SB251 Alabama 2014 Session

Summary

Primary Sponsor

Dick Brewbaker

Republican

Session

Regular Session 2014

Title

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

Summary

SB251 would grant a 5% cost-of-living increase to certain Alabama Employees' Retirement System retirees and beneficiaries starting October 1, 2014, with eligibility depending on retirement date and whether the employer funds the increase.

What This Bill Does

It creates a 5% increase in monthly benefits for specific ERS retirees and survivors. For some groups, the increase is automatic; for others, the employer must elect to participate and fund the increase. The funding and applicability depend on how the retiree's employer participated in ERS, and the increase is not retroactive. Those whose Medicaid benefits would be impaired by the COLA are not eligible.

Who It Affects

• Retirees of the Employees' Retirement System who retired before October 1, 2013 and who do not have an employer that participated under 36-27-6/7/7.1 (automatic 5% COLA).
• Beneficiaries (survivors) of deceased ERS members/retirees whose death or retirement occurred before October 1, 2013, under the same automatic eligibility framework.
• Retirees and beneficiaries whose employers participated under 36-27-6/6.1 and elect to come under the act, in which case the employer funds the 5% increase.
• Retirees and beneficiaries whose employers participated under 36-27-7/7.1 and elect to come under the act, with the increase funded by the employer.
• Retirees of local boards of education or state-supported higher education institutions (and their beneficiaries) who retired before October 1, 2013, if the employer funds the increase.
• Medicaid recipients (and new applicants whose eligibility would be impaired by the COLA) who would not receive the increase.

Key Provisions

• Section 1: Automatic 5% COLA for retirees and 5% for beneficiaries whose employer did not participate under 36-27-6, 36-27-7, or 36-27-7.1, with retirement date prior to October 1, 2013.
• Section 2: If an employer participating under 36-27-6 elects to come under the act, the same 5% COLA applies to eligible retirees and beneficiaries, funded by the employer; funding decisions are up to the employer.
• Section 3: Similar provision for employers under 36-27-7/7.1; eligible retirees/beneficiaries receive the 5% COLA if the employer elects to fund.
• Section 5-6: Retirees from local boards of education or state-supported higher education institutions who retired before October 1, 2013 may receive a 5% COLA if their employer funds the increase.
• Section 8: A narrow group—those whose ERS participation is based on 36-27-6 and whose retirement/death date was before October 1, 2013, and whose employer was a local board of education or state-supported higher education—would receive a 5% COLA; this does not apply to other ERS participants.
• Section 9: Medicaid-related eligibility rules—any person whose Medicaid eligibility would be impaired by the COLA shall not receive the increase.
• Section 11-12: The act becomes effective immediately on approval, and provisions are severable; the act replaces conflicting laws as stated.

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