AGO 1996-125.

• Case Date: February 06, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-125. 1996-125February 6, 1996Honorable William J. Trussell Attorney, St. Clair County Health Care Authority 1916 First Avenue North Pell City, AL 35125 Health Care Authorities - Employees, Employers, Employment - Funds - Retirement Systems - Benefits The St. Clair County Health Care Authority does not have the authority to pay former non-vested employees additional compensation obtained from refunds received by the Authority following termination of participation in the Retirement Systems of Alabama.Dear Mr. Trussell: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION Can the St. Clair County Health Care Authority pay former non-vested employees for that part of their retirement account contributed by the Authority, which is being returned to the Authority upon its withdrawal as a member of the Retirement Systems of Alabama? FACTS AND ANALYSIS You provided the following information in your request: Until July 1, 1995, the St. Clair Regional Hospital was owned and operated by the St. Clair County Health Care Authority, a nonprofit public corporation incorporated and organized pursuant to Section 22-21-341, Code of Alabama 1975. During negotiations of the lease of the hospital facility to Alabama Health Services, L.L.C., a private entity, it was determined that in the event of such a lease, the employees of the hospital could no longer accrue retirement benefits under the State retirement system. The Authority, therefore, decided that in the event of the consummation of the lease with Alabama Health Services, L.L.C., it would withdraw as a member of the State retirement system. The Authority was advised by the State that upon its withdrawal, the Health Care Authority would receive from each non-vested employee's account the amount of contributions that the Authority had previously made to that employee's account. Furthermore, upon the withdrawal by the non-vested employee from the system, he would receive only the amount of his contribution plus interest. The Authority decided that the non-vested employees should receive the full amount of their retirement accounts as of the date of the transfer of the hospital facility to Alabama Health Services, L.L.C. Therefore, the Authority adopted a Resolution prior to the transfer of...