SB236 Alabama 2016 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2016

Title

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

Summary

SB236 would give a 2% cost-of-living increase to certain Teachers' Retirement System retirees and survivor beneficiaries starting Oct 1, 2016, with funding and employer-contribution rules.

What This Bill Does

It provides a 2% increase in benefits for retirees whose retirement date was before Oct 1, 2015 and for certain survivor beneficiaries, beginning Oct 1, 2016. Survivor benefits are adjusted according to the retiree's original option. Medicaid-eligible individuals whose eligibility would be impaired by the increase are not entitled to it. The bill includes a $20 million Education Trust Fund appropriation to offset costs for the fiscal year starting Oct 1, 2016, with distribution to TRS-related agencies and institutions; from fiscal year 2017 onward, the TRS Board will determine the needed amount and employers will fund the increase in the same way as current contributions, distributed proportionally to active member salaries.

Who It Affects

• TRS retirees who retired before Oct 1, 2015 and certain survivor beneficiaries would receive the 2% increase (subject to Medicaid-related eligibility rules).
• State agencies and other TRS employers would fund the increased costs starting in 2017, with payments based on active member salary shares and supported by Education Trust Fund appropriations.

Key Provisions

• Provides a 2% cost-of-living adjustment for eligible retirees and certain survivor beneficiaries beginning Oct 1, 2016.
• Eligibility limited to those whose retirement date was before Oct 1, 2015; survivor adjustments follow the original option selected.
• Medicaid rule excludes individuals whose eligibility would be impaired by the increase.
• Allocates $20,000,000 from the Education Trust Fund for fiscal year starting Oct 1, 2016 to offset costs, distributed to TRS-related entities.
• From fiscal year 2017 onward, the TRS Board sets the required amount and employers contribute the increase proportionally to active member salaries.
• The act becomes effective immediately upon passage and 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