The House Select Committee on PERS held its first meeting Thursday, August 21, 2025. Speaker Jason White created the committee in June to evaluate different scenarios for keeping the system solvent, including an annual dedicated revenue stream appropriated by the legislature.
A representative of the Retirement Systems of Alabama (RSA) provided an overview of that system which manages three plans - one for educators, one for state employees and police, and one for the judicial system – and consists of two tiers. Her presentation reflected that 76% of the system’s FY 24 income came from investments including domestic and international equity as well as real estate. Alabama legislators are reviewing the system due to concerns they have received from educators regarding Tier 2’s 30-years of service requirement.
An analyst with the Reason Foundation encouraged committee members to spend at least $110 million/yearover the next four years which he contends would make the system solvent by 2055 assuming we do not have two recessions during this time. When asked why non-PERS taxpayers should support more than $100 million in state funds going to PERS each year, the analyst responded because PERS is a contract that must be honored and investing in the system today avoids tremendous costs in the future if the system should fail. While this question was asked, committee members gave no indication at any point during the discussion that the state’s obligation to retirees and PERS members will not be upheld.
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