HB287 Alabama 2014 Session

Summary

Primary Sponsor

Greg Wren

Republican

Co-Sponsors

John MerrillPaul BeckmanRon JohnsonOliver RobinsonDan WilliamsJohn W. RogersMary MooreTodd GreesonDimitri PolizosElaine BeechRod ScottKurt WallaceChris EnglandMerika ColemanWilliam RobertsJohnny Mack Morrow

Session

Regular Session 2014

Title

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

Summary

HB287 would provide a 5% cost-of-living increase in 2014 for certain Alabama Employees' Retirement System retirees, beneficiaries, and survivor benefits, with eligibility and funding tied to employer participation.

What This Bill Does

It authorizes a five percent increase to the gross monthly benefits for qualifying ERS retirees and beneficiaries starting October 1, 2014. Eligibility depends on when the person retired and which employer participated in ERS, with some groups requiring the employer to elect to come under the act and fund the increase. Funding is handled by the employer and is tied to the same sources used for other ERS increases, pro-rated by active salaries, and may be retroactive only if the employer chooses to fund it. The bill also specifies which groups are eligible, places limits on certain participants, and includes a Medicaid impairment provision to exclude those whose benefits would be affected.

Who It Affects

• ERS retirees whose retirement date was before October 1, 2013 and whose employer participated in ERS under Sections 36-27-6, 36-27-7, or 36-27-7.1, if their employer elects to fund the increase
• Beneficiaries of deceased ERS members or retirees in the same eligibility categories as above, whose death/retirement occurred before October 1, 2013 and whose employer funds the increase
• Pensioners and beneficiaries whose ERS participation is based on local boards of education or state-supported higher education and whose employer elects to fund the increase
• Pensioners whose benefits are not administered by ERS but who retired from a state city, town, county, or quasi-public organization and whose local employer elects to fund the increase
• Individuals whose Medicaid eligibility would be impaired by the COLA and thus are not eligible for the increase

Key Provisions

• A 5% cost-of-living increase is provided for qualifying retirees, beneficiaries, and survivor benefits starting Oct 1, 2014
• Eligibility depends on retirement date prior to Oct 1, 2013 and on employer participation in ERS under specified sections; the employer must elect to come under the act and fund the increase
• Funding for the increases comes from the same funds and sources used for other ERS increases, proportional to active member salaries, with annual determinations by the ERS Board
• Employers may elect to come under the act at Oct 1, 2014 or the start of subsequent fiscal years, and are not required to fund retroactively unless they choose to do so
• Section 8 narrows the additional COLA to a subset of participants associated with local boards of education or state-supported higher education
• Medicaid implications: individuals whose Medicaid eligibility would be impaired by the COLA are not entitled to the increase
• The act repeals conflicting laws, is severable, and becomes effective immediately after passage and approval

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