AL HB456

Boards of Control of the Retirement Systems of Alabama must contract with an independent brokerage firm to conduct a biannual portfolio analysis of retirement system investments.

Portfolio analysis must be performed using industry best practices and compare plan expenses, portfolio allocations, and actual returns to comparable plans in other states and municipalities.

Report must be presented to the Legislature on or before the tenth legislative day of each regular session and include data on employee compensation to ensure Alabama is within industry norms.

Report must focus on private placement investments to ensure only best practices and arms-length transactions are executed.

The selected brokerage firm cannot be hired to manage any state retirement funds, effective the first day of the third month following passage and approval.