HB154 Alabama 2016 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2016

Title

Teachers' Retirement System, cost-of-living increase authorized

Summary

HB154 would provide a supplemental 2% cost-of-living increase to certain Teachers' Retirement System retirees and some survivors, starting October 1, 2016.

What This Bill Does

It grants a 2% increase to current retirees and eligible survivor beneficiaries whose retirement or death occurred before October 1, 2015. Survivor allowances will be adjusted according to the original option choices or applicable law. It excludes people whose Medicaid eligibility would be impaired by the increase (and those who later apply for Medicaid would not receive it after applying). The cost of the increase would be calculated annually by the Board of Control and funded by employers in the same way as other retirement system costs, proportionate to active member salaries.

Who It Affects

• Retirees of the Teachers' Retirement System and certain survivor beneficiaries whose retirement or death occurred before October 1, 2015, who would receive a 2% increase.
• Employers of Teachers' Retirement System members who would fund the increased benefits proportionally to active salaries; and Medicaid recipients whose eligibility would be impaired by the increase are excluded from receiving it.

Key Provisions

• Starting October 1, 2016, a 2% cost-of-living adjustment is provided to eligible retirees and survivor beneficiaries with pre-October 1, 2015 dates.
• Survivor allowances will be adjusted consistent with the original option selections or applicable law if the retiree dies.
• Individuals whose Medicaid eligibility would be impaired by the increase are not entitled to the increase, including those who apply for Medicaid after the act's effective date.
• The Board of Control must determine annual funding needs for the increased benefits and employers must fund the increases from the same sources and in the same manner as current employer contributions, proportionate to active member salaries.
• The act becomes effective immediately after passage and the governor's 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

Teachers' Retirement System