SB314 Summary

• Creates the Education Retirees' Trust Fund for Cost-of-Living Adjustments as an irrevocable trust managed by the Teachers' Retirement System Board of Control to fund cost-of-living adjustments or one-time bonuses for retired education employees.

• Establishes trust funding sources including legislative appropriations, investment income, gifts, grants, and contributions, with trustees authorized to invest funds in permitted investments under Alabama law.

• Prohibits the Legislature from appropriating trust assets, which can only be used for permitted investments, administrative expenses, and cost-of-living benefits; requires Teachers' Retirement System actuary certification before transferring funds for approved benefits.

• Grants trustees authority to adopt operational rules, enter contracts, employ advisors and consultants, and amend the trust for tax advantages or accounting compliance purposes consistent with legislative intent.

• Exempts all trust assets and income from state taxation and creditor claims; provides trustees immunity from suit and indemnification except for willful misconduct; requires annual financial statements and audits by independent certified accounting firms.