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Terms Used In Alabama Code 36-27E-7

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • following: means next after. See Alabama Code 1-1-1
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
(1) The sources of funding to the trust fund may consist of all of the following:

a. Investment income.
b. Proceeds of any gifts, grants, or contributions.
c. Revenue sources as directed by the Legislature.
d. Revenue sources other than direct appropriations by the Legislature.
(2) The sources of funding to the trust fund may not consist of State General Fund revenue, and those revenues are expressly prohibited from that use. The trust fund shall be funded from sources other than the State General Fund.
(b) The agreements creating the trust fund shall be irrevocable, and the assets of the trust fund may not be expended, disbursed, loaned, or transferred, or used for any purpose other than to acquire permitted investments, pay administrative expenses, and provide periodic bonus checks to or for retired employees and their beneficiaries. The Legislature may not appropriate the assets of the trust fund.
(c) Upon certification from the actuary of the State Employees’ Retirement System that the assets of the trust fund are sufficient to fund periodic bonus checks as provided for by legislation granting the periodic bonus checks, the trustees shall transfer the amount of assets certified by the board of control to the State Employees’ Retirement System to fund those bonuses or increases.
(d) Notwithstanding subsection (c), the trustees may amend or modify the trust fund, consistent with the legislative intent of this chapter, in any of the following circumstances:

(1) If, in the opinion of counsel for the trustees, it is necessary or advisable to obtain any material tax advantage or avoid any material adverse tax result.
(2) If, in the opinion of an independent accountant for the trustees, it is necessary or advisable to cause the trust fund to be considered a post-employment benefits trust fund in accordance with generally accepted governmental accounting principles as prescribed by the Governmental Accounting Standards Board, or its successor.
(3) If, in response to a petition of the trustees requesting that the trust fund be amended, a court of competent jurisdiction determines that the amendment is necessary or advisable to accomplish the purposes of this chapter.
(e) All assets and income of the trust fund shall be exempt from taxation by the state or any political subdivision thereof. The assets of the trust fund are not subject to the claims of creditors of the state, the board of control, trustees, plan administrators, employees, retired employees, or beneficiaries, and are not subject to execution, attachment, garnishment, the operation of bankruptcy, insolvency laws, or any other process whatsoever, and no assignment thereof shall be enforceable in any court.
(f) The trustees shall prepare the annual financial statements of the trust fund in accordance with generally accepted governmental accounting principles and shall provide for an audit of those financial statements for each fiscal year to be conducted by a qualified independent certified accounting firm in accordance with generally accepted auditing standards.
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