HB190 Summary

• Expands the State of Alabama Personnel Board's authority to establish tax-deferred annuity and deferred compensation programs to include employees of counties, cities, towns, and other public subdivisions, not just state employees.

• Authorizes the Personnel Board to arrange for consolidated billing and efficient investment, trustee, administrative, and professional services through the Alabama State Employees Association or its designated agent.

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

• Permits retirees receiving monthly benefits from public retirement systems (Employees' Retirement System, Judicial Retirement Fund, Teachers' Retirement System, or other public retirement plans) to have their retiree health insurance premiums deducted from their deferred compensation distributions in accordance with IRS guidelines.

• Designates each deferred compensation plan as a trust created by statute to be administered as an express trust for the exclusive benefit of participants and their beneficiaries; becomes effective immediately upon passage and approval.