HB352 Alabama 2022 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Charlotte Meadows
Republican
Session: Regular Session 2022
Title: State Employee Retirees' Trust Fund Funding Act, State Employee Retirees' Trust Fund created in State Treasury as permanent trust and investment account to fund periodic bonus checks for state employee retirees
Summary: The bill creates an irrevocable State Employee Retirees' Trust Fund to provide periodic bonus checks to Alabama state retirees, funded from sources other than the Education Trust State General Fund.
What This Bill Does
It establishes a permanent trust in the State Treasury to hold funds and earnings for periodic bonus checks to retirees and their beneficiaries. It allows funding from investment income, gifts, grants, and other revenues directed by the Legislature, but not from the Education Trust State General Fund. If the actuary for the retirement system certifies enough assets, the trustees may transfer the needed amount to the State Employees' Retirement System to fund those bonuses, and the trust may be amended under specific circumstances (tax advantages, post-employment benefits accounting, or court decisions). The bill also provides liability protections for trustees, requires regular financial reporting and audits, and ensures the trust’s assets are tax-exempt and protected from creditors.

Who It Affects
Retirees and beneficiaries receiving pension, annuity, or other retirement benefits would be eligible for periodic bonus checks funded by the new trust.
The State Employees' Retirement System, its Board of Control, and the trust's trustees would administer, invest, and manage the trust, set rules, hire staff or consultants, and handle contracts and distributions, with certain immunity and expense reimbursement provisions.

Key Provisions
Creates the State Employee Retirees' Trust Fund as an irrevocable trust managed by the Board of Control.
Funding sources include investment income, gifts/grants/contributions, and revenue directed by the Legislature; funds may not come from the Education Trust State General Fund.
Upon actuary certification that assets are sufficient, transfers may be made to the State Employees' Retirement System to fund periodic bonus checks.
Trustees have immunity from suit (with certain exceptions) and may be indemnified; expenses are paid from the trust, and assets are tax-exempt and protected from creditors.
Board of Control may adopt rules, enter contracts, hire staff, and invest in permitted investments; costs are paid from the trust funds.
Trust can be amended under specific circumstances (tax benefits, GASB classification, or court involvement).
Annual financial statements and audits must be prepared and conducted by an independent CPA in accordance with GAAP.
Diversity requirements apply to personnel and vendors associated with the trust.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: State Employees