HB67 Alabama 2016 Session

Summary

Primary Sponsor

Artis McCampbellRepresentative

Democrat

Session

Regular Session 2016

Title

Teachers' Retirement System, 10 percent cost-of-living adjustment provided to retirees beginning October 1, 2016.

Summary

HB67 would give a 10% cost-of-living adjustment to Teachers' Retirement System retirees starting October 1, 2016, with a minimum $25 monthly increase, and set funding and eligibility rules for the increase.

What This Bill Does

Starting October 1, 2016, eligible retirees would receive 10% of their current gross benefit, with a minimum of $25 per month. This applies to retirees whose retirement date was before October 1, 2015, and to certain survivor or deceased-member beneficiaries with pre-2015 dates; survivor allowances would be adjusted according to the original option. If receiving Medicaid and the COLA would impair eligibility, the recipient would not get the increase, and those who later apply for Medicaid would not receive it after applying. The TRS Board would determine the annual amount needed for the increased benefit, and employers would fund it in proportion to active salaries, with appropriations required in the Education Trust Fund Budget Act.

Who It Affects

• Retirees of the Teachers' Retirement System who retired before October 1, 2015 (and certain surviving beneficiaries) would receive the 10% COLA, subject to a $25 minimum.
• Medicaid recipients whose eligibility would be impaired by the COLA would not receive the increase, and individuals who apply for Medicaid after the COLA is implemented would not receive it.
• Employers of TRS members (Alabama school systems) would be responsible for funding the increase, in proportion to active member salaries.
• The TRS Board would annually determine the funding amount and communicate it to employers.

Key Provisions

• Commencement of a 10% cost-of-living adjustment on October 1, 2016, with a minimum $25 monthly amount for eligible retirees and certain survivor beneficiaries with pre-2015 retirement/death dates.
• Survivor allowances shall be adjusted consistent with each member's original option if they are eligible.
• Medicaid impairment clause: individuals whose Medicaid eligibility would be impaired by the COLA are ineligible, and those who apply for Medicaid after the COLA is in place would not receive the increase.
• The TRS Board must annually determine the funding required for the increased allowance and notify employers of the necessary contribution levels, which shall be collected from the same sources as active-member salaries.
• Funding for the increase shall come from appropriations in the annual Education Trust Fund Budget Act, distributed proportionally across funds based on active salaries.
• Effective date: the act becomes law immediately after governor 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