HB538 Summary

• Amends Section 4 of Act 556 (1959) regarding the Board of Managers of the City of Birmingham Retirement and Relief System to increase the minimum fixed income securities requirement from 40 percent to 25 percent of total fund investments.

• Maintains the five-member Board of Managers structure consisting of the city governing body president (chair), a qualified investment/finance professional appointed by Jefferson County personnel board, a firefighter participant, a police officer participant, and a retiree.

• Preserves existing investment authority allowing the Board to invest in stocks, bonds, mortgages, mutual funds, real estate investment trusts, and alternative investments while limiting equity investments to 60 percent of total fund value.

• Specifies that no money from the fund may be disbursed except by board authorization, and requires the board to act with the care, skill, and prudence of a prudent investor.

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