(a) The personnel board may adopt, establish, and maintain a deferred compensation plan or plans, except under Internal Revenue Code Section 403 (b), for the employees of the State of Alabama or any city, town, county, or public entity or corporation organized pursuant to the laws of this state. Notwithstanding the foregoing, prior to the employees of a county or political subdivision of the county participating in a plan, the employing county or political subdivision of the county shall approve participation in the plan. The personnel board may include in any such plan any provision that does not cause the plan to fail to qualify for its tax-favored treatment under the United States Internal Revenue Code, including, but not limited to, participant loans, unforeseeable emergency or hardship distributions, Roth deferrals, rollovers, transfers to purchase service credit, and distributions to purchase a retired public safety officer's health insurance.
(b) The State of Alabama Personnel Board may adopt and arrange for consolidated billing and efficient investment, trustee, administrative, and professional services in order that any such plans adopted shall operate without cost to or contribution from the State of Alabama except for incidental expenses associated with administering any such plan, the payroll salary-reductions and the remittance thereof to the trustee or custodian of the plan or plans.
(c) Alabama state employees, or the employees of any city, town, county, or public entity or corporation organized pursuant to the laws of this state may participate in these plans on a voluntary basis by authorizing in writing to their employer a reduction in their cash remuneration to be placed in the plan or plans.
(d) The Finance Director, Comptroller, or other appropriate official is hereby authorized and directed to initiate payroll deductions for the plans as directed by each employee.
(e) Participants who are receiving monthly benefits from the Employees' Retirement System of Alabama, the Judicial Retirement Fund of Alabama, the Teachers' Retirement System of Alabama, or any other public retirement plan may opt to have the cost of their retiree health insurance deducted from their deferred compensation distribution in accordance with the guidelines of the United States Internal Revenue Service.
(f) It is expressly provided that any benefits under the provisions of this section shall be in addition to any other benefits provided by law for any employees of the State of Alabama, and this section is specifically made supplemental to and shall be construed in pari materia with the provisions of the employees' retirement law of Alabama.
(g) Except as otherwise required under the Internal Revenue Code, each such deferred compensation plan and its trust shall be established and maintained for the exclusive benefit, as defined by law of the plan's participants and their beneficiaries, and all assets of any such plan shall be held for the exclusive benefit of the plan's participants and their beneficiaries. For the purposes and within the meaning of Section 19-3B-102, each such plan is declared to be a trust created by statute and is therefore required to be administered in the manner of an express trust.
Structure Code of Alabama
Title 36 - Public Officers and Employees.
Chapter 26 - State Personnel Department and Merit System.
Article 1 - General Provisions.
Section 36-26-1 - Short Title.
Section 36-26-2 - Definitions.
Section 36-26-3 - Purposes of Article.
Section 36-26-4 - State Personnel Department Created; Composition; Executive Head; Offices.
Section 36-26-6 - State Personnel Board - Meetings; Powers and Duties Generally.
Section 36-26-7 - Director of Personnel - Appointment; Qualifications; Salary; Removal.
Section 36-26-9 - Promulgation, etc., of Rules for Implementation of Provisions of Article.
Section 36-26-11 - Classification of Positions, etc., in State Service.
Section 36-26-12 - Preparation, etc., of Pay Plan for Employees in State Service.
Section 36-26-14 - Deferred Compensation Plans for Certain Employees.
Section 36-26-15.1 - Proof of Registration Required for Employment or School Enrollment.
Section 36-26-16 - Certification for Employment of Handicapped Persons.
Section 36-26-18 - Extraordinary Appointments.
Section 36-26-20 - Employee Training Programs.
Section 36-26-23 - Promotions.
Section 36-26-26 - Layoffs; Furloughs.
Section 36-26-27 - Dismissals and Disciplining of Employees Generally.
Section 36-26-27.1 - Placement of Disciplinary Documents in the Personnel File of a State Employee.
Section 36-26-28 - Suspensions.
Section 36-26-29 - Limitation Period for Charges for Dismissal or Disciplinary Action.
Section 36-26-31 - Granting of Leave of Absence for Service in Armed Forces of United States.
Section 36-26-32 - Restoration of Employee to Former Position After Service in Armed Forces.
Section 36-26-34 - Granting, etc., of Time Off to Comply With Religious Obligations.
Section 36-26-35 - Annual Leave.
Section 36-26-35.1 - Annual Leave Carry Over Limit Increased for Certain Personnel.
Section 36-26-35.2 - Annual Leave.
Section 36-26-36.2 - Donation of Leave; Implementation.
Section 36-26-36.3 - Bereavement Leave.
Section 36-26-38 - Political Activities Prohibited.
Section 36-26-42 - Representation of Department in Judicial Proceedings.
Section 36-26-43 - Use of State, County, etc., Buildings for Examinations and Investigations, Etc.
Section 36-26-44 - Inspection of Records of Department.
Section 36-26-45 - Payment of Expenses of Department.
Section 36-26-46 - State Capitol Guides Classified as "Capitol hostesses."
Section 36-26-47 - Penalties for Violations of Provisions of Article.
Section 36-26-48 - Lump-Sum Merit Reward Payments for Certain Full-Time State Employees.