), irrevocability, transfer of funds to TRS upon actuarial sufficiency, tax and creditor protections, annual audits, and permissible amendments for tax/GAAP reasons or court orders.

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 Treasury