Government Relations Update
March 18, 2013
Recently, you received an email from me encouraging you to evaluate candidates in run-off
elections for positions on the Teachers' Retirement Systems (TRS) Board of Control. You were
encouraged to evaluate candidates based on their willingness to protect the purpose of the
fund and to oppose efforts to avert funding to other current expenses.
On Tuesday March 12, 2013, SB303 sponsored by Senator Gerald Allen of Tuscaloosa received a
favorable report from the committee. If this legislation becomes law it will dramatically change
the make-up of the TRS Board and the process by which members are elected.
For years, the Board of Control has been controlled by the Alabama Education Association due
in part to the make-up of the voting process. The ballots to most of their members (K-12) are
delivered directly to their schools whereas higher education employees receive their ballots by
mail. Obviously, those with ballots placed in their hands tend to complete their ballots whereas
those receiving them by mail are less likely to do so. While there has never been any hint of
impropriety, many find it unusual that the Teachers’ Union currently has the responsibility of
distribution, collection and tabulation of the votes. Also, since the inception of the Board, the
Secretary of the Alabama Board of Education Association has – by law – held one of the
designated Board positions.
Senate Bill 303, as introduced, alters the membership of the Teachers’ Retirement System’s
Board of Control by removing from the Board the Executive Secretary of the Alabama Education
Association and a support personnel position and adding two new members to represent the
public four-year institutions of higher education. This bill also changes election procedures by
requiring: (1) that elections be conducted by a third party entity that is not a participant of or
affiliated with the Teachers’ Retirement System, as is current practice; and (2) that elected
members of the Board be elected by members from the same category of the retirement
system rather than all members voting statewide. Many see this as a way to insure the Board
reflects the membership from all aspects of education.
The bill passed committee with a 4-3 vote, however most on Capitol Hill believe it will receive
strong opposition as it moves through the process. Nevertheless, this is a dramatic move to
change the direction of the TRS and its retirement structure.