SB311 Alabama 2016 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

Regular Session 2016

Title

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

Summary

SB311 would grant a 4% cost-of-living adjustment to eligible Teachers' Retirement System retirees and certain survivor beneficiaries starting October 1, 2016, funded by a state appropriation and employer contributions.

What This Bill Does

Provides a 4% increase in current gross benefits for retirees whose retirement date was before October 1, 2015 and for certain survivor beneficiaries. Adjusts survivor allowances according to the original option. Excludes individuals whose Medicaid eligibility would be impaired by the increase. Allocates $41,000,000 from the Education Trust Fund in the 2016-2017 fiscal year to help offset the cost, with distribution to TRS-related agencies and institutions; starting in 2017, the TRS Board sets annual funding needs and informs employers of contribution rates, with employers paying the increases from the same sources as active salaries.

Who It Affects

• Retirees of the Teachers' Retirement System and certain survivor beneficiaries (those whose retirement or death occurred before October 1, 2015) who will receive a 4% increase to their current gross benefits.
• TRS employers (state agencies and institutions that pay into the Teachers' Retirement System) who must fund the increased benefits through employer contributions, with costs distributed proportionally to active member salaries; Medicaid-eligible individuals may be excluded from receiving the increase if their eligibility would be impaired.

Key Provisions

• A four percent cost-of-living adjustment to current benefits for eligible retirees and certain survivor beneficiaries, effective October 1, 2016, equal to four percent of the current gross benefit.
• Eligibility criteria: the retiree's retirement date or the deceased member's/deceased retiree's death date must be prior to October 1, 2015; survivor allowances are adjusted according to the member's original option.
• Medicaid-related restrictions: individuals whose Medicaid eligibility would be impaired by the COLA are not entitled to the increase, and those who later apply for Medicaid and would be impaired are not entitled after the date of application.
• Funding and appropriations: $41,000,000 from the Education Trust Fund is appropriated for the fiscal year starting October 1, 2016 to offset the cost, distributed to TRS-related state agencies and institutions; payments issued by the State Comptroller upon certification.
• Future funding mechanics: from fiscal year 2017 onward, the TRS Board determines the annual cost of the increased allowance and informs employers of the required contribution rates; employers pay in the same manner as current funding sources for active members, with costs distributed proportionally to salaries.
• Effective date: the act becomes effective immediately upon passage and 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