Alabama state pension fund paying $370,000 in bonuses

Alabama’s state pension fund is paying a total of $370,000 in incentive bonuses to 14 employees.

The bonuses were approved this month by board directors for the 2015 fiscal year.

The head of the Retirement Systems of Alabama, David Bronner, says the bonuses help him keep strong employees in a competitive profession.

The pension system earned a 1 percent return on its $32 billion in investments for the year that ended Sept. 30. That’s below its long-range target of 8 percent.

But Bronner says the bonuses are based on performance relative to the markets, not the overall target.

State Treasurer Young Boozer says the incentive program is “fair and reasonable.”

A legislative committee is studying the state pension system and might recommend changes in 2016.

Republished with permission of the Associated Press.