SB299 Alabama 2019 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2019

Title

State Treasury, Education Retirees' Trust Fund, created, cost-of-living adjustments, to provide funding by lottery if one is authorized

Summary

SB 299 creates a new irrevocable Education Retirees' Trust Fund to pay cost-of-living adjustments to education retirees, funded primarily by a state lottery if authorized.

What This Bill Does

It establishes the Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury, managed by the Teachers' Retirement System Board of Control. The main funding source is lottery proceeds, with 25% of net lottery proceeds dedicated to the Education Trust Fund and appropriated to the trust each year. When the TRS actuary certifies that the assets are enough to fund a 1%+ COLA, the trustees transfer the specified amount to the Teachers' Retirement System to fund the COLA starting the following October 1. The trust assets are protected from taxes and creditors, and the trust is governed by rules, audits, and annual reporting.

Who It Affects

• Education retirees and their beneficiaries would be eligible to receive cost-of-living adjustments once the trust has sufficient assets and funds are transferred to the Teachers' Retirement System.
• The Teachers' Retirement System Board of Control and TRS staff would manage the trust, determine when to transfer funds to fund COLAs, and administer the cost-of-living adjustments.

Key Provisions

• Creates the irrevocable Education Retirees' Trust Fund for Cost-of-Living Adjustments in the State Treasury to fund COLAs for education retirees.
• Primary funding source is lottery; 25% of net lottery proceeds dedicated to the Education Trust Fund are appropriated to the trust annually.
• If the TRS actuary certifies sufficient assets to fund a 1% or greater COLA, the trust transfers the funded amount to the Teachers' Retirement System to implement the COLA effective October 1.
• Trust assets are exempt from state taxes and creditor claims, and may only be used for permitted investments, administrative expenses, and COLA payments.
• Trustees (the TRS Board of Control members) establish rules, manage investments, and may amend the trust under specified conditions (tax, GAAP classification, court approval).
• Annual financial statements and independent audits are required; trustees report asset values to the TRS actuary each year.
• The act is contingent on ratification by voters of a constitutional lottery amendment and becomes effective upon passage and governor's approval, or otherwise as an act.

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