SB314 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Tom Whatley
Republican
Session: Regular Session 2018
Title: Education Retirees' Trust Fund for Cost-of-Living Allowances, creation in State Treasury, investment of funds
Summary: The bill would create a new irrevocable Education Retirees' Trust Fund for Cost-of-Living Adjustments to fund COLAs or one-time bonuses for Alabama education retirees, managed through the Teachers' Retirement System.
What This Bill Does
It would establish the Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury as a permanent investment account for funds used to provide cost-of-living increases or one-time bonuses to education retirees. The Teachers' Retirement System Board of Control would manage the trust, invest its assets, and determine how benefits are paid, with funds limited to permitted investments, administrative costs, and COLA/bonus payments. Funding would come from appropriations, investment income, gifts or grants, and other permitted sources; the assets would be irrevocable and not subject to state appropriations. If the actuary certifies that there are enough assets, the trustees would transfer the certified amount to the Teachers' Retirement System to fund the COLA or bonus.

Who It Affects
Education retirees and their beneficiaries, who could receive cost-of-living adjustments or one-time bonuses funded by the trust.
The Teachers’ Retirement System Board of Control and the state, which would administer, invest, and oversee the trust and its rules and finances.

Key Provisions
Creates an irrevocable trust named the Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury to fund COLAs or one-time bonuses.
Trustees composed of the Teachers’ Retirement System Board of Control shall manage the trust, with powers to adopt rules, enter contracts, hire staff, and invest assets; trustees serve without compensation but may be reimbursed for reasonable expenses.
Funding sources include legislative appropriations, investment income, gifts/grants, and other permitted sources; assets are irrevocable and may only be used for permitted investments, administrative expenses, and COLA/bonus payments; the Legislature cannot appropriate trust assets.
Upon actuarial certification of sufficiency, the trustees shall transfer the certified assets to the Teachers' Retirement System to fund the COLA or bonuses.
Assets and income of the trust are exempt from state taxation and protected from creditors; annual GAAP-based financial statements and independent audits are required.
The trust may be amended to gain tax advantages, ensure proper GAAP classification, or respond to court guidance, as allowed by the act.
Effective date is immediate upon the 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 Treasury