SB317 Alabama 2021 Session

Summary

Primary Sponsor

Donnie ChesteenSenator

Republican

Session

Regular Session 2021

Title

Education Retirees' Trust Fund Funding Act, Education Retirees Trust Fund created in State Treasury as permanent trust to fund periodic bonus checks for education retirees, duties of TRS Board of Control specified

Summary

This bill creates a permanent irrevocable Education Retirees' Trust Fund in the State Treasury to invest funds and pay periodic bonus checks to Alabama education retirees and their beneficiaries.

What This Bill Does

It establishes the Education Retirees' Trust Fund as an irrevocable trust managed by the Teachers' Retirement System Board of Control. The fund is funded from investment income, gifts, grants, and other non-Education Trust Fund revenue, and can only be used to acquire permitted investments, pay administrative expenses, and provide periodic bonus checks. When the actuary certifies assets exceed a $100 million minimum, the trustees may transfer assets to the Teachers' Retirement System to fund those bonuses. The trust assets are tax-exempt, protected from creditor claims, and the trustees have broad management powers, with annual financial reporting and audits required.

Who It Affects

• Retired education employees and their beneficiaries, who would receive periodic bonus checks funded by the new trust.
• The Teachers' Retirement System Board of Control and associated staff, who would create, manage, and invest the trust and oversee distribution of bonuses.

Key Provisions

• Creation of the Education Retirees' Trust Fund in the State Treasury as an irrevocable trust, to be managed by the Board of Control for the purpose of providing periodic bonus checks.
• Funding and use rules: the trust must be funded from sources other than the Education Trust Fund, may invest in permitted assets, and may pay administrative expenses and periodic bonuses; assets are irrevocable and not subject to Education Trust Fund revenue.
• Distribution trigger: once certified by the TRS actuary that assets exceed $100,000,000 beyond the minimum balance, assets may be transferred to the Teachers' Retirement System to fund bonuses; the trust can be amended under specified conditions for tax or accounting reasons.
• Legal protections and governance: assets are tax-exempt, not subject to state creditor claims, and trustees have immunity; requires annual financial statements and independent audits; includes a diversity requirement for personnel and vendors involved with the trust.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Teachers' Retirement System