Alabama

The Retirement System of Alabama administers pension and other benefits to most public employees in Alabama. The system consists of the Teachers' Retirement System and the Employees' Retirement System, which includes state employees, state police officers, and employees of political subdivisions that have elected to participate. RSA also administers the Judicial Retirement Fund.

Authorizing Statutes

State Employees

Chapter 800 of the Alabama Administrative Code establishes the Employees' Retirement System. According to 800-2-5-.01,

Organization And Operations. The principal purpose of the Employees' Retirement System is the provision of retirement allowances to employees of the State of Alabama and to employees of such political subdivisions of the state and such public and quasi-public agencies and organizations as elect to participate in the system, and, incidental thereto, the management and investment of Employees' Retirement System pension funds. The responsibility for the general administration and proper operation of the Employees' Retirement System is vested in a board of trustees which is called the Board of Control of the Employees' Retirement System of Alabama.

Educational Employees

Chapter 800-1-5-.01 establishes the Teachers Retirement System. According to the section,

Organization And Operations. The principal purpose of the Teachers' Retirement System is the provision of retirement allowances to public school teachers of the State of Alabama and other related educational employees as provided by state statute, and, incidental thereto, the management and investment of Teachers' Retirement System pension funds. The responsibility for the general administration and proper operation of the Teachers' Retirement System is vested in a board of trustees which is called the Board of Control of the Teachers' Retirement System of Alabama.

Board Composition

Contributions

Per the U.S. Census, in FY 2015, employer contributions to Alabama state and local government pension plans were 3.38 percent of all state and local government direct general spending.

Constitutional Protections

Benefits are contractually protected for vested employees who are eligible to retire. Board of Trustees of Policemen's and Firemen's Retirement Fund of City of Gadsden v. Cary, 373 So.2d 841 (Ala. 1979)(pension benefits were vested for employees who had completed 20 years of service before the effective date of a statutory amendment, but were not vested for employees with less service); Calvert v. City of Gadsden, 454 So.2d 983 (Ala. 1984)(retirement benefits for members who had not yet served 20 years of service at time statute fixing retirement pay as last three years' rank had not yet vested and were not entitled to specific performance); Snow v. Abernathy, 331 So.2d 626 (Ala. 1976) (holding that where employee voluntarily elected to become member of the contributory retirement system relationship was contractual in nature giving rise to vested rights). (AL CONST., Article I, §22) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits