1 HB569
2 209932-3
3 By Representative Carns (N & P)
4 RFD: Jefferson County Legislation
5 First Read: 30-MAR-21
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1
2 ENROLLED, An Act,
3 Relating to Jefferson County and the General
4 Retirement System for Employees of Jefferson County; to amend
5 Section 45-37-123.20, Sections 45-37-123.21 and 45-37-123.22,
6 as amended by Act 2019-243, 2019 Regular Session, Sections
7 45-37-123.23, 45-37-123.28, 45-37-123.29, 45-37-123.51,
8 45-37-123.83,45-37-123.84, and 45-37-123.100, Section
9 45-37-123.101 as amended by Act 2019-243, 2019 Regular
10 Session, Section 45-37-123.102, Sections 45-37-123.103 and
11 45-37-123.104, as amended by Act 2019-243, 2019 Regular
12 Session, and Sections 45-37-123.106 and 45-37-123.194 of the
13 Code of Alabama 1975; to authorize the pension board to
14 establish procedures for the election of board members number
15 four and five; to authorize the pension board to post notice
16 of the annual meeting on its website and to meet and conduct
17 business by video or telephone conference; to authorize the
18 pension board to provide tuition reimbursement to its
19 employees; to authorize the pension board to participate in
20 emergency state and federal relief programs; to authorize the
21 pension board to recover costs and reasonable attorney's fees
22 in actions in which the pension board seeks to recover funds
23 of the retirement system erroneously paid to members,
24 beneficiaries, and third parties; to clarify terminology used
25 to describe a joint survivorship pension election; to
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1 eliminate the minimum non-service connected disability benefit
2 for disabilities occurring on or after the effective date of
3 this act; to clarify language related to lump-sum payments to
4 a deceased member's beneficiary; to change the required
5 minimum distribution age from 70 1/2 to 72 years of age; and
6 to make technical corrections.
7 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
8 Section 1. Section 45-37-123.20, Sections
9 45-37-123.21 and 45-37-123.22, as amended by Act 2019-243,
10 2019 Regular Session, Sections 45-37-123.23, 45-37-123.28,
11 45-37-123.29, 45-37-123.51, 45-37-123.83,45-37-123.84, and
12 45-37-123.100, Section 45-37-123.101 as amended by Act
13 2019-243, 2019 Regular Session, Section 45-37-123.102,
14 Sections 45-37-123.103 and 45-37-123.104, as amended by Act
15 2019-243, 2019 Regular Session, and Sections 45-37-123.106 and
16 45-37-123.194 of the Code of Alabama 1975, are amended to read
17 as follows:
18 "45-37-123.20.
19 "(a) Provisions of records. The county shall provide
20 all records and documents necessary to determine an employee's
21 status and eligibility for membership in the plan, upon which
22 a service record shall be created.
23 "(b) Contributions. The county shall contribute an
24 amount equal to six percent of an employee's compensation from
25 the county's general assets to the trust fund, as provided in
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1 Section 45-37-123.80. The county also shall withhold six
2 percent of an employee's compensation each pay period as
3 provided in Section 45-37-123.82. The county also shall
4 contribute any amounts received pursuant to Section 45-37-233,
5 attributable to pistol permits. These funds shall be given to
6 the county treasurer for deposit into the trust fund.
7 Additionally, the county may pay into the trust fund from the
8 general funds of the county, in such installments or times as
9 the county may elect, an amount or amounts sufficient to
10 assure that the system is actuarially sound.
11 "45-37-123.21.
12 "(a) General administration. The role of the pension
13 board is established by the State of Alabama through
14 legislative act. The pension board is responsible for the
15 general administration and proper operation of the plan. The
16 pension board also is responsible for making effective the
17 provisions of the act.
18 "(b) Composition of pension board. The pension board
19 is comprised of five members, designated respectively as
20 member number one, member number two, member number three,
21 member number four, and member number five.
22 "(1) MEMBER NUMBER ONE. Member number one shall be
23 appointed by the governing body of the county and shall serve
24 as chairman of the pension board. Member number one shall have
25 a minimum of 10 years' experience in an executive capacity in
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1 insurance, investment management/consultant, or actuarial
2 work. The initial term of member number one shall be for one
3 year; and thereafter the term of member number one shall be
4 for three years.
5 "(2) MEMBER NUMBER TWO. Member number two shall be
6 appointed by the judge of probate, who is an elected official
7 of the county. Member number two shall have a minimum of 10
8 years' experience in an executive capacity in investing or
9 banking. The initial term of member number two shall expire at
10 the end of two years; and thereafter the term of member number
11 two shall be for three years.
12 "(3) MEMBER NUMBER THREE. Member number three shall
13 be appointed by the Jefferson County Personnel Board. Member
14 number three shall have a minimum of 10 years' experience as a
15 certified public accountant. The initial term of member number
16 three shall expire at the end of three years; and the term of
17 member number three shall be for three years.
18 "(4) MEMBERS NUMBER FOUR AND FIVE. Member number
19 four and member number five shall be elected by the members of
20 the system. Member number four shall be a retired member of
21 the system. Member number five shall be a member of the
22 system. The initial term of member number four shall be for
23 one year; and thereafter the term of member number four shall
24 be for three years. Member number five shall be elected for
25 terms of three years.
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1 "(c) Procedure for the election of board members
2 four and five and selection of the election board.
3 "(1) Elections of member number four and member
4 number five shall be conducted by separate paper or electronic
5 ballot pursuant to procedures established by the pension
6 board.
7 "(2) The members of the system shall elect member
8 number four and member number five. The election shall be held
9 at the annual meeting of the members of the system provided
10 for in Section 45-37-123.22(b)(14), or at a special meeting
11 called for that purpose; provided that there shall be no such
12 election at a special meeting unless the pension board has
13 given The pension board shall give at least 15 days' written
14 notice of the time and place procedure of the election by
15 posting the same in at least three prominent places in the
16 county courthouse and by delivering three copies of the same
17 to the county manager who shall inform all persons on the
18 county payroll of the election; however, the failure to inform
19 all such employees of the election shall not invalidate the
20 election.
21 "(3) The elections of member number four and member
22 number five shall be supervised by three members of the system
23 serving as the election board. The members that serve as the
24 election board shall be appointed by the members of the system
25 at the annual meeting as provided for in Section
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1 45-37-123.22(b)(14). If the members of the system fail to
2 appoint members to the election board, or if any member so
3 appointed cannot or will not serve on the election board, the
4 pension board shall appoint the members of the election board.
5 The pension board may prescribe additional rules for the
6 elections of member number four and member number five not
7 inconsistent with the provisions hereof.
8 "(d) Vacancy, how filled. If a vacancy occurs on the
9 pension board, such vacancy shall be filled for the unexpired
10 term in the same manner as the office was previously filled.
11 "(e) Resignation or removal of pension board member.
12 A member of the pension board may resign by delivering a
13 written resignation to the executive director or be removed by
14 the unanimous vote of the other members of the pension board
15 at a duly called meeting of the pension board.
16 "(f) Secretary. The secretary of the board shall be
17 the executive director.
18 "(g) Salary and expenses. The members of the pension
19 board shall serve without pay, but shall be reimbursed for
20 expenses actually paid or incurred in the discharge of their
21 official duties, and shall suffer no loss of salary or wages,
22 if employed by the county, through service on the board.
23 "45-37-123.22.
24 "(a) The pension board shall be responsible for the
25 general administration and proper operation of the plan, and
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1 shall administer the plan for the exclusive benefit of the
2 members and their beneficiaries, subject to the specific terms
3 of the plan. The pension board shall administer the plan in
4 accordance with its terms and shall have the power and
5 discretion to construe the terms of the plan and the act and
6 to determine all questions arising in connection with the
7 administration, interpretation, and application of the plan.
8 Any such determination by the pension board shall be
9 conclusive and binding upon all persons. The pension board may
10 establish procedures, correct any defect, supply any
11 information, or reconcile any inconsistency in such manner and
12 to such extent as shall be deemed necessary or advisable to
13 carry out the purpose of the plan; provided, however, that any
14 procedure, discretionary act, interpretation, or construction
15 shall be done in a nondiscriminatory manner based upon uniform
16 principles consistently applied and shall be consistent with
17 the intent that the plan shall continue to be deemed a
18 qualified plan under the terms of 401(a), Internal Revenue
19 Code, and shall comply with the terms of the act and all
20 regulations issued pursuant thereto. The pension board shall
21 have all powers necessary or appropriate to accomplish the
22 pension board's duties under the plan.
23 "(b) The pension board shall be charged with the
24 duties of the general administration of the plan as set forth
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1 under the terms of the plan, including, but not limited to,
2 all of the following:
3 "(1) To determine all questions relating to the
4 eligibility of employees to participate or remain a member
5 hereunder and to receive benefits under the plan.
6 "(2) To compute and certify the amount and the kind
7 of benefits to which any member shall be entitled hereunder.
8 "(3) To maintain all necessary records for the
9 administration of the plan.
10 "(4) To interpret the provisions of the plan and to
11 make and publish such rules for regulation of the plan as are
12 consistent with the act and the terms hereof.
13 "(5) To establish rules and regulations for the
14 administration of plan funds and for the transaction of the
15 plan's business.
16 "(6) To exercise any investment discretion in a
17 manner designed to accomplish specific objectives related to
18 the plan's long-term and short-term liquidity needs.
19 "(7) To prepare and provide active members with an
20 annual estimated benefit statement notifying them of their
21 estimated benefits.
22 "(8) To prepare and provide retired members with a
23 one-time notification of their benefit payment amounts, and to
24 provide retired members with periodic notification of cost of
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1 living benefit increases which may be awarded by the pension
2 board in any form, lump sum, or otherwise.
3 "(9) To determine the validity of, and take
4 appropriate action with respect to, any divorce decree, or
5 other judicial order presented to the pension board.
6 "(10) To assist any member regarding the member's
7 rights, benefits, or elections available under the plan.
8 "(11) To, by written agreement or designation,
9 appoint at its option an investment manager, qualified under
10 the Investment Company Act of 1940, as amended, investment
11 adviser, or other agent to provide direction regarding any or
12 all of the plan assets. Such appointment shall specifically
13 identify the plan assets with respect to which the investment
14 manager or other agent shall have authority to direct the
15 investment.
16 "(12) To establish an investment policy.
17 "(13) To establish a privacy policy for the
18 protection of a member's personal information, subject to
19 applicable law.
20 "(14) To hold an annual meeting of the members at
21 least once per calendar year and provide at least seven days'
22 written notice of the meeting to all members on the retirement
23 system website or at either their place of work, last known
24 address, or by electronic mail.
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1 "(15) To determine appropriate rules and regulations
2 to determine how much service per calendar year is equivalent
3 to one year of service, in accordance with Section
4 45-37-123.84.
5 "(16) To develop rules and regulations, amend the
6 plan, subject to the provisions of Section 45-37-123.150, and
7 provide for increases in benefits, subject to the provisions
8 of Section 45-37-123.151.
9 "(17) Notwithstanding any provisions of the plan to
10 the contrary, to amend the plan in order to comply with
11 federal law, and any such amendment shall be given full effect
12 under Alabama law.
13 "(18) To purchase insurance coverage in such forms
14 and amounts as may be determined by the pension board.
15 "(19) To provide employees of the system with
16 health, dental, vision, and other forms of insurance, paid
17 vacation, and sick leave, tuition reimbursement, and any other
18 benefits as determined by the pension board.
19 "(20) To provide members of the system with
20 voluntary life, disability, and other forms of insurance, the
21 cost of which is paid by the member.
22 "(21) To conduct meetings and business by video
23 conference, telephone conference, or electronic communication.
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1 "(22) To participate in emergency relief programs of
2 the United States, the State of Alabama, and their
3 departments, agencies, and instrumentalities.
4 "(23) To recover costs and reasonable attorney's
5 fees in actions in which the pension board seeks to recover
6 funds of the retirement system erroneously paid to members,
7 beneficiaries, and third parties.
8 "(c) Failure of the pension board to follow any
9 provisions or procedures in the plan shall not constitute a
10 waiver of any provision or procedure contained herein.
11 "45-37-123.23.
12 "(a) Records. The pension board shall keep a record
13 of all of its proceedings, which shall be open to public
14 inspection minutes of its meetings. Additionally, the pension
15 board shall keep all other books of account, records,
16 policies, compensation records, service records, and other
17 data that may be necessary for proper administration of the
18 plan and shall be responsible for supplying all information
19 and reports to the Internal Revenue Service, members,
20 beneficiaries, and others as may be required by law.
21 "(b) Correction of records.
22 "(1) The pension board shall correct any error in a
23 member's service record which the pension board concludes is
24 necessary to correct or remove an injustice or prevent a
25 member from receiving less or more than such member is
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1 entitled to receive under the plan. The pension board shall
2 adopt written rules prescribing the procedure the pension
3 board shall follow in considering whether an error in an
4 employee's service record should be corrected. Correction of
5 service records shall be subject to the following limitations:
6 "a. No error in the service record shall be
7 corrected except by the pension board.
8 "b. The pension board shall not correct any error in
9 an employee's service record until it has accorded, or offered
10 to accord, the employee a hearing regarding the proposed
11 correction, which hearing shall not be conducted until after
12 the employee has received at least two weeks' notice of the
13 nature of the proposed correction and of the time and place at
14 which the proposed co