(a) The pension board shall be responsible for the general administration and proper operation of the plan, and shall administer the plan for the exclusive benefit of the members and their beneficiaries, subject to the specific terms of the plan. The pension board shall administer the plan in accordance with its terms and shall have the power and discretion to construe the terms of the plan and the act and to determine all questions arising in connection with the administration, interpretation, and application of the plan. Any such determination by the pension board shall be conclusive and binding upon all persons. The pension board may establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of the plan; provided, however, that any procedure, discretionary act, interpretation, or construction shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the intent that the plan shall continue to be deemed a qualified plan under the terms of § 401(a), Internal Revenue Code, and shall comply with the terms of the act and all regulations issued pursuant thereto. The pension board shall have all powers necessary or appropriate to accomplish the pension board's duties under the plan.
(b) The pension board shall be charged with the duties of the general administration of the plan as set forth under the terms of the plan, including, but not limited to, all of the following:
(1) To determine all questions relating to the eligibility of employees to participate or remain a member hereunder and to receive benefits under the plan.
(2) To compute and certify the amount and the kind of benefits to which any member shall be entitled hereunder.
(3) To maintain all necessary records for the administration of the plan.
(4) To interpret the provisions of the plan and to make and publish such rules for regulation of the plan as are consistent with the act and the terms hereof.
(5) To establish rules and regulations for the administration of plan funds and for the transaction of the plan's business.
(6) To exercise any investment discretion in a manner designed to accomplish specific objectives related to the plan's long-term and short-term liquidity needs.
(7) To prepare and provide active members with an annual estimated benefit statement notifying them of their estimated benefits.
(8) To prepare and provide retired members with a one-time notification of their benefit payment amounts, and to provide retired members with periodic notification of cost of living benefit increases which may be awarded by the pension board in any form, lump sum, or otherwise.
(9) To determine the validity of, and take appropriate action with respect to, any divorce decree, or other judicial order presented to the pension board.
(10) To assist any member regarding the member's rights, benefits, or elections available under the plan.
(11) To, by written agreement or designation, appoint at its option an investment manager, qualified under the Investment Company Act of 1940, as amended, investment adviser, or other agent to provide direction regarding any or all of the plan assets. Such appointment shall specifically identify the plan assets with respect to which the investment manager or other agent shall have authority to direct the investment.
(12) To establish an investment policy.
(13) To establish a privacy policy for the protection of a member's personal information, subject to applicable law.
(14) To hold an annual meeting of the members at least once per calendar year and provide at least seven days' written notice of the meeting to all members at either their place of work, last known address, or by electronic mail.
(15) To determine appropriate rules and regulations to determine how much service per calendar year is equivalent to one year of service, in accordance with Section 45-37-123.84.
(16) To develop rules and regulations, amend the plan, subject to the provisions of Section 45-37-123.150, and provide for increases in benefits, subject to the provisions of Section 45-37-123.151.
(17) Notwithstanding any provisions of the plan to the contrary, to amend the plan in order to comply with federal law, and any such amendment shall be given full effect under Alabama law.
(18) To purchase insurance coverage in such forms and amounts as may be determined by the pension board.
(19) To provide employees of the system with health, dental, vision, and other forms of insurance, paid vacation, and sick leave, and any other benefits as determined by the pension board.
(20) To provide members of the system with voluntary life, disability, and other forms of insurance, the cost of which is paid by the member.
(c) Failure of the pension board to follow any provisions or procedures in the plan shall not constitute a waiver of any provision or procedure contained herein.
Last modified: May 3, 2021