SB272 Summary

• Authorizes the Alabama Personnel Board to adopt and maintain deferred compensation plans for employees of the State of Alabama, cities, towns, and public entities, except county commission employees.

• Plans must comply with Internal Revenue Code section 403(b) and may include participant loans, hardship distributions, Roth deferrals, rollovers, and distributions for health insurance or service credit purchases.

• Directs the Personnel Board to arrange consolidated billing and efficient investment and administrative services so plans operate without cost to the State except for incidental expenses.

• Allows retirees receiving monthly benefits from state retirement systems to have retiree health insurance premiums deducted from their deferred compensation distributions in accordance with IRS guidelines.

• Takes effect immediately upon passage and approval by the Governor.