SB387 Summary

• Amends governance provisions for the Boards of Control of the Teachers' Retirement System and Employees' Retirement System by applying Subsection (a) of Section 19-3B-802 of the Alabama Uniform Trust Code to both boards and their actions.

• Modifies the Teachers' Retirement System Board composition to consist of 15 trustees including three ex officio members and 12 elected members representing specific categories (teachers, support personnel, retired members, administrators, and higher education institutions), with elections conducted by a third-party entity.

• Changes the Employees' Retirement System Board composition to consist of 13 trustees including four ex officio members and nine members appointed or elected through various methods, with the Governor serving as Board Chair.

• Expands investment considerations for both retirement systems to include rates of return, volatility, security, diversification, economic conditions, inflation/deflation effects, portfolio role, liquidity needs, income regularity, capital preservation, special asset relationships, portfolio size, and fund purposes and duration.

• Becomes effective on the first day of the third month following passage and approval by the Governor.