Bill > SB315

This bill proposes to provide a two percent cost-of-living increase to retirees and beneficiaries of the Employees' Retirement System (ERS) and the Teachers' Retirement System (TRS) in Alabama, commencing October 1, 2026. For ERS retirees and beneficiaries, this increase applies if their retirement or death date was before October 1, 2025, and it will be at least fifteen dollars per month, with certain exceptions for employers participating under specific sections of the law, who may elect to opt-in and bear the cost. For TRS retirees and beneficiaries, the increase applies to those with 25 or more years of service, with specific retirement and death date criteria, and the increase is contingent on legislative appropriation. In both systems, individuals receiving Medicaid benefits whose eligibility would be negatively impacted by this increase will not receive it. The bill also outlines provisions for survivor allowances and how the costs of these increases will be funded and administered by the respective retirement systems and employers, with the overall act becoming effective on October 1, 2026.