HB200 Alabama 2013 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2013

Title

Cost of living increase for certain retirees and beneficiaries beginning Oct. 1, 2013, Oct. 1, 2014 and Oct. 1, 2015

Summary

HB200 would grant cost-of-living increases to certain Alabama Employees' Retirement System retirees and beneficiaries for fiscal years starting 2013–2015, with the amount and eligibility depending on retirement date and whether employers fund the increases.

What This Bill Does

The bill provides tiered cost-of-living increases: 5% for certain pre-2012 retirees and some survivors beginning Oct 1, 2013; an additional 5% in 2014 for a narrowly defined group tied to local boards of education or state-supported higher education if the employer funds it; and 2.5% increases starting in 2014 and 2015 for broader eligible groups, again contingent on employer funding. Employers can elect to come under the act and must fund the increases (from the same sources as other ERS increases, proportionally to active salaries). The increases are not automatic retroactively unless the employer chooses to fund them. Medicaid eligibility rules exclude individuals whose benefits would be impaired by the COLA.

Who It Affects

• ERS retirees with retirement dates before specified cutoff dates (e.g., before Oct 1, 2012 or 2013, depending on the section) who are receiving benefits
• Beneficiaries/survivors of deceased members/retirees with similar date cutoffs who are receiving survivor benefits
• Employers participating in the Employees' Retirement System (including local governments, school systems, and state-supported higher education) that elect to fund and pay the increases
• Medicaid recipients whose eligibility would be impaired by the COLA are excluded from receiving the increase

Key Provisions

• Provision 1: Establishes a schedule of cost-of-living increases—5% starting Oct 1, 2013 for certain pre-2012 retirees and survivors; 5% in 2014 for a narrowly defined group under 36-27-6 linked to local boards of education or higher education if the employer funds; and 2.5% increases starting in 2014 and 2015 for broader eligible groups, all contingent on employer funding.
• Provision 2: Sets funding and eligibility rules: the Board determines the cost each year and notifies employers; employers may elect to fund the increases and must do so from the same funds used for other ERS increases, with costs shared in proportion to active member salaries; increases are not retroactive unless the employer explicitly funds them; Medicaid exclusions apply.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Employees