The Alabama Supreme Court has dismissed a lawsuit brought by public employees who said the Retirement Systems of Alabama has made unwise investment decisions leading to lower returns.
From the Associated Press:
The Alabama Supreme Court has blocked a lawsuit that challenged the state pension fund’s investment in hotels, golf courses and other properties in Alabama.
The court ruled 6-2 Wednesday that the suit filed by two public employees should be dismissed.
The employees contended the Retirement Systems of Alabama had invested up to 15 percent of its assets in Alabama properties that were yielding lower returns than other investments would have. It wanted the courts to block future Alabama investments that would yield lower returns.
The Supreme Court said the pension fund is immune from such suits. The justices also said the courts shouldn’t oversee the investment policies of another branch of government.
Retirement Systems CEO David Bronner called the ruling “good news.” The employees’ attorney said they are disappointed.
The Retirement Systems of Alabama manage $28 billion in assets.
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