AL SB279

Amends Section 36-26-14 of the Alabama Code to authorize the State Personnel Board to adopt and maintain tax-deferred annuity and deferred compensation plans for salaried state employees, removing the requirement that plans be specifically recommended by the Alabama State Employees Association.

Allows the Personnel Board to include plan provisions such as participant loans, hardship distributions, Roth deferrals, rollovers, transfers to purchase service credit, and distributions for retired public safety officer health insurance, provided they comply with Internal Revenue Code requirements.

Authorizes the Personnel Board to arrange consolidated billing and efficient investment, trustee, administrative, and professional services through the Alabama State Employees Association or its designated agent, with plans operating at no cost to the state except for incidental administrative expenses and payroll processing.

Establishes that plan participation is voluntary and employees must authorize payroll deductions in writing; requires state finance officials to implement payroll deductions as directed by employees.

Declares deferred compensation plans to be trusts created by statute held exclusively for the benefit of plan participants and beneficiaries; becomes effective immediately upon passage and gubernatorial approval.