Code of Alabama

Ala. Code § 36-27-2 (2026)

Creation; Designation; Purpose, Powers, Privileges, Management, Etc., Thereof Generally; Powers, Duties, Etc., of Board of Control; Immunity of State Officers, Etc.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) A retirement system is hereby established as a body corporate and placed under the management of the Board of Control for the purpose of providing retirement allowances and other benefits under the provisions of this article for employees of the State of Alabama. The retirement system so created shall be established as of October 1, 1945. It shall have the power and privileges of a corporation and shall be known as the “Employees’ Retirement System of Alabama,” and by such name all of its business shall be transacted, all of its funds invested and all of its cash and securities and other property held in trust for the purpose for which received.

(b) Any provision of law to the contrary notwithstanding, the Boards of Control of the Teachers’ Retirement System of Alabama and the Employees’ Retirement System of Alabama shall have vested in them all powers necessary to fulfill their fiduciary duty as trustees to members of each respective system including the power to sue and be sued, complain and defend in their own names; provided, however, that as instrumentalities of the state funded by the state, the retirement systems, their officers, and employees shall be immune from suit to the same extent as the state, its agencies, officers, and employees.

(Acts 1945, No. 515, p. 734, §2; Code 1975, §36-27B-6; Acts 1983, No. 83-616, p. 953, §§6(a), 7; Acts 1984, No. 84-259, p. 431, §1.)

Notes of Decisions
Cited in 7 cases, 1989–2016 · leading case: Taylor v. City of Gadsden, 958 F. Supp. 2d 1287 (N.D. Ala. 2013).
Taylor v. City of Gadsden, 958 F. Supp. 2d 1287 (N.D. Ala. 2013). · cites it 4× “) The full clause of Ala. Code 36-27-2 actually reads: The Board of Control of the .”
Ret. Sys. of Alabama v. JP MORGAN CHASE, 285 B.R. 519 (M.D. Ala. 2002). “Code § 36-27-2 (establishing employees’ retirement system and vesting it with same immunity from suit accorded to the State).”
Knutson v. Bronner, 721 So. 2d 678 (Ala. 1998). · cites it 3× “State employees have vested property rights created by § 16-25-2 and § 36-27-2, Ala. Code 1975, and the state cannot constitutionally impair or diminish those property rights.”
Denson v. Bronner, 171 So. 3d 614 (Ala. 2014). “Code 1975, § 16-25-2(b) and § 36-27-2(b). Section 16-25-20, Ala.Code 1975, provides: “(a)(1) The Board of Control [of the TRSA] shall be the trustees of the several funds of the Teachers’ Retirement System created by this chapter as provided in Section 16-25-21, and shall have…”
Edmonds v. Bronner, 864 F.2d 752 (11th Cir. 1989). “The Employees’ and Teachers’ retirement systems are managed and administered by different boards of control, Ala.Code §§ 36-27-2, 16-25-19 (1975), but Dr.”
Melof v. James, 735 So. 2d 1166 (Ala. Civ. App. 1998). “§ 36-27-2(b), Ala. Code 1975. The Legislature has an interest in ensuring the financial stability of the [ERS] because it is an agency of the State.”
S. States Police Benevolent Ass'n v. Bentley, 219 So. 3d 634 (Ala. 2016). “” 2 § 36-27-2, Ala. Code 1975. Participation in the ERS plan is mandatory for covered employees if they work at least 20 hours per week in a nontemporary position.”
— Ala. Code § 36-27-2(b) — 3 cases
Denson v. Bronner, 171 So. 3d 614 (Ala. 2014). “Code 1975, § 16-25-2(b) and § 36-27-2(b). Section 16-25-20, Ala.Code 1975, provides: “(a)(1) The Board of Control [of the TRSA] shall be the trustees of the several funds of the Teachers’ Retirement System created by this chapter as provided in Section 16-25-21, and shall have…”
Knutson v. Bronner, 721 So. 2d 678 (Ala. 1998). “State employees have vested property rights created by § 16-25-2 and § 36-27-2, Ala. Code 1975, and the state cannot constitutionally impair or diminish those property rights.”
Melof v. James, 735 So. 2d 1166 (Ala. Civ. App. 1998). “§ 36-27-2(b), Ala. Code 1975. The Legislature has an interest in ensuring the financial stability of the [ERS] because it is an agency of the State.”
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