SB180 Alabama 2019 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2019

Title

Teachers' Retirement System, retirees and beneficiaries of deceased retirees, cost-of-living increase, provided for

Summary

The bill would grant a 3% cost-of-living increase to eligible Teachers' Retirement System retirees and survivor beneficiaries, with Medicaid eligibility protections and a funding plan for employers starting in 2020.

What This Bill Does

For the fiscal year 2019, it provides a 3% increase on current benefits for retirees whose retirement date is before October 1, 2018, and for beneficiaries of deceased retirees whose retiree retirement date is before October 1, 2018. Survivor benefits would be adjusted based on the retiree's original option. It excludes individuals whose Medicaid eligibility would be impaired by the COLA, including new applicants whose eligibility would be impaired after applying. Beginning in 2020, the TRS Board will annually determine the cost of the COLA and employers must fund it from the same sources as other TRS payments, in proportion to active member salaries; some funding may be included in the 2020 Education Trust Fund budget, and the act becomes effective immediately after passage.

Who It Affects

• TRS retirees with retirement dates before Oct 1, 2018 who would receive a 3% increase for 2019
• Beneficiaries/survivors of deceased TRS retirees with retirement dates before Oct 1, 2018 who would receive a 3% increase for 2019
• Medicaid recipients whose eligibility would be impaired by the COLA (not eligible for the increase)
• TRS employers (state and school districts) who must fund the COLA starting in 2020, in proportion to active member salaries

Key Provisions

• Provide a 3% cost-of-living increase for eligible retirees and surviving beneficiaries with retirement dates prior to Oct 1, 2018 for the 2019 fiscal year
• Adjust survivor benefits according to the retiree's original option
• Exclude individuals whose Medicaid eligibility would be impaired by the COLA, including new applicants whose eligibility would be impaired after applying
• Starting in 2020, TRS Board annually determines the cost and employers fund the COLA from the same sources as other TRS payments, with distributions proportional to active member salaries; some offset may be included in the 2020 Education Trust Fund budget; act becomes effective immediately after passage

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