SB187 Alabama 2022 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Co-Sponsors

Gerald H. AllenWill BarfootTom ButlerDonnie ChesteenLinda Coleman-MadisonChris ElliottJimmy HolleyAndrew JonesSteve LivingstonDel MarshTim MelsonRandy PriceGreg J. ReedDavid SessionsBobby D. SingletonApril WeaverTom Whatley

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

SB187 would create an irrevocable State Employee Retirees' Trust Fund to invest retirement assets and provide periodic bonus checks to retirees and their beneficiaries.

What This Bill Does

It establishes a separate, permanent trust in the State Treasury managed by the State Employees' Retirement System Board of Control to fund periodic bonus checks. The trust must be funded from sources other than the State General Fund, uses assets only for permitted investments, administrative expenses, and bonuses, and can transfer certified assets to the Retirement System to pay bonuses. The trust is irrevocable, tax-exempt, protected from creditors, and subject to annual reporting and auditing, with potential amendments for tax or accounting reasons.

Who It Affects

• State employee retirees and their beneficiaries, who could receive periodic bonus checks funded by the trust.
• The Board of Control and the State Employees' Retirement System, which would manage the trust, oversee investments, and handle transfers to fund bonuses.

Key Provisions

• Creates the State Employee Retirees' Trust Fund in the State Treasury as an irrevocable trust to fund periodic bonus checks for retirees and beneficiaries.
• Funding must come from sources other than the State General Fund, including investment income and gifts, grants, or other revenue as directed by the Legislature.
• The trust cannot be used for anything other than permitted investments, administrative expenses, and periodic bonus checks; Legislature cannot appropriate trust assets.
• Trustees have limited liability and immunity; they may be indemnified from the trust and must operate under governance rules established by the Board of Control.
• The Board of Control and trustees have broad powers to invest, contract, hire staff, and manage the trust, including entering into agreements to maximize earnings and minimize costs.
• Upon actuary certification that assets are sufficient, the trustees will transfer the certified assets to the Retirement System to fund the bonuses.
• Assets are tax-exempt, protected from creditors, and subject to annual financial reporting and independent audits.
• The act requires diversity in personnel and vendors related to 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